2020 Oregon Wine Symposium | Wine Industry M&A Trends - Past, Present and Future

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Wine industry financial expert Kevin O’Brien will deliver local and global perspectives on the recent wave of wine industry mergers and acquisition transactions. The presentation will leverage global data and research with a particular focus on the drivers of such activity, insights on current market trends, and outlooks for the future.

Education

Wine Industry M&A Trends
Past, Present and Future
Kevin O’Brien, Principal

Zepponi & Company Oregon Transactions
Roserock Vineyard Zena Crown VineyardGran Moraine Vineyard

Presentation Overview
1. Drivers of Wine M&A Activity
2. Oregon Wine Industry M&A - Past
3. Oregon Wine Industry M&A - Present
4. Oregon Wine Industry M&A - Future

Drivers of Wine M&A Activity – Consolidation
Top 5 Control ~50%
REMAINING
GROCERS
Top 4 Control >60%
REMAINING
DISTRIBUTORS
Sources: Statista, 2018 Impact Wine DataBank

Drivers of Wine M&A Activity – Premiumization
Source: AC Nielsen Food/Liquor 52 weeks ended Sept. 10, 2015 vs. Dec. 28, 2019
+47.0%
DOMESTIC WINES < $12/BOTTLE > $12/BOTTLE
+9.5%
-5.5%

Drivers of Wine M&A Activity – “Dry Powder”
Source: Preqin
$ in Billions

Drivers of Wine M&A Activity – Cheap Debt
Source: Board of Governors of the Federal Reserve System

Oregon Wine Industry M&A – Past
+68.5%
+8.4%
Source: AC Nielsen Food/Liquor 52 weeks ended Sept. 10, 2015 vs. Dec. 28, 2019
CALIFORNIA WASHINGTON OREGON
+7.0%

Oregon Wine Industry M&A – Present
-2.5%
~50%
MARKET
SHARE
Source: Shanken IMPACT Databank

Oregon Wine Industry M&A – Future
-2.5%
Geographic
Diversification
White Space
Prime Assets 2021?

Thank you!
-2.5%
Kevin O’Brien, Principal
kevin@zepponi.com

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