M2 Ingredients, a vertically integrated functional mushroom grower based in California, US, is set to open its brand-new M2 Center of Innovation next month – an advanced R&D lab designed to accelerate functional mushroom product development. The purpose-built facility will bring together experienced functional mushroom R&D teams to support brands developing next-generation functional foods, beverages and supplements across formats including RTDs, ready-to-mix powders, gummies, shots, bars and more. It complements M2's existing 155,000-square-foot mushroom cultivation facility, located in Vista, California, opened in early 2025. The site operates around the clock to grow ten premium mushroom species, including turkey tail, lion's mane, cordyceps and reishi (pictured below). The centre’s full vertical integration with M2’s cultivation, processing and scientific research teams will enable the company to more easily address common formulation challenges surrounding functional mushroom product development. These include solubility, suspension, flavour pairing and sensory performance, to be addressed at the ingredient level. Jay Schmalz, R&D innovation manager at M2 Ingredients, will lead the centre with support from M2’s team of food scientists, formulation experts and researchers. The facility will formally open on 2 February 2026, available for active collaboration with food, beverage and supplement brand partners, with the goal of helping them more quickly and efficiently from product concept to market-ready innovation.  Jeff Rogers, CEO of M2 Ingredients, described the site’s inauguration as a “major step forward” for M2 and the broader functional mushroom industry. “Brands have historically had to choose between ingredient suppliers and true innovation partners,” he commented. “The M2 Center of Innovation eliminates trade-off by combining deep scientific rigour with real-world formulation and application expertise. This will be a powerful asset for our partner brands and a catalyst for faster, more confident innovation.” Chief science officer Julie Daoust said the centre was shaped by her own experience leading R&D and innovation teams on the consumer brand side earlier in her career. “This is the partner I always wished I had when I was responsible for bringing new products to market,” she explained. “The M2 Center of Innovation allows brands to innovate without having to build a full internal R&D infrastructure, while still delivering products that truly work.”

British snack brand Popcorn Kitchen has expanded its portfolio with a new savoury line, Crunch Corn, available now in three flavours. Made from Peruvian Choclo giant corn, the snacks aim to deliver a ‘satisfying crunch’ and innovative, premium alternative to the smaller, commonly used sweet corn kernels in savoury corn snack products. The HFSS-compliant treats are rich in fibre and debut in three flavour varieties, Sea Salt, Salt & Vinegar and Spicy Chilli, available in 100g sharing bags and 30g snack bags. The team said these Mediterranean-inspired snacks provide an alternative to increasingly expensive premium nuts and seeds. Popcorn Kitchen’s founder, Louise Monk, said she was inspired to create the new range following a trip to the Seville Food Fair in Spain, in 2023. Here, she was introduced to seasoned, roasted giant corn kernels as a snack, and decided on Choclo giant corn as the perfect foundation for her own bold flavoured range. “We cooked up Crunch Corn because we wanted to create a more complete savoury treat for those underwhelmed by potato crisps and frustrated by spiralling costs of allergy-risking nuts and seeds,” Monk said. “As corn obsessives already well-versed in popcorn happiness, we felt now was the perfect moment to share new crunchy joy”.

AB InBev has exercised the right to reacquire a 49.9% minority stake in its US-based metal container plants from a consortium of institutional investors led by Apollo Global Management. The transaction is valued at approximately $3 billion and is expected to enhance AB InBev's operational control over its packaging facilities, which are critical to its supply chain. The US metal container operations consist of seven facilities across six states and play a vital role in ensuring quality, cost efficiency and supply security for AB InBev’s extensive portfolio of beer brands. The reacquisition aligns with the company’s strategic focus on maximising long-term shareholder value and is anticipated to be accretive to earnings per share (EPS) in the first year post-acquisition. Funding for the transaction will come from AB InBev’s cash reserves. AB InBev's move to regain full ownership of its metal container operations underscores the importance of packaging in the beverage industry, particularly as consumer preferences continue to evolve towards sustainable and efficient packaging solutions. The company’s ability to innovate and maintain supply chain security will be critical in navigating the competitive landscape of the global beverage market. The reacquisition aligns with AB InBev’s broader strategy to streamline operations and enhance production capabilities. By consolidating control over its metal container production, the company aims to improve its responsiveness to market demands and further strengthen its position in the North American market. As AB InBev continues to adapt to changing consumer trends and economic pressures, this strategic move is expected to bolster its operational efficiency and support its long-term growth objectives. The deal is subject to customary closing conditions and is expected to finalise in Q1 2026.

