Shifting consumer behaviours, category innovation and strategic repositioning are creating new growth opportunities across the European beverage market.
Those themes were at the centre of Investec’s and OC&C’s recent beverage sector conference in Haarlem, the Netherlands, where 40 senior leaders from alcoholic and non-alcoholic beverage companies gathered alongside a select group of private equity investors with portfolio exposure to the sector.
Hosted at brewery Jopenkerk, the event brought together macroeconomic, strategic and operational perspectives to examine where value creation is emerging in an increasingly competitive market.
Resilient demand, evolving behaviours
While the broader economic backdrop remains mixed, beverages continue to demonstrate resilience as a consumer category. Repeat purchasing habits, frequent consumption occasions and strong brand loyalty have historically supported demand through periods of pressure.
Philip Shaw outlined how inflation, energy costs and geopolitical uncertainty continue to shape household budgets and corporate planning. Even so, beverage demand has remained comparatively durable. For operators across the value chain, resilience alone is no longer enough. Agility in pricing, portfolio management and route-to-market execution is becoming increasingly important.
Growth is becoming more selective
Headline market growth across Europe has been modest in recent years, but performance beneath the surface is diverging sharply.
Dan Zubaida highlighted that some of the strongest momentum is now concentrated in categories aligned with changing consumer preferences: functional drinks, hydration, low- and no-alcohol alternatives, convenience-led formats and premium propositions with clear brand identities.
At the same time, more traditional segments face slower growth and greater competitive intensity. The result is a more polarised market, where targeted positioning matters more than broad category exposure.
For management teams and investors alike, the opportunity increasingly lies in identifying specific pockets of structural growth rather than relying on the market to rise uniformly.
Brand strength still drives outperformance
As innovation accelerates and shelf space becomes more contested, brand clarity is becoming a more important source of advantage.
Examples discussed during the event showed that outperforming brands often combine a clear consumer proposition with disciplined execution: strong flavour credentials, wellness relevance, effective new product development, compelling marketing and smart channel strategy.
In categories where barriers to entry are lower and challenger brands can scale quickly, sustained success depends not simply on launching new products, but on building brands with repeat purchase potential and retailer relevance.
Moderation is creating new occasions
One of the liveliest discussions focused on changing alcohol consumption habits, particularly among younger consumers.
Moderation trends are reshaping demand patterns, with many consumers seeking balance rather than abstention. That is supporting growth in alcohol-free beer, adult soft drinks, functional beverages and products designed for social occasions without alcohol.
Rather than representing a simple substitution trend, no- and low-alcohol categories may also expand total consumption occasions by creating new use cases across weekday, wellness-led and mixed-group social settings.
For alcohol and soft drinks players alike, the continued blurring of category boundaries is opening new strategic options.
Health trends and the GLP-1 effect
The impact of GLP-1 medications, including popular weight-management treatments, on the drinks market was another lively topic.
Participants noted that in the near term beverage companies are capturing demand through adjacent “companion” categories such as protein-led products, hydration, reduced-sugar offerings and functional wellness beverages aligned with evolving consumer health priorities and preferences.
Attendees discussed whether innovation in beverage-based GLP-1 delivery formats may, over time, create new adjacent growth opportunities. While still an emerging theme and subject to regulatory and commercial developments, the discussion highlighted how external health trends can influence long-term portfolio strategy and product innovation across the sector.
Scale, M&A and geographic expansion remain key levers
Audience polling during the event revealed the priorities currently shaping boardroom agendas. Product innovation was identified as the most critical growth lever by 39% of attendees, followed by geographic expansion at 32% and M&A at 25%.
Those responses reflect a market in which many companies are balancing organic growth initiatives with selective inorganic opportunities. Acquisitions can accelerate entry into faster-growing niches, while international expansion offers access to new consumer pools beyond domestic markets.
With the European drinks market still fragmented across many subsegments, consolidation is likely to remain an important theme.
Execution still separates winners from the rest
Drawing on A.G. Barr’s experience, Euan Sutherland discussed how growth ultimately depends on consistent execution across commercial, operational and innovation priorities.
