Major Acquisitions Reshaping the CPG Landscape
Heyoooooo,
Looking at the recent Poppi acquisition, I realized they're far from the only major acquisition in CPG over the last 12 months. Sure, it's a big one—$1.95 billion makes plenty of noise—but I think it's only fair we shine some light on the other deals reshaping the CPG landscape.
So that's exactly what we're doing in this edition of Ecomconnect.
I did want to share some updates on ShopTalk—I'll be there, and Lunar is teaming up with our friends at Spiffy AI and Superfiliate to host a pickleball event you won't want to miss.Selkirk will be doing some giveaways!!
We are hosting some pickleball, come play: PickleBall @ Shoptalk by Selkirk
Now let's dive into what's happening, why it matters, and what you actually need to know.
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Recent acquisitions across CPG and DTC, some event updates, and all the things you actually want to know.
The consumer packaged goods (CPG) sector has witnessed remarkable consolidation over the past 12-18 months, with strategic acquisitions that reveal deeper industry shifts.
Here's our analysis of the most significant deals and what they mean for the future of retail and e-commerce:
Strategic Beverage & Health-Forward Acquisitions
PepsiCo's Health-Conscious Portfolio Expansion
- Poppi Acquisition (March 2025): PepsiCo's $1.95 billion acquisition of Poppi, the trending prebiotic soda brand, represents more than just portfolio diversification—it signals a fundamental shift in how legacy beverage giants are responding to changing consumer preferences. Poppi's appeal to younger health-conscious consumers gives PepsiCo access to demographics that have traditionally avoided carbonated soft drinks.
- Siete Foods Purchase (October 2024): The $1.2 billion acquisition of this Texas-based maker of grain-free Mexican-inspired products isn't merely about entering the better-for-you snack segment—it's about capturing the growing Hispanic-inspired food market and addressing dietary restrictions (grain-free, gluten-free) that mainstream CPG has historically underserved.
Pet Category Consolidation
General Mills' Strategic Pet Industry Expansion
- Whitebridge Pet Brands Acquisition (November 2024): General Mills' $1.45 billion purchase of Whitebridge's North American premium cat feeding and pet treating business builds on their previous Blue Buffalo acquisition. This demonstrates the company's recognition that the humanization of pets and premium pet food represent one of the most resilient and fastest-growing CPG categories, often outperforming human food during economic downturns.
Major Industry Consolidations
Mars & Kellanova Merger
- The 2024 acquisition of Kellanova (formerly Kellogg's core business) by Mars represents one of the most significant industry consolidations in recent years. This creates a powerhouse that combines Mars' confectionery strength with Kellanova's breakfast and snack dominance, potentially reshaping category management and retail partnerships.
Rescue Acquisitions & Heritage Brands
Supreme & Typhoo Tea
- Supreme's £10.2 million acquisition of the insolvent Typhoo Tea in December 2024 highlights an emerging trend: strategic players rescuing heritage brands with strong consumer recognition but challenged business models. This provides Supreme immediate category credibility while preserving a storied British brand.
Frozen & Confectionery Category Cross-Pollination
Ferrero Group's Expansion into Frozen Treats
- Ferrero's acquisition of Wells Enterprises (makers of Blue Bunny and Halo Top) demonstrates how traditionally siloed CPG categories are converging. This move allows Ferrero to leverage brand equity from confectionery into adjacent frozen categories while gaining access to different consumption occasions and retail positioning.
Nutrition & Performance Categories
Mondelez's Strategic Health Portfolio Enhancement
- The $2.9+ billion acquisition of Clif Bar & Company positions Mondelez to capitalize on the growing active lifestyle and performance nutrition markets, complementing their indulgent snacking portfolio with offerings that appeal to more health-conscious, active consumers.
Coffee Category Realignment
Nestlé's Seattle's Best Coffee Acquisition
- By acquiring Seattle's Best Coffee from Starbucks, Nestlé continues to strategically build a multi-tiered coffee portfolio spanning premium (Nespresso), mainstream (Nescafé), and now mid-tier offerings that serve different price points and consumption occasions.
Deeper Market Implications
For E-commerce
- Direct-to-Consumer Integration: Acquirers are particularly interested in brands with established DTC infrastructures. For example, Poppi's strong online presence gives PepsiCo valuable direct consumer relationships and data.
- Omnichannel Optimization: These acquisitions provide opportunities to leverage complementary distribution strengths—helping digitally-native brands access traditional retail while giving legacy brands improved e-commerce capabilities.
- Data-Driven Strategy: Acquisitions of brands with strong digital presences provide valuable consumer insight data that can inform broader portfolio strategies and innovation pipelines.
