The consumer sector remains one of the most active sectors globally, attracting significant investment and experiencing record levels of M&A activity in the last 10 years. The UK, US and China have been the largest drivers of deal volumes in 2021 with both high volume and high value transactions.
Listen as Rob Baxter, global Corporate Finance consumer sector lead, and Ross Colbert, global Corporate Finance drinks sector lead, share their thoughts on the drinks sector globally, looking at the key trends driving this activity and their predictions for the year ahead. The global beverage industry has shown huge resilience coming out of the pandemic but unsurprisingly, the shape of these transactions has changed from pre-COVID with a strong focus now on direct to consumer (D2C) and digitally powered assets acting as a key driver through 2021.
As we move into 2022, the key drivers include trends such as health and wellness, the disruption of supply chains and importantly, ESG – particularly around single use plastic. We anticipate there to be continued pressure on supply chain costs, which in turn will present challenges for smaller companies who need to quickly adapt to the new environment we live in, where ESG is a primary consideration.