After a relatively stable year for food and beverage dealmaking, 2026 is shaping up to be a strong year for mergers and acquisitions.
Recent deals illustrate how companies are pursuing growth through higher sales volumes, explained John Carey Siegler, BMO Capital Markets managing director and head of middle market M&A for food and retail.
Some recent examples include Unilever’s acquisition of greens gummy supplement Grüns in a $1.2 billion deal (announced April 4), as well as Constellation brands’ acquisition of Hopwater (March 27). These businesses are investing in differentiated wellness-focused brands or true disruptors to secure growth.
Siegler discussed the trends alongside Todd Giles, BMO’s group head of food, consumer and agribusiness, during The Food Institute’s recent webinar titled “Food & Beverage Industry M&A: What to Expect in 2026.”
“We’re in a ‘stress test time’ for F&B companies – larger companies have learned that the old playbook doesn’t work … and disruptive companies must be more profitable more quickly,” Siegler said.
The dynamic is evidenced by deal activity. Fewer, higher value transactions are hitting the market, according to BMO analysis. Strategic buyers dominated the environment, accounting for roughly 75% of deals.
Early indicators point to an even healthier 2026: Q1 2026 M&A activity achieved a nearly five-year high for the F&B segment.
The webinar also looked at some of the most promising segments facilitating F&B growth.
In addition to better-for-you and healthy living verticals, Siegler added that frozen and refrigerated brands have become a top acquisition target, fueled by wellness tailwinds and global flavor innovations.
“In my view frozen is the new innovation frontier … technology has improved, so the quality of products has become stronger,” he said.
Convenience is another segment driver. When consumers are looking for simple, affordable meal solutions, frozen is gaining market relevance. On the grocery side, increased trial with traditional favorites and decreased food waste are pushing retailers to dedicate additional space to in-store freezers, while, in restaurants, these options help address labor challenges.
To learn more about the state of M&A in 2026, the webinar is available for free on-demand for registrants via this link.
The Food Institute Podcast
In this episode of Food for Thought Leadership, Food Institute Chief Content Officer Kelly Beaton steps in as guest host to interview Fransmart CEO Dan Rowe on the evolving restaurant labor market. Rowe challenges operators to view labor not as a cost to minimize but as a strategic investment, noting that the most successful brands are those that “staff for the sales they want” and prioritize retention, engagement, and culture amid ongoing workforce constraints.
