FOOD & BEVERAGE MONTHLY DASHBOARD AUGUST 2017 STRATEGIC & CAPITAL ADVISORY FOR CONSUMER COMPANIES

Transcription

1 FOOD & BEVERAGE MONTHLY DASHBOARD AUGUST 2017 STRATEGIC & CAPITAL ADVISORY FOR CONSUMER COMPANIES

2 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Page 2 PUBLIC COMPANY STOCK PERFORMANCE TWELVE MONTHS ENDING AUGUST 31, 2017 OVERALL FOOD & BEVERAGE STOCKS VS. S&P 500 INDEX STOCKS VS. S&P500 INDEX +30% +25% +20% +15% +10% +5% F&B 28.3% S&P 13.9% +40% +30% +20% +10% +0% Con. 21.4% S&P 13.8% +0% -10% -5% -10% -20% -30% Nat. 2.0% Food & Beverage Manufacturers S&P 500 Natural Conventional S&P 500 Note: Market-weighted index from Cody Peak Advisors Food Index OVERALL FOOD & BEVERAGE RELATIVE SUBSECTOR STOCK PERFORMANCE 25.0% 23.3% 20.0% 16.6% 15.0% 10.0% 9.3% 5.0% 2.9% 0.6% 0.0% 4.0% 2.0% 0.0% -2.0% -4.0% RELATIVE STOCK PERFORMANCE 3.0% -5.0% -0.9% -2.7% -6.0% -10.0% -8.0% -9.7% -10.6% -15.0% -10.0% -12.0% Conventional -10.2% Natural TOP PERFORMING FOOD & BEVERAGE STOCKS BY SUBSECTOR 53.3% 8.8% 21.4% 11.5% 13.9% 45.5% 67.8% 53.3% 20.7% Alc. Bev Non Alc. Bev Candy Fruit & Veggie Ingred. Packaged Food Snacks

3 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Page 3 FOOD & BEVERAGE COMMODITY PRICING TRENDS 12-MONTH MEAN PRICING CHANGE CODY FOOD COMMODITY INDEX 24-MONTH MEAN PRICING CHANGE CODY FOOD COMMODITY INDEX +15% +5% +10% +5% 0% 3.5% 0% -5% -5% -10% -10% -15% -8.9% -15% -20% Chart Sources: Wall Street Journal Note: Commodities tracked include butter, cheese, corn, milk, cocoa, eggs, flour, sugar, beef, chicken & pork. RELATIVE TRAILING 12-MONTH VALUATION MULTIPLES FOR PUBLIC FOOD & BEVERAGE COMPANIES OVERALL FOOD & BEVERAGE EV / REVENUE EV / EBITDA EV / REVENUE EV / EBITDA Non-Alc. Beverages 3.2x Confectionery 18.2x BETR 3.3x LWAY 21.1x Alc. Beverages 3.2x Alc. Beverages 16.3x Confectionery 2.8x Ingredients 16.0x Ingredients 2.8x Non-Alc. Beverages 15.1x HAIN 1.7x HAIN 17.7x Packaged Foods 2.4x Snack Foods 14.4x Snack Foods 2.1x Fruits & Vegetables 13.3x LWAY 1.1x BETR 13.9x 1.2x Packaged Foods 12.5x Products 0.9x 10.7x Fruits & Vegetables 0.9x Products 9.0x Median 2.4x Median 14.4x Median 1.7x Median 17.7x

