Beverage Industry Market Update - Fall 2020 - Cascadia Capital
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Beverage Industry Market Update Fall 2020
Food, Beverage & Agribusiness Leadership
Food, Beverage and Agribusiness Leadership Team
Beverage Leadership Team Industry Team Colleagues
Nicole Nugent Fry Erik Einwalter Michael Butler Bryan Jaffe George Sent Scott Porter
Managing Director Managing Director Co-Founder and CEO Managing Director Managing Director Senior Vice President
Food, Beverage and Food, Beverage and Food, Beverage and Food, Beverage and Food, Beverage and Food, Beverage and
Agribusiness Agribusiness Agribusiness Agribusiness Agribusiness Agribusiness
Industry Focus: Industry Focus: Industry Focus: Industry Focus: Industry Focus: Industry Focus:
Branded Beverage, Contract Food & Agriculture, Contract Branded Food & Agribusiness Inputs
Beverage Technology Manufacturing, Agribusiness Inputs Manufacturing, Nutrition, Ingredients, and Production, Food
& Equipment, Branded Food & and Production, Branded Food, Pet Agribusiness Inputs Processing &
Legal Cannabis Beverage Equipment and Production Manufacturing,
Manufacturing Ingredients
Recent Transactions: Recent Transactions: Recent Transactions: Recent Transactions: Recent Transactions: Recent Transactions:
1
Market Overview
2
Off-Premise Strength Continues but has
Led to a National Can Shortage
As demand for cans continues to outpace supply, the North American market for aluminum cans anticipates outages
for the next 24-36 months, and the supply chain isn’t expected to catch up until 2025 / 2026 (1)
▪ Since the beginning of the COVID-19 pandemic in March 2020, can usage has risen dramatically due to higher levels of at-home consumption
and increased purchasing of larger pack sizes / pantry loading. Furthermore, beverage packaging continues to move towards cans and away from
plastic and glass, with ~70-75% of all new beverage product launches in cans compared to just 30-40% five years ago.
ꟷ Retail sales of aluminum drink cans increased 24% by volume in March 2020 and have continued to rise since then (2)
ꟷ Specialty and Slim cans, which are utilized by hard seltzer producers, have seen a dramatic increase in demand as the hard seltzer
category continues its explosive growth
▪ The unprecedented demand for cans in 2020 has led to significant industry shortages and supply issues, and the largest can suppliers, Ball and
Crown, are adding lines and building new facilities, but those are not expected to come online until at least 2021
ꟷ “The demand is absolutely astounding. I’ve been around 35 years and never seen demand numbers like this, and the only thing holding
back our shipments as an industry, is our capacity to meet customer requirements.” – Crown CEO Timothy Donohue
ꟷ Ball reported that the U.S. will have a can shortage of ~10 billion cans this year — about 9% of total 2019 sales — as the supply chain
continues to feel the brunt of shifting consumer trends (2)
Long Term Beer Trends from Glass to Aluminum (4) Aluminum Can Year-Over-Year Share Shift (%) (4)
60% 4%
3%
50%
2%
40% 1%
30% 0%
-1%
20%
-2%
10% -3%
0% -4%
2002 2004 2006 2008 2010 2012 2014 2016 2018 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1
Glass Metal Cans
Metal Cans Glass Bottles
Sources: (1) Credit Suisse research, (2) Brewbound (3) Wall Street Journal, (4) Barclays research.
