The CPG industry is constantly evolving, driven by changing consumer demands, technological innovations, and shifting cultural norms. One of the most telling indicators of where the industry is heading is the pattern of acquisitions that occurs. Whether focused on innovation or cultural celebration, acquisition and funding trends reveal emerging priorities of the modern consumer and offer a glimpse into future market opportunities. For small and medium-sized businesses, paying attention to these moves isn’t just about knowing what’s happening - it’s about understanding the roadmap to growth, relevance, and long-term success.

Each acquisition highlights what large companies value: strong brand identity, product innovation, loyal communities, and nimble business models. These strategic decisions are a window into what it takes to thrive in the hypercompetitive CPG space. This presents a unique opportunity to learn from the success stories and position for sustainable, impactful growth.

Why Brands Should Care About Being Acquired

Even if selling isn’t your immediate goal, building a brand that is attractive to potential buyers makes your business stronger, more scalable, and more resilient. Preparing for acquisitions forces brands to focus on what truly defines value: profitability, brand equity, customer loyalty, operational excellence, and innovation. It also opens the door to strategic partnerships, better retail placement, and access to capital that can accelerate growth. Whether you plan to sell, are looking for investors, or continue growing independently, positioning your brand as “acquisition-ready” ensures you stay competitive and future-proofed regardless of next steps in an evolving market.

Why Big Brands Are Buying Smaller CPG Companies

The days of legacy brands relying solely on internal R&D and product development are fading. Acquisitions have become a core growth strategy for large CPG companies looking to stay relevant and innovative. Instead of building from scratch, they acquire emerging brands that have already established consumer trust, built a strong identity, and tapped into niche markets.

Key drivers behind acquisitions include:

Speed to market: Acquiring a well-positioned brand is faster than building a new product from the ground up. Startups bring agility and a pulse on current trends, allowing large companies to capitalize on market opportunities before they shift.
Digital-native brand building: Many of the most attractive acquisition targets are born online with strong direct-to-consumer models, social media engagement, and influencer-driven awareness. These brands come with built-in digital infrastructure, first-party data, and agile marketing strategies that legacy companies often lack but desperately need to compete in today’s landscape.
Cultural relevance and authenticity: Companies are increasingly looking for brands that authentically represent diverse communities and cuisines. These acquisitions allow big companies to better serve underrepresented demographics and respond to increasing consumer demand for inclusivity.

Acquisitions allow big players to fill gaps in their portfolios, enter new categories, and access consumer segments they’ve traditionally struggled to reach.

Case Study: Omsom & the Importance of Brand Identity

In 2024, Asian-American women-founded brand Omsom was acquired after capturing the attention of both consumers and industry insiders. Known for their unapologetic voice, bold visuals, and deep cultural roots, Omsom disrupted the pantry aisle by offering high-quality Asian sauces and starter packs that centered around immigrant voices.

Omsom’s acquisition wasn’t just about its product. Its powerful brand identity and community were attractive to buyer DayDayCook, a Hong Kong-based company that has spent the last 12 years steadily acquiring Asian food brands. In an interview we did with co-founder Kim Pham, she discussed the brand’s passion for building a mission-driven company that brings overlooked stories and flavors into American homes. The authentic approach to both product development and marketing made them an ideal target for acquisition.

The key takeaway from smaller brands is to build something rooted in identity and values, ensuring your brand becomes irreplaceable. Creating a company based solidly in authenticity helps build fierce loyalty and high engagement. The Pham sisters achieved this by making the active choice to not water down their cultural roots or their personalities. With a self-proclaimed “rowdy” approach to marketing, the brand aligns business practices with the personal values of the sisters. The team once demonstrated their work-hard-play-hard belief by hosting a rave in a Brooklyn warehouse that offered free tattoos to ravers that included influencers, journalists, and Omsom fans. Omsom remains consistent in how the brand engages with audiences, whether that’s in radically honest videos about discontinued products or sharing real-world effects of the Silicon Valley Bank collapse on small business.