4 Page 4 TRAILING 12-MONTH VALUATION MULTIPLES FOR OVERALL PUBLIC FOOD & BEVERAGE COMPANIES Market Data (Given in $Millions) Price 1 Yr Est. Price Performance Equity Firm Growth EV / LTM EBITDA Company ($ mm) Ticker 08/31/17 LTM Value Value Rate Sales EBITDA Margin Aryzta AG ARYN $ % $2,788 $4,843 NA 1.2x 10.5x 11.2% Flowers Foods, Inc. FLO % 3,636 4, % 1.1x 10.9x 10.5% Hostess Brands, Inc. TWNK % 1,334 2, % 3.4x 12.3x 27.7% Grupo Bimbo SA BIMBO A % 11,435 15, % 1.1x 9.0x 11.8% Average 0.6% 9.9% 1.7x 10.7x 15.3% Median 1.1% 7.0% 1.2x 10.7x 11.5% Alcoholic Bev. Anheuser-Busch InBev SA/NV ABI $ % $228,526 $353, % 6.7x 18.7x 36.1% Asahi Group Holdings, Ltd % 19,914 32, % 2.0x 15.2x 13.4% Big Rock Brewery Inc. TSX:BR % NA 1.4x 33.8x 4.2% The Boston Beer Company, Inc. SAM % 1,771 1, % 1.9x 9.1x 21.1% Brick Brewing Co. Limited TSX:BRB % % 2.7x 15.2x 18.0% Brown-Forman Corporation BF.B % 20,818 22, % 7.5x 21.1x 35.4% Constellation Brands, Inc. STZ % 39,002 48, % 6.5x 18.5x 35.1% Craft Brew Alliance, Inc. BREW % % 1.7x 28.4x 6.1% Diageo plc DGE % 83,831 96, % 6.2x 19.1x 32.2% Heineken N.V. HEIA % 59,620 76, % 3.2x 14.5x 21.8% Kirin Holdings Company, Limited % 20,680 26, % 1.7x 12.2x 14.3% Molson Coors Brewing Company TAP % 19,330 30, % 3.5x 16.0x 22.0% Pernod Ricard SA RI % 36,019 45, % 4.4x 16.3x 27.2% Rémy Cointreau SA RCO % 5,648 6, % 5.2x 23.2x 22.5% Sapporo Holdings Limited % 2,259 4, % 0.9x 10.3x 8.5% Average 16.6% 20.8% 3.7x 18.1x 21.2% Median 18.8% 13.4% 3.2x 16.3x 21.8% Non-Alcoholic Bev. Coca Cola KO $ % $194,285 $216, % 5.6x 19.9x 28.0% Cott BCB % 2,105 4, % 1.2x 11.6x 10.2% Dr. Pepper Snapple Group DPS % 16,546 20, % 3.2x 13.3x 24.0% Monster Beverage Corporation MNST % 31,715 30, % 9.6x 24.0x 40.0% Pepsi PEP % 164, , % 3.0x 15.1x 19.6% Average 2.9% 2.5% 4.5x 16.8x 24.4% Median 4.9% 4.9% 3.2x 15.1x 24.0% Confectionery Barry Callebaut AG BARN $1, % $7,856 $9, % 1.4x 17.5x 7.9% Chocoladefabriken Lindt & Sprüngli AG LISN 69, % 15,273 15, % 3.8x 20.8x 18.2% Hershey Foods HSY % 22,290 25, % 3.3x 14.5x 22.9% Natra SA BME:NAT % NA 0.4x 7.5x 6.0% Petra Foods P % % 2.2x 18.9x 11.8% Tootsie Roll Industries TR % 2,338 2,216 NA 4.2x 19.3x 22.0% Average -0.9% 4.7% 2.6x 16.4x 14.8% Median 0.8% 3.6% 2.8x 18.2x 15.0% Fruits & Vegetables Calavo Growers CVGW $ % $1,177 $1, % 1.2x 17.9x 6.5% Fresh Del Monte FDP % 2,355 2,582 NA 0.6x 8.8x 7.1% Average -2.7% 17.1% 0.9x 13.3x 6.8% Median -2.7% 17.1% 0.9x 13.3x 6.8% Ingredients Archer Daniels ADM $ % $23,244 $29, % 0.5x 10.9x 4.3% Bunge BG % 10,492 16, % 0.4x 12.6x 2.8% Corbion N.V. ENXTAM:CRBN % 1,757 1, % 1.9x 10.3x 18.1% Ingredion Incorporated INGR % 8,881 10, % 1.8x 9.9x 18.2% Frutarom Industries Ltd. FRUT % 4,561 5, % 4.1x 21.4x 19.2% Givaudan AG SWX:GIVN 2, % 18,773 20, % 4.0x 19.5x 20.7% International Flavors & Fragrances IFF % 10,808 12, % 3.8x 18.2x 20.9% Kerry Group KRZ % 16,361 17, % 2.5x 18.5x 13.5% MGP Ingredients MGPI % % 2.9x 19.0x 15.4% Sensient Technologies SXT % 3,165 3, % 2.8x 15.2x 18.2% Symrise AG XTRA:SY % 9,465 11, % 3.3x 16.0x 20.8% Average 9.3% 9.5% 2.5x 15.6x 15.6% Median -0.9% 10.0% 2.8x 16.0x 18.2% Source: Public company documents NA Not available NMF Not meaningful figure EBITDA Earnings before interest, taxes, depreciation & amortization Enterprise Value Market value of equity + interest-bearing debt - cash

