Food Inc.'s Diet Necessities

When it comes to M&A, food companies can no longer be couch potatoes and they know it. They're on the move -- whether it be for mega-mergers to cut costs and enhance profit, or for newer, growing brands that will meaningfully reverse a trend of stagnating sales.

Danone, a $47 billion dairy company looking at flat revenue this year, snapped up one of the most desirable targets in the space with a $12.5 billion deal this week for WhiteWave Foods and its fast-growing Silk line of milk alternatives.1467985684976 That followed last week's news that chocolate-bar maker Hershey is being stalked by Oreo maker Mondelez. Other notable transactions include frozen-food company Pinnacle Foods' purchase of Boulder Brands in January to add natural and gluten-free products, and a host of deals recently for smaller brands such as ThinkThin protein bars and Wallaby Yogurt.