M&A Activity May Heat Up As Demand For Organic Foods Soars In Canada

Thanks to a surge in demand in Canada, and the fact that the country imports three-fourths of its organic food, several organic producers may find themselves in the crosshairs of acquisition-minded food majors looking to diversify their product lines. SunOpta, SunRype and Industries Lassonde are among the potential quarry, according to analysts, with likely buyers being United Natural Foods and Whole Foods Market. SunOpta, with a market value of $380 million and a 10 percent growth rate, produces organic soy, wheat, grains and fruits for food giants General Mills, Kraft, and Kellogg. And fruit-based drinks maker Lassonde could fetch as much as $460 million from an elite buyer like Néstle or Kraft.