Savor the benefits of healthy beverages

Healthy Food Spot On

The global healthy beverages market has doubled in size over the last 15 years due to wellness trends, with strong growth expected to continue. Oaklins’ specialist Paolo Russo examines how fast-shifting consumer preferences have forced companies to innovate and introduce products with new features that blur traditional boundaries and generate cross-category competition. We break down these categories to look at how beverages are evolving in response to changing consumer demands.

The global health movement caused a shift in consumers’ demand that has required continuous innovation in the beverage market and forced a change in traditional noncarbonated beverages to match consumers’ requirements. New opportunities have emerged for dynamic companies, while large corporations are increasing M&A activity to acquire strong brands in this growing segment. PAOLO RUSSO, OAKLINS HEALTHY FOOD SPECIALIST

The success of small, dynamic companies capable of responding quickly to emerging requirements has attracted the attention of large, international players keen to extend their portfolios to include on-trend brands. We analyze global M&A activity in the last decade to provide an overview of market behavior and progression.

A case study of Coca-Cola provides insight into the global giant’s highly acquisitive strategy, propelled by a unit dedicated to identifying niche markets and flourishing startups. Our summary of M&A evaluations and rationales reveals similar approaches among other multinational corporations, as well as private equity firms’ buy-and-build strategies and diversification by specialized healthy-food companies moving into the beverage market. We round off this edition with key takeaways and prospects for future growth.