If your values are clearly defined, ensure you’re using strategic marketing to forge emotional connections and differentiate yourself in a crowded market. Leveraging Narrative Marketing lets you harness the power of storytelling to foster trust by sharing genuine stories that speak to audiences.

Case Study: Factor 75 & the Rise of Direct-to-Consumer (DTC) Models

When Julee Ho Media started shooting for Factor meals, they were a scrappy 4-person team. They were one of the first companies to leverage the “hard light” photography style that is so popular today. Factor 75 grew fast, and 18 months later they were acquired by HelloFresh for $277 million 2020 (read more about our collaboration here). This acquisition signaled a major shift towards health-forward, convenience-focused direct-to-consumer (DTC) models for the market. Factor’s premade, nutrient-rich meals offered a turnkey solution for busy, health-conscious consumers.

The acquisition highlighted the growing importance of DTC for food and beverage brands, particularly those that offer a subscription model or seamless delivery experience. Factor’s strong digital infrastructure and loyal customer base contributed to making it an attractive acquisition. Factor stayed ahead of the product trends and carved a permanent spot at the forefront of the health food space.

Unlike traditional meal kit companies that required customers to cook from scratch, Factor delivered fully prepared, healthy meals that only needed reheating. The brand stood out by doubling down on quality, nutrition, and an ultra-streamlined experience, offering keto, high-protein, and calorie-conscious options with consistent taste and portion control. Their DTC-first model, built on subscription sales and digital marketing, creating recurring revenue, strong customer loyalty, and extremely valuable first-party data.

Many early meal kit pioneers began shifting away from DIY kits towards prepared meal options, realizing that consumers wanted minimal effort and maximum reward solutions. Factor didn’t have to pivot - they were built from the ground up to meet that demand. By owning their production, building efficient logistics, and focusing on customer experience, they created a model that was profitable, scalable, and deeply aligned with changing customer behavior.

This underscores the value of investing in scalable logistics, customer experience, and data-backed personalization. Streamlined logistics not only ensure efficient delivery but also provide a strong foundation for future growth. Prioritizing customer experience and using first-part data to tailor offerings deliver the highly relevant, consistent experience that builds trust and that customers demand.

Case Study: Poppi & the Functional Products Trend

Poppi, the prebiotic soda brand, was officially acquired by PepsiCo in 2025 after several years of partnership and investment. With gut health taking center stage in the functional wellness space, Poppi became a category leader by combining a classic product format (soda) with wellness-forward ingredients.

Poppi leveraged influencer marketing and bold branding to grow rapidly in the competitive beverage market. PepsiCo’s acquisition shows the power of capitalizing on trends early, especially when paired with savvy branding.

Long before “gut health” became a household term, Poppi positioned its prebiotic sodas as fun, approachable solutions to digestive wellness. Instead of marketing the science-heavy benefits of apple cider vinegar in a clinical way, they wrapped functional credentials in bright, playful branding. Their vibrant pastel cans, punchy fonts, and cheeky messaging felt more like a lifestyle brand than a health beverage. The early focus on making gut health cool rather than medicinal gave Poppi a first-mover advantage as functional beverages gained popularity.

At the same time, Poppi executed an aggressive influencer and digital marketing strategy that catapulted its visibility. With strategic partnerships with fitness and wellness influencers, the brand targeted digitally native audiences who were already invested in healthy trends. Rather than relying solely on traditional ad buys, Poppi embedded itself into conversation about wellness and gut health.

The lesson for emerging brands is to identify a growing consumer interest and innovate around it before the category becomes saturated. By pairing a product trend with fun and vibrant consumer-facing energy, a brand can thrive in a category traditionally dominated by large legacy brands. The key is to capitalize on trends early, as making your brand synonymous with a product makes for an attractive acquisition target.