That includes investing behind core brands, expanding into adjacent categories, improving channel penetration and maintaining the supply chain capacity needed to support growth. In a market where consumer preferences can shift quickly, pace and adaptability are increasingly valuable capabilities. Strategy creates direction, but execution creates value.
Outlook
The European beverage market remains attractive, but growth is becoming more selective. Companies that can align portfolios to changing consumer needs, build distinctive brands and deploy capital with discipline are likely to outperform.
For investors and corporates, the next wave of value creation may come less from market growth alone, and more from backing the categories, capabilities and brands best positioned to capture changing demand.
Event Gallery
Changing dynamics are supporting conditions for outperformance in the Testing, Inspection and Certification (TIC) sector.
Regulatory developments, technological innovation and evolving client needs are the three biggest drivers of future opportunities to expand earnings, boost valuations and accelerate corporate activity, according to a panel of CEOs presenting at Investec’s TIC conference in London.
Regulatory demands
Regulation remains one of the biggest engines of demand. From construction to pharmaceuticals to healthcare, compliance pressures are ratcheting up across most sectors. Stringent EU directives require continual testing and certification, making third-party TIC services essential for accessing domestic and international markets.
The European TIC market is set to reach over $60 billion this year, with a projected CAGR of 5.3% by 20301. Increasing government, corporate, and consumer standards will drive growth, with tech-enablement and innovative software solutions becoming increasingly important for compliance delivery.
However, it is imperative that TIC providers ensure they bring an “economic value proposition” as well as technical benefits, according to Hugo Cence, founder and CEO of Ekoscan.
Replicability: standardising success
There is increasing demand for replicable and standardised solutions, particularly as providers expand their reach. Jonathan Risch, CEO at Arcxis outlined how important it is to “maintain consistency and quality through rapid growth”. Digitisation and automation have a major role to play in meeting that requirement.
Remote monitoring is facilitating a shift from periodic spot checks to continuous, embedded monitoring. Tech-enabled solutions are also driving efficiency and service advancements, moving TIC providers into roles that deliver ongoing value rather than one-off certification.
This creates opportunities for platforms that streamline workflows, reduce costs, and scale operations. The rise of ‘plug-and-play’ solutions also means that players with proven digital capability are well placed to take share from legacy providers – a dynamic already reflected in recent bolt-on deals.
Seamless servicing: beyond the test
Developing integrated testing, inspection and servicing solutions is another area of growth. Several TIC providers are not just flagging compliance failures but offering problem solving solutions. For example, a failed fire safety inspection could be resolved at the point of service with the tester managing on behalf of the client the supply and installation of required extinguishers.
These add-ons foster deeper, stickier client relationships and drive incremental revenue streams. As outlined by Udo Waltman, CEO at Sansidor, “We’re in a service business. If we don’t focus on what our customers need and want and how to make them successful, we won’t be successful”. Investors in the sector are actively targeting businesses that can digitise the compliance cycle and leverage client data for cross-sell opportunities, reinforcing TIC’s potential to shift from check-box expenditure to value-added partnerships.
