Mergers and acquisitions in the wine industry

Question 1

What is a merger exactly?

Name… goals of it!

Answer 1

• a fusion of 2 or more companies
• a bigger one buys the other
• should be equal partnership

1. ) more competitive
2. ) greater resources / capabilities
3. ) save failing companies
4. ) reduce costs
5. ) simple supply chain
6. ) growing = compete more sectors

Question 2

List 3 well known mergers/fusions in the wine industry:

Answer 2

1. ) E & J Gallo
2. ) Jackson family wines
3. ) Matthew Clark & Bibendum PLB = UK

Question 3

Name advantages for a smaller business if the got taken over!

Answer 3

1. ) increased investments

2. ) large distribution network

Question 4

1. ) Is merging and acquisitioning limited in the wine branch?
2. ) Could it be a problem? Why? example!

Answer 4

1.) NO

2. ) Yes - private firms could buy many wine companies
   e. g Carlyle group bought accolade wines (AUS)

Question 5

Why is the overtook of accolades wines by the private Carlyle group interesting?

List 3 points!

Answer 5

1. ) trade war between USA & China
2. ) free trade agreement USA & Australia
3. ) Many Australian wines in accolades portfolio