2021 will see the beginning of a “portfolio reshaping revival” in the food sector, according to a new report from Credit Suisse, reports Food Dive. This revival will happen due to four factors: increased sales during the pandemic providing financial flexibility, management teams continuing to shift portfolios to high-growth brands, lower valuations for big food companies due to skepticism over whether portfolios can maintain positive sales growth long term, and the assumption that slower-growth brands will get above-average valuations due to stronger sales.
According to the report, Credit Suisse analysts reviewed more than 30 companies and noted that the plant-based category has a high probability of portfolio restructuring and that big food will likely strike a balance between extending their existing brands and completing small tack-on acquisitions. Full Story
Related: Pandemic Shapes The Fresh Market's List of Foods to Try in 2021; Acosta Reveals CPG Predictions for 2021.
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