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So. Many. Lessons. 3G's inevitable exit from the food industry has been visibly on its way for some time now. Why did they flame out so badly after so much success elsewhere? Here are two of the most obvious lessons. You can probably think of others. 1) Competition models do not transfer easily across industries. Food is not beer and the winning formula 3G used for the beer industry did not work for Kraft-Heinz. The strategy worked in beer and looked good on paper - cut costs and rely on brand strength and habitual purchasing patterns to carry you to another level of profitability. Only a superficial understanding of the food business would buy that. But many did buy it when KHC profits spiked - only to realize later when the balloon popped that food is less habitual than you think, and the distribution model is completely different than beer, and innovation is more important, and discounting plays a strategic role and on and on and on. 2) Being young, smart and hungry is usually no match for experience. 3G had (has?) a talent model which prioritized young, smart and hungry people who wanted desparately to succeed, i..e., get rich. 3G thought brains, effort and commitment, and a certain ignorance of experience-based rules, would lead to breakthrough ideas and a meritocratic culture focused on financial success. What it led to was some pretty idiotic decision-making at surprisingly high levels of the company, and the massive outflow of people who actually knew what they were doing. If you're going to hire a bunch of people who don't know what they are doing, at least give them some experienced supervision. I'm normally an optimistic person and find worthwhile lessons even when things don't go right. This episode just feels like 10 years of churn for absolutely nothing and I'm just glad they are finally gone. https://lnkd.in/gAiYGdcJ

It is not so often that we read two posts, one commenting on the other, when we can say we are in total agreement. The comments about 3G and Kraft Heinz below, followed by brilliant considerations by Jean-Marc Rotsaert are spot on. The arrogance with which some “geniuses” have tackled the challenges of the food industry can only be compared to the depth of their lack of sensitivity to consumers and employees alike. I recall vividly listening to one of those spreadsheet jockeys telling me in a meeting that the only PhD associates they needed in R&D were the poor, hungry, and desperate…Experience, ethical reflection, and true product understanding were simply ignored. The food industry will not miss them. The original post by Peter McDonald: So. Many. Lessons. 3G's inevitable exit from the food industry has been visibly on its way for some time now. Why did they flame out so badly after so much success elsewhere? Here are two of the most obvious lessons. You can probably think of others. 1) Competition models do not transfer easily across industries. Food is not beer and the winning formula 3G used for the beer industry did not work for Kraft-Heinz. The strategy worked in beer and looked good on paper - cut costs and rely on brand strength and habitual purchasing patterns to carry you to another level of profitability. Only a superficial understanding of the food business would buy that. But many did buy it when KHC profits spiked - only to realize later when the balloon popped that food is less habitual than you think, and the distribution model is completely different than beer, and innovation is more important, and discounting plays a strategic role and on and on and on. 2) Being young, smart and hungry is usually no match for experience. 3G had (has?) a talent model which prioritized young, smart and hungry people who wanted desparately to succeed, i..e., get rich. 3G thought brains, effort and commitment, and a certain ignorance of experience-based rules, would lead to breakthrough ideas and a meritocratic culture focused on financial success. What it led to was some pretty idiotic decision-making at surprisingly high levels of the company, and the massive outflow of people who actually knew what they were doing. If you're going to hire a bunch of people who don't know what they are doing, at least give them some experienced supervision. I'm normally an optimistic person and find worthwhile lessons even when things don't go right. This episode just feels like 10 years of churn for absolutely nothing and I'm just glad they are finally gone. https://lnkd.in/gAiYGdcJ