Industry fragmentation to drive deals
M&A activity in the TIC sector has seen strong and steady growth since the reopening of markets following the COVID-19 pandemic, with sector activity reaching an all-time high of 153 transactions in the trailing twelve months to June 2025. Turbocharged growth of PE-backed, TIC buy-and-build platforms such as Phenna and Normec, alongside ongoing growth and consolidation by the listed TIC majors, have been key factors in driving increased activity levels in the sector. Europe has continued to be a dominant region for the sector, with over 65% of transactions involving a European target company.2
TIC M&A transactions – trailing twelve months
Source: Mergermarket. Based on acquisitions completed by a diversified set of companies across the TIC sector alongside select private equity acquisitions of TIC platforms
While M&A volumes in the sector have continued to grow, the TIC sector has seen an increase in acquisition valuations – across both <£25m and >£25m revenue TIC companies. Key drivers over the past 5 years include continued activity by larger private equity backed and listed consolidators as well as ongoing, high levels of investment by private equity into the sector – driving EBITDA multiples to c.15.0x for scaled TIC providers:
Increasing valuations over time with scale a drive of values
Source: Investec internal deal database: 2010 to 2025
Key drivers of value in recent processesRecent transactions in the sector have highlighted several key themes as drivers of value, including i) underlying market growth dynamics, ii) differentiation leading to high, defensible margins, and iii) the ability to drive growth through M&A and complementary service offerings – driving cross sell:
Key drivers of value in recent processes
Resilience and outlook
The European market’s resilience and growth potential remain strong. Investment in platforms that can anticipate regulatory shifts, embed technology, and deliver complementary, client-led solutions will be key to capturing future opportunities. With compliance demands only increasing, standardisation and scalability are imperative. M&A activity shows little sign of easing, making the sector one of the most attractive areas for investors and corporates that embrace transformation.
TIC Conference 2025 Gallery
Footnotes:
1 Mordor Intelligence
2 Source: Mergermarket. Based on acquisitions completed by a diversified set of companies across the TIC sector alongside select private equity acquisitions of TIC platforms
3 Source: Investec internal deal database: 2010 to 2025
A day full of inspiration and intensive exchange
On 16 September 2025, Investec Advisory together with FINANCE Think Tank co-organised Dealsourcing 2025 in Frankfurt/Oberursel. With over 1,000 industry experts from M&A, private equity and corporate finance, it is one of the largest events in the German corporate finance community.
Pressure to sell or investment crunch: what is driving financial investors?
In the opening plenary session, Ervin Schellenberg, Managing Partner Investec Advisory together with Matthias Weidner, Head of Business Development DPE Deutsche Private Equity, made a clear statement on the current market situation: “Those who need to sell will sell. Those who still have time will first work on optimising their business.” This quote illustrates the current bifurcation of the market: On the one hand, there are companies that have to sell due to pressure, and on the other, there are companies that are optimising their processes and business models before engaging in transactions.
Holger Truckenbrodt, Partner Investec Advisory said: „Great opportunity to get in contact with new potential business partners that weren’t on my radar screen so far.”
In addition to the plenary session, Investec Advisory organised two well-attended workshops:
Is the next wave of M&A coming in healthcare services?
Matthias Holtmeyer, Managing Partner Investec Advisory, discussed the question of whether the healthcare sector is facing a new phase of consolidation and what opportunities and risks investors can expect. A big thank you to our panelists Martin Spirig, Partner at Invision, Ingmar Wegner, Managing Partner at CONVALES, and Dr Thomas Willaschek, Partner and specialist lawyer for medical law at Luther Rechtsanwaltsgesellschaft.
Modern Food – an M&A niche with great potential
Jürgen Schwarz, Managing Partner Investec Advisory led the session, providing exciting insights into the current M&A trends in the food sector from the perspective of manufacturers and investors. A big thank you to our panelists Carsten Hackel, CFO Germany Nestlé, Andreas Holtschneider, Partner PAI Partners, Godo Röben, Supervisory Board & Advisory Board for Plant-Based Foods, and Fabio Ziemssen, Partner Zintinus.
Both sessions addressed highly topical issues and offered not only exciting insights, but also the opportunity to engage directly with industry leaders.
The focus for Investec Advisory was on exchanging ideas with clients, partners, and new contacts. Many of our conversations showed that personal networks are key to success, particularly during challenging market phases. The event provided an opportunity for us to share our expertise, shed light on key market issues and engage in valuable discussions with partners and clients.
We would like to thank all our panelists, contributors and the Deal Sourcing team for the intensive exchange and look forward to Dealsourcing 2026.
Click below for the Aftermovie:
We at Investec Advisory together with FINANCE Think Tank, are delighted to co-host DEALSOURCING2025 – the leading networking event for the German Corporate Finance community – on 16 September 2025 in Oberursel, near Frankfurt. It is one of the largest events in the German corporate finance community, with over 1,000 participants from the fields of M&A, financing, and restructuring.
