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Food and beverage production M&A advisory

Selling a food or beverage business in a pickier market

My first career was corporate finance and operations at manufacturers, from Fortune 500 to small local companies, building P&Ls, forecasts and margin analysis. I later bought, grew and sold a senior care business, so I know the exit from the owner's chair too.

Manufacturing finance P&L, forecasting and margin work inside manufacturers
Bought, grew and sold a senior care business with nearly 1,000 employees
5.2 months Iconic's published median time to close

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Food and beverage M&A in 2026

Fewer deals, pickier buyers, and real money for quality.

Deal counts are down from recent years. Buyers still pay well for clean books, certified plants and brands with a clear reason to exist.

Deal volume is below historical levels

Kroll counted 231 food and beverage deals in the year to June 30, 2026, down 11% from the prior year. Baker Tilly called H1 2026 a five year low for semi annual deal volume. Strategic buyers are still willing when the asset is strong.

Sources: Kroll, Food and Beverage Industry Insights, Summer 2026, Baker Tilly, Food and beverage M&A update H1 2026, Aug 2026

Better for you brands drew two thirds of branded deals

Brands with better for you, high protein, international or sustainable positioning made up 67.7% of branded food acquisitions so far in 2026. That is the highest share since 2019, per Corporate Finance Associates.

Source: Food Dive, Food M&A in 2026, Aug 2026

Craft beer is consolidating

481 U.S. breweries closed in 2025 and 300 opened, leaving 9,578, a 2.9% net decline. Production fell most at microbreweries that rely on distribution. Many recent brewery deals are one craft brewer buying another.

Sources: Bisnow, 481 U.S. breweries closed in 2025, May 2026, Park Street, Roundup of beverage alcohol M&A in 2026 so far, Jul 2026

Wine is working through a long slump

U.S. wine volume fell 2.0% to about 329 million cases in 2025. Inventories are high across the supply chain and small tasting rooms saw fewer visits. SVB expects demand to bottom out around 2027 to 2028.

Source: Wine Industry Advisor, SVB 25th State of the US Wine Industry Report, Jan 2026

What buyers are looking for

What a food and beverage buyer checks first.

Competitors, private equity platforms and first time owners all open with the same food questions. Here is what I help a maker get ready before we list.

Gross margin by product

Margin by SKU, customer and channel, after freight, trade spend and slotting fees. Buyers want to see which products actually make money.

Cost of goods detail

Bills of materials, ingredient and packaging costs, yields and waste. Buyers test how you handled the input cost swings of recent years.

Food safety certification

SQF, BRCGS or FSSC 22000 status, recent audit scores, and any recall or FDA and USDA history. Iconic notes certification is a gate for institutional buyers.

Customer and channel concentration

Share of sales from your top retailer, distributor or private label customer. One account above a quarter of revenue raises questions fast.

Co packing contracts

For a contract manufacturer, the term, pricing and minimums of each agreement. For a brand, the co packer agreement and whether it can transfer.

Plant, equipment and capacity

Age of lines, tanks and refrigeration, deferred maintenance, and how full the plant runs on each shift. Spare capacity is upside to a buyer.

Price drivers for food and beverage makers

What pushes your price down	What pushes your price up
One retailer or one co packing customer drives most of the sales	A spread of customers and channels with no single account above about a quarter
No third party food safety certification	Current SQF, BRCGS or FSSC 22000 certification with clean audits
Margins that swing with commodity costs and no way to pass them on	Pricing agreements or a brand strong enough to pass cost increases through
The founder holds the recipes, the buyer relationships and the production schedule	Documented specs and a plant manager and sales lead who run the day
Old equipment with deferred maintenance	Maintained lines with room to add volume without new capital
Cash basis books that do not tie to inventory	Accrual financials with inventory counts that reconcile to the P&L

Who is buying

Who buys food and beverage companies right now.

Strategic buyers lead most food deals. Private equity platforms add on smaller makers to grow capacity and categories. Individuals with SBA loans buy many owner operated businesses under about $5 million.

Buyer type	What they pay for	Active examples
Branded food and ingredient companiesStrategic	Brands in growing categories and plants that add capacity or a new region. PKF notes more buyers are acquiring their own manufacturing to secure supply.	Europastry (Highland Baking), Rise Baking (Jimmy's Gourmet Bakery), Grupo Chilero (Tadin Herb and Tea), Mission Produce (Calavo Growers)
Private equity platforms and add onsFinancial	Certified plants and brands that bolt onto a platform. CT Acquisitions counts more than 240 PE owned food and beverage platforms in North America.	Shore Capital Partners (Sweetmore Bakeries), Benford Capital (Nutrition Service Company), Astorg (Solina), Insignia Capital
Craft beverage consolidatorsStrategic	Breweries, wineries and spirits brands with loyal local demand, a taproom or tasting room, and distribution they can expand.	Bale Breaker Brewing, B3 Beverage Co., Jackson Family Wines, Hood River Distillers, No Sleep Beverage
Family offices and family owned groupsFinancial or strategic	Heritage brands with steady earnings they can hold for the long term, often keeping the brand separate.	Hoffmann Family of Companies (Cedar Crest Ice Cream), Brookside Winery (Sbragia Family Vineyards)

Food and beverage deals worth knowing.

