The consumer packaged goods (CPG) industry is undergoing rapid transformation, with top players actively acquiring brands to expand their portfolios, enhance market share, and capitalize on emerging consumer trends. Whether through strategic acquisitions or mergers, leading CPG acquirers are shaping the future of the industry. In this article, we explore the top acquirers in the CPG space, their key acquisitions, and what makes them stand out.
1. Procter & Gamble (P&G)
Strength in Brand Diversification
Procter & Gamble has a long-standing reputation as one of the most acquisitive companies in the CPG sector. With a focus on personal care, household products, and beauty, P&G strategically acquires companies that align with its core strengths and consumer demands.
Notable Acquisitions:
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- Billie (2020) – A direct-to-consumer women’s razor brand that strengthened P&G’s grooming category.
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- First Aid Beauty (2018) – An acquisition that bolstered its skincare portfolio.
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- Native (2017) – A natural deodorant brand that tapped into the clean beauty trend.
2. Nestlé
Expanding Health and Nutrition Offerings
Nestlé has been aggressively acquiring brands in the health, wellness, and pet care sectors to align with changing consumer preferences for healthier options.
Notable Acquisitions:
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- Freshly (2020) – A meal delivery service acquisition to expand into the direct-to-consumer market.
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- Zenpep (2020) – Strengthening its health sciences division with a pharmaceutical-grade digestive enzyme.
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- Blue Bottle Coffee (2017) – Enhancing its premium coffee portfolio.
3. Unilever
Sustainability and Natural Products Focus
Unilever has focused on acquiring brands that support its sustainability and ethical business strategies, particularly in the beauty and personal care sectors.
Notable Acquisitions:
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- Paula’s Choice (2021) – A digital-native skincare brand with a strong consumer following.
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- Horlicks (2018) – A nutritional supplement brand expanding Unilever’s health and wellness portfolio.
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- Sundial Brands (2017) – Acquiring SheaMoisture and Nubian Heritage to target multicultural consumers.
4. Coca-Cola
Expanding Beyond Traditional Beverages
Coca-Cola continues to diversify its beverage offerings by acquiring brands that appeal to health-conscious consumers and alternative drink markets.
Notable Acquisitions:
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- BodyArmor (2021) – Strengthening its position in the sports hydration segment.
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- Fairlife (2020) – A high-protein dairy beverage company that aligns with consumer health trends.
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- Costa Coffee (2019) – Entering the global coffee market with a major acquisition.
5. Mondelez International
Snacking Powerhouse
Mondelez has focused on expanding its global snack empire through acquisitions that cater to changing consumer preferences for healthier, on-the-go snacks.
Notable Acquisitions:
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- Clif Bar (2022) – Strengthening its portfolio in the health-focused snack market.
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- Hu (2021) – A clean-label chocolate and snack brand acquisition.
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- Tate’s Bake Shop (2018) – Premium cookie brand acquisition for its expanding snacking division.
6. General Mills
Growth Through Natural and Organic Brands
General Mills has been acquiring companies that enhance its capabilities in organic, natural, and better-for-you foods.
Notable Acquisitions:
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- Blue Buffalo (2018) – A significant move into the pet food market.
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- Epic Provisions (2016) – Expanding its presence in the high-protein, clean-label snacking category.
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- Annie’s Homegrown (2014) – Strengthening its position in the organic food sector.
7. PepsiCo
Diversification Beyond Soft Drinks
PepsiCo’s acquisitions have focused on expanding its footprint in healthy snacks, beverages, and functional foods.
Notable Acquisitions:
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- BFY Brands (2020) – Parent company of PopCorners, bolstering its healthy snacking division.
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- SodaStream (2018) – Entering the home carbonation market.
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- Bare Snacks (2018) – Strengthening its better-for-you snack portfolio.
8. Colgate-Palmolive
Personal Care and Wellness Expansion
Colgate-Palmolive has been growing its personal care and wellness divisions through strategic acquisitions.
Notable Acquisitions:
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- Hello Products (2020) – Expanding its oral care lineup with a natural and sustainable brand.
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- Filorga (2019) – A premium skincare acquisition to strengthen its beauty category.
Conclusion
The CPG industry continues to see significant consolidation as companies seek growth through acquisitions. Industry giants like P&G, Nestlé, Unilever, and Coca-Cola are leading the charge, acquiring brands that align with emerging trends such as health and wellness, sustainability, and direct-to-consumer business models. Keeping an eye on these acquirers provides valuable insights into where the industry is headed and what trends will shape the future of consumer goods.
For businesses in the CPG space, understanding these acquisition trends can offer strategic advantages, whether preparing for potential partnerships, mergers, or positioning a brand for acquisition.
Contact our Consumer Practice for more in-depth insights into the current state of acquirers in the CPG space.
