Here are three trends emerging in the food industry. Asset write-downs : Midway through the year, I think packaged food companies are poised to make further adjustments to the valuations on lagging businesses. Think items available in the frozen food categories or pancake syrup. When you see a company do this (look at the goodwill and PP&E lines on the balance sheet) it’s your job to find out what business got marked down. Call up the damn company, take matters into your own hands — you are part owner. Between now and the end of the year, many underperforming assets are likely to be moved as their values have been written down, and execs want to start 2016 on a fresh note. I believe foreign buyers, with their focus on operational discipline, are poised to make a grab at household food brands. Pricing : Very impressed by the pricing power on some products for General Mills and PepsiCo, items such as Mountain Dew or Yoplait yogurt. I don’t think what I am seeing are early signs of Fed-driven inflation, but it bears watching if more packaged food companies have success this year on raising prices. The results from General Mills and PepsiCo are the benchmarks for how others in the sector should be doing on pricing power. If they report falling revenue due to pressured product pricing, it’s a major red flag. Layoffs : Packaged food companies have several major investments occurring right now. One is in stepped-up marketing to drive interest of products featuring enhanced ingredients and sleeker packaging. Another area of focus is reformulating huge product lines to cater to more health-conscious folks. This type of work is not easy, and it’s very time-consuming. Finally, there is a heated race to develop the next fun snack or […]