Lamb Weston is closing its Munro, Argentina, manufacturing facility as part of a broader strategy to improve profitability and operational efficiency across its global manufacturing network. The Idaho-based frozen potato processor said production for the Latin America region will be consolidated into its newer, more modern facility in Mar del Plata, Argentina. The move will affect approximately 100 employees at the Munro site, who will receive severance packages. “These actions are part of our broader strategy to improve profitability and enhance operational efficiency across our global manufacturing network,” said Sylvia Wilks, chief supply chain officer at Lamb Weston. “Effectively managing costs across our supply chain is critical to delivering value to customers, while enabling us to prioritise investments that modernise physical assets and keep operations efficient, resilient and ready for future growth.” In addition to the Argentina closure, Lamb Weston also announced plans to temporarily curtail a production line in the Netherlands, further reflecting its focus on balancing capacity with demand across regions. The company said the actions are part of its 'Focus to Win' strategy, which centres on prioritising key markets and channels, strengthening customer partnerships, driving executional excellence and accelerating innovation. Lamb Weston is a global supplier of frozen potato products. The company has operated in the category for more than 75 years and is known for its portfolio of value-added potato offerings designed to simplify kitchen operations. The latest manufacturing changes come as food processors across the industry reassess capacity, costs and capital deployment amid ongoing economic uncertainty, shifting demand patterns and continued pressure on margins.

Constellation Brands' US beer brand, Modelo, has debuted its first-ever non-alcoholic beverage: Modelo Chelada Limón y Sal Non-Alcoholic. This new offering aims to capture the growing demand for flavourful non-alcoholic options, particularly during the Dry January trend, and is set to hit leading markets nationwide. Modelo Chelada Limón y Sal Non-Alcoholic combines the bold flavours of lime and salt with the authentic taste of Modelo’s signature Chelada, a ready-to-drink (RTD) Michelada that has dominated the category for six consecutive years. Logan Jensen, vice president of brand marketing at Modelo, said: “People want choices without having to compromise, and Modelo Chelada Non-Alcoholic does exactly that”. The launch is timed to align with consumer trends toward moderation and mindful drinking. Currently, 14.2 million households are engaged in the non-alcoholic beverage category, and the low and non-alcoholic segment within cheladas is projected to grow by 50% over the next two years. With just 60 calories per 12oz can, the new Chelada offers a refreshing alternative for consumers seeking flavourful, non-alcoholic options. Modelo's expansion into the non-alcoholic space is part of Constellation Brands Inc.'s broader strategy to enhance its moderation-focused portfolio. Alongside Corona Extra Non-Alcoholic, the introduction of Modelo Chelada Limón y Sal Non-Alcoholic strengthens the company’s presence in the non-alcoholic market, appealing to consumers looking for quality and taste without the alcohol content. The new product will be available in six-packs and is competitively priced alongside Corona Non-Alcoholic. It will launch in key markets including Illinois, New York, Texas, Florida and California, allowing for widespread accessibility to consumers eager for this innovative beverage option.

