After a volatile 2025 characterized by megadeals, leadership overhauls, and widespread divestments, the global food and beverage sector is moving into 2026 with M&A as a key growth driver. From snacks and functional foods to convenience and active nutrition, Big Food companies are rapidly reshaping their portfolios to focus on faster-growing segments while divesting slower, capital-intensive assets.
A year of upheaval sets the stage
Last year underscored how decisively the sector is changing. The Kraft Heinz Company unveiled plans to split into two standalone businesses, followed shortly by the appointment of a new chief executive. Ferrero Group completed its acquisition of WK Kellogg Co., reuniting two iconic names in packaged food.
At Nestlé, the dismissal of CEO Laurent Freixe over an undisclosed relationship was quickly eclipsed by a far larger shock: plans to cut roughly 16,000 jobs globally, alongside asset sales including its 40% stake in Herta Foods and a potential divestment of parts of its water and coffee businesses.
Meanwhile, Unilever moved to sell its ice cream division and offloaded snack brand Graze, while Mars, Inc. closed a sector-defining $36 billion deal for Kellanova as 2025 drew to a close.
The strategy has two parts: acquire fast-growing brands where internal innovation has been too slow, while selling off legacy categories that weaken margins or distract management. The outcome is a sharper focus on portfolio structure rather than building an empire.
Categories attracting capital
Several segments stand out as priority targets:
- Functional foods and beverages: Brands positioned at the intersection of health, lifestyle and daily habit continue to top buyer wish lists, particularly those that can rapidly scale through global distribution networks.
- Snacking: High frequency of consumption, cross-generational appeal, and global portability keep snacks at the forefront of dealmaking, with a focus on platforms that travel well across markets and occasions.
- Convenience foods: Consolidation is intensifying as operational efficiency, supply-chain control and manufacturing density outweigh pure brand appeal.
- Active nutrition: Buyers stay selective, preferring brands with clear functional positioning, scientific credibility, and premium pricing power amid increased regulatory scrutiny.
Looking ahead
If 2025 was a wake-up call, 2026 is shaping up as a year of action. With activist investors watching closely and retailers demanding more straightforward value propositions, passive category management is disappearing quickly. Analysts expect more divestments, larger surprise deals, and ongoing mergers among the food, beverage, wellness, and lifestyle sectors.
Observers say the companies best positioned to lead the next phase will not necessarily be the largest, but rather the fastest and most disciplined in reallocating capital toward growth.