Each deal below was made public in 2025 or 2026. Most food and beverage sales close quietly, so the list shows who is buying more than what they paid.

Date	Buyer	Target	Type	Value
Sep 2026	Brookside Winery	Sbragia Family VineyardsDry Creek Valley, Sonoma County, California; estate of 50+ acres, about 8,000 cases a year	Strategic merger	Undisclosed
Aug 2026	Sweetmore Bakeries (Shore Capital Partners)	Fantasy Baking Co.Sylmar, California; private label and branded sweet baked goods; buyer's first West Coast plant	PE add on	Undisclosed
Aug 2026	B3 Beverage Co.	Yards Brewing Co.Philadelphia; 32 year old brewery, the city's largest independent craft brewer; buyer is a contract manufacturer	Strategic	Undisclosed (buyer assumes debt)
Jul 2026	Grupo Chilero	Tadin Herb and Tea Co.Vernon, California; SQF certified herb and tea facility	Strategic	Undisclosed

Show all 15 deals

Date	Buyer	Target	Type	Value
Jul 2026	Nutrition Service Company (Benford Capital Partners)	Seymour Flour MillSeymour, Wisconsin; third generation family owned feed mill; president stays on	PE add on	Undisclosed
Jul 2026	Solina USA (Astorg Partners)	Epicurean Butter Co.Denver; flavored compound butters and dairy flavor solutions; leadership stays	Strategic, PE backed	Undisclosed
Jun 2026	Europastry	Highland Baking CompanyIllinois; family owned premium bread maker for foodservice	Strategic	Undisclosed
Jun 2026	Rise Baking Company	Jimmy's Gourmet BakeryNew Jersey; cookie and baked goods manufacturer; adds Northeast capacity	Strategic	Undisclosed
Jun 2026	Hoffmann Family of Companies	Cedar Crest Ice CreamCedarburg, Wisconsin; multi generational ice cream maker sold by the Kohlwey brothers	Family office	Undisclosed
Jun 2026	Second Nature Brands	Tillamook Country SmokerOregon; meat snacks; about $175M in sales and 480 employees; sold by Insignia Capital and family shareholders	PE add on	Undisclosed
May 2026	Bale Breaker Brewing	Cloudburst BrewingSeattle; founder relocating abroad; brewery keeps its staff and self distribution	Strategic	Undisclosed
May 2026	Mission Produce	Calavo GrowersFresh produce company; 16.0x EV/EBITDA and 0.7x revenue	Strategic	$430M
Apr 2026	No Sleep Beverage	Whiskey Del BacTucson, Arizona craft distillery; bought alongside two other spirits brands	Strategic roll up	Undisclosed
Apr 2026	Hood River Distillers	Crater Lake Spirits brand portfolioBend, Oregon; brands only, seller Bendistillery keeps producing them	Strategic brand purchase	Undisclosed
Mar 2026	Jackson Family Wines	Big SaltOregon wine brand founded in 2016; founders stay on for winemaking	Strategic	Undisclosed

Industry valuation estimator

What is your food or beverage business worth?

Owner run food makers, breweries and farms usually trade on SDE. Once a manager runs things and earnings top about $1 million, buyers switch to adjusted EBITDA.

Annual owner earnings: SDE, or adjusted EBITDA if you have a paid manager ($) Share of sales from your largest customerFood safety and complianceYour role in the day to dayGross margin and revenue over the last 12 months

Estimated value range

Enter your earnings

Illustrative only, not a valuation.

Get a real valuation from Max

Published ranges for this industry

Food manufacturers, 2021 to 2025 sales: 2.43x SDE median, 1.77x to 3.37x middle half, 0.50x revenue (BizBuySell)
Craft breweries: 3.34x SDE on sold listings from 2021 to 2025 (BizBuySell, cited by Iconic)
Craft breweries and distilleries with established brands: 3.0x to 6.0x EBITDA (Jaken Equities, cited by Iconic)
Food manufacturers with $1M to $10M EBITDA: 8.1x to 9.4x EBITDA, rising with size (First Page Sage, cited by Iconic)

Bands start from the food and beverage data above. I set the weight on concentration, certification, your role and trend myself. Use it as a first look only.

