By CB Insights.
The food and beverage industry is remarkably concentrated, with top companies wielding multiple, sometimes dozens, of brands to capture over 70% market share in the US market in key segments like beer, soda, chocolate, and cereal.
With increased global focus on health and natural eating, smaller food companies have grown in recent years — a Boston Consulting Group report found that CPG companies with less than $5B in sales gained 2.7 points of market share since 2011 — representing $18.1B in aggregate sales growth. BCG also noted that in 2015 the industry saw its fastest growth rate since 2012.
Big CPG players have stepped up their M&A and investment activity in recent years. Anheuser-Busch InBev has been a top acquirer, purchasing 15 private companies since 2011. Water distributor DS Services of America acquired nearly 10 smaller water brands over the same period. In the first seven months of 2016, we’ve seen Campbell Soup launch a $125M venture capital fund, Kellog’s launch a $100M venture capital fund, Mondelez bid $23B (in a rejected deal) to take over Hershey’s, and Danone’s acquired WhiteWave Foods for $12.5B.
However, we still see dozens of private food and beverage companies (some with equity funding from the industry leaders) attacking every aisle in the supermarket, with some offering their products in stores, and others competing solely by distributing online. Using CB Insights data, we identified 93 companies offering new takes on healthy beverages, snack foods, plant-based cheese, and more. Scroll down to view the graphic, as well as funding and investor data for each company.
Read more at CB Insights.