Pricing, M&A to dominate wine business in 2013
Pricing, M&A to dominate wine business in 2013
Dec 10, 2012 6
(NBBJ) - Hot topics in the North Coast wine business in 2012 were rapid grape and bulk-wine inflation as bottle sales outstrip anticipated supply, an unexpectedly big, “perfect” harvest and a string of mergers and acquisitions. Dominating 2013 likely will be moderating supply pricing and accelerating M&A activity, according to experts.
U.S. wine sales growth next year likely will be modest, but prices on the shelf overall probably won’t increase much, according to Rob McMillan, founder of Silicon Valley Bank’s Premium Wine division and author of an annual spring forecast for the industry. Moderating price growth is the greater availability of lower-priced wines bottled outside California made from imported bulk wine.
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