Mondelēz CEO Says M&A Is Harder as Acquisition Targets Become ‘Too Expensive’

Why It Matters

Rising acquisition costs limit growth options for leading food firms, forcing tighter deal selection and potentially reshaping market dynamics.

Key Takeaways

• Food M&A valuations rising, making deals costlier
• Mondelēz targets cakes, pastries, premium chocolate acquisitions
• Company maintains 40‑target “wish list” for strategic deals
• Industry deal volume fell 2025, but value rose 16%
• Peers like General Mills still prioritize growth‑driving acquisitions

Pulse Analysis

The food‑and‑beverage sector has entered a pricing arms race in mergers and acquisitions, as firms scramble to add high‑growth, trend‑forward brands to offset slowing core sales. Private‑equity and strategic buyers alike have driven target multiples to historic highs, inflating deal economics and squeezing margins for acquirers. This environment forces companies to justify each transaction with clear strategic upside, turning M&A from a routine growth lever into a high‑stakes investment decision.

Mondelēz International exemplifies this shift. Since Dirk Van de Put took the helm in 2017, the company has pursued roughly a dozen acquisitions, from Tate’s Bake Shop to premium chocolate maker Hu, to cement its snacking leadership. Today, Mondelēz curates a "wish list" of about 40 midsize targets, concentrating on cakes, pastries, and premium chocolate—segments where it sees the greatest margin expansion. The firm insists any deal must deliver a distinct competitive advantage or measurable growth lift, a stance that reflects both the inflated price landscape and the need to protect shareholder value.

The broader market mirrors Mondelēz’s caution. While overall deal volume dipped in 2025, aggregate deal value rose to $61.5 billion, a 16.3% year‑over‑year increase, indicating that only the most strategic, high‑impact transactions survive. Competitors such as General Mills and Molson Coors continue to earmark cash for portfolio‑transforming acquisitions, whereas J.M. Smucker has stepped back to focus on organic turnaround. As valuations remain elevated, the industry is likely to see a consolidation of only the most compelling opportunities, with a premium placed on brands that can accelerate growth and enhance premium positioning.