Andrew Dickow’s Post

In the world of branded food, a critical gap often overlooked is the deep understanding of core consumers and brand identity. Too many early-stage food companies see packaging as just a container, missing its true power. Your packaging isn't just a wrapper—it's your brand's billboard. It tells your story, defines your values, and sets you apart in a crowded market. Brand identity is essential for distinguishing a brand and maintaining customer loyalty, especially in the franchising sector, where it is key in driving value. A lack of alignment on this can easily make or break a deal. During my conversation with the 1851 Franchise on successful mergers and acquisitions in franchising, I emphasized other critical factors such as a strong back office, well-defined standard operating procedures, robust field support, and a cooperative partnership with the franchisor. At Greenwich Capital Group LLC, we observe firsthand how effective implementation of these elements can influence outcomes in the M&A market. To read the full article, click here: https://lnkd.in/gByQbPGd

Middle-market deal activity experienced a step back from April to May, dropping from 78 deals in April to just 53 in May, according to LSEG (London Stock Exchange Group) data. Despite this dip, some sectors are still experiencing growth in the M&A space.   I recently discussed these growing sectors with Mergers and Acquisitions - themiddlemarket.com, focusing on the retail space. In the article, I highlighted four contributing factors: economic stability and market recovery, high-value transactions, investments in technology and sustainability, and portfolio optimization.   At Greenwich Capital Group LLC, we are seeing these trends in real-time across various industries, and working with our clients to navigate simultaneous headwinds and tailwinds by industry.   To read the full article regarding market trends and the resilience within the retail sector, click here: https://lnkd.in/ge9kHNkx   #MergersAndAcquisitions #MiddleMarket #Growth #DealActivity #InvestmentBanking #Retail

Get ready for your favorite candy bar to become a lot more expensive.   The cocoa industry has been facing significant challenges due to weather-related crop diseases and low prices paid to farmers. As a result, the spike in cocoa prices this year has been historic (over 100% increase in prices in just the last six months), with prices reaching record highs. While food companies are already battling inflation on other products and consumers are being more selective with their spending, candy companies have little room to maneuver on pricing.   Big players like The Hershey Company and Mondelēz International are usually shielded by contracts but will feel the impact once these agreements expire. Meanwhile, other companies are struggling with rising costs, forcing them to get creative. J&J Snack Foods Corp is experimenting with reducing chocolate in some products and exploring substitutes. Others are leaning on their diverse product lines to handle shifts in consumer trends and inflation.    The cocoa industry additionally faces other complexities, including ethical concerns surrounding child labor and slavery in cocoa farms. Despite these challenges, innovation and adaptability remain essential for the candy industry to progress.   Pro Tip: Next time you buy your favorite brownie mix or another chocolate product, read the label to see if it has “Carob” in it. That is a prevalent cocoa substitute used by many large CPG players.   #Cocoa #CandyIndustry #Innovation #FoodandBeverage https://lnkd.in/gg5psT_f

Dollar Tree Stores is exploring strategic alternatives of selling off Family Dollar, a merger they completed back in 2015 for $8.5 billion.   The Problem: The two brands have distinct strategies and cater to different consumers and areas.    However, this is not the only factor driving the decision. Family Dollar has faced challenges such as messy, neglected stores, higher prices, increased competition from major retailers, over-expansion, and unhappy employees - a combination that's proven problematic.   Originally, Dollar Tree acquired Family Dollar to prevent Dollar General from doing so and to better compete with larger rivals. Unfortunately, the merger did not turn out as expected.   At Greenwich Capital Group LLC, whether advising on the buy-side or sell-side, we dedicate significant time and effort not only to analyzing the business case but also to conducting a thorough integration assessment. This approach helps us gauge the likelihood of long-term success. This case illustrates that a defensive strategy is not always the best offense, and a deal that looks good on paper can fail without strategic and integration cohesiveness. What are your predictions for the Dollar Tree/Family Dollar sale? Who is the right buyer for this asset? #StrategicAlternatives #MergersAndAcquisitions #RetailNews #FamilyDollar #DollarTree   https://lnkd.in/gVUe5pSj

Coke vs. Pepsi? Not so fast.   For the first time, Keurig Dr Pepper Inc. has now claimed the #2 soda spot in America, surpassing PepsiCo, who had held the position for over two decades. Their innovative marketing initiatives and unique blend of flavors have truly set them apart from the competition. I had the chance to discuss Dr. Pepper's remarkable rise with The Food Institute, emphasizing their strategy and how they have particularly resonated with the younger demographic, who crave diverse flavors beyond traditional cola.   In the article, I mentioned: "Dr. Pepper has distinguished itself through effective marketing campaigns that emphasize its unique flavor and individuality. This strategy resonates particularly well with younger demographics seeking alternatives to traditional cola drinks."   With Dr. Pepper's leap to the #2 position, do you think they have a shot at dethroning The Coca-Cola Company from the #1 spot? In which other categories do you think a shift like this is possible? Read the full article here: https://lnkd.in/g572y5jv   #MarketingStrategy #BeverageIndustry #Innovation #DrPepper

Really interesting insights from the new co-leader of our Consumer practice Alexander Chefetz.

Looking forward to speaking at this event next week! To register, click below.

Are the days of roll-up strategies by private equity firms ending? Probably not.   However, there is likely to be increased scrutiny, especially on more significant transactions where major platform companies dominate a sector. This creates a competitive advantage when smaller competitors look to sell, allowing these larger firms to pay a premium on desirable assets, benefiting from multiple arbitrage that smaller acquirers can't match.   The Federal Trade Commission (FTC) and the Department of Justice (DOJ) have launched a public inquiry to examine the impact of serial acquisitions and roll-up strategies on market consolidation and competition. This inquiry seeks public input on how these acquisitions affect various sectors, including housing, defense, cybersecurity, and healthcare. The feedback will shape the agencies' enforcement priorities and future actions.   GCG closely monitors these developments and informs its clients about how this inquiry might affect their strategic initiatives.   To receive updates on this and other M&A trends, sign up for our quarterly updates, news, and industry insights here: https://lnkd.in/gyqxDb62   To read the full article, click the link below. https://lnkd.in/gABKEqmV