December 4th, 2019

// PepsiCo and Hostess Brands’ snacks M&A shows consumers want health and indulgence, says GlobalData

PepsiCo and Hostess Brands’ snacks M&A shows consumers want health and indulgence, says GlobalData

Consumer interest in the links between diet and health is a key driver of the global snacks market, but so is their desire to treats themselves – as has been underlined by two acquisitions in North America, argues GlobalData.

Twinkies owner Hostess Brands has recently announced the purchase of Canadian biscuit business Voortman Cookies. This deal was then followed by PepsiCo unveiling its move for fellow US snacks supplier BFY Brands.

Dean Best, Food Editor at GlobalData, says: “Growing consumer awareness in the links between diet and health is reshaping the snacks industry in markets around the world. PepsiCo, home to Lay’s crisps and Doritos tortilla chips, buying better-for-you snacks firm BFY Brands, the owner of the low-calorie PopCorners snack, underscores that trend.

“However, consumers don’t want to eat healthier snacks all of the time; they want to treat themselves. Voortman has a range of healthier wafer products, opening up Hostess to a line of better-for-you products, but the deal further bolsters the US group in the indulgent end of the market, too, adding snacks such as chocolate-chip and fudge-striped almonette cookies.

“The snacks market is a clear example of bifurcation – with health and indulgence in growth. Expect more deals at both ends of the spectrum.”

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