Functional soft drinks brand Skip is launching its first lion’s mane flavours across the UK exclusively in Home Bargains this week. Skip Lion’s Mane comes in two sparkling flavours: Blood Orange and Cloudy Apple, and will be on a promoted price of 99p in all of Home Bargains’ 625 stores. Each 250ml can contains 2,000mg of organic Lion’s Mane extract, celebrated for its cognitive and neurological benefits, as well as fruit juices plus vitamin B6 (50% of RI, contributes to normal functioning of the nervous system) and vitamin B12 (83% of RI, contributes to the reduction of tiredness and fatigue). Both flavours are suitable for vegans and contain no added sugar. Skip co-founder Adam Pritchard said: “Skip is evolving and we’re delighted to be launching our new Lion’s Mane range in Home Bargains this month. Taste, refreshment and quality are the most important attributes for any drinks brand, and I believe our drinks are on a different level to any other functional soft drinks brand in the UK.” The launch follows the successful rollout of Skip’s Peach & Ginger, Elderflower & Mint and Lemon & Basil cold-pressed CBD drinks last July. Pritchard continued: “In our two new drinks, we have made Lion’s Mane our key functional ingredient and at a high level – 8 to 20 times higher than competitor brands - to give a dedicated benefit to our customers, and at a very affordable price.” The full Skip range will be available in all Home Bargains stores from 7 January.

Premium ready meal brand FieldGoods has collaborated with UK-based natural nut butter brand Pip & Nut to introduce a limited-edition Peanut Butter Brownie. The new Peanut Butter Brownie builds on FieldGoods’ original chocolate brownie recipe, integrating a generous layer of Pip & Nut’s Crunchy Peanut Butter at its core. This innovative dessert aims to deliver a harmonious balance of rich chocolate flavour and distinctive peanut crunch, appealing to consumers seeking indulgent yet quality desserts. Elliot Day, co-founder of FieldGoods, said: “When we decided to give our original brownie a nutty upgrade, it had to be Pip & Nut. Their relentless focus on the best possible ingredients sourced responsibly, much like our own, made recipe development an easy task.” Pip Murray, founder of Pip & Nut, echoed this sentiment: “This is my idea of the perfect brownie, and no, we didn’t hold back on the peanut butter – it’s kind of our thing.” The FieldGoods x Pip & Nut Peanut Butter Brownie is priced at £5.75 and is available for purchase through the FieldGoods website and select retailers, including over 250 farm shops across the UK. This collaboration not only adds a new dessert option to FieldGoods’ line-up of handcrafted, frozen luxury meals but also reinforces the brand’s mission to offer high-quality, convenient dining experiences. Founded in 2021 by brothers Elliot and Sam Day, FieldGoods has quickly gained recognition. The brand’s B-Corp certification highlights its commitment to sustainability and ethical practices, embodying a 'field to freezer to fork' philosophy. Pip & Nut, established in 2015, is celebrated for its range of natural nut butters and snacks that prioritise health and sustainability. The company is also a certified B Corp.

According to Bord Bia’s latest Export Performance and Prospects Report, the value of Ireland’s food, drink and horticulture exports surged by 12% in 2025, reaching a record €19 billion. This achievement comes despite a backdrop of geopolitical uncertainty, extreme weather, inflationary pressures and evolving consumer behaviours that have challenged the global market. The report highlights that the growth in exports was primarily driven by significant price increases in key categories such as beef and dairy. Meat and livestock exports rose by 18%, totalling over €5 billion, fuelled by a spike in beef prices linked to tight cattle supplies. Dairy exports also performed strongly, climbing 14% to €7.3 billion, supported by favourable dairy prices and a robust grass-growing season that enhanced milk production. Prepared Consumer Foods exports increased by 9% to €3.6 billion, benefiting from strong demand for chocolate confectionery, juices and meal solutions. The drinks sector saw modest growth, with exports rising 2% to €2 billion, despite facing challenges in the US market due to shifting trade dynamics. Bord Bia’s Chief Executive, Jim O’Toole, expressed optimism about the sector's resilience: “2025 can be described as one of the most volatile years our sector has experienced in recent memory. Yet, against this backdrop, the Irish food, drink and horticulture industry reached a record €19 billion in exports, demonstrating its ability to continue building value even in turbulent conditions.” O’Toole also highlighted the industry's focus on sustainability and strategic insights as key factors in navigating these challenges. The report also noted that exports to the European Union increased by 16% to €7.1 billion, with the UK remaining Ireland’s largest single export destination, where values rose by 14% to €6.7 billion. This growth was driven primarily by beef, dairy and prepared consumer foods, despite inflation affecting consumer affordability. Looking ahead, Bord Bia’s CEO Sentiment Survey indicates a more cautious outlook for 2026, with concerns over ongoing cost pressures and geopolitical uncertainties. While just over half of the surveyed companies expect export growth, nearly 40% reported delaying planned investments due to economic conditions. Labour costs remain a significant risk to competitiveness as the industry prepares to adapt to a challenging market environment. Minister of Agriculture, Food and the Marine, Martin Heydon, highlighted the importance of continued support for the sector, noting that the overall increase in agrifood exports, including non-edible products, signifies a robust performance amid adversity. The Minister emphasised the need for collaboration among farmers, fishers, and food producers to sustain this momentum in the coming year.

