The stage for 2016 is set: The U.S. economy continues to expand; capital markets are relatively strong; U.S. wine consumption continues to rise, and consumers’ purchase patterns increasingly favor more expensive wines. Wine sales have increased during the past 16 years at an average of 3.4% per year, reaching 375 million cases (or approximately 2.8 gallons per capita) in 2014. As of 2013, the U.S. became the largest wine market in the world, with plenty of room for continued growth in per-capita consumption.

 

Source: Gomberg, Fredrikson & Associates

The ongoing growth and attractiveness of the U.S. wine industry has created a fertile environment for merger and acquisition (M&A) activity. Established players as well as new entrants are likely to continue using acquisitions to stake out or strengthen their competitive positions.

2015 retrospective