The asking price for acquisition targets is rising as food companies use M&A to address their “desperate” appetite for growth, making it harder for Mondelēz International to complete a deal, the Oreo maker’s CEO said.

Food companies have been turning to dealmaking in recent years as a way to add higher-growth, trendier brands to the mix to rejuvenate slowing sales. That’s creating a more competitive market for companies that are actually recording growth, pushing up overall valuations. 

Dirk Van de Put, Mondelēz’s CEO, said during the Consumer Analyst Group of New York Conference conference in February that companies during the past two years have been “so desperate to get growth that what we would consider reasonable pricing to buy a company has gone out the door.” 

Few companies have been as active in M&A as Mondelēz since Van de Put took over the food maker in 2017. The company has made roughly a dozen acquisitions during the past decade to further build its dominant position in snacking and premium offerings, buying brands including Tate’s Bake Shop, Perfect Snacks, Clif Bar and premium chocolate maker Hu.

Despite the high valuations, Van de Put said Mondelēz remains on the lookout for potential acquisition targets. The company is prioritizing deals that expand its cakes and pastries business, as well as its premium chocolate category.

Each year, Mondelēz puts together a “wish list” of about 40 potential M&A targets and, if necessary, starts establishing a relationship to build trust and familiarity with the smaller businesses. The snacks maker “rarely ventures outside” of that initial list, Van de Put said.

“Acquisitions really have to offer us a unique competitive advantage or really lift our growth rate in whatever the geography is we’re looking at,” Van de Put said. “Otherwise, it’s really not worth [it] for us to do it.”

Acquisitions by food and beverage companies slowed considerably to a more normal level in 2025 following record activity the prior year, according to PitchBook data. Despite the volume decline, aggregate deal value rose for the second consecutive year to $61.5 billion, a 16.3% increase over the prior year.

The higher costs are leading firms to focus on larger, more strategic investments, the accounting firm said. Several other food and beverage companies attending the CAGNY conference in mid-February told analysts that acquisitions will be one of the tools they turn to generate growth.

General Mills CFO Kofi Bruce said the Cheerios maker aims “to deploy cash for strategic acquisitions that enhance our growth profile.” His counterpart at Molson Coors, Tracey Joubert, said the beer giant is looking to “invest in M&A to drive meaningful portfolio transformation.”

However, not all companies are relying on M&A for future growth. J.M. Smucker was one of the few to rule out deal-making in the near future.

CEO Mark Smucker told analysts that “while we have historically evaluated growth opportunities through acquisitions, this is not an active strategic focus today.” The jam and jelly maker is still working to turn around existing brands and pay down debt from its $5.6 billion purchase of Twinkies maker Hostess Brands in 2023.

There have been a handful of small acquisitions announced so far in 2026. B&G Foods purchased broth brands from Del Monte Foods for $110 million, and pork processing giant Smithfield Foods snapped up iconic hot dog brand Nathan’s Famous for nearly half a billion dollars.