2025 crowned pistachio as the flavour of the year, but what will capture consumer attention in 2026? According to T. Hasegawa USA’s 2026 Food and Beverage Flavour Trends Report, dark sweet cherry is set to stand out, thanks to its vibrant deep red hue, rich sweetness and remarkable versatility. But does the industry agree? FoodBev finds out. As the food and beverage industry looks ahead to 2026, flavour innovation continues to be a key driver of product differentiation and consumer engagement. From bold fruit-forward profiles to warming spices and unexpected botanical notes, brands and ingredient suppliers are exploring tastes that balance familiarity with curiosity. Understanding which flavours will resonate with consumers – and why – has never been more critical for R&D teams seeking to stay ahead of the market curve. "Dark sweet cherry has grown very popular over the past year because it strikes a perfect balance between taste, visual appeal, versatility and nostalgia," said Mark Webster, vice president of sales and marketing at T. Hasegawa USA. "Dark sweet cherry has a unique sweet flavour profile that is complex and nuanced, with a hint of tartness that stands out in everything from cocktails and sodas to desserts and even sauces for savoury dishes". But, does everyone agree? We asked a selection of the industry’s experts what flavours they think are going to blow up in the coming year, and how these flavours will shape food and beverage innovation. Kathryn Bricken Co-founder of Doughlicious For 2026, I predict we'll see pistachio evolve with complementary fruit pairings, think pistachio-raspberry or pistachio-orange, extending its versatility beyond desserts into breakfast and snacking occasions. I think cherry will also be a star. Its natural anti-inflammatory properties and sleep-supporting benefits position it perfectly in the 'better-for-you' category, especially as consumers seek functional ingredients that don't compromise on indulgence. It also pairs well with many flavours such as vanilla and matcha. Matcha remains a personal favourite and continues to perform strongly in frozen desserts and ice cream. Introduced in our first retail collection, it remains a top seller today, underlining its ability to transcend short-term trend cycles. Overall, the flavours shaping 2026 will be those offering something unique but also familiar, whilst maintaining feel good appeal. Scott Dixon Managing director of The Flava People Whilst 2025 was all about hot honey and umami, not forgetting anything pistachio and chocolate, which were heavily fuelled by Instagram and TikTok, in 2026 we’ll see a further increase in ‘flavours less travelled,’ such as Korean, but beyond just barbecue and Gochujang, Malaysian and South American. These cuisines from distant shores have grown increasingly accessible to travellers, and therefore, as the British palate develops, they’ll appear on more menus and supermarket shelves in the UK. Consumers are developing more adventurous palettes and are open to trying new and exciting dishes. But that doesn’t mean we've seen the last of hot honey (and for that matter all things ‘swicy’, yep, I said it), that trend looks set to continue in the year ahead. We just expect more complex flavours with multiple layers of contrasting flavour, texture, visuals and aromas to increasingly appeal to consumers, with more and more food manufacturers and foodservice operators introducing similarly themed products as consumer tastes for them grow. Ella McKay Founder of Fatso Chocolate At Fatso we’re always trying to find flavours that buck the trends and bring newness/discovery to the world of confectionery, but what we are seeing lots of is chilli and sweet combos (eg. hot honey) and functional sweet things (eg. adding chocolate in protein bars). Natural sugars also continue to make moves, such as using dates. The big question is, will pistachio continue on the upward trajectory or will something new steal it’s thunder?! Filipa Roque Global marketing manager at Spraga Kombucha Flavour that feels authentic and uplifting starts with the consumer, who remains at the core of product development. From ginger and lemon to apple, pear and pomegranate, these beverage flavours show how bright fruit notes and natural fermentation can deliver profiles that are refreshing, well-balanced and full of character. Looking ahead to 2026, we see global curiosity blending with local taste. Working across many markets gives us a deep understanding of how flavour preferences differ, and we use these insights to develop flavours that resonate locally while feeling globally relevant. Our 'Oddly Real' philosophy uses natural fermentation to reveal flavours that are bright, real and unexpectedly delicious. Rupert Derham Founder of Spice Dept One flavour trend shaping 2026 is a growing