Highlights in the opening plenary: “Pressure to sell or Investment crunch: What is Driving Financial Investors?”
Our Managing Partner Ervin Schellenberg and Matthias Weidner, Head of Business Development DPE Deutsche Private Equity will discuss the key question in the opening plenary session.
Workshop 1 at 11:00 am: Is the second M&A wave coming in Healthcare Services?
Matthias Holtmeyer, Managing Partner at Investec Advisory, invites visionaries Martin Spirig, Partner at Invision, Ingmar Wegner, Managing Partner at CONVALES, and Dr Thomas Willaschek, Partner and specialist lawyer for medical law at Luther Rechtsanwaltsgesellschaft, to an expert panel to discuss whether the next wave of M&A activity in healthcare services is coming.
Workshop 2 at 15:30 pm: Modern Food – an M&A niche with great potential
Jürgen Schwarz, Managing Partner at Investec Advisory, invites visionaries Carsten Hackel, CFO Germany at Nestlé, Andreas Holtschneider, Partner at PAI Partners, Godo Röben, Supervisory Board & Advisory Board Member for Plant-Based Foods, and Fabio Ziemßen, Partner at Zintinus, to an expert panel discussion on the question of M&A potential in the modern food sector.
We look forward to a day full of knowledge-sharing, fresh ideas, and new connections.
More on the programme: www.dealsourcing.de
Date: Tuesday, 16 September 2025
Location: Dorint Hotel Frankfurt/Oberursel, Königsteiner Str. 29 61440 Oberursel
11 private equity firms in the Netherlands joined us for an Out of the Ordinary opportunity to compete, connect, and strengthen industry ties.
On 10 July 2025, Investec hosted the first Padel Champions Cup at Padel Mate Club, outside Amsterdam. Designed for the private equity community, the event brought together over 50 professionals from leading companies.
Guests enjoyed padel matches and a relaxed summer BBQ with drinks while networking. The Cup marks the launch of a new series aimed at strengthening industry relationships through sport.
Event highlights
A standout moment came in the final match of the Advanced League, where FIELDS Group beat Vendis Capital in a close game that had spectators cheering. In the Beginners League, Rivean Capital beat Gate Invest 8-3 to take home the winning prize. Their performances set a high benchmark for the rest of the competition, promising more excitement in future rounds.
Community
From senior partners to associates, the event welcomed a mix of private equity professionals. The competitive but friendly format encouraged spontaneous conversations, new introductions, and some light-hearted rivalry.
Off the court, the informal setting encouraged open, candid conversations about the latest trends in private equity.
Looking ahead
The Padel Champions Cup returns later this year, concluding with a final round next summer.
Interested in joining future rounds? Contact us at [email protected]. We look forward to welcoming even more of the community next time.
At Investec, we believe strong business is built on strong relationships. That’s why we’re committed to creating Out of the Ordinary experiences for our clients and partners.
On June 5, we had the pleasure of hosting a selected group of entrepreneurs for our TMT CEO Dinner in our Wiesbaden office.
The evening focused on strategic dialogue around digital transformation and the impact of software and how leaders can actively shape the future of their businesses. A standout moment was the keynote by Lars Lehne (former CEO of Incubeta and Syzygy), who offered inspiring perspectives on South African culture and the intersection of digital expertise, leadership, and openness to change – all with a fresh and thought-provoking angle.
The event wrapped up with a relaxed and personal dinner, offering a space for open dialogue and meaningful new connections.
Evenings like this are where ideas begin to take shape and future plans are set in motion. We’re already looking forward to the next edition!
Investec M&A advisory recently facilitated the negotiation module again for the NVP Essentials Course in the Netherlands.
This highly regarded multi-day program, organized by the Dutch Private Equity & Venture Capital Association (NVP), provides a comprehensive overview of the complete private equity investment process, equipping starting PE and M&A professionals with essential knowledge and practical skills.
