IP: a crucial ingredient in recipes for successful M&A deals

The food and drink industry has had a buoyant start to 2025 in terms of mergers and acquisitions (M&A).

Favourable market conditions, such as low interest rates, increasing consumer demand and reduced pressure on supply chains have resulted in an increased number of M&A deals in the industry.

Large companies have acquired smaller brands, frequently those offering novel products likely to be popular with consumers, particularly those focusing on sustainability and health. For example, Müller UK & Ireland acquired kefir brand Biotiful Gut Health with the aim of broadening growth into functional health yoghurts.

Brand acquisition is also frequently strategic, often either to create or maintain market share. Companies are acquiring others to pave their way into new markets, for example, Molson Coors has acquired a share in Fever-Tree drinks to drive growth in the US. Bread brands Kingsmill and Hovis are also reportedly in talks to merge, with Kingsmill owner Associated British Foods acknowledging the market challenges in the UK bakery sector. 

Intellectual property (IP) has huge value in the context of M&A deals. Brands must ensure this value is recognised and realised by protecting their brands, product designs and other innovations. These assets have considerable value that will be attractive to any potential buyers or investors.

In addition, in order to ensure a seamless deal, brands should ensure that records are up to date, protection is in place for key brand assets and all information pertaining to a company’s IP is properly taken care of. Further, once a deal has concluded, management should be ongoing to ensure IP is held in the correct company name to ensure its value and enforceability.

A flurry of food and drink giants have already made big moves to acquire or merge with other brands

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