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Benchmark International has successfully facilitated a transaction between Apopka, FL-based International Restaurant Distributors, Inc. ("IRD") and Dallas, TX-based Hart & Price Corporation ("H&P"). IRD, a distributor of high-quality food service equipment and supplies, and H&P, a trusted distributor and representative of commercial kitchen equipment and beverage supplies, bring a wealth of expertise to this strategic acquisition.   

The global roofing market is growing at a compound annual growth rate (CAGR) of 3.7% from $267.64 billion in 2023 to $277.42 billion in 2024. This growth can be attributed to growth within construction and real estate, urbanization trends, climate and weather, architectural styles and trends, and the need for maintenance and replacement.

The global food & beverage services market is forecast to grow from $3,232.94 billion in 2021 to $3,678.61 billion in 2022. That represents a compound annual growth rate (CAGR) of 13.8%. Growth is primarily due to companies rearranging operations amid recovery from the COVID-19 pandemic that resulted in so many challenges for the industry. By 2026, the market is expected to surge to $5,235.52 billion at a CAGR of 9.2%.In 2021, the largest region in the food & beverage services market was the Asia Pacific region, followed by North America.The industry will continue to benefit from the increasing digitalization of food services. Consumers ordered more food online during the pandemic and are continuing to prefer to do so. This trend is likely to continue and will drive the market in the future.Technology is also being adopted in more restaurants to improve customer satisfaction and drive sales. These innovations include self-ordering touchscreen kiosks and a variety of mobile apps for customized orders, quick payment, digital entertainment, and gaming.Inflation, Supply Chains, and Labor ShortagesWhile COVID lingers, numbers improve, and many restrictions are lifted. But other issues are facing the industry. These include inflation, ongoing supply chain problems, and widespread labor shortages. Inflation is a problem everyone faces, including consumers, food processors, grocers, and restaurateurs. This high inflation is expected to persist through most of 2022. Meat processors now have to predict how inflation and supply issues will impact consumer behaviors. Most supply chain issues were due to restrictions and shutdowns during the pandemic. But that is not the only cause. There have been unpredictable and increasing demand from overseas. And extreme weather issues have been causing problems for agriculture, affecting the production of a wide range of products and services.But the common thread that can be identified through all of these issues is the lack of labor. Nothing gets produced, processed, packaged, transported, cooked, or served without struggle. Labor shortages are expected to be a massive factor for the food & beverage industry this year. Plant-Based FoodsPlant-based alternative proteins continue to disrupt the food & beverage space as more companies get in on the trend, causing the prices to drop. Consumers are becoming more interested in trying these products, especially as meat costs are up due to inflation. Data shows that more customers are willing to try these products for the first time. However, there are challenges to getting them to come back. Many people still find the flavor unappealing. These products are also highly processed, so the nutritional numbers are not as good as one might expect from a “vegetarian” type of product. Most plant-based products are still high in fat and sodium and some mysterious-sounding ingredients. Food companies view the plant-based category as one of its own rather than a replacement for actual meat products.

The COVID-19 pandemic and the resulting government responses have had a significant impact on consumer spending, with retailers closed for months and shoppers staying home starting in the early part of 2020, with the timing of closures varying by country. Many consumers continue to stay home, even as most businesses have reopened. Online shopping has surged due to the pandemic. In the U.S. and Canada, e-commerce orders are up 146%.

The animal pharmaceutical market isn’t as heavily regulated as human pharmaceuticals, and as a result, is a more attractive industry. Traditionally the market was dominated by divisions of large pharma companies. However, this has changed over the last few years. The sector has seen significant changes following Pfizer’s 2013 spin-off of its animal health business, now known as Zoetis. This helped inspire the spin-off of Eli Lilley’s animal health business and then later in the year, Bayer announced it would leave the industry.

This is an intriguing time to be involved in the global food and beverage industry. 2019 remains promising for M&A opportunities for several reasons. Giant food companies are on a spree to expand their portfolios with food innovation. Food start-ups and smaller private food companies are looking to cash in on growth and exit strategies. And private equity and venture capital firms are motivated to get their piece of the pie.  

While ongoing geopolitical uncertainties could present challenges in 2019, the overall outlook for the global retail industry remains optimistic. In the world’s top retail market, the United States, retail sales are predicted to grow more than 3 percent to exceed $5.5 trillion. But for the first time ever, China is expected to outperform the U.S. in retail sales. China is forecasted to see a 7.5 percent growth in retail sales this year, reaching $5.6 trillion.