Guest: Jeff Menashe, Founder, CEQ, Demeter Advisory
We would discuss:
1) why you started the business 22 years ago,
2) why you focused on the adult beverage industry,
3) what constitutes a ‘premium’ adult beverage M&A transaction,
4) have premiums expanded more in ‘spirits’ than in wine in recent years,
5) changing economics of the traditional wine industry: asset rich, cash flow poor, wholesale distribution reliance, pricing inflexibility, squeezed margins,
6) shifts in consumer demand - Republic National Distributing Company is leaving California & declared the wine industry ‘unsustainable amid a national downturn’ (in consumer preferences) - your perspective on strategy changes needed to survive,
7) structural industry shifts - rise of the low-cost producer: ’negociant’ wine businesses - DTC vs. wholesale,
8) decline of premium price seller - vertical integration vs. brand building and inventory,
9) how realistic do sellers tend to be re: price expectations for sale of their wineries,
10) how has ‘valuing’ a winery changed - land value, inventory, annual production, brand equity,
11) access to capital constraints, (capital intensity vs. timeframe for expected returns),
12) are smart wine businessmen and women developing new distribution channels, altering ownership structures,
13) are you seeing more ‘generational’ selling interest in the wine industry,
14) what you advise sellers to consider as they decide to sell,
15) what you advise buyers re: asset values and strategic fit (i.e. should Chanel be in the wine business vs. its acknowledged leadership positions in luxury fashion and beauty product lines),
16) any local resistance to winery or vineyard sales to bigger business interests,
17) examples of best practices in ‘brand storytelling’ and differentiation,
18) how competitive has your business become re: client development, fee structure, advisory vs. transactional,
19) ‘wine regions’ of the country which command premium valuation,
20) role of private equity acquirers,
21) future of Napa and Sonoma wine industry,
22) other issues which you might wish to talk about
demeteradvisorygroup.com/
