Private Equity Goes Smaller, Healthier in Quest for Food and Beverage Deals

Private-equity firms are shopping for younger, healthier food-and-beverage brands, but the risks associated with those brands are growing.

Private-equity and strategic buyers continue to pump more money into the food-and-beverage sector as they seek to capitalise on increasing consumer demand for healthier eating options. The health-and-wellness category, which drives much of the sector’s deal flow, is experiencing fierce competition for new breakout brands. But more firms find that to compete they must adapt their strategy...