Beverage Market Buzz: August 2019

Some of the recent deals we’ve seen in the beverage market reflect fundamental changes and offer valuable lessons about where things are moving.

Report summary

As we move into the month of August, we thought it would be worthwhile to take a moment to reflect on a few of the most intriguing beverage developments we’ve witnessed over the past month:

I Got You Babe – ABI Acquires Remaining Stake of Swish (Babe Wines)

  • - Is non-beer the path to growth for big beer?
  • - New strategies/packages/formulations/mindsets are needed to reach young consumers.
  • - Babe is a red alert for the wine industry…
  • - … as lines continue to blur between all alcohol categories.

From IPO to M&A – ABI Has Many Deleveraging Levers to Pull

  • - ABI’s decision to pull back from the Asia IPO and then announce the sale of CUB highlights the great optionality that comes with a global empire.
  • - We think the CUB announcement sheds new light on the value/risk of the SAB deal – and that achieving scale through M&A in beer is as attractive as ever.

Jollibee Steps Onto the World Coffee Stage With Coffee Bean & Tea Leaf Acquisition

  • - Significant global investment is driving consolidation in the coffee shop landscape…
  • - … as well as a convergence between quick-service retail and coffee shops.
  • - This is part of an out-of-home coffee revolution taking place from China to Brazil to the US.
  • Stephen Rannekleiv

    Global Strategist – Beverages
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  • Maria Castroviejo

    Senior Analyst - Beverages
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  • Hayden Higgins

    Senior Analyst - Horticulture, Wine
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  • Andrés Padilla

    Senior Analyst - Beverages, Dairy, F&A Supply Chains
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  • Sudip Sinha

    Senior Analyst - Beverages
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  • Francois Sonneville

    Senior Analyst - Beverages
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  • Jim Watson

    Senior Analyst - Beverages
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  • Guilherme Morya

    Analyst - Beverages
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  • Bourcard Nesin

    Analyst – Beverages
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  • Stacie Wan

    Analyst – Supply Chains and Beverages
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