How to buy a food and beverages company

How to buy a food and beverages company

If you want to buy a Food & Beverage company in Italy we can help you in the buying process. It is good to have an understanding of the buying process in general. We want to support and educate you in the process of buying a business. This can start with the preparation to the costs to acquire a company. Further information you will find about buying a company are the legal aspects involved. With European business purchases cross border aspects are of importance. Please learn more by reading about buying a company in buying a business.

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Advantages of buying an existing Food & Beverage company

Buying an existing Food & Beverage business gives you a head start compared to starting a business from scratch. Acquiring an already established company gives you the advantage of getting operations already in place, an existing client base and brand recognition within the market. Consequently, your time to penetrate the market will be much quicker, cheaper and safer. The main advantages are:

  • Established operations.
  • Relationship already in place with suppliers, distributors and partners.
  • Knowledge of consumers’ tastes, needs and buying behaviour.
  • Knowledge of regulations and legislation.
  • Brand recognition, which is an important aspect in the Food & Beverage industry where owning a known brand often gives a competitive advantage due to the trust that consumers have already built (which often requires years).

This will give you a large benefit compared to starting up a business of your own in Italy or launching a new business line. If you want to read more about the advantages of buying an existing Food & Beverage company please go to the general page about advantages of buying an existing business.

Main Food & Beverage topics in Italy

The Food & Beverage sector is an important wealth generator for Italy. It is the second most important industry within the manufacturing sector after engineering. The entire Food & Beverage supply chain employs about 13% of the total national workforce generating about 9% of Italian GDP.

The sector is characterized by the presence of SMEs. Despite the long tradition that the Italian companies have in this sector and the international reputation, companies struggle to compete internationally due to the high sector fragmentation and the consequently average small size. Exports represent only 20% of production.
The production is quite diversified across the entire country:

  • Agricultural commodities: Italy is one of the biggest European producers of rice, tobacco, fruits and vegetables, flowers, eggs and poultry, sugar, wheat and meat. Italy is also an important player in the production of organic food.
  • Processed foods: particularly bakery products, pasta, coffee, confectionery, dairy products and cooked meats.
  • Beverages: both soft drinks and alcoholic beverages (notably wine, spirits and liquors).

Why to buy a Food & Beverage company in Italy?

The sector offers many acquisition opportunities both for strategic and financial investors. The sector needs to consolidate and the wide presence of small sized companies with high quality production, together with the high level of international reputation that Italian companies have in this sector, gives investors solid investment opportunities.
The main drivers which will sustain acquisitions in the Food & Beverage sector are:

  • Increase of product range.
  • Increase of economies of scale.
  • Geographical expansion.
  • Sales cyclicality reduction.
  • Brand acquisition (in the Food & Beverage sector the ownership of renowned brand is often paramount to successfully compete, as well as it is often more efficient and effective to buy a well-known and established brand than building a new one which is time consuming, expensive and risky).

Private equity firms are particularly active in the Food & Beverage sector due to the high opportunities that the sector offers. Private equity investors are often important partners for entrepreneurs to sustain their businesses’ growth.
Some of the recent transactions in the Food & Beverage sector:

  • 21 Investimenti (private equity) bought Forno D’Asolo (baked and frozen foods).
  • PM & Partners (private equity) bought Moviso (baked products).
  • CA Agro-Alimentare (Credit Agricole’s private equity arm) bought Bakery (frozen bakery products).
  • Sanset (Turkish-based confectionery producer) bought Pernigotti (confectionery).
  • Clessidra (private equity) bought Baroni (biscuits and confectionery).
  • La Doria (sauces, fruit juices and beans) bought Althea (sauces).
  • Charterhouse Capital Partners (private equity) bought Nuova Castelli (Cheese).
  • Campari (beverages) bought Averna (liquors).

Buying a Food & Beverage company in Italy

If you want to buy a Food & Beverage business in Italy, please get in touch with us. The advisors of CFIE will help you to purchase a Food & Beverage company in Italy and assist in every step of the buying process. We can bring you suited Food & Beverage companies open for a business sale.

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