TOTAL ANNUAL MARKET GROWTH +12% to $35.8B

Trends in Spirits

TOP PERFORMING SPIRIT CATEGORIES BY REVENUE IN 2021

  • Premixed cocktails, including spirits-based RTDs up $42.3% to $1.6B

  • Tequila/Mezcal up 30.1% to $5.2B

  • American whiskey up 6.7% to $4.6B

  • Brandy/Cognac up 13.1% to $3.5B

  • Cordials up 15.2% to $2.9B

  • Irish whiskey up 16.3% to $1.3B

  • Vodka sales up 4.9% to $7.3B

  • Single Malt Scotch up 14.4% to $1B

THE WHISKEY BARREL MARKET IS HOT

The whiskey barrel market is booming based on high demand and shrinking supply of aged whiskey. 

Key Whiskey findings include:

  • Since 2010, annual whiskey consumption has doubled

  • Both domestic and international Whiskey growth expected to remain high through 2024

  • Pricing for aged inventory is expected to remain favorable

  • New make barrels cost >$1,000, and 3-5 year whiskey barrels sell at $3,000 - $5,000

  • Expected returns in 4+ years are 3-5x our initial investment

  • Expected barrel value increases at a 30%+ rate over 4 years

  • New regions are seeking high quality, aged inventory

MAJOR MERGER & ACQUSITION ACTIVITY 2021 BASED ON THEME

Bourbon / Whiskey - Brown spirits continue to show consistently large exits and alternative investment opportunities

  • MGP Ingredients acquired Luxco for $475 Million 

  • Uncle Nearest debuted new $50 million venture fund

  • Pernod Ricard acquired minority stake in The Horse’s Spirit Co to distribute new chili Bourbon

  • Diageo added Komasa Kanosuke Distillery stake to Japanese whiskey footprint

  • Pernod Ricard acquired stake in Abasolo Mexican Whisky

  • Amber Beverage Group acquired Walsh Whiskey

Agave - Agave based spirits are among the fastest moving products in any category         

  • Chatham Imports invested in Los Siete Misterios Mezcal 

  • Diageo acquired Mezcal Union

  • Jaja Tequila Forms Partnership with Proximo Spirits

Distribution - DTC and last mile distribution continue to be high growth areas, and industry disruptors

  • Uber Bought Alcohol Delivery Startup Drizly for $1.1 Billion 

  • Delivery Service GoPuff Acquired Liquor Barn Retail Chain

  • Pernod Ricard acquired The Whisky Exchange 

  • Southern Glazer’s Wine & Spirits Ventures Division Made Equity Investment In ReserveBar

  • Constellation acquired DTC-centric Empathy Wines

  • ReserveBar acquires Minibar Delivery

Celebrity - Celebrities continue to view beverage/alcohol as high value, high engagement  marketing partnerships        

  • LVMH Took 50% Stake in Armand De Brignac (Jay-Z)

  • Stoli Group Acquires 50% Share of Miraval (Angelina Jolie)

  • Constellation Brands invested In Mezcal Dos Hombres (Aaron Paul, Bryan Cranston)

Ready-To-Drink (RTD) - Ready to drink cocktails are the largest growth segment in the beverage/alcohol sector

  • Diageo acquired Lone River Ranch Water

  • Diageo acquired RTD Cocktail Brand Loyal 9

  • ABInBev’s ZX Ventures invested in Canteen Spirits

Wine - As a whole, the wine segment is ripe for disruption as acquirers rethink their target consumers

  • Bollinger acquired Ponzi Vineyards

  • Constellation acquired a minority stake in Burston’s La Fête Du Rosé

  • Ste. Michelle Wine Estates sold for $1.2 Billion to private firm Sycamore Partners

  • Delicato Family Wines acquired Francis Ford Coppola Winery

  • Vintage Wine Estates acquired ACE Cider

  • Treasury Wine Estates acquired Frank Family Vineyards

  • Foley Family Wines acquired Chateau St. Jean