Health and wellness continues to be an influence on M&A in the drinks industry, data suggests.

The number of deals in the sector linked to health and wellness increased from 16 in the first quarter of 2021 to 51 in the opening three months of this year, figures from GlobalData, Just Drinks’ parent, show.

GlobalData’s TrendSights Analysis 2023: Moderation & Avoidance report found concern for health and wellbeing was the foremost driver of food and drink purchases – even ahead of monetary and time constraints.

The growing interest in diet and health among more consumers is providing the backdrop for some of the deal-making in the drinks industry.

Last month, Australia-based non-alcoholic spirits producer Lyre’s announced it had raised £18m ($22.9m) in a capital funding round as it eyed international growth.

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By GlobalData

July also saw Nirvana Water Sciences, a US wellness and functional beverage company, announced that it had received $2.6m in funding to grow its spring waters and seltzers in traditional retail and support a joint venture with Inspire Health Alliance. 

In June, US-based The Naked Market acquired Haus & Co. – a company developing low-alcohol, botanical-infused beverages using natural ingredients.

May saw one of the world’s largest spirits companies, The Stoli Group, invest in The Pathfinder Hemp and Root, a US business marketing a fermented and distilled hemp-based non-alcoholic spirit.

It is important to note M&A activity in the drinks sector continues to be fuelled by other factors, including premiumisation, geographic expansion and portfolio rationalisation.

For Just Drinks’ deals news and analysis, head here.

Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.