The European wine industry has seen over 150 M&A deals since 2010 , and a similar pattern is expected to prevail in the future, said Rabobank in its Wine Quarterly for Q3 of 2017.
The EU remains a key region for the wine industry, accounting for around 65% of global production, 57% of consumption, and around 70% of global wine exports.
In the past few years, total wine production has been stable.
“But this apparent stability in the wine industry hides a different reality,” according to Stephen Rannekleiv, RaboResearch Global Strategist, Beverages. “Demand is shifting to new markets, while in the well-established wine-drinking markets, consumer patterns have evolved, confronting the wine industry with a new reality.”
Some wineries have responded by investing in assets and acquisitions, some have been shedding assets to become leaner, while many others have remained on the sidelines. Rabobank says that the consolidation occurring in the European wine industry has formed a clear trend, in which “companies who have sat on the sidelines, not investing or divesting, were the weakest performers.”