During the PE Essentials training, the professionals went through the entire PE investment process. Investec led the workshop focused on negotiation strategies, while other speakers covered topics such as bank financing, investment management, due diligence and exits.
Our negotiation workshop equipped participants with practical tools and strategies for maximizing deal outcomes. This hands-on training directly enhances their daily work performance. Following a challenging round of negotiations in our case study, champagne was awarded to the buyers and sellers who achieved the most favorable outcome at the end.
Investec’s continuous involvement in the NVP Essentials Course underscores our commitment to continuous professional development and dedication to staying at the forefront of the private equity industry.
R&D to grow or just to be?
Animal health: Is R&D required for growth or survival?
Review of our animal health conference, which explains how the humanisation of animals, success of novel therapeutic approaches and technologies in human health, as well as the increased drug resistance will continue to underpin focus on R&D.
Watch highlights from the 2024 conference:
The humanisation of companion animals, demand for sustainable food sources for livestock, as well as requirements for improvements in animal welfare are driving innovation and consolidation in the animal health sector.
These three trends were at the centre of discussions at our inaugural Animal Health conference, where industry leaders and advisors discussed whether the R&D investment is a prerequisite for survival or is it still predominantly undertaken for growth.
Animal health market comprises multiple categories, such as:
- vaccines & medicines,
- veterinary services,
- pet supplies & serves,
- feed additives.
The sector, which was valued at approximately £130 billion in 2023, has a forecast compound annual growth rate (CAGR) of 5-8% per annum until 2030.
Companion animals to remain a key segment driving future growth
Increased pet ownership in developed economies, the growing importance owners place on their pets, and higher awareness around animal health and wellbeing have boosted spending on veterinary treatments, preventative health measures, and wellness products for companion animals. Pet owners’ primary focus on quality of life and longevity is driving innovation in disease and symptom control. As pet ownership has been shown to have physiological and emotional benefits for humans, the positive impact on global human health cannot be underestimated. However, conversely, 75% of over 30 new human pathogens identified in the last few decades, originated in animals1.
Continuous R&D focus on translating advanced human technologies to animal health
Success of novel therapeutic approaches and technologies in human health are among key drivers of increasing animal health R&D spend. Clinical drivers behind the trend are potential to translate novel treatment benefits from human to animal health (e.g., monoclonal antibodies and mRNA vaccines), growing scientific basis for the use of new technologies to address animal disease (e.g., gene therapies and stem cell therapy), and evolving treatment paradigms due to microbial resistance concerns (including increasing focus on proactive prevention).
Further underpinning the trend are non-clinical drivers such as:
- growing willingness to spend disposable income on pets,
- emerging role of technological advancements in healthcare (e.g., across spectrum of big data and artificial intelligence),
- increasing government and non-government investment into sustainable animal health (e.g., sustainable agriculture / farming)2.
What is clear is that as the animal health market is becoming more specialised and sophisticated. Therefore, investors and operators must carefully consider which are the most appropriate areas and specialties to drive their business forward.
Our guest speakers
David Hallas,
CEO, ECO Animal Health plc
Laurent Flaus,
Co-Founder and CEO, Axience Group
Simon Middleton,
Partner, L.E.K. Consulting
Sources
1 World Health Organization ‘One Health’ guide 2019
2 L.E.K. Consulting
Recap | Information event: Financing summit | 11 October 2024 | Bergwelt Kandel
Creative solutions for challenging times
The economy is faltering, and order intake has become volatile or even shrinking. Companies planning a refinancing, a generational change or having to fund investment programs are facing difficult market conditions. The buzzword ‘transformation’ is being used inflationary, and some even speak of de-industrialization in Germany. What role do banks and financial partners play in this situation? Does debt capital still make sense, or do mezzanine financings and minority equity offer a real alternative?
These and other questions were the focus of the wvib Financing Summit on the Kandel, where expert insights were provided by Michael Fabich, Chairman Investec, and Thorsten Gladiator, Managing Partner Investec. They discussed the crucial role and significance of the sector in today’s financial landscape.
