Industries Served

Food, Beverage & Agribusiness

  • Producers of Meat, Poultry, Dairy, and Fresh produce
  • Seafood Wholesalers and Distributors
  • Frozen Food Distributors
  • Packaged Foods and Canned Foods Processing
  • Juice, Energy Drinks and Beverage Producers
  • Wineries, Breweries and Alcoholic Beverage Production
  • Grocery Stores and Supermarkets
  • Convenience and Retail Stores
  • Bakeries and Confectioneries
  • Manufacturers and Distributors of Organic and Specialty Food Items
  • Fast Food and Fine-Dine Restaurants
  • Coffee Shops
  • Bars and Liquor Licensed
  • Catering Services
  • Vinyards and Agribusiness
  • Restaurant and Food Services
  • Online Grocery Retailers
  • Food and Equipment Distributors
  • Specialized Food

Beacon has advised several businesses in the food services and agri-business industry.

Mandate

Beacon was engaged by an exclusive Canadian distributor of a popular American Food Brand. The business had long-term contracts with the Brand and an established distribution network across Canada. The business serviced clients in the hospitality industry as well as cafeterias and catering for large corporation. Clients included reputable brand names like Marriott, Hilton. The company management at the time was seeking to expand by getting acquired by a larger corporation with a complementary portfolio of products. Due to Beacon’s strong outreach in North America and experience working with online businesses, Beacon was chosen as the exclusive broker and provided sell-side transaction advisory services through the entire sale process.

Implementation

Beacon began by compiling a fairness opinion to determine the business’ true fair market value and proceeded to compile deliverables and confidentially market the mandate to potential buyers. Due to the business’ deep penetration in the Canadian market and existing distribution channels across Canada, the business offered an excellent opportunity for global manufacturer of related food products to enter the Canadian market. Through our large network of buyers and industry professionals, we were able to attract several buyers for the business. Based on the seller’s criteria and vision, as well as our financial acumen, we were able to pre-screen buyers and solicit offers from serious buyers.

Outcome

Beacon’s team assisted our client through every step of the sale process, and successfully completed the transaction. Beacon effectively negotiated a share deal with a private buyer facilitating a 100% transfer of ownership. The vendors received all cash up front pursuant to all conditions stated in the initial offer agreement being met. Our team was actively involved through the due diligence process, ensuring transparency between both parties. In addition, Beacon assisted with succession planning to help maintain smooth operations through the transition period without damaging the value of the business.

Industry Overview

The food, beverage and agri-business industry includes producers, processors, distributors, wholesalers, retailers and food service businesses dealing with edible food items and beverages. The food service industry is in its mature stage and exhibits steadily growing demand. In Canada, the seafood, meat and dairy processing industry is heavily regulated due to the potential risks of contamination and adulteration. Regulation is tight during initial stages of manufacturing and processing and eases along the way as it reaches retailers. The food and agri-business just like the consumer retail industry, depends on food price inflation, consumer sentiment and commodity prices. High consumer sentiment and food price inflation is good for the industry as it allows higher profit margins. On the other hand, high commodity prices increase the cost of supplies and have a negative effect on margins. The consumer staples industry is defensive and experiences low volatility during recessionary periods. Rising awareness regarding health conditions has triggered a shift in attitudes towards organic, locally sourced and healthier specialty foods. In addition, immigration continues to fuel demand for ethnic, halal and kosher foods. This trend will continue in the future and companies with a focus on healthy foods and healthier food alternatives will grow at a faster rate compared to the industry median.
Porters-Food-Beverage
Porters-Legend