Big Food’s Big Reset: Why the industry’s changing faster than ever

Big Food transformation: overview

• Big Food is accelerating portfolio reviews, restructures and leadership changes
• Cost volatility and private-label growth are driving strategic shifts
• Companies are prioritising focused growth over maximum scale ambitions
• Nestlé, Hershey and Barry Callebaut exemplify evolving industry strategies
• Future success depends on sharper portfolios and stronger execution

Big Food’s going through BIG changes.

But this is nothing new. At least, not anymore. Because over the past year, the industry’s adapted to a rate of change that might once have stopped it in its tracks. Now, it’s more a case of expecting the unexpected.

Major C-suite exits and industry-changing acquisition are becoming the norm. Which is just as well since the shake-ups keep on coming.

In fact, since we last reported on the industry’s powerful evolution, we’ve seen Nestlé sell 50% of its Waters business and mainstream VMS brands, Unilever proceed with its Foods sale, Mondelēz International appoint a new CFO, Barry Callebaut reinstate the role of COO, The Hershey Company appoint a new CFO and US president, Mars, Inc. name its new CDIO, Ferrero Group buy Purely Elizabeth, and Tate & Lyle agree a takeover deal with Ingredion.

It’s safe to say it’s been a busy summer for Big Food. The question is why and what happens next?

Big Food’s Big Transformation

The simple answer to why Big Food is changing so fast is pressure.

Food and beverage manufacturers are navigating a perfect storm of rising costs, shifting consumer habits and intensifying competition, explains Nandini Roy Choudhury, principal consultant for food and beverage at Future Market Insights. And, while inflation may have eased, the volatility surrounding key ingredients such as cocoa, sugar and dairy remains.

At the same time, consumers are becoming more value-conscious, retailers are investing heavily in private label and volume growth has become increasingly difficult to achieve.

As a result, companies that have spent decades building sprawling portfolios through acquisitions and global expansions are now asking tougher questions. Which brands deserve investment? Which markets still offer growth? And which parts of the business are no longer pulling their weight?

Consequently, companies are streamlining portfolios, sharpening their focus and freeing up capital for growth.

And, leadership changes, says Choudhury, are following the same logic. “Boards are increasingly seeking executives who can streamline complex organisations, accelerate growth and improve execution in a market where pricing alone is no longer enough.”

Added to this, consumer demand is becoming more fragmented. Growth is shifting towards protein-rich foods, functional nutrition, premium snacking, permissible indulgence and convenience-led formats, forcing many to rethink their portfolios and innovation strategies.

In short, Big Food has little choice but to adapt to a rapidly changing market. But while the need for change is shared across the industry, the strategies companies are adopting are not.

The old rules no longer apply

The fundamentals that have long underpinned the food and beverage industry remain important.

Scale still delivers advantages in procurement, manufacturing, distribution and retailer negotiations. Global brands continue to benefit from widespread recognition and consumer trust. But the market they operate in is changing.

For decades, many of the industry’s biggest players were able to rely on a relatively straightforward growth model – build scale, strengthen brands and use pricing power to drive returns. That formula’s becoming less reliable as the drivers of growth evolve.

Consumers are now increasingly willing to shop across brands, channels and price points in search of better value, greater convenience or products that better reflect their needs. And the rise of private label has intensified competition.

Meanwhile demand is shifting towards higher-protein foods, functional nutrition, premium offerings and more tailored offerings.

At the same time, the limits of pricing-led growth are becoming more apparent. While price increases have helped companies offset rising costs in recent years, they can also weigh on volumes, reduce purchase frequency and encourage consumers to seek alternatives.

In response, growth generated through pricing alone is attracting greater scrutiny from the market.

“Investors are increasingly distinguishing between price-led revenue growth and healthy growth supported by volumes, market-share gains and repeat consumption,” says Choudhury. “Companies that protect margins while losing consumers are unlikely to be rewarded indefinitely.”

In other words, the market is no longer rewarding change for change’s sake. What matters is whether today’s decisions position companies for tomorrow’s growth.

Reinvention versus reaction

While most of the industry’s biggest players recognise the need to adapt, some are fundamentally reshaping their businesses while others are simply responding to immediate pressures. So far, says Choudhury, those taking the more transformative approach are outperforming their peers.

The reasons why become clearer when looking at the traits shared by the sector’s strongest performers.

By contrast, the companies struggling to gain traction often find themselves trapped in a cycle of restructuring. Cost-cutting programmes may deliver temporary financial relief, but they rarely create a sustainable growth engine if underlying portfolio complexity remains unresolved.

Which raises a critical question – what does successful transformation actually look like?

Focus replaces scale

If there’s one move that best captures where Big Food is heading, says Choudhury, it’s Barry Callebaut’s strategic pivot.

Following the appointment of CEO Hein Schumacher in January 2026, the chocolate giant shifted from its broad-ranging BC Next Level transformation programme to a more targeted strategy – Focus for Growth.

And the name says it all. Rather than chasing opportunities across every market, segment and channel, Barry Callebaut’s concentrating resources behind a smaller number of priorities, selected customers, high-potential segments and innovation platforms where it believes it can generate the strongest returns.

It’s a playbook that’s becoming increasingly familiar across the food and beverage sector.

As growth becomes harder to find, companies are moving away from the idea that bigger automatically means better. Instead, they’re directing capital, management attention and investment towards the brands, categories and capabilities where they have the clearest competitive advantage.

Just as importantly, Barry Callebaut’s strategy recognises that cost-cutting can only take a business so far. Operational efficiency may improve profitability, but sustainable growth requires something more – a clear plan for where to compete and how to win.

Nestlé offers another glimpse into this new reality.

The food and beverage giant has sharpened its portfolio, placing greater emphasis on its Four Pillars – Coffee, Food and Snacks, Petcare, Nutrition – while reviewing or divesting less strategic assets.

Hershey, meanwhile, is tackling the challenge from a different angle.

Through its ONE Hershey operating model, unveiled in March 2026, the company’s bringing its sweet, salty and protein businesses under a single commercial structure. The aim is to operate less like a collection of individual categories and more like a unified snacking powerhouse, improving speed, coordination and execution along the way.

But, this doesn’t signal the end of dealmaking just a change in the types of deals made. Large-scale portfolio expansion is giving way to targeted acquisitions designed to strengthen specific capabilities, categories or growth platforms.

What happens next?

The changes sweeping through Big Food show little sign of slowing.

If anything, the pace of transformation is likely to accelerate as companies continue to navigate economic uncertainty, evolving consumer expectations and growing competition from both established rivals and emerging challengers.

But Big Food isn’t shrinking. It’s being rebuilt. And judging by the changes already underway, this transformation is only just beginning.