Mistakes food makers make

Mistakes that cost food and beverage owners at the closing table.

Nearly all of these can be fixed with a year of notice. Most begin in the accounting, not on the production floor.

Books that do not tie to inventory

Buyers rebuild cost of goods from inventory counts. If the counts do not match the P&L, margins become a guess.

Cost: A lower price or a longer, harder diligence

Waiting to get certified

Iconic notes SQF, BRCGS or FSSC certification gates many institutional buyers. Getting certified takes months.

Cost: A smaller buyer pool

Benchmarking on asking prices

Listed food makers ask a median 2.83x SDE but sold at 2.43x, per BizBuySell. Pricing off listings sets you up to disappoint.

Cost: A longer food and beverage listing and a lower final price

Leaving the founder at the center

When the owner holds the recipes, the buyer relationships and the schedule, buyers see risk. Document specs and build a second layer.

Cost: Lower multiple or a long earnout

Ignoring customer concentration

One retailer or co packing client can carry a small plant. Buyers price the chance that account leaves after closing.

Cost: Price cuts or holdbacks tied to that customer

Assuming licenses transfer

Alcohol licenses, TTB permits and some food permits must be reissued to a new owner. Iconic notes California can add 30 to 90 days.

Cost: A delayed closing

FAQ

Questions food and beverage owners ask about selling.

Who is buying food and beverage businesses right now?

Strategic buyers like Europastry, Rise Baking and Mission Produce are buying makers and growers. Private equity platforms like Sweetmore Bakeries and Solina are adding on smaller plants. Craft operators like Bale Breaker and Jackson Family Wines are buying breweries and wine brands.

What multiple will my food business sell for?

BizBuySell puts small food makers at a 2.43x SDE median for 2021 to 2025, and breweries at 3.34x on average. Published figures for makers with $1 million to $10 million of EBITDA run 8.1x to 9.4x.

Is now a good time to sell?

Deal counts are down, with Kroll reporting 231 food and beverage deals in the year to June 2026. Buyers are still paying for quality assets. A business with clean books and a clear niche can sell well in a slow market.

Does food safety certification really affect price?

Yes. Iconic notes SQF, BRCGS or FSSC 22000 certification gates many institutional buyers and national retail accounts. Without it, your buyer pool is mostly smaller operators and individuals.

Can I sell my brand and keep my plant, or the other way around?

Yes. Hood River Distillers bought the Crater Lake Spirits brands in 2026 while Bendistillery kept producing them. Splitting brand and plant can fit buyers who want only one.

Is my brewery still sellable after the craft beer slowdown?

Many are. Closures outpaced openings in 2025, but craft brewers are buying each other, as Bale Breaker did with Cloudburst. Buyers look for strong taproom sales and local loyalty.

How is a farm or grower valued?

Land is often valued separately from the operating business. USDA put U.S. farm real estate at $4,500 per acre in 2026, and California at $14,100 including buildings. The operating business is valued on its earnings.

Can a food buyer finance the deal with an SBA loan?

Yes, for many owner operated businesses under about $5 million. Iconic notes SBA 7(a) buyers usually put 10% to 15% down, often with some seller financing.

Terms buyers will use

SDE: Profit plus the owner's pay, perks and one time costs. Smaller food and beverage makers are valued on it.
Adjusted EBITDA: Operating profit before interest, taxes, depreciation and amortization, recast as if a hired plant manager ran the company.
Co packer: A contract manufacturer that makes and packages products for other brands under their labels.
Private label: Products made for a retailer or distributor to sell under its own brand.
COGS: Cost of goods sold: ingredients, packaging, direct labor and plant overhead tied to what you sold.
SQF, BRCGS, FSSC 22000: Third party food safety certification programs that many retailers and institutional buyers require.
FSMA: The Food Safety Modernization Act, the FDA rules on preventive food safety controls at food facilities.
TTB: The federal Alcohol and Tobacco Tax and Trade Bureau, which issues permits for breweries, wineries and distilleries.
Depletions: Cases a distributor sells to retailers and bars, the truest measure of beverage demand.
Add on: A smaller company bought by a private equity owned platform to grow it.
Quality of earnings: An accounting review that tests reported profit and add backs before closing.
Earnout: Price paid after closing, and only if sales or profit targets are met.
Asset sale: A sale where the buyer buys the assets, not the company's stock; common in small deals and affects your taxes.

Let's talk

Own a food or beverage business? Schedule a complimentary call with Max!

A private 20 minute call. We will walk through your margins, customer list and plant as a buyer would, and list what to fix first.

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310.896.5988 max@nexterabiz.com LinkedIn

Sources (29)

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