Business For Sale Listing 147739
Brand, Vineyard, Winery- Roll Up Opportunity
Status as of Oct-10-2008 at 06:00 PM: Active
Business Summary
CONSOLIDATION THESIS: Emerging West Coast wine brands + quality vineyards and wineries = Top U.S. acquisition target for strategic acquirers.
SITUATION: Wine is in high demand by consumers; and strategic buyers are interested in growing through acquisitions, but the highly fragmented nature of the industry creates a significant challenge for strategic buyers. It is this same nature that creates the significant opportunity for consolidation. There are four key elements driving this opportunity:
1. The market is mostly made up small niche brands and wineries too small for strategic buyers to acquire directly. In California, there are 1000 wineries, of which 750 are less than 25,000 cases.
2. The fragmented nature of wineries limits their ability to influence pricing with distributors that are already consolidated and concentrated.
3. Strategic buyers want companies producing more than 100,000 cases that they can quickly scale through their distribution system. Anything smaller barely hits their radar.
4. The best brands are niche brands with a story and serving a specific segment, but they often are undercapitalised and want partners in order to have leverage with distributors.
OPPORTUNITY: A roll-up opportunity exists for an entrepreneurial team that can execute the consolidation of emerging niche brands, wineries, and vineyards that in total produce 500,000 cases. At this size, the company can improve pricing with distributors, and then exit with a sale to a strategic buyer.
SOLUTION: To execute this, the wine & vine team at BTI Group has selected 8+ key consolidation candidates up and down the West Coast that in total produce over 100,000 cases. Owners would consider entering into confidential discussions with a select group of buyer/investors recommended by the BTI Group.
If you are interested in a roll-up or the acquisition of individual wineries, please contact us.
Categories
| Industry: |
Food & Beverage Manufacturers For Sale Manufacturing Businesses For Sale |
|---|---|
| Location: |
Pacific States Businesses For Sale United States Businesses For Sale |
| Other: |
Very Small Businesses For Sale |
Industry
| Sector: | Manufacturing |
|---|---|
| Industry: | Food & Beverage Manufacturers |
Location
| Classification: | United States // Pacific States |
|---|---|
| Location: | West Coast, USA |
Financials
| Sales: | Not Disclosed |
|---|---|
| Profits: | Not Disclosed |
| Profit Type: | Not Disclosed |
| Asking Price: | Over $20 Million ($100,000,000) |
