California wineries M&A

California wineries are on a M&A rampage, especially by the big boys – Gallo, Trinchero, Jackson, Constellations….

This is not new in France. Massive consolidation has been happening for years there. Maybe people will start up some wineries in hopes of being acquired. But the intensive heavy initial capital investment required won’t let that happen. Yet, we are still seeing wineries popping up like mustard flowers in California.

With the exception of few wine brands, most wineries being acquired are old and well-established brands. They are primarily located in California, Oregon, and Washington. But maybe they should look to east – New York.

The market is already there and popularity of Alsatian varietals are growing silently but steadily. I think there is an opportunity there, albeit still many years away.

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