Food, Beverages Buoy Consumer Non-Durables Industry
October 02, 2013
Private equity investment in the consumer non-durables industry has taken a breather since 2010. According to the PitchBook Platform, 587 U.S.- or Canada-based consumer non-durable companies have taken in a PE investment since the beginning of 2007. Post-crisis deal activity bounced back strongly in 2010, up 49% that year from its 2009 low. Since 2010, however, deal activity has stagnated a bit, thanks in part to a drop in personal products investments.
PE investment in the food products category has remained relatively strong over the past few years. In fact, the same amount of deals was completed in the food products space in 2011 as in 2010, even as overall investment in the consumer non-durables industry dropped 14% that year. Personal products companies couldn't keep up; PE investment slid 40% from 2010 to 2011. 2013, interestingly, is proving to be a comeback year for PE investments in the beverage space. Deal activity is already close to double last year's mark (23 for 2013 year-to-date vs. 13 in 2012) and accounts for 34% of all 2013 PE activity in the consumer non-durables space, up from 15% in 2012.