A Market on Ice: Alcohol M&A Cools as Shifting Tastes Bite
For as long as humans have lived on this earth, they have loved to drink – alcohol, that is. Whether it’s moonshine, a malbec or a Michelob beer, booze is rooted deep in this world’s culture. Towns across America have embraced local taverns, restaurants, brew pubs and wine bars. Drinking is often the epitome of socialization, a time when friends, colleagues or couples get together to unwind.
But the alcohol industry is enduring a sober reset. The wine and craft beer sectors are struggling; a glut of aging whiskey sits in barrels; and people are drinking less or not at all. The health-conscious younger generations like Gen Z often prefer ready-to-drink (RTD) concoctions in aluminum cans vs. a regional lager or chardonnay. Americans’ alcohol budgets have also shrunk with inflation, and the government tariffs have wreaked havoc on an already demoralized sector.