January 30, 2012
At the end of the first quarter, the T&H Demand Index analysis revealed that circulation and demand were very closely related. There was a strong, positive correlation between circulation and demand in the data. However, the year-end data displays quite a different picture.
Read more … The Demand Index 2011 Year End Analysis
October 20, 2011
The Demand Index sample group has grown to 23 participating companies, giving us the opportunity to present an industry segment analysis of their circulation and demand data. Collectively, the group experienced increases in demand roughly equal to the growth in circulation. Our Q3 2011 analysis further divides this data into the Apparel, Home & Accessories, Multi-Category, Hobby, and Business-to-Business sectors.
Read more … The Demand Index - Q3 2011 Performance By Industry Segment
August 20, 2011
Our quarterly Direct Marketers Demand and Circulation analysis shows a continued correlation between the change in demand and the change in circulation. To obtain additional perspective, Average Order Value was provided by our participating companies and an interesting correlation between AOV and change in demand was found to exist.
Read more … The Demand Index - Q2 2011 Direct Marketers Demand and Circulation
August 9, 2011
Companies within the US food industry have been forced to adapt to the trends brought on by the economic downturn. In order to keep up with the recession-driven changes in consumer preferences and evolving demographics, many companies must revamp their strategies. Skyrocketing commodity prices have required most companies in the industry to focus on their shrinking margins. Cash-heavy companies are poised to acquire highly leveraged food companies and divisions as the industry as a whole continues to consolidate to reduce costs. T&H expects the recent surge in the number of M&A transactions in this industry to continue.
Read more … US Food Industry Update - Changing Trends Force Companies to Adapt
April 28, 2011
Tully & Holland has been collecting and reporting on a group of direct marketers’ circulation and demand since the first of this year. Each week, seventeen companies with sales ranging from $5 million to $400 million send to T&H weekly demand & circulation figures compared to the prior year. Each week we report back to those companies the group’s combined results. This broad measure affords those companies an index by which they can measure their own performance.
Read more … The Demand Index - Q1 2011 Cumulative Circulation versus Cumulative Demand
October 26, 2010
The condiments and sauces industry has performed considerably well through difficult economic conditions, depressed consumer spending and elevated price sensitivity. Since 2008, consumers have become increasingly more inclined to prepare meals at-home, as opposed to dining out. Given the relative contribution that sauces and condiments make to ease of meal preparation and taste enhancement, coupled with moderate price points, this sector has been one of the few bright spots among consumer products during the recession. We expect M&A volume in this sector to continue to increase as attractive opportunities for strategic acquisition and consolidation arise.
Read more … Condiments & Sauces - Strength Amidst a Difficult Economy
May 10, 2010
With Internet Retail being one of the fastest growing sectors in the overall retail industry, and with a strong fourth quarter in 2009, we expect retailers will continue to look to online as a next generation vehicle for growth. By contrast, during 2009 the M&A Internet Retail market was dismal. However it is beginning to show signs of recovery and we expect M&A volume to continue to accelerate over the next five years as the industry consolidates around brand name merchants.
Read more … Internet Retail Industry Update - A Look Ahead
April 6, 2010
Merger & Acquisition activity in the sporting goods sector increased markedly in the first quarter of 2010 driven by corporate divestitures of non-core assets. Several publicly held sporting goods companies took advantage of improving market conditions and shed unwanted divisions. These assets were primarily snapped up by strategic buyers, many of whom were international buyers, not financial buyers.
Read more … Sporting Goods - Corporate Divestitures Drive Increased M&A Activity
March 30, 2010
Following three years of 3% compound annual dollar growth rate, the cracker market in the U.S. is approaching $4B in sales dominated by three companies, Kraft, Kellogg and Pepperidge Farm (owned by Campbell Soup). Currently these “big three” control greater than 75% of total cracker sales. However, competition continues to increase as two major marketers, PepsiCo and Procter & Gamble, continue to focus on the segment.
