Most global packaged food players have been very active in aligning their businesses with key trends, which, in addition to acquisitions and active portfolio development, included some significant corporate restructuring. A number of multinational food and beverages players chose the tool of corporate restructuring in order to achieve their growth and/or profitability objectives. As the newly created entities start trading, advantages and challenges need to be evaluated.
The operating environment in the global packaged food market is being negatively impacted by a number of factors, such as weak economic growth, unstable commodity prices and fierce competition.
Together with the long-term trend of wellness and nutrition, economic and social changes are bringing new driving trends to which companies need to respond, such as snacking, convenience, luxury and value for money.
Companies have been very active at aligning their businesses to key trends through acquisitions and active portfolio development, as well as significant corporate restructuring.
A number of global scale food and beverages players have split operations in order to achieve their growth or profitability objectives.
The splitting up of operations has given companies the flexibility to address distinct growth priorities, as well as to concentrate resources on business development in a more targeted manner.
However, the breaking up of conglomerate-style operations can reduce economies of scale, which could become a significant competitive disadvantage in the intensely competitive market environment.
As a result of the number of restructurings there are a number of strongly streamlined, single market/category focused global assets in the market.
Some of these newly created entities could become very attractive acquisition targets for well-performing emerging markets players aiming to step up to the global platform in the package food.
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