Snaxshot’s Post

Would love to hear your views on this from an investor perspective Elly Truesdell Nathan Cooper

I'd pose it to investors and brands: what outcomes are you looking for in the food space? Investors and founders mostly want exits (which is great), but also begs the consolidation question. There's the goal of exit and there's the goal of reshaping a category, and I think that needs to be answered before the question of whether or not conglomerates should be allowed to make these purchases gets answered

Wonder if the Sherman Anti-Trust Act will hold up this time...

Lots of crossover in this space already. Hershey owns snack brands, mondelez is in snacking and confectionery, and Ferrero/Ferrara. Mars already crosses over into frozen, grocery, and is a huge player in pet. Consolidation is everywhere.

I live for your posts.

I actually think this makes it easier for innovators to take market share. When conglomerates build brand portfolios this big and this diffuse, they take their eye off of the ball in terms of truly maximizing each individual brand’s potential. It’s sad that there are some good brands with good history that will get neglected and mismanaged, but there will be room for new and interesting brands to meet the consumer demand that Mars is going to neglect

Ugh don't love this. We really don't need more consolidation in food or agriculture, but like you said above, it seems like both those categories seem exempt from the Sherman Act 🤷♀️

When I see big acquisitions like this, my concern is for the employees affected by it. I have personally experienced several Mars acquisitions over the years as a factory employee, and it always has a negative impact on employees. When Mars acquired Doane Pet Care, it shut down several plants, displacing hundreds of employees (they assisted in finding them new employment). When Mars acquired Wrigley, employees’ bonuses were affected until it was paid off. I understand the need/want for company growth and growth in market share, but I worry the corporate greed (not just Mars but any company) will take priority over the care of the employees.

Speaking with my futurist hat on, consolidation moves like this are in desperation as the long nightmare for CPG brands is just starting. Compared to basic alternatives, what value do they really provide? Nothing at all. We've entered an era where inflation and economic uncertainty is causing consumers to buy less stuff and seek cheaper, more basic alternatives that do just as good. This will only get worse as our economy continues to trend worse over this decade into a very deep recession. CPG's grew over 8 decades on the back of favorable demographics and societal wealth gains, selling discretionary items that don't provide any value. But all of that is coming to an end.

The FTC will get involved. They’ll likely ask for public comments on the proposed acquisition so all stakeholders, including consumers, can express their views..