Food and beverage giants are on a buying spree. PepsiCo acquired Siete Foods for $1.2 billion, Keurig Dr Pepper spent over $1 billion on Ghost Energy, and Molson Coors took control of Dwayne “The Rock” Johnson’s ZOA Energy. These headline-grabbing deals don’t just reshape corporate portfolios—they also influence consumer spending in unexpected ways.
Data from Attain shows that in the months following acquisition announcements acquired brands typically see an initial 15-20% surge in consumer spending, thanks to expanded distribution and marketing. However, this honeymoon period often gives way to integration challenges as brands adapt to corporate ownership.
Why Big Brands Are Buying
According to market research firm PitchBook, which just released its Q4 Food & Beverage CPG Report, 509 food and beverage deals closed in 2024, making it one of the strongest years for acquisitions. Economic pressures, inflation, and shifting consumer spending patterns have driven companies to prioritize M&A over organic growth.
“Companies are offloading low-growth brands while acquiring high-growth ones to align with emerging trends,” says Alex Frederick, senior analyst at PitchBook.
The report indicates that consumer packaged goods companies are increasingly focusing on “better-for-you” food companies and plant-based alternatives to capitalize on health and wellness trends. PepsiCo’s recent acquisition of CFA Foods, for example, positions the company to capitalize on plant-based and healthier snacking categories.
What Happens After Acquisition
Not all brands retain their independence post-acquisition. Some, like Simple Mills under Flower Foods, maintain a distinct identity while leveraging their new parent company’s resources.
Others, like Siete Foods and La Colombe, may be more fully integrated into corporate portfolios.
At the same time, consumer preferences are diverging. While demand for “better-for-you” foods continues to grow, indulgent and vice products are also gaining traction. “We’re seeing trends like ‘dirty sodas’—sugary syrups mixed with traditional sodas—take off,” Frederick notes.
The Consumer Trade-Off
For devoted customers, acquisitions can be a double-edged sword. While acquired brands benefit from better distribution and marketing, there’s also concern over potential formula changes or a loss of the brand’s original ethos.
Still, Frederick believes strong brands can thrive under corporate ownership. "Some of the main benefits for these smaller brands is they’re going to get access to the distribution and marketing to really help bring much distribution and professional brand to these brands that may have been underserved."
What’s Next?
Looking ahead, Frederick expresses optimism about continued deal activity. “The outlook for deal activity is looking very strong in 2025,” he predicts. “One of the main reasons for that is normalization of valuations.” However, economic headwinds like inflation and tariffs could influence the pace of acquisitions.
For consumers, the key question remains: Will corporate ownership improve their favorite brands or dilute what made them special? The companies that balance efficiency with authenticity will likely see the biggest returns.