For CPG Manufacturers
- Innovation Through Acquisition: Rather than developing new products internally, major CPG companies are increasingly "outsourcing" innovation by acquiring successful startup brands that have already demonstrated product-market fit.
- Supply Chain Integration Challenges: Companies face significant challenges in integrating disparate supply chains, especially when acquired brands have specialized manufacturing requirements or ingredient sourcing that differs from parent company standards.
- ESG Considerations: Many recent acquisitions show prioritization of brands with strong sustainability credentials, as larger companies seek to improve their environmental and social governance profiles.
- Valuation Premiums for Health & Wellness: Healthy, natural, and functional products continue commanding significant valuation premiums, with multiples often 3-5x higher than traditional CPG categories.
For Retailers
- Category Management Complexity: The consolidation of brands under fewer corporate umbrellas means retailers must navigate more complex category management decisions and potentially stronger supplier negotiating positions.
- Private Label Strategy Recalibration: With major brands expanding into premium and better-for-you segments, retailers must reconsider their private label strategies to maintain differentiation.
- Merchandising Innovations: Cross-category acquisitions (like Ferrero moving into ice cream) create opportunities for retailers to experiment with novel merchandising approaches that leverage brand recognition across traditionally separate departments.
- Exclusive Retail Partnerships: As CPG companies acquire digitally-native brands, retailers have new opportunities to negotiate exclusive brick-and-mortar distribution deals that drive foot traffic.
Industry Outlook and Predictions
- Continued Premium Snacking Consolidation: Expect further acquisitions in the premium snacking space as larger companies seek growth in categories with higher margins and stronger appeal to younger consumers.
- Functional Ingredient Expansion: Companies with recent acquisitions in the health and wellness space will likely leverage these platforms to introduce more functional ingredients and benefit claims across their broader product portfolios.
- International Brand Acquisitions: As domestic acquisition targets become scarcer and more expensive, look for major CPG players to increase international acquisitions, particularly in emerging markets with growing middle classes.
- Technology-Enhanced CPG: Acquisitions of brands with technological components (smart packaging, customization platforms, etc.) will likely increase as traditional CPG companies seek to address changing consumer expectations around personalization and digital integration.
- Regulatory Scrutiny: Given the significant industry consolidation, expect increased regulatory scrutiny of larger deals, potentially slowing or complicating future mega-mergers.
Strategic Considerations for Industry Stakeholders
- For Emerging Brands: Building demonstrable strength in areas that complement gaps in major CPG portfolios positions you as an attractive acquisition target.
- For Investors: Look for brands that address clear white spaces in major CPG portfolios, particularly those with proven appeal to demographics that legacy brands struggle to reach.
- For Retailers: Develop flexible merchandising strategies and nimble shelf allocation processes to quickly adapt to the changing corporate ownership landscape.
- For Established CPG Companies: Consider developing more systematic "acquisition pipelines" that identify potential targets earlier and build relationships before formal acquisition processes begin.
The wave of acquisitions across the CPG industry reflects a fundamental restructuring of the marketplace in response to shifting consumer preferences, technological disruption, and competitive pressures. As the boundaries between traditional categories continue to blur and consumers increasingly seek products aligned with their values and lifestyle needs, expect continued consolidation as companies position themselves for long-term relevance in this rapidly evolving landscape.
What remains clear is that scale alone is no longer sufficient—successful CPG companies must build portfolios that balance mainstream appeal with specialized offerings that address emerging consumer priorities around health, sustainability, and authenticity.
Shoptalk is almost here—aka the Super Bowl of commerce.
Whether you’re in it for the insights or the afterparties, Vegas is about to be buzzing with brand builders, tech pioneers, and retail’s brightest minds.
Here are some of the can't-miss events happening around Shoptalk next week:
Stay AI Cabana Hangout @ Shoptalk
The Ultimate Vegas VIP Penthouse: Part II
The Wild Wild West Shoptalk Happy Hour
Larry & Jess' Excellent Shoptalk Tiki Adventure
The 2nd Annual Shoptalk 5k Run Club
The Hangover Hangout at In-N-Out
CX Recovery Brunch: Recover & Rally
Until Next Time
That's all for this edition of Ecomconnect.
The CPG landscape continues to evolve at breakneck speed, and these acquisitions are just the beginning of what's likely to be an exciting year of industry transformation.
If you're heading to Shoptalk, drop by our pickleball event—I'd love to connect in person.
Until next time,
Zach
P.S. If you found value in this breakdown, consider sharing it with a friend or colleague who's interested in brand building, consumer trends, or the future of retail. And as always, hit reply with any thoughts—I read every message.