🚨 𝐏𝐞𝐩𝐬𝐢𝐂𝐨 𝐢𝐧 𝐓𝐚𝐥𝐤𝐬 𝐭𝐨 𝐀𝐜𝐪𝐮𝐢𝐫𝐞 𝐒𝐢𝐞𝐭𝐞 𝐅𝐨𝐨𝐝𝐬 𝐟𝐨𝐫 𝐎𝐯𝐞𝐫 $𝟏 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 PepsiCo is reportedly closing in on a deal to acquire Siete Family Foods Foods, a Texas-based company known for its grain-free and dairy-free Mexican-American foods 🌮. Founded in 2014 by the Garza family, Siete Foods has grown rapidly, producing innovative products like almond flour tortillas and tortilla chips that cater to health-conscious consumers 🌱. This acquisition would be a bold move for PepsiCo as it adapts to the shifting demands of value-conscious consumers. CEO Ramon Laguarta has emphasized the growing importance of offering more affordable, healthier options in response to economic challenges faced by households across the U.S. 💰 Read full article on: https://lnkd.in/gu5xCE3p #PepsiCo #SieteFoods #Acquisition #HealthySnacks #GrainFree #FoodIndustry #EmerceConsulting

🌟 Exciting News in the Food World! 🌟 PepsiCo is making a bold move by acquiring the Mexican American favorite, Siete Family Foods, for a whopping $1.2 billion! 🎉 This marks PepsiCo's first major food acquisition in five years and shows how they're embracing healthier and more diverse options. 🌱 Founded by Veronica M. Garza in 2014, Siete Family Foods started with grain-free tortillas and grew into an incredible lineup of tortilla chips, taco shells, salsas, and seasonings, all catering to different dietary needs. 🥑🌮 You’ve probably seen their products in stores like Target, Whole Foods Market, and CVS Pharmacy! This acquisition is not just about a business transaction; it’s about celebrating culture, diversity, and the rise of innovative, healthy food options in our everyday lives. PepsiCo CEO Ramon Laguarta couldn't have said it better: “We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.” 🎯 Congrats to both teams on this fantastic partnership! Here's to more delicious and inclusive choices on our shelves! 🛒 #BusinessNews #Acquisitions #FoodIndustry #PepsiCo #SieteFoods #HealthyChoices #Diversity #Entrepreneurship

🚨 Big news in the snack world! 🚨 Mars, Inc. is making a major move by acquiring Kellanova, the snacking arm of Kellogg Company, for a whopping $36 billion. This strategic deal will supercharge Mars’ presence in the snack food market, adding powerhouse brands like Pringles and Cheez-It to its already impressive lineup. With this acquisition, Mars is set to redefine snacking on a global scale. 🌍🍫 #MergersAndAcquisitions #SnackingIndustry #MarsInc #Kellanova #BusinessGrowth #FoodIndustry Read more ⬇

🌱🥩 IMPOSSIBLE FOODS WEIGHS UP ‘LIQUIDITY EVENT’ As plant-based meat fights back after a difficult couple of years, one of its pioneers is already exploring moves that could signal a sea change for the industry. Speaking to Reuters, Impossible Foods CEO Peter McGuinness indicated the business is targeting a “liquidity event”, which could mean an IPO for the California-based company in the next two to three years. But it’s keeping its options open over what this might entail. “I don’t want to be pigeonholed into an IPO,” explained McGuinness, adding that Impossible Foods was also considering another raise of funds, or even a potential sale to another company. Impossible Foods has been expanding both its retail and foodservice footprint. The company’s distribution expanded by 25% in January alone, with its products available in over 75,000 locations worldwide. Just today, it has announced a deal with Whole Foods Market to place its chicken analogues on the shelves of select stores across the US. The company has also been moving into baseball stadiums across the US, extending an exemplary foodservice record that includes clients like Burger King (it’s featured in the signature Impossible Whopper), Starbucks, IHOP, White Castle and Disney. McGuinness declined to share his company’s current valuation, but all this means Impossible Foods’ next move will be closely watched, especially given the post-IPO challenges faced by other plant-based giants like Beyond Meat and Oatly, whose stocks have slumped by about 97% since going public in 2019 and 2021, respectively. Will it be a sale? Another fundraise? A public offering? Everything is on the cards. #GreenQueen #altprotein #futurefood #foodtech #sustainability #foodsystems