5 Page 5 TRAILING 12-MONTH VALUATION MULTIPLES FOR OVERALL PUBLIC FOOD & BEVERAGE COMPANIES Market Data (Given in $Millions) Price 1 Yr Est. Price Performance Equity Firm Growth EV / LTM EBITDA Company ($ mm) Ticker 08/31/17 LTM Value Value Rate Sales EBITDA Margin Packaged Foods B&G Foods BGS $ % $2,028 $3, % 2.5x 12.0x 20.9% Bob Evans Farms, Inc. BOBE % $1,372 $1, % 3.7x 20.3x 18.1% Campbells Soup CPB % 14,002 17, % 2.2x 10.7x 20.4% ConAgra Foods CAG % 13,492 16, % 2.1x 10.4x 20.1% Dean Foods DF % 1,000 1, % 0.2x 5.0x 4.8% General Mills GIS % 30,736 40, % 2.6x 11.9x 21.9% Hain Celestial Group HAIN % 4,171 4, % 1.7x 18.0x 9.2% Hormel Foods HRL % 16,248 15, % 1.7x 11.3x 14.9% JM Smucker SJM % 11,899 16, % 2.3x 10.2x 22.5% Kellogg Company K % 22,593 30, % 2.4x 13.5x 17.7% The Kraft Heinz Company NasdaqGS:KHC % 98, , % 4.9x 15.5x 31.7% Lancaster Colony LANC % 3,197 3, % 2.6x 13.8x 18.5% Lamb Weston Holdings LW NMF 6,648 9, % 2.9x 15.7x 18.6% McCormick & Co. MKC % 12,459 14, % 3.1x 18.1x 17.4% Mondelez International, Inc. MDLZ % 61,301 78, % 3.1x 18.3x 16.6% Pinnacle Foods Inc. PF % 7,046 9, % 3.2x 14.8x 21.4% Post Holdings, Inc. POST % 5,632 9, % 1.9x 10.9x 17.7% Seneca Foods SENE.A % NA 0.5x 12.5x 4.2% The Simply Good Foods Company SMPL NMF NA NMF NFM NMF Treehouse Foods THS % 3,831 6, % 1.0x 9.6x 10.2% Average -10.6% 2.7% 2.3x 13.3x 17.2% Median -16.5% 1.4% 2.4x 12.5x 18.1% Products Sanderson Farms SAFM $ % 3,355 2, % 1.0x 6.9x 14.3% Seaboard Corp SEB 4, % 5,028 4,238 NA 0.8x 11.3x 6.9% Tyson Foods TSN % 23,225 33, % 0.9x 9.0x 10.2% Average 23.3% 8.3% 0.9x 9.1x 10.5% Median 32.8% 8.3% 0.9x 9.0x 10.2% Snack Foods Amplify Snack Brands, Inc. BETR $7.21 NA 553 1, % 3.7x 14.3x 25.9% John B Sanfilippo & Son Inc. JBSS % % 0.9x 10.2x 8.4% J&J Snack Foods JJSF % 2,389 2, % 2.2x 14.5x 15.3% Snyder Lance LNCE % 3,433 4, % 2.1x 16.9x 12.3% The Inventure Group SNAK % % 0.6x NMF 1.5% Average -9.7% 5.4% 1.9x 14.0x 12.7% Median 2.5% 4.7% 2.1x 14.4x 12.3% TRAILING 12-MONTH VALUATION MULTIPLES FOR NATURAL PUBLIC FOOD & BEVERAGE COMPANIES Market Data (Given in $Millions) Price 1 Yr Est. Price Performance Equity Firm Growth EV / LTM EBITDA Company ($ mm) Ticker 08/31/17 LTM Value Value Rate Sales EBITDA Margin Natural GNC Holdings, Inc. NYSE:GNC $ % $568 $2, % 0.8x 7.3x 11.2% Lifeway Foods, Inc. NasdaqGM:LWAY % % 1.1x 21.1x 5.2% Natural Grocers by Vitamin Cottage, Inc. NYSE:NGVC % % 0.2x 4.2x 5.8% Sprouts Farmers Market, Inc. NasdaqGS:SFM % 2,703 3, % 0.7x 10.6x 6.8% Amplify Snack Brands, Inc. BETR % 553 1, % 3.3x 13.9x 23.5% The Hain Celestial Group, Inc. NasdaqGS:HAIN % 4,171 4, % 1.7x 17.7x 9.5% United Natural Foods, Inc. NasdaqGS:UNFI % 1,759 2, % 0.2x 7.0x 3.5% Vitamin Shoppe, Inc. NYSE:VSI % % 0.2x 2.5x 8.1% Median Natural F&B 0.0% 3.3% 1.1x 17.7x 5.2% Median Natural Retail & Distribution -54.5% 8.4% 0.2x 7.0x 6.8% Total Median -42.2% 6.4% 0.8x 8.9x 7.4% Source: Public company documents NA Not available NMF Not meaningful figure EBITDA Earnings before interest, taxes, depreciation & amortization Enterprise Value Market value of equity + interest-bearing debt - cash

