Published 3rd Oct 2023, 06:00 BST

The firm’s UK Food and Beverage Sector M&A report also shows that deal value has increased by 49.1 per cent to around £400 million, compared to the same period last year.

Though activity has risen generally, the report notes that there is still a significant absence of middle to higher market deals.

Over 75.0 per cent of deals had an estimated value of £10.0 million or less, similar to the first third 2023, when around. 80.0 per cent of deals had an estimated value of £10.0 million or less.

Merger and Acquisition activity in the food and beverage sector has risen 68.2 per cent between May and August, according to a new report from Oghma Partners. (Photo by PA)

Only 8.1 per cent of transactions were estimated to be above the £50.0 million mark, falling well below the five-year historic average of 13.9 per cent.

Mark Lynch, partner at Oghma Partners, said: “The resilient and defensive characteristics of the food and beverage M&A sector can once again be seen with deal volume in the second part of the year at its highest level since 2019 despite the relentless market challenges.

“Whilst there has been a recovery in deal value, this has been from a very low base and the overall quantum value of transactions remains low. A challenging funding and trading environment with the added uncertainty of whether, or not, the UK will dip into recession provides the economic backdrop. These factors have manufactured a significantly less favourable environment for larger transactions.”

Equivalent to the first third of 2023, the beverages sector was the most active with several niche producers changing hands. There were multiple deals in the beer market, with Breal Capital acquiring two microbreweries in Brew by Numbers and Yorkshire-based Black Sheep Brewer.

Other deals in Yorkshire included vegan protein brand Meatless Farm being acquired by fellow Yorkshire vegan brand VFC.

Food & Beverage M&A activity rises but absence in middle to higher market deals remains