Siete Foods' $1.2 billion acquisition by PepsiCo is making me question everything I thought I knew about scaling. I've been following their story closely since they brought Eva Longoria on board earlier this year, and it's full of surprises. In 2015, Miguel Garza cold-emailed John Foraker, then-president of Annie's, asking for advice. Foraker's response? "We had the luxury of time, you need to run as fast as you can." And they did. It's not just the numbers that are mind-boggling - it's how they got there. 💡 Veronica Garza and her brother Miguel founded Siete after Veronica's experimentation with grain-free recipes due to her autoimmune condition. 🚩 Their first major placement was Wheatsville Food Co-op in Austin - where they sold out within two days. 🛒 By 2020, they were in 13,000 (!) grocery stores across the U.S., including Whole Foods, Sprouts, Kroger, H-E-B, and Costco. Miguel’s biggest target was Whole Foods, which is headquartered in Austin. BUT here's something funny - they were rejected by Whole Foods twice before finally getting in because a customer mentioned the tortillas to Whole Foods’ CEO. What dollar value could you attribute to that word-of-mouth lol 🧪 In 2021, they launched their Small Batch platform. As an old FB eng, I LOVE this move. They pionereed A/B testing for food products. by testing new products through their eCom channel (like mini buñuelos), gathering data, and refining offerings before retail launches. What I got from this is - right mix of innovation, persistence, and smart scaling can even make niche products industry giants. What's the next Siete? I'm currently looking at Windmill and OneSkin. Lemme know!

𝗖𝗼𝘂𝗹𝗱 𝗮 𝗳𝗮𝗺𝗶𝗹𝘆 𝗳𝗲𝘂𝗱 𝗽𝗮𝘃𝗲 𝘁𝗵𝗲 𝘄𝗮𝘆 𝗳𝗼𝗿 𝗮 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝘁𝗮𝗸𝗲𝗼𝘃𝗲𝗿 𝗶𝗻 𝘁𝗵𝗲 𝗳𝗼𝗼𝗱 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆? Danone’s move to buy the rest of Lifeway Foods, Inc. is a bold one—they’re paying a 59% premium, well above "normal” levels, to take full control for an additional $283 mm. Having been a shareholder for over two decades, Danone had a unique view (with a 23.4% stake) into the company’s growth (13% top line in 2023) and challenges (family infighting), which likely gave them the confidence to make such an offer. Lifeway, a family-owned business based in Morton Grove, IL, has posted 19 straight quarters of growth, thanks in part to the rising demand for gut health products like kefir (probiotic yogurt). With well-publicized internal family disputes between CEO Julie Smolyansky, her mother Ludmila, and brother Edward, there’s been activist pressure for change and a potential sale. This Lifeway acquisition is part of a broader trend where companies pay outsized premiums to fully acquire companies they already have minority positions in. The Coca-Cola Company's acquisition of BODYARMOR Sports Nutrition in 2021 is another prime example, where insider ownership and knowledge were key to Coke expanding into high-growth beverage segments while reducing integration risk. At Greenwich Capital Group LLC, we’re watching these moves closely as they continue to shape the future of the food and beverage industry. #MergersAndAcquisitions #PremiumValuations #FoodandBeverage #Danone 𝗧𝗼 𝗿𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝗼𝗻 𝗗𝗮𝗻𝗼𝗻𝗲'𝘀 𝗼𝗳𝗳𝗲𝗿, 𝗰𝗹𝗶𝗰𝗸 𝗵𝗲𝗿𝗲: https://lnkd.in/ggMdDkpr 

PepsiCo is set to acquire Siete Foods for a whopping $1.2 billion! This strategic move highlights the growing demand for better-for-you snacks and the importance of innovation in the food sector.  As the landscape continues to evolve, it will be interesting to see how this acquisition shapes the future of both brands and the broader market. #PepsiCo #SieteFoods #FoodIndustry #Acquisition #Innovation #MarketTrends