Consumer & Retail · November 2, 2026
Three packaged-food deals that would make sense as activists circle Big Food
With Unilever's food arm heading to McCormick and activists inside Smucker and Lamb Weston, a few long-rumored food tie-ups look more plausible than they have in years.
Analysis, not news. These are possible deals our editors think would make sense, based on public information. None has been announced, and most may never happen. Not investment advice.
Packaged food has had a busy 2026. Unilever agreed to combine its food business with McCormick in a $45 billion deal, Ferrero bought WK Kellogg, and FTI Consulting found consumer staples was the only sector where the number of disclosed deals rose in the third quarter. At the same time, Elliott and Starboard are pushing laggards to reshape their portfolios. Kraft Heinz has also shelved its planned breakup to focus on a turnaround, which shows how much pressure the big names are under to grow.
1. Post Holdings → Lamb Weston
Why Post Holdings could take another look at Lamb Weston
Post, which owns Bob Evans and Simply Potatoes, has had its eye on Lamb Weston for a long time. In December 2024 it was reported to have hired investment bankers to explore a possible deal for the french-fry maker. The pressure on Lamb Weston has only grown since then. It gave Jana Partners a bigger presence on its board in 2025, and in 2026 Starboard Value urged it to double its cost-savings target to $500 million and consider selling some businesses in Asia. Starboard also warned the board in April that the company was at a 'critical juncture' and needed to win back investor confidence. A board under that much pressure, facing a buyer that already knows the potato business well, is a combination that could bring the old idea back.
What stands in the way: The two companies sell through different channels: one analyst noted that about 85% of Lamb Weston's sales go to foodservice, compared with 29% of Post's, and questioned whether Post could afford a deal this size. Post has also said tariff-driven swings in valuations made it more cautious about M&A.
2. Mondelez International → The Hershey Company
Why Mondelez could make a third run at Hershey
Mondelez's approach in late 2024 was its second attempt to buy Hershey. At the time, a combined company was estimated to have almost $50 billion in sales, with Mondelez valued at about $84 billion and Hershey at about $35 billion. The strategic case hasn't gone away: Mondelez's global snacking reach paired with Hershey's U.S. chocolate franchise would create a top player in the snack aisle. Hershey has also kept adding salty snacks, buying LesserEvil in 2025, and posted net sales of about $9.2 billion for the first nine months of 2026. As rivals get bigger through deals like Ferrero-WK Kellogg and McCormick-Unilever Food, pressure on Mondelez to land a big deal of its own may only increase.
What stands in the way: The Hershey Trust controls about 80% of the voting power and reportedly turned down Mondelez's 2024 preliminary offer as too low, so nothing happens without the Trust's support. A combination of this size would also face close antitrust scrutiny in confectionery.
3. Ferrero Group → Hostess (J.M. Smucker)
Why Ferrero could make a play for Hostess if Smucker sells
J.M. Smucker reached an agreement with Elliott Investment Management in February 2026 and added two independent directors to its board. Axios has since reported that Smucker hired Goldman Sachs for a portfolio review that would likely bring Twinkie-maker Hostess to market. Privately held Ferrero is a natural buyer to consider. It has been expanding beyond candy into wider U.S. packaged food, most recently with its roughly $3.1 billion purchase of WK Kellogg and brands like Frosted Flakes and Froot Loops. Snack cakes sit between Ferrero's sweets business and its newer cereal aisle, and Ferrero has shown it is willing to buy legacy American brands and work to revive them.
What stands in the way: Smucker hasn't announced a sale. With about $10.9 billion of goodwill and intangibles on its books, it may be unwilling to accept a price that crystallizes a loss on the Hostess deal. Other strategic or private-equity bidders could also enter a competitive process.