Manufacturers and distributors of branded food and drinks products have much in common.
They sell their products via third party retailers and are directly affected by consumer confidence. Competition and regulatory barriers to industry consolidation and government resistance to the takeover of national champions by foreign entities both raise obstacles to the acquisition of brands by large established groups. Industries that are dominated by brands require vigilant brand protection and promotion to maintain their value.
Linklaters lawyers advise many of the leading companies in the global sector on the most complex, multi-jurisdictional corporate M&A, corporate reorganisations, competition issues, tax , IP and equity and debt financings as well as joint ventures. Our understanding of the commercial and competitive pressures and our presence in many of the key markets is fundamental to our success.
The global economic slowdown has prompted customers to trade down in their choice of food and drink, which has particularly affected the premium brands in the portfolios of food and drinks companies. Consumers are moving away from restaurants and bars and spending on takeaway food, the licensed off-trade and retail sector instead. Switching consumer preferences and uncertainty of demand has made it difficult for companies to forecast sales accurately impacting share prices and valuations. There are signs though that the cash-rich major companies are starting to see value which will drive activity in mergers and acquisitions and Linklater’s cross-border corporate M&A expertise will continue to be in high demand.
Contact us
To discuss legal issues with Linklaters’ global food and beverages team, please contact sector leaders Stuart Bedford or Gerwin Van Gerven.
You can find out more about Linklaters’ food and beverages capabilities from sector manager Paul Taylor on (44 20) 7456 2492.
Recent food and beverage transactions include advising:
- ABInBev on the Belgian aspects of the acquisition of Anheuser-Busch and the equity financing thereof. The combination of InBev and Anheuser-Busch created the global leader in the beer industry and one of the world’s top five consumer products companies
- Scottish & Newcastle on the take over by Sunrise Acquisitions Limited (a company jointly owned by Heineken and Carlsberg)
- Rémy Cointreau in relation to the global distribution joint venture (Maxxium) between Jim Beam, Highland Distillers, V&S and Rémy Cointreau.
- Britvic on its acquisition of the rival soft drinks business, Cantrell & Cochrane
- United Spirits Limited on their acquisition of the Whyte & Mackay Group
- Diageo on the acquisition of Alfa's interest in the Smirnov Russian JV
- British American Tobacco on antitrust aspects of its acquisition of the cigarette business assets of TEKEL, the Turkish state-owned tobacco company, including notification to Turkish Competition Authority
- British American Tobacco on notification under ECMR of its acquisition of Skandinavisk Tobagskompagni A/S (STK)
