Welcome to the Food Exec Brief — your weekly roundup of the most important news shaping food and beverage manufacturing, from M&A moves and regulatory shifts to tech innovation and sustainability trends.
This week’s key takeaways:
- 📈 M&A: Kraft Heinz accelerates breakup plans with potential $20B spinoff, while UK/Ireland food manufacturers show strongest M&A confidence of any sector surveyed
- ⚖️ Regulatory: FMI pushes FDA for FSMA 204 revisions despite 30-month delay, as regulatory uncertainty shifts food safety burden to manufacturers
- 🤖 AI & Tech: Food tech investment boom continues with 9.9% growth expected through 2030, driven by AI-powered innovations and biotech solutions
- 🌱 Sustainability: PepsiCo and Cargill launch major regenerative agriculture collaboration targeting 240,000 Iowa acres by 2030
📈 M&A Moves
Consolidation momentum continues with major portfolio reshuffles as companies seek agility and growth in challenging market conditions.
Kraft Heinz accelerates breakup timeline
Kraft Heinz is preparing to split into two entities, with plans potentially finalizing in weeks. The company is weighing spinning off a large portion of its grocery business into a new entity valued at up to $20 billion, while retaining its faster-growing sauces and condiments segment. This move comes after six consecutive quarters of revenue declines and follows a pattern set by other food giants including Unilever and Kellogg.
UK/Ireland food manufacturers lead M&A confidence
Food and drink manufacturers in the UK and Ireland show the highest M&A confidence of all surveyed sectors for 2025, with 84% of respondents expecting increased private equity investment and 96% citing technology and IP as critical to deal-making. Government incentives and diversification strategies are driving this optimism despite ongoing trade pressures.
⚖️ Regulatory & Policy
Regulatory uncertainty creates new challenges as agencies shift food safety responsibilities while manufacturers push back on compliance burdens.
FMI urges FDA to revise “burdensome” FSMA 204 rule
Despite FDA’s 30-month delay of FSMA 204 compliance to July 2028, FMI submitted comments calling the Food Traceability Final Rule “one of the most complex, challenging regulations the industry has ever faced.” The association requests three key changes: additional flexibility for lot code traceability, exemptions for intracompany shipments, and amended definitions for traceability lot code source references.
Food safety burden shifts to manufacturers
Recent regulatory moves, including USDA’s elimination of two food safety advisory committees and extended waivers for higher production line speeds, signal a shift in food safety responsibility from federal oversight to manufacturers. Industry experts warn this creates vulnerability as “the federal food safety backstop is gone.”
FSMA 204 readiness remains critical despite delay
Despite the compliance extension, most food manufacturers remain dangerously behind on FSMA 204 preparation, with experts warning that companies need to act now to implement end-to-end traceability systems and digital recordkeeping capabilities.
🤖 AI, Automation, & Technology
Food tech investment surges as AI and biotechnology drive efficiency gains and novel ingredient development across the industry.
Food tech investment boom continues
The global food tech market, valued at $172 billion in 2022, is expected to grow at 9.9% annually through 2030, driven by investor demand for AI-powered solutions, biotech innovations, and circular economy models. Investors are particularly focused on technologies that improve supply chain efficiency and reduce food waste.
Tyson Foods leads protein AI revolution
Tyson Foods showcased AI-driven startups at its 2025 Demo Day, including Prevera (AI-designed antimicrobial proteins extending shelf life) and Proxy Foods (AI platform accelerating R&D by 50%). The company’s $100M+ venture capital investments since 2016 position it as a tech-enabled food innovator.
Biotech solutions drive “invisible revolution”
Precision fermentation, novel microbes, and bio-based processes are creating an “invisible revolution” in food systems, with Novonesis estimating biosolutions could generate €133 billion in economic gains by 2035 while saving €55 billion in environmental costs.
🌱 Sustainability & ESG
Sustainability partnerships accelerate as companies address climate pressures and regulatory requirements through collaborative supply chain initiatives.
PepsiCo and Cargill launch major regenerative agriculture partnership
PepsiCo and Cargill announced a strategic collaboration to advance regenerative agriculture practices across 240,000 acres of Iowa farmland by 2030, focusing on their shared corn supply chain with support from Practical Farmers of Iowa. The initiative supports both companies’ goals to drive regenerative practices across 10 million acres globally.
Sustainability becomes competitive advantage
Food and drink manufacturers are increasingly viewing sustainability as a strategic advantage, with 65% actively diversifying offerings to boost resilience and investment appeal, particularly in areas like alcohol-free drinks and healthy food products.
The Food Exec Brief provides weekly insights for food and beverage manufacturing leaders and publishes every Friday.
