Written by RICH MANNING
2022
SPIRITS INDUSTRY MERGERS & ACQUISITIONS
Year in Review
S
volume increase of 13.9 million. U.S supplier revenue also saw a teady and subdued. That may be the best way to describe 5.1 percent YOY growth during that time, translating to a revenue the pace of 2022’s spirits mergers and acquisitions. There increase of $1.8 billion. Most exciting of all, however, was the rewas movement — at least 33 transactions took place during veal that spirits took the lead revenue share of the total U.S. althe 2022 calendar year, and four additional deals technically cohol beverage market. It’s the first time this has ever occurred, finalized in January 2023. But the combination of high costs and it beats the projection of this feat occurring by three years. and economic uncertainty prevented activity from accelerating more fiercely in a post-pandemic landscape. “The cost of capital may be FIGURE 1 too much right now,” explained Kevin Sales Growth by Beverage Alcohol Category ($ in Billions) 2021 2022 O’Brien, principal of the merger and Source: Distilled Spirits Council acquisition advisory firm Zepponi & Company in Portland, Oregon. $37.6 $36.8 $37.5 “We’re not in a low-interest environ$35.8 ment anymore. Plus, the chatter of a looming recession in the second half of the year, which caused some hesitation.” Despite concerns of economic uncertainty, the spirits industry’s future is still bright. On February 9, the Distilled Spirits Council (DISCUS) released their annu$14.0 $14.3 al economic briefing, and its data proclaiming market share gains for the 13th consecu+1.8% +5.1% +2.5% tive year was an appetizer for a larger feast. U.S. volume experienced a 4.8 percent YOY growth from 2021 Wine Beer Spirits to 2022, representing a
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