Wine trade to see record M&A in 2013 - study (Excerpt)

By James Wilmore January 17, 2013
M&A activity among US wineries will come at a "record pace" this year, while bulk imports will continue to dominate the lower end of the market, according to a new report.

Silicon Valley Bank's (SVB) Annual State of the Wine Industry Report, published this week, said that it expects to see "more transitions, sales and mergers taking place than at any time in memory" in the US in 2013. It also predicts a "continuation of new mergers among wholesalers".

Wineries' profits will also be hit by higher grape costs this year, the report suggests. Companies will raise their bottle prices, but the bank believes the move will "prove difficult".