obsession with ingredients for their inherent taste. There has been a clear shift toward cooking with higher-quality components, with renewed focus on olive oil, beans and spices valued not for novelty, but for the depth and character they bring to dishes. A drizzle of olive oil over a simple pasta or a scattering of cumin seeds across hummus can transform a dish, underscoring a broader return to appreciating what individual ingredients actually taste like – and savouring them on their own terms. Zoe Plant NPD and innovation manager at The Food Works SW The popularity of pistachios is going to support the rise of other nuts used more widely. Nuts are growing in popularity as a protein source in an increasingly plant-based, vegan and health-conscious nation. This will show in various forms: pastes, butters and flours – almond, hazelnut and cashew as alternatives to wheat flour. They’re great at mimicking the richness and creaminess of dairy and even meat products! Unexpected pairings will also continue to appear, things like yuzu, pandan and miso next to chocolate and vanilla, a lot of global flavour combinations. I hope to see the Japanese katsu doughnut making an appearance! This year, in my role as NPD manager at The Food Works SW, I’ve worked with a number of West African-inspired cuisines – lots of curries and a popular Senegal dish called Jollof rice has appeared more than once. Again, confirming this global influence for flavour inspiration. Vhari Russell Founder of The Food Marketing Experts Based on current industry trends, yuzu and other citrus hybrids are well positioned to emerge as key flavour directions for 2026. Like pistachio before them, they combine premium, sophisticated appeal with versatility across both sweet and savoury applications. Early uptake in applications like cocktails and confectionery suggests broader adoption across snacking categories is likely to follow. Ube (purple yam) continues to build momentum from speciality into the mainstream, as brands seek naturally vibrant, Instagram-worthy flavours that deliver both visual impact and a distinctive taste profile. Cardamom is emerging as the next 'warm spice' hero – it bridges familiar (like cinnamon) with exotic, working beautifully in both indulgent and better-for-you positioning. The 'swicy' trend also positions gochugaru and chamoy for breakout moments, as consumers become more adventurous with heat levels and global flavour profiles. These offer the novelty factor that drives trial while having enough complexity to sustain interest beyond initial buzz. Alix McCaffrey Senior director of product at HelloFresh UK Looking ahead to 2026, we’re seeing a real appetite for bold, globally inspired flavours that remain approachable for everyday cooking. Dishes influenced by West African, Middle Eastern and Southeast Asian cuisines are gaining traction, as customers are increasingly curious about new flavours but still want meals they can confidently recreate at home. Product development must balance creativity with achievability as we know that many consumers often look to social media to inspire menu choices, but sometimes recipes feel out of reach or unachievable and we firmly believe that consumers are still looking for fool-proof and efficient recipes. Choice and personalisation are also of growing importance as people invest more time and effort in ensuring what they’re eating is providing them with the right nutrition for their goals, whether that be increased protein, fibre or vitamins. Therefore, our goal remains the same. We will continue to improve access to new and exciting flavours, we’ll strive to increase choice and ultimately, we’ll help customers enjoy cooking and eat fresh meals week after week. Sara Diaz Marketing director Europe at Griffith Foods Next year, based on consumer trends, we are predicting that European consumers will be motivated by a combination of more layered, bold flavours, the craving for even more protein and distinct textures in every bite. From new takes on street food to nutrition-packed innovations, these six trends will reshape how the world eats in 2026: 1.Protein 2.Textures, consumers in the UK report a 43% year-over-year increase in engaging with food with texture and 19% in Germany. They are seeking to go beyond flavour and fully engage the senses, which will make texture a critical part of the menu. Recent research shows that 43% of global consumers enjoy products with unusual textures. 3.Street food flavours. 4.Bold, layered flavours. Think smoky, spicy, sweet, sour and umami flavours that pack a punch, are shifting flavour paradigms. 5.Traditional nutritional foods. Time-tested, nutrient-dense foods serve as the ‘hero ingredients’ for global consumers’ demand for wellness. Contemporary flavours also bring new life to age-old herbs, spices, legumes and grains. 