Illustration: Brendan Lynch/Axios
There were rumblings from Big Food this week about their appetite for M&A.
The big picture: Both spice maker McCormick & Co. and soda and snacks heavyweight PepsiCo reflected on their dealmaking plans in earnings calls Tuesday.
- Their commentary comes as other big-name brands pursue deals, including the potential marriage of US Foods and PFG, the breakup of Kraft Heinz, and Ferrero International's bet on cereal maker WK Kellogg.
Catch up quick: McCormick has been floated as a potential suitor for the BBQ brand Bachan's, which hired Centerview Partners in August, and PepsiCo is under pressure from activist investor Elliott to slim down.
What McCormick is saying: Brendan Foley, McCormick's president and CEO, told investors that M&A is on the table.
- "We believe there's a lot of opportunity still for us to think about it that way. It can be in any form, whether it be bolt-on or transformational overall."
Zoom in: McCormick spent $750 million in August to increase its stake in its Mexican joint venture, as it looks to expand in Latin America.
What PepsiCo is saying: CEO Ramon Laguarta told investors it has had "constructive" conversations with Elliott.
- "There's a lot of opportunities to improve the valuation of the company by making a few interventions with a sense of urgency," he said.
Context: Elliott revealed its $4 billion PepsiCo stake in September, alongside a plan to franchise the company's bottling business, pursue acquisitions in protein and health, and sell flagging brands like Rice-A-Roni and Starry.
What we're watching: Time will tell if McCormick and PepsiCo add more deals to an M&A market that's already topped $2 trillion.
