Sept 8 Reuters U.S. packaged food companies are set for a flurry of deals in a push to revamp their brand portfolios as their pandemicera fortunes fade and benefits of price hikes start to taper off.

Last month, Campbell Soup struck a 2.7 billion deal for Rao39;s sauce maker Sovos Brands. Unilever bought premium frozen yogurt brand Yasso in North America, while Snickers maker Mars acquired healthy foods maker Kevin39;s Natural Foods.

There39;s been a nice uptick in MA mergers and acquisitions in the food industry in the first half of the year…, said Michael Milani, executive managing director and principal at advisory firm Baker Tilly.

It has been a big theme, and we expect that to continue in the back half of 2023 and into early 2024.

This is despite higher borrowing costs straining companies looking for acquisitions.

The value of deals in the U.S. food and beverage industry slipped nearly 3 to about 10.39 billion this year, according to LSEG data. But their volumes climbed 17.5 to 248 as of Sept. 1, making the industry a bright spot in dealmaking.

The total number of deals across all industry sectors slid 4 in the same period, data showed.

Large food companies need to add more new concepts, new flavor profiles and new food items because their old brands though still growing are not growing at a meaningful rate, Milani said.

The rise in deals comes as volume of sales at companies such as Kraft Heinz and Campbell fell for at least the past six quarters due…