The wvib (Wirtschaftsverband Industrieller Unternehmen Baden e. V. in the Southwest of Germany) is a trade association for industrial SMEs, a mouthpiece and service provider for family-owned medium-sized companies. Founded in 1946 by entrepreneurs for entrepreneurs, wvib comprises 1,040 manufacturing companies with 384,000 employees and a worldwide turnover of 75 billion euros. The association has over 60 full-time employees. At the invitation of wvib, Investec took part in the wvib Financing Summit with a presentation together with representatives of financing providers and companies.
Private equity as a flexible financing instrument: from locust to grasshopper
Private equity (PE) has undergone a remarkable transformation in recent decades. Once decried as ‘locusts’, private equity has now developed into an instrument to fund sustainable growth. PE also plays an important role in German medium-sized companies when it comes to successfully managing succession arrangements, changes in ownership or strengthening of equity. The success of the model is reflected in the figures: In Germany today, there are over 470 private equity firms that have invested in more than 5,500 portfolio companies, which together generate annual sales of €293 billion and employ around 1.5 million people. In the last five years alone, around €76 billion has been invested in the market. Thorsten Gladiator and Michael Fabich emphasize that PE today is more than just financial engineering. The focus is on long-term value enhancement through targeted operational improvements and strategic growth.
Between transformation and regulatory pressure
What will 2024 look like for a German automotive supplier? The Leiber Group, a family-run company with a long tradition, invested heavily in e-mobility – once a reason for customers and financing partners to be pleased. However, the expected unit numbers fell short of the forecasts by up to 80%. Managing Director Martin Müller describes the situation as a ‘vicious cycle’: price pressure from customers, constant transformation pressure and a growing flood of regulation are weighing on both the workforce and the company’s liquidity. Nevertheless, Leiber is looking optimistically to the future with a new brand identity and the motto ‘with ease ahead’. A consortium of five savings banks is securing the financing. ‘We don’t complain, we act’ – a motto that fits perfectly with the current times.
Financing the future – how, who and when?
A “management buyout” instead of a handover within the family raises exciting questions: How much capital can the management raise? How do you organise a gradual transition? The mechanical engineering firm MAFAC, managed by Rainer and Joachim Schwarz, tackled this process at an early stage. For the new managing director and shareholder Stefan Schal, financial security through a complex construct of silent partnerships, fixed-interest loans and a guarantee was anything but a given. The solution preserved the values of the family business and secured its future.
Global markets, local solutions
The Sparkasse Freiburg-Nördlicher Breisgau also sees the world as changing. While sales markets are global, financing is often secured locally. This is where Markus Hildmann comes in. With topics such as sustainability regulation, corporate finance and corporate succession, the Sparkasse supports companies with modern software solutions such as Nawisio, which are designed to facilitate compliance with CSRD, EU taxonomy and CSDDD. The centre of excellence for corporate succession is designed to ensure that the 125,000 companies affected each year find a suitable solution. Hildmann emphasises that it is crucial to involve financing partners at an early stage.
Mezzanine financing: stopgap or strategic advantage?
Mittelständische Beteiligungsgesellschaft (MBG) and Bürgschaftsbank BW work closely together. For Chris Hammer, the silent participation is a strategic tool for getting back on the offensive from a defensive position. Thanks to its subordination, lack of exit pressure and non-interference in day-to-day business, this instrument can create a solid basis for further outside capital without the need to sell company shares. Creditworthiness and room for maneuver are maintained – ideal for transformations, growth financing, innovations, successions or start-ups.
Conclusion
According to a study by the German Economic Institute (IW), Germany will need around €1.3 trillion of financing between now and 2030 to achieve the transformation and future growth it needs. This staggering figure makes it clear that traditional financing methods alone will not be enough. To successfully shape the economic future of German SMEs and finance transformations, it will take courage, collaboration and an open mind when it comes to tapping new sources of capital.
Watch the recap of the Summit here:
The Rheingau Music Festival is one of the largest music festivals in Europe and organises over 170 concerts every year throughout the region from Frankfurt and Wiesbaden to the Middle Rhine Valley.
