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February 2018
Packaged Food and Beverage Distribution
Sectorwatch
Growing market share and optimizing the cost structure are core to the large food and beverage players. Smaller, niche players have made a highly fragmented market resulting in continued consolidation as larger players seek tuck-in acquisitions of products in growth markets such as natural and organic foods, coffee and tea, and probiotic food and beverages.
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants
