Big changes in Big Food – summary
- Brands accelerate M&A to meet rising demand for healthier goods
- Rebrands surge as wellness trends reshape consumer expectations and packaging
- Protein‑rich and gut‑friendly products rapidly gain mainstream cultural relevance
- Premiumisation grows as major CPGs justify higher pricing through superiority
- Reputation shifts and cultural pressures quietly drive selective brand overhauls
Food and drink is going through big changes – and those changes are happening on all fronts.
From sustainability pressures to shifting consumer expectations, the industry is being pushed to reinvent itself at breakneck speed.
The result?
Manufacturers are ripping up the rulebook – they’re cutting carbon, slashing sugar, ditching artificial additives, and investing in cleaner, greener supply chains.
They’re also firing up the mergers and acquisitions market to take on brands that fit rising trends and spin-off ones that don’t.
Just look at the last 12 months. Ferrero diversified into cereal through its acquisition of WK Kellogg, Mars, Inc entered into snacking with the purchase of Kellanova, Unilever offloaded its entire ice cream division, and Nestlé confirmed it’s saying goodbye to ice cream and part of its water business. All while Kraft Heinz is in a ‘will they, won’t they’ split situation.
Oh and on top of all that some companies, such as Suntory-owned Ribena and PepsiCo-owned Lay’s, completely rebranded themselves to remain relevant in the 2026.
But is this really any different to before? Is the level of M&A activity unusual? And are we actually seeing more rebrands?
Big Food’s race to rebrand
“For companies in the CPG industry looking to reposition their brand portfolios, M&A has long-been a popular, and perhaps unsurprising, strategic move,” says Doug Ehrenkranz, partner and North American consumer goods and retail lead at consultancy firm Boyden. “What’s different about the M&A activity happening in the CPG space today is that multi-billion dollar consumer goods giants are making M&A decisions with the ultimate goal to meet consumer demand for healthier, ‘good-for-you’ goods.”
PepsiCo’s acquisition of Poppi and Hershey’s of LesserEvil are perfect examples of this.
What’s more, there’s been a noticeable uptick in rebranding to fit the growing health and wellness trend.
“Players in the CPG space have been redesigning elements of their brand identity in response to consumer wellness trends for many years,” says Ehrenkranz. “Recently, however, that pace of change has dramatically accelerated.”
The reason, explains Ehrenkranz, is the result of two key trends:
- Protein-rich: The market was already seeing growth in demand for protein-rich foods over the last several years, but the introduction of GLP-1s and the adjacent conversations around weight loss and protein’s position on the food pyramid have only exponentially exacerbated that demand
- Nutrient-dense and gut-friendly: Consumers are increasingly looking to do more with less, even when it comes to snacking. They’re opting for foods and beverages that promise maximised health benefits over ultra-processed foods. Green drinks like AG1 and probiotic sodas like PepsiCo-owned Poppi are prime examples this.
And Ehrenkranz has a tip for manufacturers here, as he explains, consumers tend to gravitate towards simplified packaging or visual identities, and labels that call out these kinds of health and wellness benefits.
Though companies are cautioned against “health‑washing”, as this recent video from marketing expert Matt Rosenman shows, consumers are getting wise to bogus claims.
Premiumisation
Outside of health and wellness, which is by far the biggest force for change in food and beverage right now, we’re seeing a major shift towards premiumisation.
“Major CPG brands are all having to demonstrate to consumers that their brands are worth paying a little more for,” says Daniel Binns, global CEO of Elmwood Brand Consultancy. “Just being a big, popular brand doesn’t cut it anymore.”
Brands, he says, need to show that they are better in terms of quality and desirability.
Reputation
There is another reason manufacturers have been rebranding in recent years and it’s one they’re less likely to shout about – restoring reputation
“We have seen in the past brands trying to address a cultural backlash to their historic brands,” says Elmwood Brand Consultancy’s Binns. “Think Aunt Jemima, Land O’Lakes, Eskimo Pie and Uncle Ben’s.”
But these, he explains, were all in the immediate aftermath of George Floyd’s death in 2020. “There have been far fewer of late and the new crop of rebrands are much more based on shifting food culture and the needs for mass CPG companies to drive margin expansion through premiumisation.”
Big Food’s future big moves
While the pace of change may feel disruptive, it also opens doors for Big Food players to redefine their value in a market that’s hungry for better choices.
These companies have the scale, supply‑chain strength and R&D firepower to turn emerging trends into mass‑market realities, whether that’s cleaner labels, gut‑friendly formulations, or more premium, purpose‑driven products.
Crucially, the shift isn’t just about mitigating risk or keeping up with challenger brands. It’s a chance to build entirely new growth engines.
As consumers lean into protein‑rich diets, functional benefits and upgraded everyday indulgences, the manufacturers that invest early and innovate decisively stand to gain the most.
There’s room here for category expansion, cross‑portfolio modernisation, and smarter brand architectures that unlock margin while meeting genuine consumer needs.
If the last few years were defined by reactive change, the next few will be defined by strategic reinvention.