Case Study: Siete Foods & Cultural Authenticity

PepsiCo has had an exciting 2025 with the additional acquisition of Siete Foods. Siete, founded by a Mexican-American family, created grain-free tortillas, chips, and other products inspired by traditional recipes and inclusive of special dietary needs.

The brand stood out for its genuine celebration of heritage and its mission-driven approach to food. Its authenticity helped connect with both Latino consumers and a broader audience seeking culturally rich, better-for-you products.

Founded by the Garza family, Siete’s story began when family health needs led them to create grain-free, heritage-inspired products that honored their Mexican-American roots. Instead of dulling their culture for mass appeal, Siete leaned fully into it. Packaging featured bright, folklore designs while their storytelling openly honored the foods, recipes, and customs passed down through generations.

Equally important was Siete’s commitment to clean, simple ingredients. This was a clear differentiator in a market often saturated with over-processed foods. Siete’s no-junk approach meant no artificial preservatives, no gluten, no dairy, and recognizable ingredients. Their products weren’t just healthier, they were positioned as an intentional act of respect for the foods they were reimagining. By refusing to compromise on cultural integrity or product quality, the brand built a deeply loyal customer base that proved better eating doesn’t have to strip heritage.

Siete proves to smaller brands that embracing your cultural identity is not only meaningful, but also a powerful growth driver. Siete’s journey reinforces the idea that representing underserved voices and offering inclusive, values-aligned products is not only good ethics - it’s good business. Purpose-driven brands that embed cultural integrity into every aspect of their operation create a deep consumer trust that is highly enticing for larger brands looking to acquire.

Cast Study: Yasso & the Process of Premiumization

Unilever’s acquisition of Yasso in 2023 highlights the growing appeal of health-conscious indulgences. Yasso’s frozen Greek yogurt bars offer a healthier alternative to traditional desserts, balancing nutrition and taste without sacrificing decadence.

Consumers increasingly seek premium experiences that feel both health-forward and satisfying. Yasso delivered this demand with elevating branding and strategic retail placement. The brand’s success lies in creating a premium product that aligns with modern lifestyles.

Rather than positioning their frozen Greek yogurt bars as a compromise or “diet food”, Yasso leaned into pleasure, offering rich, creamy textures and classic dessert flavors, all with a nutritional profile that aligned with modern wellness trends. Their focus on simple, high-quality ingredients and high protein content helped them stand out from traditional ice cream brands while fun flavors (like Chocolate Peanut Butter Chip) kept the eating experience joyful.

Yasso also elevated their brand through polished packaging. The bright clean boxes stood out in freezer aisles traditionally dominated by kid-focused marketing or clinical “diet” branding. Yasso found the perfect middle ground, conveying health and happiness without feeling restrictive or boring. The brand also credits invested in building relationships with major retailers to ensuring strong in-store visibility and premium shelf space.

It’s important for small brands to note that “premium” doesn’t just mean price. It can also mean high quality, great design, and aligned values. This acquisition is an invitation to carve out high-value categories by offering better-for-you versions of classic food, supported by polished branding and thoughtful ingredient innovation to pull away from the competition.

Case Study: SIMULATE & the Power of Tech-Driven Food Innovation

SIMULATE, the tech-savvy company behind NUGGS, is thought to be one of the most innovative companies in the CPG space. Though not yet acquired, SIMULATE’s $50M Series B funding in 2021 showed that investors are hungry for food brands that are built like startups.

SIMULATE positioned itself as a technology-first company, applying rapid iteration and consumer data to improve its product and scale quickly. Their approach, branding, and product development style resonate with a new generation of consumers and investors.

From a marketing perspective, our photoshoot with SIMULATE was very much focused on showcasing their plant-based nuggets through an elevated lens. Using dark and moody lighting, we prepared and styled the chicken nuggets over pastas and salads to appear as though they were fine dining plates - creating a unique perspective in the frozen food space.

Small brands can take a page from this playbook by treating food development like software: prioritize innovation, user feedback, and future-forward positioning. There is great overlap between CPG and tech. Founders that think like engineers and iterate like startups can disrupt even the most saturated categories. A product alone isn’t always enough. How you build and scale can quickly become a competitive advantage.