Unique cultural monuments such as Eberbach Monastery, Johannisberg Castle, Vollrads Castle or the Wiesbaden Kurhaus as well as picturesque vineyards are transformed every summer into concert stages for stars of the international classical music scene and interesting up-and-coming artists from classical music and jazz to cabaret and world music.
In over 30 years, the Rheingau and its festival have become a centre of attraction for music enthusiasts from all over the world in a unique interplay of culture and nature, music, enjoyment and joie de vivre.
Investec is delighted once again to sponsor the Rheingau Music Festival 2024 and invites you to join us from 22 June to 7 September 2024!
A special feature this year? For the first time, there will be two opening concerts: Traditionally, the festival opens in the Eberbach Monastery, followed by another opening concert in the Kurhaus Wiesbaden. This year’s focus artists are also particularly outstanding: violinist Christian Tetzlaff, cellist Anastasia Kobekina, pianist Bruce Liu and jazz saxophonist Candy Dulfer.
Once again this year, various themes and focuses will ensure a varied and exciting programme. Under the motto “Spot on: Hollywood”, the world of film music comes to life in twelve concerts. Under the motto “Brazil!”, the contrasts and beauties of the country will be explored musically. The programme is also dedicated to the works of Antonín Dvořák and a true classic: Vivaldi’s “Four Seasons”.
The stages of the 37th festival season will be graced by numerous stars from the worlds of classical and pop music. Highlights include star pianist Lang Lang, singers Álvaro Soler, Max Mutzke and Max Giesinger, violinist Anne-Sophie Mutter, opera singer Rolando Villazón and entertainer Eckart von Hirschhausen.
Investec has been a committed sponsor of the Rheingau Music Festival for more than 15 years. This long-standing partnership is characterised by our deep appreciation for the arts and a strong connection to local culture. We look forward to experiencing a rousing summer full of music together with you again this year.
You can view the detailed program here.
Once again this year Investec, together with ABN Amro and PwC, organized the 14th edition of the inspiring food event: Food for Growth. The event took place at the beautiful external location VRIJ in Culemborg where chairman of the day Joost Hoebink enthusiastically welcomed the group of entrepreneurs, CEOs and CFOs within the Dutch Food & Agro sector.
The event focused on “impactful sourcing” in an unstable and troubled world. Central themes were how to ensure food supply in times of geopolitical instability and climate change and what are the pros and cons of local versus global sourcing. Also discussed was how to make the food chain more transparent and sustainable.
External speakers from reputable companies provided food for thought:
Louise van Schaik (Head of Unit EU & Global Affairs bij Clingendael) deelde een inzicht dat ons allen raakte:
“The geopolitical situation we are in now is causing de-globalization and that makes trade flows extra vulnerable.” She added, “The current geopolitical turmoil is leading to protectionism with the result that countries such as China and also the EU are considering how to ensure their own food security within national borders.
Volkert Engelsman (founder of Eosta) emphasized the importance of neat math. He explained that in the new economy, profit is only really profit if the planet and society also win. That will soon be a prerequisite for meeting the expectations of your accountant (CSRD), bank (climate and biodiversity stress tests), customer, NGOs and other stakeholders.
‘Nothing wrong with profit but then do the math properly and don’t secretly pass on the social costs to taxpayers or future generations.’
Nadia Menkveld (sector economist at ABN AMRO) reminded us of the vulnerability of our food industry in light of climate change:
Our food industry is vulnerable to climate change.
After the official program, there was room for informal drinks, including vegan & organic bites and socializing with industry peers – a meaningful conclusion to an inspiring day.
If you couldn’t attend but are curious about the event, contact Jasper Erhardt for more information or for next year’s event.
Embracing innovation and sustainability: the future of the TIC industry
As long-term advisers to the TIC sector, Investec | Investec hosted our inaugural European TIC conference in March 2023. Industry leaders joined us for a lively discussion about the future of the sector – including digitalisation, sustainability, and M&A strategy.