Read more … U.S. Cracker Industry Update - Innovation and Niche Focus Drive Growth
February 11, 2010
Amid multiple data points indicating that a consumer recovery is slowly underway, more than a dozen retailers successfully raised capital through private placements and public offerings. Retailers receiving funding generally operated in one of three segments: 1) discount/value/off price; 2) health & wellness; or 3) internet retailing, all believed to have superior growth prospects.
Read more … Specialty Retail - Investors Back Select Consumer Growth Trends
October 30, 2009
While the value of worldwide M&A deals is down 38.2% over 2008, global equity and debt capital markets activity is up. As valuations continue to stabilize, expectations solidify, and credit markets continue to thaw, 2010 may see a wave of activity especially since private equity's overhang remains significant, some estimating at $400 billion.
Read more … Market Observations as of October 30, 2009
September 8, 2009
While rising unemployment, tight availability of credit, and lackluster retail sales have been widely covered in the media, several emerging positive trends, including rebounding retail valuations, have not. The S&P Retail Index increased more than 50% since March; consumer confidence lifted off its catastrophic lows; retail M&A activity has increased, and economists now believe that the recession may have ended during the second quarter of 2009.
Read more … Specialty Retail: First Signs of Recovery Surface
August 17, 2009
M&A activity in the food & beverage sector ticked upwards in the second quarter of 2009, following a gradual decline over the previous 10 quarters. Aggregate reported deal size for transactions announced in the first half of 2009 ($1.984 Billion) was less than one-third of aggregate reported deal value in the first half of 2008 (6.859 Billion) - evidencing the decline in mega-deals and reflecting overall market trends since the onset of the credit crisis in Fall 2008. Reported transaction values reached a low of $587 million in the first quarter of 2009, rebounding to $1.4 Billion in the second quarter of 2009.
Read more … Special Industry Update: Food & Beverage M&A Trends, 1st Half 2009
July 27, 2009
In the first half of 2009, M&A volume involving North American targets was $317.3 billion, down 35% from the first six months of 2008. M&A activity would look even worse if not for a couple of blockbuster deals in the pharmaceutical industry. Pfizer is buying Wyeth for $68.1 billion, while Merck is acquiring Schering-Plough for $45.9 billion—the two biggest deals in the U.S. in 2009. There have also been big deals sparked by companies' economic difficulties, such as Chrysler's sale to Fiat.
Read more … Market Observations as of July 21, 2009
July 24, 2009
M&A deal activity in the internet retail sector has remained strong over the past 10 quarters but has recently fallen off in Q2-09. Aggregate reported deal size for transactions announced in the first half of 2009 ($6.4Billion) has increased four fold over aggregate reported deals value in FY 2008 ($1.3 Billion). The increase in FY 2009 is due primarily to two mega-deals. While we expect transaction volume to remain steady in the coming quarters, revenue and EBITDA transaction multiples are expected to remain below those of prior years.
Read more … Special Industry Update: Internet Retailing 1st Half 2009 M&A Trends
April 15, 2008
According to the US Census, there are over 8,000 giftware, collectible, tableware and home décor accessory importers, wholesalers and distributors in the US. For years, these firms scoured the world and brought low-, mid- and high-end tzotchkes, knick-knacks, and stuff to the US market. Today, these companies are under siege by the trends of globalization, disintermediation, increasing retail competition and the weakening dollar. Though the number of establishments was relatively constant from 1997 to 2002, the latest year where figures are available, there is little doubt a consolidation is occurring as firms are being sold and liquidated. The days of a marketplace full of small importers and wholesalers are waning, to be replaced by a directory of larger, more sophisticated designers, and retailers importing directly.
Read more … Wholesalers Under Siege
April 15, 2008
Merger & acquisition activity in the US food & beverage industry continued at a strong pace in 2007, driven by three major trends: strong consumer demand for food & beverage products that promote health & wellness, sharply-rising raw material prices, and private equity investors’ heightened focus on CPG companies. As all three factors continue to influence the sector, expect further consolidation in many sectors of the food & beverage industry in 2008.
Read more … 2007 Food Industry M&A Review:
