M&A trends in the beverage industry: A tough shot to take?

The beverage industry has seen substantial growth over the last two decades. From fizzy drinks and alcopops to craft beers and iced coffees, this is a sector driven by trend, brand and ultimately, consumer buy-in.

As we settle into 2026, it is clear that the beverage industry is going to see more movement and anticipated M&A activity – in particular, one area of growth is expected to be in the better-for-you space. 

The rise of health shots: Opportunity meets regulatory scrutiny

In a world where we are now more alert to what we put into our body (whilst also still wanting convenience), it is no surprise that health shots have won a number of consumers over but are still attracting criticism in respect of their benefits.

As M&A lawyers, we expect more scrutiny as part of the due diligence process in relation to claims and statements made – the UK regulatory landscape is comprehensive and the line between what is an acceptable statement or not is very often blurred.

Do these health shots really help “immunity”? Are energy levels actually increased? Have the products been developed in line with the regime for health and nutrition claims? Is the drink categorised as a “less healthy food” under new restrictions? 

Failing to investigate the source of health and nutrition claims at the diligence stage can lead to investing in companies on the basis of marketing strategies that are not sustainable. Rulings from the Advertising Standards Authority can generate negative publicity and impact consumer trust, non-compliant claims on labelling can lead to costly design changes or worse, challenges from statutory regulators. While changes to marketing strategies may not always be a deal-breaker in terms of the acquisition; where the brand and claim are synonymous, you need to know the risks before signing on the dotted line.

Recent M&A activity in the 'better-for-you' space

Irrespective of the regulatory challenges, it is clear that the 'better-for-you' space is evolving and growing. In 2025 we saw Premier Foods (UK) acquiring Merchant Gourmet (UK) for an enterprise value of £48m adding a healthy convenience brand to support growth in the better-for-you space and, Müller acquired the market leading kefir brand, Biotiful for c£100m. These deals have taken place despite market uncertainty, rising costs and a changing regulatory landscape which has caused cautiousness across multiple sectors. 

Looking ahead

Clearly opportunity remains and new trends such as the health shots are presenting excellent opportunities beyond just M&A.

We hope to see more investment and opportunities in sustainable production and supply chain – particularly around the development of new technology and regulation to limit the use of single use plastic.

The deposit return scheme is just one example of schemes that will affect the regulation and supply chain in the beverage space. The interaction between these changes and emerging trends and how the market will react is yet to be fully determined, but watch this space for updates.