Investment

The playbook for growing a startup food and beverage brand has shifted during the past half-decade. During that time, there’s also been a major shift underway at the strategic players once seen as an exit door for those upstarts.

A decade since they tied the knot, the Kraft Heinz union may be headed for splitsville. The packaged food conglomerate, which has been underperforming for years, is mulling a spinoff of a large portion of its grocery business.

Despite a volatile landscape, Q2 2025 saw a 13% year-over-year uptick in total U.S. food and beverage venture funding, reaching $342M.

After selling off its Chef Boyardee, Van De Camp’s and Mrs. Paul’s businesses earlier this year, Conagra Brands may have more divestitures in store. Sean Connolly, chief executive of the Chicago-based food conglomerate, hinted Thursday that certain other brands in its grocery stable may be on the chopping block.

ZEGO has acquired a gluten-free and organic grains processing plant, land and equipment from Montana Gluten Free Processors (MGFP) in addition to launching a new venture known as the Collaborative Integrated Value Chain.

On the CPG Week podcast, Nosh managing editor Monica Watrous and senior reporter Lukas Southard discuss the rise of Khloé Kardashian’s protein popcorn brand and the downfall of a co-manufacturer. Then, the hosts dig into the sale of a cult-favorite ice cream brand to unlikely buyers and the expansion of a bottled tea company into new snacking segments.

Lexington Bakes has raised $1 million in a funding round led by VC firm Rainfall Ventures. The new cash will support the business as it scales up with a new co-packing partner, pipeline of retail launches and growing team.

Italian confectionery company Ferrero is rumored to be on the verge of acquiring WK Kellogg, the cereal portfolio of Kellogg’s.

Less than two years after selling a majority stake of meat snack maker Western Smokehouse to AUA Private Equity Partners, Monogram Capital has reacquired the co-packing business.

Growth equity firm SEMCAP Food & Nutrition announced a “large minority investment” in Canadian meal subscription service Fresh Prep. Founded in 2015, Vancouver-based Fresh Prep delivers zero-waste meal kits across British Columbia, Alberta, Ontario and Quebec.