By Martinne Geller
NEW YORK (Reuters) - Healthy products are driving growth in the food and beverage business and providing fertile ground for investment, a senior private equity executive said at the Reuters Consumer and Retail Summit this week.
"Health and wellness was a trend that existed five years ago, but the magnitude of that trend has changed," said Scott Dahnke, managing partner of Catterton Partners. "As a result, you're seeing an increased level of interest and investment on the part of global multinational companies in that area."
Catterton, a consumer-focused private equity firm with over $2 billion under management, owns Breyers Yogurt Co., and together with Bain Capital Partners, it acquired Outback Steakhouse parent OSI Restaurant Partners Inc. last week.
Dahnke said the new owners of Outback, the Australian-themed restaurant chain, have already added more salads to the menu, an effort to lure more female customers.
Dahnke also said that Breyers is going to launch new yogurt products, but declined to give specifics. In response to a question, Dahnke said the product would not be a drink, but "more along the lines" of Danone's (DANO.PA: Quote, Profile, Research, Stock Buzz) Activia, a yogurt the company claims can help regulate the digestive system.
Dahnke said part of his job, as a private equity investor, is to identify attractive small companies, and help them grow into medium-sized companies that strategic buyers can then take over and help mature.
Coca-Cola Co.'s (KO.N: Quote, Profile, Research, Stock Buzz) recent $4.1 billion acquisition of Glaceau was a good example, he said.
"The size of Glaceau today makes it a much better fit for Coke than the size of Glaceau four or five years ago. It's almost like a toddler now, it has its own legs. They can grow it into an adult," Dahnke said. Continued...
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