6.Crafted condiments that go beyond the basics. Cathy Goodwin Subway’s interim director of culinary and innovation (EMEA) Fermentation is having its moment and it’s no longer just about wellness. Expect ingredients like kimchi, pickles, miso and sauerkraut to shift from being seen more as 'health foods' to becoming genuine flavour profiles on menus. The sour, umami-rich notes that make ferments nutritionally appealing are the same ones chefs and consumers are craving. This year’s gut health conversation has opened the door to a wave of complex, bold flavours in 2026. Palettes will get more sophisticated as our exposure to global markets inspire our tastes and choice of meals. While international travel may feel less accessible, social media is filling the gap and fuelling their global curiosity for more adventurous flavour profiles. As a result, we can expect to see customer desire for flavours like teriyaki from Japan, nduja from Calabria and gochujang from Korea rise, just to name a few. Nisia Manthovani Global marketing manager savoury of Givaudan Taste & Wellbeing Consumers’ appetite for heat is growing, but their expectations are rapidly evolving. 90% of Gen Z consumers want bold and spicy flavours; their spicy food consumption is 10% higher than that of other generations. Globally, more than 80% of people now seek out hot and spicy foods from multiple cultures. Yet, they increasingly look beyond pure intensity to explore layers of flavour, emotion, and experience. Hot & spicy is set to 'blow up' in 2026 because it channels what tomorrow’s consumers crave: intensity, authenticity, energy and connection. It delivers sensory pleasure and emotional release, often celebrated online as a 'dopamine boost,' while satisfying curiosity for cultural exploration. In this way, heat doesn’t just ignite flavour; it fuels experience engineering. Consumers are experimenting with new sensations, and hot & spicy is one of the directions they are experimenting with! Consumers’ fascination with spice is evolving from novelty to artistry, where complexity, through layered sensations, textures and aromas, creates a lasting love for heat. In the year ahead, we expect hot & spicy flavours to shape food and beverage innovation by delivering multi-sensory excitement, emotional benefits, and opportunity for self-expression. Heat engages multiple sensory pathways, including burning heat, tingling, numbing, aroma, and mouthfeel, to create rich, layered experiences. Innovation lies in creating harmonious contrasts like sweet spicy savoury flavour arcs and compelling textures – crunchy meets creamy – for extra enjoyment. Beyond taste, it becomes a way for consumers to express identity and curiosity: a bold signal of adventurousness and cultural exploration, particularly among younger generations. With heat tolerance increasing globally, even in traditionally milder markets like the UK, spicy flavours will continue to attract new audiences and open fresh creative spaces for innovation. The heat of 2026 won’t be defined by 'how hot can it get?' but rather 'how can this feel?' By decoding the full spectrum of spicy sensations and using a wide range of taste solutions, we can harmonise them to create balanced, authentic expressions of heat, with less dependence on chilli and spice. What does it mean for industry? Improved productivity efficiency, a more resilient supply chain and easier handling and storage. Dominic Rice Founder of Can 2026 flavours are about complexity, contrast and culture – and that could make the next wave of drinks more interesting. Blackcurrant has been crowned a 2026 flavour of the year by trend forecasters for its bold, sweet, tart complexity and versatility across foods and beverages. We are expecting to see bold, layered profiles, dark berries and heritage fruits as well as botanicals, herbs and fermented notes – particularly in the beverage space. Huib van Bockel Founder of Tenzing As we look ahead to 2026, flavour trends will be shaped less by novelty alone and more by a desire for refreshment, naturalness and great taste. Our research shows that taste is the second biggest purchase driver in energy drinks, and consumers are increasingly rejecting overly sweet or artificial flavour profiles in favour of something cleaner and more refreshing. We’re seeing particularly strong momentum behind flavours that feel familiar but with an exotic edge, approachable combinations that still offer a sense of discovery. The strong performance of our latest Peach & Honeymelon launch reflects this and we expect this trend to continue into 2026. For food and beverage brands, innovation will be about striking the right balance: flavours that consumers recognise and trust, elevated with unexpected pairings that feel natural, refreshing and genuinely enjoyable.

