Year in Review: The Top Supplier News of 2022

NATIONAL REPORT — Supplier companies in made several major acquisitions, investments and realignments across multiple categories during 2022 as they moved to meet the rapidly evolving needs of consumers.

It was also a tumultuous years for tobacco companies, several of which resolved resolved legal proceedings while rolling out new initiatives.

These are the top 10 supplier headlines of  2022, as reported by  Convenience Store News:

1. PepsiCo Creates New Organization to Accelerate Company's Racial Equality Journey
The company tapped Derek Lewis, a 34-year veteran of PepsiCo, as its first first president of multicultural business and equity development. The company's new North American organization is dedicated to accelerating efforts both inside and outside of the company to help address inequalities for historically excluded people and underserved businesses and communities.

2. Mondelēz Inks Agreement to Acquire Mexico’s Leading Confectionery Company
Mondelēz International Inc. announced it will buy Grupo Bimbo's confectionery business, Ricolino, for approximately $1.3 billion. With approximately $500 million in annual revenue, Ricolino employs close to 6,000 associates, has four manufacturing facilities and distributes its products to several channels, including traditional trade, supermarkets, convenience stores and others. Its brands include Ricolino, Vero, La Corona and Coronado.

3. Mars Wrigley Building New Research & Development Hub to Support New Product Innovation
Adjacent to the company's existing Global Innovation Center on Goose Island in Chicago, the  facility will inspire the next generation of new products and help propel Mars Wrigley's global snacks and treats brands. Construction is expected to be complete by summer 2023.

4. Philip Morris International Makes $16B Offer for Swedish Match
In May, Philip Morris International (PMI) made a $16-billion bid representing a premium of 39.4 percent compared to the closing share price on May 9, which the Swedish Match board of directors recommended company shareholders accept. The company later upped its bid and eventually secured a 93 percent stake in Swedish Match.

5. Tobacco Companies Reach Deal With Justice Department Over Retail Messaging
Altria, Philip Morris USA Inc., RJ Reynolds Tobacco and ITG Brands agreed to supply  court-ordered signs to stores they have contracts with and require those stores to post the signs for 21 months. The pact covers the last remaining dispute from the lawsuit the Department of Justice filed against Altria, Philip Morris USA Inc., and RJ Reynolds in the 1990s.

6. Pepsi Grows Energy Segment With Celsius Pact
PepsiCo Inc. and Celsius Holdings Inc., maker of Celsius global fitness energy drink, signed a definitive agreement forging a long-term strategic distribution arrangement, effective Aug. 1. The distribution agreement initially transitions Celsius' current U.S. distribution to PepsiCo's capabilities, and PepsiCo will become the preferred distribution partner globally for Celsius.

7. IRI & NPD Officially Join Forces as a Global Analytics & Data Provider
The merger brought together colleagues across the globe to offer more than 7,000 clients a comprehensive, accurate view of consumer behavior and total retail purchasing and consumption trends across a broad range of industries. IRI, a global leader in innovative solutions and services for consumer, retail, and media companies, and The NPD Group, a global provider of market information and advisory services to more than 20 industries, previously signed a definitive merger agreement in April.

8. Altria Wins Patent Suit Against R.J. Reynolds Vapor Co.
A North Carolina jury determined that R.J. Reynolds Vapor Co. (RJR Vapor) must pay Altria Group Inc. more than $95 million, finding electronic cigarettes from RJR Vapor's Vuse line infringed three Altria patents. In the case of Altria Client Services vs. Reynolds Vapor Company, et al., the U.S. District Court for the Middle District of North Carolina found that RJR Vapor violated three Altria patents covering the pod assembly used in Vuse Alto.

9. Performance Food Group Brings Convenience Ops Under Core-Mark Banner
Performance Food Group (PFG) aligned its convenience business under the Core-Mark brand, a decision that came one year after PFG closed on its acquisition of Core-Mark Holding Co. Inc., expanding its geographic reach and market diversification into the convenience channel. That transaction followed PFG's deal for Eby-Brown Co. LLC in 2019.

10. Altria & Philip Morris International Agree to End U.S. IQOS Pact
Altria Group Inc. announced it was selling the U.S. rights to IQOS to Philip Morris International (PMI). Under a new agreement, PMI will pay Altria approximately $2.7 billion in exchange for the exclusive U.S. commercialization rights to the IQOS system effective April 30, 2024. Shortly after, Altria announced it was entering a new heat-not-burn joint venture with JT Group to market and commercialize heated tobacco sticks products in the United States. The strategic partnership includes Ploom-branded devices and Marlboro-branded consumables.