Watch and read the highlights from our inaugural European TIC conference
The Testing, Inspection & Certification (TIC) sector has long played a pivotal role in providing quality and safety control services to protect people, and the environment we live in. Now, several transformative trends are driving further opportunities in the sector.
To help facilitate discussion on these trends, Investec | Investec hosted our inaugural TIC conference on 9 March 2023. Paul Hesselink – CEO Kiwa; Hervé Montjotin – CEO Socotec; and Mark Williams – Partner Inflexion; joined us to provide their views on the sector’s changing dynamics.
Continued M&A activity from both private equity and trade consolidators has seen valuation multiples increase significantly over the last 5 years. The ongoing attractiveness for investors has been underpinned by the strengthening regulatory landscape across a variety of sectors, alongside specific growth drivers within several individual sub-sectors.
We have continued to see buy-and-build strategies play an important role in driving growth, as incumbent players seek to leverage the benefits of scale to address a broad range of sub-sectors and unlock further synergies.
Three common themes repeatedly were raised as the future of the TIC industry was discussed.
Independent verification for ESG
The sector is heavily intertwined with the growing requirement for greater environmental, social, and governance (ESG) standards among businesses. As companies increasingly seek to promote their ESG credentials, avoid accusations of greenwashing and meet incoming European regulations, the TIC sector will play a crucial role, not only in verifying ESG standards, but also in providing guidance to help companies navigate these often-complex issues.
Hervé Montjotin affirmed the growing demand for independent verification, saying, “Regarding sustainability, people need to be reassured by a trusted third party so we can add a lot of value and help avoid greenwashing.”
Mark Williams highlighted the need to test for unforeseen consequences as businesses seek to improve the sustainability of products. He said, “we are using different materials to make things better and more efficient, but these need to be checked to ensure that whatever has been created is more sustainable and that we don’t find out in 15 years that there are negative impacts.”
Paul Hesselink noted that TIC firms are not only ensuring sustainability and ESG compliance for their clients, but are measuring their own performance against these objectives too: “Carbon dioxide footprinting, gender diversity indices…we don’t just measure these for our customers but for our own business too – walking the talk and demonstrating that we are living up to what we preach.”
The digitalisation challenge
As with many industries, the digitalisation trend – which encompasses digital, data and new technologies (notably sensors, portable instruments and the Internet of Things) – is transforming internal processes for the TIC sector, as well as its business models and the services it offers. Our panel acknowledged how influential digital tools have been in liberating productivity and improving profitability.
However, they cautioned that the pace of potential digital disruption is being slowed by the sector’s conservatism, as well as regulatory reticence. For example, regulators still require in-person inspections rather than using digital tools. The panel agreed that the industry should stay one step ahead of the main pack in terms of technology so that it will be ready when its customers and the regulators are, but acknowledged the sector is unlikely to be a change leader.
Expansion in a rising interest rate environment
It was widely accepted that the current economic environment is creating a new set of challenges – particularly in terms of M&A. Mark Williams pointed out that higher borrowing costs could inhibit some forms of M&A activity, but notes that “there is still demand for quality platforms and there are still entrepreneurs that want to sell.” He added that the focus on high margins was particularly important for many private equity buyers.
Paul Hesselink joked that higher interest rates should help shake off the private equity competition, remarking that “industrial and private equity buyers have different dynamics – industrial buyers can be less margin driven as they have more time to develop a business if it is the right cultural fit.”
Hervé Montjotin added that his business had sought a more global expansion strategy as this can help alleviate cyclical risks. He said that while the industry is “cyclical, those cycles are often domestically orientated, and having a global balance can help mitigate such risks.”
Finally, Mark Williams summarised why the TIC space continues to remain an attractive M&A prospect, saying, “We’ve seen the sector evolve and maintain a steady cadence of growth; while the themes have changed, the concept of securing peoples’ lives and futures is the same as it was 50 years ago. Therefore the industry will keep surviving as we need to secure the world around us.”
Download our presentation
Register your interest for next year’s event by contacting Marleen Vermeer