Key Takeaways for Small & Medium-Sized CPG Brands

The above case studies reveal a consistent theme: successful emerging brands aren’t trying to be all things to all people. They’re laser-focused on building something distinctive, values-driven, and future-ready. Whether it is a cultural mission, a digital-first strategy, or a breakthrough formulation, what unites these companies is the clarity of their vision and the intentionality of their execution.

Acquisitions aren’t random. They’re earned by brands that are both compelling and operationally sound. By focusing on these key elements, small and medium-sized CPG businesses can build enduring companies that are attractive not only to consumers, but also to potential partners, retailers, and acquirers.

Stand out with differentiation. Whether through cultural storytelling, unique ingredients, or bold visual identity, be memorable. Brands that break from the norm with a clearly defined personality and purpose are more likely to gain traction and consumer loyalty.

Build for scalability. Lay the groundwork for operational growth, even if you’re small now. Show that your systems can handle more. Streamlined fulfillment, strong supplier relationships, and scalable infrastructure all signal long-term potential.

Capitalize on trends early. Watch consumer behavior and industry reports closely. Innovate before the big players catch on. Early adoption of trends allows your brand to gain first-mover advantage and develop authority in an emerging category.

Be digital-first. Strong digital presence, especially through DTC channels, makes your brand more visible and valuable. A well-executed online strategy allows for more customer touchpoints, richer data collection, and increased storytelling opportunities. Many of the brands above invested significantly in both in-house marketing efforts and outsourced agency expertise, such as ours at Julee Ho Media, to build a strong online presence.

Use data for growth. Leverage customer feedback, social engagement, and purchasing behavior to guide decisions. Data-drive brands can pivot faster, serve customers better, and demonstrate traction more convincingly to investors and partners.

Develop a competitive moat. Proprietary formulations, patentable packaging, or strong retail relationships create long-term value. These unique assets help you stand out and protect your position from emerging competitors.

Build brand equity. Loyal communities, high engagement, and consistent messaging are all signs of a valuable brand. Brands that foster trust and emotional connection become more than a product - they become a lifestyle.

Final Thoughts & Actionable Steps

Not every brand needs to pursue acquisition, but every brand can benefit from growth strategies that attract attention and build long-term value. Acquisitions reveal what matters in the market: brand innovation, authenticity, and execution. Use these signals to strengthen your position, sharpen your focus, and build a company that is resilient, admired, and acquisition-worthy.

Here are a few actionable next steps that brands of any size can take:

Conduct a competitive audit to understand your white space. Identify key competitors, analyze their strengths and weaknesses, and map opportunities where your brand can stand out. This will help you prioritize innovation and avoid market saturation.
Strengthen your financial performance and supply chain reliability. Make your financials clean and scalable, and ensure your supply chain is robust enough to scale. Evaluate vendors and manufacturers, creating backup plans for price changes or global instability that would cause changes in your supply chain.
Evaluate your retail vs. DTC balance and strategy. Understand which channel drives the most customer value and where brand equity is growing. Align your marketing, operations, and partnerships around your strongest path to market rather than many different paths.
Enhance your brand story—visually, emotionally, and culturally. Your narrative should resonate across all touchpoints, from packaging to content. Make sure it speaks to your core audience and reflects your mission and values.
Begin building relationships with investors, brokers, and advisors. Even if you’re not looking to raise capital or sell soon, nurturing these relationships early gives you access to insights, resources, and future opportunities. Check out our Perfect CPG Pitch guide when you’re ready to put together a more formal presentation.
Create an exit strategy—not because you plan to sell, but because building with the end in mind makes you more strategic today. Knowing your long-term goals shapes every decision from product development to team building, making your brand more intentional and valuable.

Julee Ho Media is a boutique photography company specializing in CPG, food and beverage brands. Click here to get a quote and discover how we can help elevate your brand.