Jeffrey Hechtman As US food and beverage companies navigate a shifting economic and consumer landscape, dealmakers are weighing cautious optimism against market volatility. Jeffrey Hechtman, a partner in the Chicago office of law firm Kilpatrick Townsend & Stockton, outlines four trends poised to shape mergers and acquisitions in 2026, from the rise of better-for-you brands and alternative beverages to the evolving middle-market landscape and valuation pressures. The 2025 deal landscape could be summed up in three words: cautious, patient and hopeful. US food and beverage M&A was no different. Stakeholders were cautious because of dynamic changes in the marketplace, be they regulatory pressures on processed foods or the back-and-forth on tariffs. They were patient in the face of widespread economic volatility – including the interest rate environment and tax uncertainties. And yet they remained hopeful: with interest rate uncertainty and inflation appearing to stabilise while private equity firms continue to sit on significant amounts of uninvested capital and consumer interest in such areas as better-for-you (BFY) products surges. Still, as dealmakers look ahead to 2026, several critical questions linger: Which food and beverage categories are most ripe for M&A? How will the middle-market and start-up ecosystem fare? How will various macroeconomic factors impact deal activity and valuations? Here are four key trends to watch. Deeper diligence in middle-market transactions As of 18 September 2025, more than 95% of this year’s M&A deals in the food sector were for less than $100 million in enterprise value or greater than $250 million. This means less activity in the middle-market as deals in that range have generally seen longer deal timelines and more robust due diligence. Should M&A activity in the middle-market continue to lag, a 'flight to quality' could persist where highly sought after targets attain robust valuations while less desirable ones may find difficulty exiting. Economic softness in the middle-market could also result in deal structures with more contingent consideration and rigorous diligence periods. On the latter front, new technologies will have an increasing role: with troves of available data at their fingertips, both buyers and sellers can perform extensive analytics during diligence that can impact the negotiation process, pricing mechanisms, and overall deal structure. Expect an uptick in entrepreneurialism While the difficult fundraising environment will continue to present challenges for early-stage food and beverage companies, downturns in the employment market often lead to upticks in entrepreneurship as those who lose their jobs look to start new companies or ventures. The rise in ecommerce could support this trend, creating an environment where it is easier for early-stage companies to enter the market with less capital investment. This ease of entry has driven greater competition in certain segments, as well as an increase in purchase and sale transactions. Hot categories: BFY, alternative beverages, branded companies Amid mounting regulatory pressures and ongoing shifts in U.S. consumer preferences, 2025 BFY deal activity comprised more than a quarter of total sector deal volume through mid-September – the highest percentage since 2019. The trend encompasses the alternative beverages category, too, and we should expect ongoing activity related to alternatives to alcoholic beverages. Branded products, particularly those geared towards a health-conscious consumer (eg. protein-related products), are likely to drive dealmaking in 2026. Zooming out, the BFY trend has interesting implications for big companies in the food industry. In the US in particular, many prominent players have long executed a buy versus build strategy: taking emerging products or brands and expanding them through their vast distribution networks while consolidating production and other costs. However, the move towards fresh, healthy and non-processed foods creates challenges for those efforts given the focus on locally grown products and high transportation costs. As a result, we may see some choppiness in large food companies