Investment bank Silverwood Partners has released a lengthy overview of the natural products just in time for valuations to hit at Natural Products Expo West.
Key takeaways from the firm, which focuses on deals in the natural and specialty space, among others:
- The top 10 publicly quoted food and drink companies in the US have $30+ billion of cash available. They are looking to use this for good growth brands
- Both small and large companies are making strategic add-on acquisitions
- Institutional money in the natural space continues to grow. Sources include:
n Venture capital, private equity, fundless sponsors, family offices; many new
institutions have entered the market to invest in this space over the last 12
months - Deal levels remain strong and are growing – no dips
- Many strategics will make minority investments in natural/healthy brands; several are now investing or looking at opportunities for the first time; willing to incubate
- Some of the most desirable categories include: Healthy snacks, functional foods, ready-to-drink beverages, dried fruit/nuts and premium teas
- Everyone is trying to spot the next organic milk, almond milk, coconut water or other breakout category
You can download their work — which features several columns by Silverwood Managing Director Michael Burgmaier that ran on this site previously — here.