Big food companies undergo ‘self reflection’ on business future as deals sweep the sector

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Large food companies face great questions about their future.

Between the potential separation in Kraft Heinz (KHC), a billion dollars deal between Ferrero and WK Kelogg (KLG), Pepsico’s (PEP), Poppi, and Big Food brands, pick up a terrible look at their American governor with the transformation of consumer tastes, and continues to grow in the regulation field.

“Self -reflection,” said John Bumgartner, an analyst Mizuho, said. There is a lot of flow in the industry at the present time. “

“This was usually a very sleeping sector, and that all these opposite winds or uncertainty are hit and everything happens at the same time … It really leads to stopping and meditating at work … [and] Boomgartner added.

Only this week, Pepsico recorded a 2 % decrease in drinks in North America in the second quarter, a decrease of 1 % and 3 % in the previous two, respectively.

On the same day, Coca-Cola (Ko) faced a new political obstacle when president Trump posted on social media that the company will start using real cane sugar in US soft drinks. In a statement, the company said it appreciated Trump’s enthusiasm for the brand. Coca-Cola will report quarterly profits on Tuesday morning.

Mexican coke drink is displayed in an ice cooler in a garden on July 17, 2025, in Austin, Texas. (Brandon Bell/Getti Emaiz) · Brandon Bell via Getty Images

In many industries facing unconfirmed growth paths, CEO options can become simple: buy or sell.

This year, Pepsico announced a $ 1.95 billion deal for brand SODA POPPI and $ 1.2 billion for Siete Foods. Hirchi (HSY) acquired the brand of less evil popcorn.

“It is a somewhat reaction,” said Peter Galbo, Bank of America analyst, said. “These companies notice that their basic business does not perform the way they thought they would do.”

In Galbo’s opinion, this year’s actions show companies that tell themselves that if the basic work does not succeed, “I must buy something that will increase its essence.”

“Most of these deals are” smaller growth brands that tend to … objective trends in the industry “, whether they are health, flavor or packages.

On the other hand, other major companies saw that this environment provides an opportunity to dismantle a large institution.

Nearly two years after Kelogg was divided into two companies, WK Kellogg and Kellanova (K), both of them were dried by players from the private sector.