6 Page 6 MERGER & ACQUISITION / FINANCING OVERVIEW 217 OVERALL FOOD & BEVERAGE M&A ACTIVITY U.S. TARGETS M&A ACTIVITY U.S. TARGETS YTD 2017 Chart Source: Capital IQ & Cody Peak research YTD 2017 OVERALL FOOD & BEVERAGE TRANSACTION MIX BY Packaged Foods, 28.6% SUBSECTOR - U.S. TARGETS Snack Foods,, 4.8% 11.4% Ingredients, 11.0%, 7.4% Beverages - Alc, 16.0% Beverages - Non-Alc, 11.7% Confectionery Fruits &, 3.4% Veggies, 5.6% TRANSACTION MIX BY Retailer, 4.0%, 3.4% Snacks, 12.6% SUBSECTOR - U.S. TARGETS Wholesaler, Supplements, 3.4%, 2.9% 4.6% Prepared Foods, 40.6% Beverages, 17.1% Fruits & Veggies, 2.3% Ingredients, 4.6% Pet Food, 4.6% Chart Sources: Capital IQ / Cody Peak M&A database FINANCING VOLUME FINANCING MIX / STAGE YTD YTD 2017 Angel / Seed Early VC Late VC Growth Equity Corporate Secondary / Public Debt

7 Page 7 MERGER & ACQUISITION / FINANCING OVERVIEW MEDIAN FOOD & BEVERAGE REVENUE MULTIPLES BY SUBSECTOR - U.S. TARGETS MEDIAN FOOD & BEVERAGE EBITDA MULTIPLES BY SUBSECTOR - U.S. TARGETS 2.50x 2.00x 1.50x 1.00x 2.11x 2.06x 1.86x 1.66x 1.38x 1.22x 1.17x 0.70x 0.59x 1.38x 16.0x 14.0x 12.0x 10.0x 8.0x 6.0x 13.8x 13.4x 10.4x 10.0x 10.0x 9.0x 8.0x 7.9x 7.4x 10.0x 0.50x 4.0x 2.0x 0.00x 0.0x Note : Median from Note : Median from HIGHLIGHTED CONVENTIONAL FOOD & BEVERAGE M&A TRANSACTIONS Target: French s Food and Tigers Milk Buyer: McCormick Transaction Value: NA TV / Rev: 7.4x TV / EBITDA: NA Target: Casamigos Spirits, Co. Buyer: Diageo PLC Transaction Value: $1,000.0 TV / Rev: NA TV / EBITDA: NA McCormick acquired French s Food, including French s Mustard and Frank s Red Hot Sauce brands, and Tigers Milk from Reckitt Benckiser The transaction compliments McCormick s seasoning and condiment offerings, adding two large sauce brands McCormick plans to extend distribution of French s and Frank s Red Hot into international markets Diageo completed its acquisition of Casamigos Spirits, a premium tequila brand, in August for $1.0 billion, comprised of $700.0 million cash and $300.0 million earnout Casamigos produced 120,000 cases in 2016 and is expected to produce 170,000 cases by the end of the year The Casamigos brand compliments Diageo s portfolio of spirits and will be marketed as a celebrity lifestyle brand HIGHLIGHTED TRANSACTIONS Target: Daiya Foods Buyer: Otsuka Pharmaceuticals Transaction Value: $323.5 TV / Rev: 4.5x TV / EBITDA: NA Target: Kill Cliff Lead Investor: Sunrise Strategic Partners Transaction Value: $13.5 TV / Rev: NA TV / EBITDA: NA Otsuka Pharmaceuticals, a nutraceuticals and supplements manufacturer, based in Tokyo, Japan has acquired Daiya Foods, a manufacturer of plant based foods Daiya will be Otsuka first foray into food, and will add plant based foods to the company s North American product line Daiya s operations and management will continue under the leadership of CEO Terry Tierney Sunrise Strategic Partners has made a minority investment in Kill Cliff, a producer of functional beverages and protein bars The investment from Sunrise will allow Kill Cliff to expand distribution and reach new customers