buying early-stage businesses in the year to come. Valuations hang in the balance, particularly for growth companies Valuations in the sector have been tricky to track amid the volatility in 2025. At the more expensive end of the deal spectrum, where activity is robust, valuations are still high. At the lower end of the market, valuation concerns have pressured sellers to adjust their expectations to get deals done. Looking ahead, general economic pessimism and lower growth rates will fight against declining interest rates and vast amounts of private equity dry powder – the former will push prices down, while the latter will keep them up – in defining the 2026 deal market. As of now, we should expect that more established companies will command more fulsome valuations while the outlook for growth companies will remain less certain. The above trends reflect equal parts concern and promise for US food and beverage M&A activity in 2026. As ever, macroeconomic factors will likely play a large role in dealmaking with interest rate movements greatly impacting the leverage available to fund M&A activity and volatility affecting the diligence and structure in dealmaking.

On-the-go pickle brand Van Holten’s is entering the protein-forward snacking space with the launch of Unapologetically Pickled Eggs, a new shelf-stable snack designed for convenience, bold flavour and everyday protein needs. Packaged in a single serve ready to eat pouch, Van Holten’s Pickled Eggs deliver 6 grams of protein per egg and are made with all-natural ingredients. Each pouch contains one egg, offering a portable, no-refrigeration-required option for convenience, lunchboxes and post-workout snacking. The new line debuts in two varieties: Dill Pickle, featuring a classic, tangy brine and Hot & Spicy, offering a heat-forward flavour profile. “With Unapologetically Pickled Eggs, we’re giving fans a new way to enjoy that briny flavour they love in a high protein snack that’s ready whenever and wherever hunger hits,” said Steve Byrnes, owner of Van Holten’s. Founded in 1989 in Wisconsin, Van Holten’s is best known for the original Pickle in a Pouch. It plans to expand the distribution of Unapologetically Pickled Eggs throughout 2026. The brand’s existing pickle portfolio is carried nationwide by major wholesalers.

Plant-based meat alternatives brand La Vie has introduced what it claims is a category-first innovation in the UK: Vegan Salami Sticks, rolling out this month for Veganuary. The French brand, which specialises in developing plant-based alternatives to pork using a patented fat technology, launched the salami stick product in Waitrose and Ocado nationwide on 2 January 2026. This latest launch builds on La Vie’s existing bacon and ham alternative portfolio, expanding the brand’s presence in everyday snacking occasions. Available in two varieties, Classic and Spicy, the sticks are described as ‘juicy, meaty and full of flavour’. They are made from wheat, vegetable proteins, natural spices and fruit flavourings, formulated with a simple ingredients list and without artificial colours, flavours, preservatives and nitrates. The sticks are high in protein (34g per 100g) and offer a source of fibre. They also contain around 20% less saturated fat and 30% less salt than leading pork-based salami snack sticks, La Vie said, while delivering significantly fewer calories. Each 75g pouch contains six sticks, designed to offer a convenient, on-the-go protein hit for vegans, vegetarians, flexitarians and meat lovers alike. According to La Vie, the product portfolio generates 88% less CO2, uses 82% less water and requires 74% less land than conventional pork, responding to demand for more environmentally sustainable protein choices. Romain Jolivet, chief marketing officer at La Vie, said: “At La Vie, we’ve always believed that people don’t change what they eat because they’re told to, but because they want to. Changing a habit is far easier when the alternative feels just as indulgent, just as social and far more enjoyable.” He added: “With our Vegan Salami Sticks, we’re proving that when you truly win on taste, texture and health, the switch away from pork becomes effortless”.