3
Premium, Functional and Ready-to-Drink
Coffee Continues to Drive Growth
Shifting consumer preferences towards premium offerings is driving demand for third wave coffee roasters, with
super premium offerings, functional benefits and in ready-to-drink formats
▪ Led by a demand for convenience, ready-to-drink (RTD) product offerings are driving growth in the coffee category, with more than 150 new
RTD coffee products launching in the past year – an increase of 14% year-over-year
ꟷ Consumers are looking for coffee beverages infused with functional ingredients to deliver nutritional benefits, as health and wellness
becomes a larger focus and multi-benefit and multi-purpose products become a top priority
▪ Super Coffee recently raised $25 million, valuing the fast-growing beverage brand at more than $200 million – Anheuser-Busch InBev (ZX
Ventures) participated in the round and will be distributing the product throughout the U.S., highlighting the investment large beverage
strategics are making in “beyond beer” (2)
ꟷ Similarly, Bulletproof Coffee raised $13 million in September 2020 to expand its signature coffee line — featuring beverages infused with
grass-fed butter and energy-producing Brain Octane oil, as well as collagen proteins and assorted supplements
▪ Molson Coors signed a 10-year agreement with La Colombe Coffee in October 2020 to distribute its RTD Draft Latte and Brazilian Cold Brew
products in convenience and drug stores nationwide, allowing La Colombe to increase its retail footprint by more than 400% within 18 months in
convenience stores (3)
U.S. Sales of Ready-to-Drink Coffee (4) Cascadia Capital Advises on the Sale of Cascade Coffee
($ in billions)
$3.3 Cascade Coffee has been acquired by Westward Partners
$2.7 ▪ Cascade Coffee is a leading contract roaster of
$2.1 coffee, with uniquely flexible roasting and packaging
$1.8 capabilities to serve a diverse base of brands
$1.6
▪ Cascadia was engaged based on its experience in in
the sector, most notably on the sale of Boyd’s Coffee
to Farmer Brothers
▪ Cascade offered Westward an opportunity to get
exposure to an inelastic category with growth
tailwinds, while serving some of the best brands in
2015 2016 2017 2018 2019
the space
Sources: (1) Nielsen: latest 52-weeks ending July 27, 2019, (2) Bloomberg, (3) CSP Daily News, (4) Wall Street Journal.
4
Continued Struggles in the On-Premise
Impacting Craft Beer and Spirits
The effects of the COVID-19 pandemic have directly impacted on-premise sales of craft beer and spirits, as many U.S.
states have shuttered bars, pubs and in-restaurant dining, and consumers opt for at-home consumption
▪ According to the Brewer’s Association, on-premise sales accounted for
~45% of craft beer volume before the pandemic (1) Off-Premise Beer Volume % Change vs. Prior Year (4)
ꟷ Lengthy closures and lower demand for in-person dining has led to 22%
the craft beer category estimated to be down ~15% in 1H 2020 Off-premise beer volume would have
compared to 1H 2019 (1). Post-pandemic, it is estimated that 15%
had to average 22% growth to offset
COVID-19 will have contributed to a $22+ billion decrease in retail the loss of on-premise sales due to
beer sales (2) the pandemic
▪ Another obstacle for craft beer producers is the consumer shift towards
pantry loading – households are now seeking large-pack and trusted
brands, while retailers are consolidating shelves towards large national
brands and a handful of local suppliers
▪ Craft spirits have also felt the effects of the shutdown of on-premise sales
0.8%
and tasting rooms, resulting in a loss of 41% of sales ($700 million) due to
the pandemic (3)
Pre-COVID COVID
ꟷ More than 40% of craft distillers reported a 25% decrease in their
wholesale business, while 11% of distillers lost their wholesale Notable 2020 Craft Beer & Spirits Transaction Activity
business completely (3)
Aphria acquires SweetWater Brewing Key Metrics
▪ Given the abrupt slowdown in both craft beer and craft spirits volumes ꟷ Canadian cannabis co. Aphria plans to expand its Date: Nov 2020
caused by the pandemic, there was a dramatic slowdown in transaction U.S. presence with SweetWater's craft brewing
EV: $300M
manufacturing and distribution expertise, which
activity through Q3 2020 as a result aligns well with Aphria’s cannabis lifestyle brands EV / Revenue: 4.5x
EV / EBITDA: 12.5x
ꟷ Most sellers have been reluctant to transact given depressed
earnings and most strategic buyers have been focused on their own Diageo acquires Aviation Gin Key Metrics
portfolios ꟷ In-line with Diageo’s strategy to acquire high Date: Aug 2020
growth brands with attractive margins that EV: $335M
▪ We started to see an uptick in activity and interest from both sellers and support premiumization, the acquisition of
EV / Revenue: 12.0x
Aviation Gin adds to its portfolio a super premium
strategic buyers over the last few months and expect activity will improve gin with compelling growth prospects EV / EBITDA: NA
heading into 2021
Sources: (1) Vinepair, (2) Beer Institute, (3) Fooddive (4) Nielsen.
5
Current State of the Wine Industry: Short
and Long-term Impact of Recent Wildfires
The recent wildfires in Northern California and Oregon have significantly impacted the 2020 harvest – an estimated
80% of Napa’s Cabernets may be lost to smoke taint, affecting approximately 30 wineries and over 67,000 acres
▪ It’s been a tough year for the wine industry, already impacted from the
global pandemic, a series of wildfires across California and Oregon have
“Everything is gone, it’s all gone. Every drop of wine was like
resulted in tremendous losses for the 2020 harvest and an uncertain
outlook for the future a miracle this year, the viticulture was so hard, it’s almost
like losing a living thing. And it’s violent, to go back on site
ꟷ Sonoma County vintners estimate 25-30% of the 2020 harvest will to find ashes and gutters full of wine.”
go unpicked due to the fires and pandemic
- Jean-Baptiste Rivail, General Manager, Newton Vineyard (2)
ꟷ Napa producers estimate up to 70% of the harvest could be
reclassified to bulk wine given the presence of smoke taint, and
that there will be very limited amounts of 2020 premium Cabernet The wildfires are likely to be "without question the single
from elite labels in 2020 worst disaster the wine-grape growing
community has ever faced.”
ꟷ There is great concern among producers about the future of the
- John Aguirre, President, California Association of
industry in California, what re-planting may be required and what
the availability and cost of insurance will be Winegrape Growers (3)
▪ Oregon’s Willamette Valley, famous for its cool-climate Pinot Noirs, has Notable 2020 Wine Transactions
also faced significant fire damage and smoke taint, with the long-term
extent of loss still uncertain. “I’ve been here growing wine grapes for over Miller Family Wine acquires BNA Wine Group Brands Key Metrics
ꟷ Adding BNA’s brand portfolio provides the Miller Date: Oct 2020
38 years and have never experienced or seen anything like this as a wine Family Wine Company the opportunity to expand
EV: NA
grower.” Jim Bernau, Founder, Willamette Valley Vineyards (1) its reach into retail chains, as well as a more
EV / Revenue: NA
robust offering of products for its DTC channels /
wine club EV / EBITDA: NA
▪ Similar to other beverage alcohol categories, there was a dramatic
Key Metrics
slowdown in transaction activity through the first half of 2020, however Constellation Brands invests in Booker Vineyard
ꟷ The investment is part of Constellation’s focus on Date: Jul 2020
transaction activity has picked up in recent months, with many sellers re- expanding its DTC and premium wine portfolio. EV: NA
thinking the long-term viability of their estates in the current environment Constellation will also help to expand wholesale
EV / Revenue: NA
distribution for Booker’s My Favorite Neighbor
and many strategics and investors being opportunistic for attractive assets Cabernet Sauvignon and Harvey & Harriet wines EV / EBITDA: NA
Sources: (1) US News, (2) New York Times, (3) Grape Crush Report.
6
State of the Beverage M&A Market
While the onset of the COVID-19 pandemic created a temporary lull in beverage transactions in the first three
quarters of 2020, activity has significantly picked up in recent months, particularly in the non-alcohol category, where
most brands have continued to perform during the pandemic
▪ Non-alcohol, RTD beverages, especially those with functional benefits, have continued to see strong interest from strategic and financial investors,
as well as the public markets, given consumer trends towards healthy energy, zero sugar and an increased focus on immunity
ꟷ Large beverage alcohol strategics continue to invest in non-alcohol opportunities -- Molson Coors has recently invested in Zenwtr and
entered into a distribution partnership with La Colombe, and Anheuser Busch InBev’s ZX Ventures unit recently invested in Super Coffee
ꟷ Canadian natural plant-based energy brand GURU Organic Energy, which has ~$20M in revenues, went public in October and now has a
valuation in excess of $250 million, representative of the strong public market appetite for high growth, emerging beverage brands
▪ Additionally, we have recently seen non-alcohol strategics announce launches in the alcohol category for the first time in the U.S., with Coca-Cola
entering the hard seltzer category (in partnership with MolsonCoors), with its popular Topo Chico brand. Talking Rain is also testing a hard seltzer in
select markets and Monster Energy has announced plans to enter the space. We believe this trend could be the catalyst for greater M&A and
investment activity in the beverage space as many of the large strategics position themselves as total beverage companies
▪ Private and growth equity have remained engaged throughout this period and are actively looking to pursue new acquisitions and investments
across the beverage industry. Look to see more activity upstream in contract manufacturing by those who wish to play sectors rather than brands
Trailing Four-Quarters Beverage Transactions by Category
(as of 11/09/20)
Beer Total: 12 Spirits Total: 7 Wine Total: 21 Non-Alc Total: 30
14
9 11
6 4 - 2 2 1 2 4 4 4 2
2 3
Beer Spirits Wine Non-Alc
Sources: Capital IQ, Pitchbook, Publicly available information. Q4 '19 Q1 '20 Q2'20 Q3'20
7
Notable Recent Transactions
Total
Announced Investment TEV /
Target Investor Enterprise Revenue (1) Strategic Rationale
Date Amount Revenue
Value
▪ Aphria can grow its U.S. presence with SweetWater's platform of craft brewing
Nov
NA $300.0M $66.6M 4.5x manufacturing and distribution expertise, as well as build brand awareness for its
2020 adult-use cannabis brands, Broken Coast, Good Supply, Riff and Solei
▪ Adding BNA’s brand portfolio provides the Miller Family Wine Company the
Oct
NA NA NA NA opportunity to expand its reach into retail chains, as well as a more robust offering of
2020 products for its DTC channels / wine club
▪ Funding will almost exclusively be utilized for marketing and advertising expenses as
Oct Kevin Love,
$15.0M NA NA NA well as increasing U.S. distribution – OXIGEN is in 47,000 stores across the United
2020 Brett Eldredge
States, and has secured listings in major retailers including CVS and Kroger
▪ The $34.5M financing was completed in anticipation of GURU`s going public
Sep
Undisclosed $34.5M $160.0M $20.0M 8.0x transaction by way of reverse takeover involving Mira X Acquisition Corp (completed
2020 in October 2020) to expand GURU’s presence in North America
▪ Molson Coors has begun expanding beyond beer and ZenWTR provides a sustainably
Sep
NA NA NA NA packaged alkaline water brand to add to its growing portfolio of non-alcohol products
2020
▪ Copper & Kings represents a significant growth opportunity and reinforces
Sep
NA NA NA NA Constellation’s continued commitment to premium spirits and whiskey – through
2020 both DTC and retail channels
▪ Investment to grow Bulletproof’s omnichannel strategy, focusing on DTC, as well as
Sep
$13.0M NA NA NA to help launch product offerings in both new and existing categories, such as
2020 immunity/stress relief, collagen protein powder and clean coffee
▪ The deal includes the brand, winery, tasting room, inventory and 26 acres of estate
Sep Gaylon
NA NA NA NA vineyards – Burgess is known for its Cabernet Sauvignon, but also produces Cabernet
2020 Lawrence
Franc, Syrah and Chardonnay
▪ Liquid IV offers a suite of electrolyte drink mixes which can be found in more than
Sep
NA $400.0M $133.3M 3.0x 30,000 stores across the U.S. and will fit into Unilever’s purpose-driven brand
2020 portfolio
▪ Trade offers an intriguing “two-sided marketplace,” in which it is as valuable a service
Sep
$9.0M NA NA NA to the roasters it works with, as the consumers who shop for coffee – it has tripled its
2020 subscriber base to almost 75,000 since January
▪ The transaction will provide Waterloo with additional operational resources, brand-
Aug
NA NA NA NA building expertise, and capital to grow its business by accelerating its product and
2020 marketing innovation, as well as improving distribution capabilities
Sources: Capital IQ, Pitchbook, Publicly available information. 8
(1) From public sources, press releases and Cascadia estimates.
Notable Recent Transactions (cont.)
Total
Announced Investment TEV /
Target Investor Enterprise Revenue (1) Strategic Rationale
Date Amount Revenue
Value
▪ Funding will be used primarily to fuel continued growth online and in retail locations
Aug
$50.0M NA $140.0M NA across the country – Hint is currently available in over 30,000 brick-and-mortar stores
2020 in the U.S.
▪ In-line with Diageo’s strategy to acquire high growth brands with attractive margins
Aug
NA $335.0M $28.0M 12.0x that support premiumization, and Aviation Gin will continue to shape and drive the
2020 growth of super premium gin in North America
▪ The funding brings Flying Ember’s Series B total raised to $35 million. The Company
Aug
$10.0M NA NA NA has quickly become a national leader in the hard kombucha category and will now
2020 use the additional investment to extend into new categories such as hard seltzer
▪ Constellation’s acquisition comes at a time when on-premise sales have declined due
Jul
NA NA $3.6M NA to state restrictions on bars and indoor dining, creating an opportunity for alcohol e-
2020 commerce and DTC sales
▪ Constellation acquired a minority stake in premium Paso Robles producer Booker
Jul Vineyard. The investment is part of Constellation’s focus on expanding its DTC
NA NA NA NA
2020 portfolio. Constellation will help to expand wholesale distribution for My Favorite
Neighbor Cabernet Sauvignon and Harvey & Harriet wines
▪ $25M investment will allow Super Coffee to expand its team, and AB InBev’s ZX
Jun
$25.0M $200.0M $69.0M 2.9x Ventures, who participated in the round, also signed a distribution agreement with
2020 Super Coffee to distribute its products across the U.S.
▪ Vital Proteins allows Nestle to continue expanding in the nutrition segment,
Jun
NA NA NA NA complementing Nestle’s other vitamin, mineral, supplement and wellness brands,
2020 including Atrium Innovations, Garden of Life, Pure Encapsulations and Persona
▪ Ferrari-Carano is best-known for its Sauvignon Blanc and its Chardonnay wines, and
Jun
NA $250.0M NA NA the acquisition includes the 1,200-acre winery in Dry Creek Valley, with its Villa Fiore
2020 Tasting Room and three other exclusive tasting areas
▪ The acquisition gives Precept a further foothold in the booming canned wine business
Jun
NA NA NA NA and an entrance into the imported premium canned wine segment, as Pampelonne
2020 offers acclaimed sparkling wine cocktails made from fine French wine
▪ Through the acquisition, WineShipping has created the leader in beverage alcohol e-
Apr
NA NA NA NA commerce fulfillment with millions of square feet of temperature-controlled
2020 warehouses across the country
Sources: Capital IQ, Pitchbook, Publicly available information. 9
(1) From public sources, press releases and Cascadia estimates.Public Comparables
10Beer Public Comps
($ in millions, except per share data) Price Market Enterprise LTM Revenue Growth LTM Margins P/E EV / Revenue EV / EBITDA
Company 11/9/2020 Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple LTM NTM LTM NTM
Beer
Anheuser-Busch InBev $62.74 $123,663 $220,085 $47,741 $17,010 (12.7%) (5.4%) 58.6% 35.6% 53.7x 4.6x 4.5x 12.9x 12.0x
Heineken N.V. 106.66 61,364 82,262 25,720 5,422 (5.9%) 1.1% 38.9% 21.1% 41.5x 3.2x 3.2x 15.2x 14.9x
Constellation Brands 200.75 38,699 50,410 8,126 1,988 (1.0%) 2.9% 52.1% 24.5% 51.2x 6.2x 6.1x 25.4x 16.2x
Asahi Group Holdings 34.96 16,831 34,176 19,040 2,638 (3.9%) 2.6% 36.8% 13.9% 16.6x 1.8x 1.7x 13.0x 11.4x
Carlsberg A/S 145.62 21,377 25,398 9,796 2,271 (4.3%) (0.4%) 49.1% 23.2% 27.3x 2.6x 2.6x 11.2x 11.1x
Kirin Holdings Company 19.84 16,544 23,623 17,650 2,444 (4.3%) 3.2% 43.4% 13.8% 22.0x 1.3x 1.3x 9.7x 10.4x
Molson Coors Brewing Company 41.16 8,936 17,259 9,846 2,338 (6.3%) (2.8%) 39.0% 23.7% 12.1x 1.8x 1.7x 7.4x 7.9x
Tsingtao Brewery Company Limited 8.28 14,142 11,161 4,049 400 (1.2%) 1.3% 40.4% 9.9% 59.2x 2.8x 2.5x 27.9x 18.9x
Royal Unibrew A/S 108.56 5,311 5,650 1,185 283 (1.4%) 5.5% 52.2% 23.9% 38.8x 4.8x 4.5x 20.0x 19.4x
Anadolu Efes Biracilik ve Malt Sanayii Anonim Sirketi 2.62 1,552 3,573 3,124 536 14.2% 27.5% 37.3% 17.2% 14.1x 1.1x 1.0x 6.7x 5.8x
Sapporo Holdings Limited 18.04 1,405 3,428 4,227 276 (4.7%) (1.1%) 33.8% 6.5% 106.6x 0.8x 0.8x 12.4x 12.5x
Compañía Cervecerías Unidas S.A. 6.48 2,395 2,870 2,429 366 2.3% 3.2% 47.9% 15.1% 23.4x 1.2x 1.2x 7.8x 7.3x
HITEJINRO Co., LTD 30.99 2,120 2,561 1,970 306 14.8% 5.3% 43.5% 15.5% 24.7x 1.3x 1.2x 8.4x 7.5x
Mean (1.1%) 3.3% 44.1% 18.8% 37.8x 2.6x 2.5x 13.7x 11.9x
Median (3.9%) 2.6% 43.4% 17.2% 27.3x 1.8x 1.7x 12.4x 11.4x
Craft Beer
The Boston Beer Company, Inc. $949.60 $11,517 $11,433 $1,577 $309 34.3% 21.6% 47.6% 19.6% 79.3x 7.3x 5.0x 37.0x 26.4x
Mean 34.3% 21.6% 47.6% 19.6% 79.3x 7.3x 5.0x 37.0x 26.4x
Median 34.3% 21.6% 47.6% 19.6% 79.3x 7.3x 5.0x 37.0x 26.4x
All Beer
Mean 1.4% 4.6% 44.3% 18.8% 40.8x 2.9x 2.7x 15.3x 13.0x
Median (2.7%) 2.7% 43.4% 18.4% 33.0x 2.2x 2.1x 12.7x 11.7x
Sources: Capital IQ, Pitchbook, Publicly available information.
11Wine Public Comps
($ in millions, except per share data) Price Market Enterprise LTM Revenue Growth LTM Margins P/E EV / Revenue EV / EBITDA
Company 11/9/2020 Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple LTM NTM LTM NTM
Large / Mid Cap Wine Producers
Constellation Brands, Inc. $200.75 $38,699 $50,410 $8,126 $1,988 (1.0%) 2.9% 52.1% 24.5% 51.2x 6.2x 6.1x 25.4x 16.2x
Treasury Wine Estates Limited 6.56 4,732 5,810 1,950 483 (7.1%) 1.9% 41.4% 24.8% 24.1x 3.0x 3.0x 12.0x 11.2x
Distell Group Holdings 9.58 2,102 2,301 1,355 218 1.2% 42.4% 4.2% 16.1% 20.9x 1.7x 6.9x 10.5x 9.4x
Viña Concha y Toro S.A. 1.66 1,240 1,651 994 194 16.5% 6.8% 39.4% 19.6% 15.8x 1.7x 1.7x 8.5x 8.8x
Delegat Group Limited 10.21 1,009 1,237 207 80 9.4% 6.4% 49.9% 38.6% 27.9x 6.0x 5.8x 15.5x 15.3x
Vranken-Pommery Monopole - Société Anonyme 16.60 147 1,029 298 40 (13.9%) (6.3%) 29.6% 13.6% NM 3.5x 3.3x 25.5x 28.1x
Laurent-Perrier S.A. 87.43 518 854 286 55 (2.9%) 1.7% 48.8% 19.4% 20.9x 3.0x 3.6x 15.4x 19.3x
Mean 0.3% 7.9% 37.9% 22.4% 26.8x 3.6x 4.3x 16.1x 15.5x
Median (1.0%) 2.9% 41.4% 19.6% 22.5x 3.0x 3.6x 15.4x 15.3x
Small Cap Wine Producers
Andrew Peller Limited $8.29 $363 $503 $297 $51 1.1% 3.9% 43.6% 17.3% 19.2x 1.7x 1.8x 9.8x 10.0x
Sociedad Anónima Viña Santa Rita 0.19 198 314 226 31 2.6% 1.1% 41.1% 13.6% 21.3x 1.4x 0.0x 10.2x 0.0x
AdVini S.A. 23.63 91 291 304 20 (4.0%) 1.7% 37.2% 6.5% NM 1.0x 0.9x 14.8x 12.3x
Australian Vintage Ltd 0.32 89 181 194 25 (0.8%) 5.7% 28.5% 12.6% 12.0x 0.9x 0.9x 7.3x 7.4x
Crimson Wine Group, Ltd. 5.02 117 107 65 (0.4) (2.6%) 1.9% 36.5% (0.6%) NM 1.7x 0.0x NM 0.0x
Willamette Valley Vineyards, Inc. 6.27 31 57 26 7 10.8% 8.5% 61.1% 26.1% 11.5x 2.2x 0.0x 8.3x 0.0x
Mean 1.2% 3.8% 41.3% 12.6% 16.0x 1.5x 0.6x 10.1x 5.0x
Median 0.2% 2.9% 39.1% 13.1% 15.6x 1.5x 0.4x 9.8x 3.7x
All Wine
Mean 0.7% 6.0% 39.5% 17.8% 22.5x 2.6x 2.6x 13.6x 10.6x
Median (0.8%) 2.9% 41.1% 17.3% 20.9x 1.7x 1.8x 11.3x 10.0x
Sources: Capital IQ, Pitchbook, Publicly available information.
12Spirits Public Comps
($ in millions, except per share data) Price Market Enterprise LTM Revenue Growth LTM Margins P/E EV / Revenue EV / EBITDA
Company 11/9/2020 Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple LTM NTM LTM NTM
Spirits
Diageo plc $38.13 $89,022 $109,442 $15,441 $5,511 (8.7%) (0.8%) 60.3% 35.7% 72.5x 7.1x 7.1x 19.9x 21.2x
Pernod Ricard SA 187.20 49,025 59,331 9,981 3,085 (8.0%) (2.1%) 60.2% 30.9% 36.0x 5.9x 5.9x 19.2x 19.3x
Constellation Brands, Inc. 200.75 38,699 50,410 8,126 1,988 (1.0%) 2.9% 52.1% 24.5% 51.2x 6.2x 6.1x 25.4x 16.2x
Brown-Forman Corporation 76.98 35,800 37,597 3,350 1,193 0.8% 3.1% 62.5% 35.6% 57.3x 11.2x 11.0x 31.5x 31.7x
Davide Campari-Milano S.p.A. 11.31 12,752 14,027 2,083 482 (1.0%) (0.7%) 59.5% 23.1% 54.4x 6.7x 6.2x 29.1x 25.4x
Rémy Cointreau SA 178.88 8,980 9,514 1,211 293 (9.0%) (2.2%) 66.1% 24.2% 68.0x 7.9x 7.9x 32.5x 32.2x
Stock Spirits Group PLC 3.13 621 685 400 86 24.1% 0.0% 47.0% 21.5% 14.5x 1.7x 1.7x 7.9x 8.6x
Mean (0.4%) 0.0% 58.2% 27.9% 50.6x 6.7x 6.6x 23.6x 22.1x
Median (1.0%) (0.7%) 60.2% 24.5% 54.4x 6.7x 6.2x 25.4x 21.2x
Sources: Capital IQ, Pitchbook, Publicly available information.
13Non-Alcoholic Public Comps
($ in millions, except per share data) Price Market Enterprise LTM Revenue Growth LTM Margins P/E EV / Revenue EV / EBITDA
Company 11/9/2020 Cap Value Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple LTM NTM LTM NTM
Non-Alcoholic Beverages
The Coca-Cola Company $52.57 $225,916 $259,360 $33,471 $12,328 (7.0%) (3.6%) 59.9% 36.8% 38.7x 7.7x 7.2x 21.0x 21.6x
Pepsico 138.45 191,332 226,310 68,557 12,583 3.8% 2.6% 55.3% 18.4% 32.9x 3.3x 3.1x 18.0x 15.9x
Keurig Dr. Pepper 27.73 39,023 53,695 11,431 3,602 3.9% 0.0% 56.4% 31.5% 36.9x 4.7x 4.5x 14.9x 13.6x
Monster Beverage 81.35 42,946 41,294 4,420 1,620 7.6% 10.1% 59.8% 36.7% 45.1x 9.3x 8.4x 25.5x 22.8x
National Beverage 80.98 3,776 3,465 1,030 220 4.6% 5.8% 37.9% 21.4% 31.7x 3.4x 3.2x 15.7x 15.1x
Lassonde Industries 121.97 846 1,140 1,407 143 9.4% 6.4% 27.3% 10.1% 17.1x 0.8x 0.8x 8.0x 7.2x
A.G. BARR 6.47 719 688 324 69 (6.9%) (1.9%) 42.1% 21.2% 21.9x 2.1x 2.4x 10.0x 11.9x
New Age Beverages Corporation 2.64 258 285 248 NM NM NM 59.3% NM NM 1.1x 0.9x NM NM
GURU Organic Energy Corp 9.72 281 283 15 NM 0.0% 0.0% 64.7% NM 1.8x 18.3x 12.4x NM NM
Reed's, Inc. 0.87 55 63 36 NM (5.4%) (2.1%) 24.7% NM NM 1.7x 1.5x NM NM
Mean 1.1% 1.9% 48.7% 25.2% 28.3x 5.3x 4.4x 16.2x 15.5x
Median 3.8% 0.0% 55.8% 21.4% 32.3x 3.3x 3.2x 15.7x 15.1x
Sources: Capital IQ, Pitchbook, Publicly available information.
14Cascadia Contact Information
Food, Beverage & Agribusiness Leadership
Name Phone Number Email
Michael Butler, CEO & Managing Director (206) 436-2530 mbutler@cascadiacapital.com
Nicole Nugent Fry, Managing Director (310) 993-4761 nfry@cascadiacapital.com
Erik Einwalter, Managing Director (206) 436-2538 eeinwalter@cascadiacapital.com
Bryan Jaffe, Managing Director (206) 436-2534 bjaffe@cascadiacapital.com
George Sent, Managing Director (612) 336-4121 gsent@cascadiacapital.com
Scott Porter, Senior Vice President (206) 436-2528 sporter@cascadiacapital.com
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