8 Page 8 AUGUST SELECT FOOD & BEVERAGE TRANSACTIONS Closed Date Target/Issuer Total Transaction Value ($mm) Transacation Type Buyers Subsector Target Business Description 08/29/2017 Popcorn, Indiana LLC - M&A Eagle Family Foods Group LLC Snacks Popcorn, Indiana LLC produces gourmet and whole grain snacks. It offers popcorn and chips. 08/25/2017 Fells Point Wholesale Meats, Inc. $45.0 M&A The Chefs' Warehouse, Inc. (NasdaqGS:CHEF) Fells Point Wholesale Meats, Inc. processes, cuts, and prepares meat for delivery and produces a specialty protein. 08/23/2017 The Cold Press Corp. $5.1 M&A GreenSpace Brands Inc. (TSXV:JTR) Non. Alc Beverage The Cold Press Corp. produces cold pressed juices. The company was founded in 2014 and is based in Toronto, Canada. 08/21/2017 Glutenfreeda Foods, Inc. - M&A Flagship Food Group LLC Packaged Foods Glutenfreeda Foods, Inc. manufactures and distributes wheat/gluten-free food. 08/17/2017 Labriola Baking Company - M&A J&J Snack Foods Corp. (NasdaqGS:JJSF) 08/17/2017 Capitol Wholesale Meats, Inc. $425.0 M&A Hormel Foods Corporation (NYSE:HRL) 08/15/2017 Calera Wine Company - M&A Duckhorn Wine Company, Inc. Alc. Beverage Labriola Baking Company operates as a baking company, manufactures frozen artisan and pretzel breads, which includes dinner rolls, sandwich, twists, and croissant. Capitol Wholesale Meats, Inc. engages in the production and sale of meat cuts of beef, pork, and veal; and pizza supplies, and ground hamburgers. Calera Wine Company produces wines. The company was founded in 1975 and is based in Hollister, California. 08/15/2017 Casamigos Spirits Co. $1,000.0 M&A Diageo North America Inc. Alc. Beverage Casamigos Spirits Co. produces tequila brand under the name Casamigos Tequila. The company was founded in 2013 and is based in Manhasset, New York. 08/15/2017 Richgood Gourmet LLC - M&A Royal Cup, Inc. Packaged Foods Richgood Gourmet LLC produces and distributes shelf-stable and cold-brew coffees for retail and food service companies and for ingredient use. 08/14/2017 BakeMark USA LLC - M&A Pamplona Capital Management LLP, Private Equity 08/11/2017 Nature's Rancher, Inc. - M&A Pederson's Natural Farms, Inc. BakeMark USA LLC produces and sells bakery supplies and food ingredients. Nature's Rancher, Inc. produces ready-to-eat snacks, meat, poultry, and related food products. 08/10/2017 Funky Buddha Brewery LLC - M&A Constellation Brands, Inc. (NYSE:STZ) Alc. Beverage Funky Buddha Brewery LLC produces and distributes beers in the United States. The company was founded in 2010 and is based in Oakland Park, Florida. 08/10/2017 Del Sol Food Company, Inc. - M&A Sabormex, S.A. de C.V. Packaged Foods Del Sol Food Company, Inc. produces and markets salad dressings. 08/05/2017 L.B. Maple Treat Corporation $124.4 M&A Lantic Inc. Packaged Foods L.B. Maple Treat Corporation produces maple syrup products, including maple cream cookies, maple butter, and tea, and honey and pancake mixes. Sources: Capital IQ / Cody Peak M&A database ABOUT CODY PEAK ADVISORS Cody Peak Advisors is an independent strategic and capital advisory firm that focuses exclusively on the consumer sector. Our senior professionals have completed over 100 transactions with an aggregated value in excess of $7 billion. We have a successful track record of helping middle market branded and non-branded consumer manufacturing, marketing and distribution companies strategically unlock and enhance value through mergers, acquisitions and financings. CONTACT Cody Peak Advisors, LLC 201 Continental Blvd, Suite 200 El Segundo, California Robert J. Parzick Managing Director bparzick@codypeakadv.com Jacques A. Perrone Managing Director jperrone@codypeakadv.com This report is for information purposes only and is not intended as an offer or solicitation with respect to any purchase or sale of any security. Cody Peak Advisors, LLC gathers its data from sources it considers reliable; however, it does not guarantee the accuracy of completeness of the information provided within this publication. The opinions presented herein reflect the current judgment of the authors and are subject to change. Cody Peak Advisors, LLC makes no warranties, expressed or implied, regarding the accuracy of this information or the subjective opinions expressed by the authors. Cody Peak Advisors, LLC, its officers, directors and partners may at any time have positions in the securities of the companies discussed herein. Copyright 2017 Cody Peak Advisors, LLC., all rights reserved. September 2017