What F&B Deal-Making Signals for IR and Comms Teams This Earnings Season
Food and beverage (F&B) companies are facing a convergence of macroeconomic pressure and industry trends and consolidation, which impact how companies communicate with stakeholders. From inflation and regulation to shifting consumer behaviors and rising competition from private label, pressures persist.
In this context, F&B companies must effectively communicate their competitive advantage – having the right brand, product, and geographic portfolios to weather the storm. In parallel, cost savings and productivity initiatives must be implemented—and continually adapted—to generate stronger margins that flow through to the bottom line.
Clarity and Conviction is Critical in M&A Communications
While overall M&A volume is down year-over-year, F&B deal flow remains steady and targeted. Companies are actively reshaping portfolios and investing in higher-growth categories and markets to position themselves for both near- and long-term success. In the first half of the year, several significant “mega-deals” emerged across non-alcoholic beverages, protein producers, and better-for-you brands (including several transactions supported by Edelman Smithfield).
This consolidation is not going unnoticed. Investors, media, competitors, and consumers are watching closely. How companies navigate this landscape—while progressing business priorities, meeting financial targets, and preserving consumer loyalty—will be critical. Those that demonstrate strategic clarity and operational agility, across execution and engagement, will be best positioned to lead and differentiate amid volatility.
As with any transaction, effective communication is critical. Clear articulation of the deal rationale, portfolio alignment, and strategic benefits is essential for all external and internal stakeholder groups. The investment community in particular is watching how companies bolster portfolio strength and cost efficiency, and how M&A activity reinforces long-term value creation.
An added layer of complexity: people are passionate about their food and beverage choices. Consumers are deeply invested in their favorite brands, particularly niche or challenger products. When these brands are acquired by larger corporations, loyalists often react passionately—on social platforms, message boards, and even through direct outreach.
Proactive media and digital engagement can amplify positive messaging during consumer-sensitive transactions and should be integrated into the communications playbook.
Considerations for the Upcoming Earnings Season
F&B companies should be prepared to clearly:
- Outline how evolving consumer preferences—toward health & wellness, value, sustainability, and indulgence—are being addressed through innovation, marketing, and brand repositioning
- Explain steps taken to maintain brand loyalty and attract consumer demand in an environment of increasing private label competition and shifting channel dynamics
- Detail how they are navigating inflationary input costs, including strategies around pricing, reformulation, SKU rationalization, and supplier diversification
- Discuss cost savings and productivity initiatives specific to production, logistics, and workforce management, and how these initiatives support operating margins
- Demonstrate why their brand and category portfolio is built to compete and remain relevant, especially in the context of recent or potential M&A, and why they are positioned to benefit from global consolidation and category convergence
We anticipate the top investor/analyst questions this earnings cycle will include:
- What trends are you observing in consumer purchasing behavior, and what are your expectations for the second half of 2025? How are these trends affecting your volume, pricing, and product mix? What adjustments have been made as a result?
- Given sustained inflation and macroeconomic uncertainty, how are you managing your business differently? What cost-saving and productivity levers are being pulled? Are these efforts sufficient to sustain margins?
- How does recent M&A activity affect your competitive position? How are you responding to peers investing in high-growth categories and reshaping their portfolios? Are there brands or categories you're looking to divest, acquire, or innovate to enhance strategic positioning?
Extend the Message Beyond Investors
It’s important to recognize that the messaging crafted for investors often extends far beyond the financial community. Employees, customers, and business partners are also tuned in and are reacting in real time. Whether it’s a pricing shift, product discontinuation or brand acquisition, these updates spur emotional reactions that few other sectors face.
That’s why earnings communications must be multi-dimensional and tightly coordinated. A successful approach includes an:
- Engaging financial media strategy to extend key messages
- Robust, proactive internal communications to update employees
- Tailored digital content strategy to connect with broader audiences across social platforms
In today’s environment, F&B companies must ensure consistency, clarity, and credibility across every touchpoint.
Lauren Torres is an SVP at Edelman Smithfield and a former F&B industry sell-side analyst. Julia Fisher is an EVP at Edelman Smithfield.