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Azur.I: Azur Intelligence

 

At Azur Associates, one of our key goals is to provide our clients with the up-to-date, insightful information and analyses they need to make the best decisions for their business.  We have two seasoned team members dedicated solely to this task.  While, of course, we can’t release full studies that are confidential to our clients, we enjoy sharing some highlights as well as perspectives on more public situations in the industry.  This is Azur.I: Azur Intelligence.

 
 
 
 

Azur Associates Wine Market Observations + M&A Trends | Summer 2024

In 2024 the pace and significance of consumer change is more rapid than ever, impacting the overall consumer package goods businessas well as Beverage Alcohol.  These shifts are having a significant impact on category trends.

2024 WINE MARKET OBSERVATIONS – KEY POINTS

Overall consumer demand for wine, beer and spirits is more challenging, which is a global issue not one just impacting the U.S. 

The convergence of factors that have created a difficult wine market for everyone include economic, competitive and geopolitical considerations.  Persisting headwinds resulting from these factors have pushed some wine companies to the brink.  For others, there are clear opportunities.

It’s evident in the near term we are in for a “bumpy ride.” However, those who can survive, focus on the fundamentals and make rigorous, disciplined strategic choices will increase their odds of winning.

2024 WINE M&A YTD TRENDS – KEY POINTS

The U.S. Wine M&A market reflects a cautious environment and an oversupply of wineries seeking an exit.  As there are far more wineries that would like to sell vs. buyers, deals that get done require significant creativity and flexibility (except the very rare A+ assets).

A few emerging themes from recent transactions include:

  • Large strategic wine companies exiting non-strategic brands and assets

  • European generational buyers continue to invest in the U.S.

  • Few typical strategic domestic buyers

Details are included in the Azur Wine Market Observations + M&A Trends | Summer 2024.

Patrick DeLong