Mergers and Acquisitions in Action for Alcoholic Drinks

Different categories, different levels of consolidation

The three major alcoholic drinks categories are all at differing stages of consolidation, with beer the most consolidated and wine the least, although this has much to do with industry structure.

Different types of M&A activity

Merging with or acquiring a company can either be defensive (protect against a bigger competitor or protect revenues) or expansionary (a chance to move into new categories, markets or just grow revenues).

Reasons to sell

Any buyer needs a willing seller. Some sellers are likely to be more willing than others as the target business may no longer be a focus of the seller but could equally be because the seller needs to sell.

Fixing the right price

A key test for the financial viability of a deal is the Discounted Cash Flow Tool. However, this is only a rough instrument and fixing the right price is more an art than a science and requires a myriad factors to be looked at.

Due diligence

Once a deal has been agreed, careful examination of all aspects of the target’s business is vital as hidden dangers not discovered will damage the success of a deal.

Integration hardest

A large proportion of acquisitions fail and this is primarily due to the integration stage, thus a number of key practices need to be followed.

Future prospects for M&A in alcoholic drinks

While there has been much consolidation in recent years, especially in beer, there is still the opportunity to expand in all categories via M&A with both large and small deals.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment