K-shaped economy shows up in dealmaking

A “K-shaped” pattern in consumer spending is increasingly showing up in dealmaking, as companies and investors pursue wealthier customers while other segments struggle. High-income households earning more than $125,000 saw cumulative real spending rise about 7.6% between 2023 and March 2026, according to the NY Fed, while low-income households under $40,000 increased just over 1%. The article cites a statement from Nestlé CEO Philipp Navratil that demand is becoming polarized, with some families seeking value and others “trading up” for higher quality. Deal examples include Unilever’s spring acquisition of gummy supplement maker Grüns for $1.2 billion and Pepsi’s purchase of premium tortilla brand Siete for $1.2 billion last year. Meanwhile, pizza chains have struggled and several are set to sell. The trend is also visible in logistics, fintech and infrastructure, including investments in private aviation and cards targeting ultra-wealthy consumers. Notable Capital’s Hans Tung says the middle is being squeezed.