{"id":36039,"date":"2023-01-31T02:54:46","date_gmt":"2023-01-31T02:54:46","guid":{"rendered":"http:\/\/developer.wordpress-developer.us\/auctuscapitalinc\/?p=36039"},"modified":"2023-03-01T03:17:40","modified_gmt":"2023-03-01T03:17:40","slug":"food-and-beverage-in-focus-sector-trends-and-fancy-foods-recap","status":"publish","type":"post","link":"https:\/\/developer.wordpress-developer.us\/auctuscapitalinc\/2023\/01\/31\/food-and-beverage-in-focus-sector-trends-and-fancy-foods-recap\/","title":{"rendered":"Food & Beverage In Focus: Auctus Capital Partners Highlights Sector Trends and Deal Drivers with 2023 \u2018Fancy Food Show\u2019 Recap"},"content":{"rendered":"

Conferences and industry trade shows are making a comeback for the first time since the onset of the pandemic. The Specialty Food Association\u2019s (SFA) <\/strong>Fancy Food Show<\/em><\/strong><\/a> marked the first of many events Auctus Capital Partners will attend in 2023.<\/p>\n

The SFA Show brought a range of leading F&B stakeholders to the Vegas Convention Center, from food artisans, purveyors, importers and entrepreneurs to distributors, retailers, and others involved in the specialty food trade. Auctus Capital Partners \u2014 including Carl Cordova<\/a>, Managing Director and leader of the growing Food & Beverage sector within the firm\u2019s consumer industry network \u2014 was among the 13,000 industry executives in attendance.<\/p>\n

Check out industry insights from our team, with updates on the key takeaways, themes and issues that were top of mind coming out of the conference:<\/p>\n

Future of Food: The Lower Middle Market Exhibits Resilience Amid Macroeconomic Challenges <\/strong><\/h3>\n

The widespread increase in cooking at home that resulted from the pandemic has had a lasting effect. Innovation in meal kits, packaging, prepared foods, and overall simplicity have shaped trends as fatigued consumers try to balance cooking with returning to work out of the home.<\/p>\n

At the same time, ongoing inflation and fears of a recession have impacted consumer behaviors. Many families are getting more selective about how they spend. Investors and others looking to acquire companies that make or sell products for consumers are getting choosier for much the same reason.<\/p>\n

While the Fed\u2019s intervention to curb rising inflation has started to show signs of a softer landing, F&B companies continue to face challenges with supply chain delays, higher costs and overall unpredictability. The impact of the pandemic fundamentally changed how operators view sourcing and logistics. While larger market players maintain pricing power and more leverage with global suppliers, the lower middle market faces ongoing price increases for raw materials and shipping costs that have been difficult to pass on.<\/p>\n

Fortunately, after a year of price adjustments, a large majority of investors believe valuations in 2023 will remain stable or even track higher than 2022. For F&B businesses, however, remaining focused on staying agile is critical to protecting their bottom line.<\/p>\n

The factors that restrained M&A in 2022 may remain with subdued activity in the short term, but indictors point to a strong deal environment for 2023 \u2014 and the pivot to the lower middle market will continue to tee up opportunities for F&B businesses that are able to adapt with demand driving trends.<\/p>\n\n\t\t