In the monthly Nordest Economia, a sector that is rapidly changing skin will be released next Tuesday
Wine is a made in Italy sector that is changing its skin. The last few years have represented a period of great growth in the wine sector, just think of segments such as Prosecco which are now consecrated on international markets.
Now, however, a series of phenomena are coagulating that suggest an imminent big bang in the sector. The average size of the companies is, for example, attracting the interest of the larger sister companies but also of private equity funds; the big wine brands are treated like fashion brands both in terms of value and in terms of consumer appreciation; the taste of the latter has been changing and the real boom in online sales is also a symptom of this.
In short, wine is entering a new dimension, it is like the eve of a great transformation.
We talk about it in Nordest Economia, the monthly published on Tuesday 18 May with our newspaper. The issue is edited by the homonymous Gedi hub for the newspapers of Veneto and Friuli Venezia Giulia, directed by Paolo Possamai. Which on the front page immediately makes clear one of the aspects of the metamorphosis in progress.
«In the fashion sector – writes Possamai – the two French groups LVMH and Kering are the masters. Over the years, one by one, from Bulgari to Gucci, up to Loro Piana, they have been acquired by the magnates Arnault and Pinault ». A path that could be repeated in the wine sector. «The clues as to the fact that the process of mergers and acquisitions is accelerating – continues Possamai – are all there. The storm generated by the virus exalts the factors of fragility in less structured companies and maximizes opportunities in those that have strategy, marketing, digital technologies and finance.
We must therefore expect that among the Italian vineyards, and specifically the process will be more intense between Veneto and Friuli Venezia Giulia, the bell will ring more and more frequently: there will be a competitor or an investment fund at the door ».
In short, “wine is coveted by the big names”, whether they are large companies or private equity funds. Paolo Masotti of Adacta also says: «The movement of funds – he explains – in an industry with a prevalence of family ownership changes the rules of the game. What I expect is an increase in the acquisition processes starting from the second half of 2021 and beginning of 2022 ». After all, the figures are eloquent: «The average of French companies shows a turnover of 26.8 million, against the 3.9 million of Italian average revenues and 5.3 million of the Spaniards.
On the other hand, we have a good Ebitda, 11.4% margin, better than the Spaniards, worse than the French and finally an average Roic, therefore the profitability indicator, which is not bad. But one fact remains: this is a sector characterized by small dimensions, very exposed to real estate investments, that is, on land, and therefore it is activities with sustainability very close to the limit in the relationship between debt and the volume of business and profitability generated. The business model must be revisited ». The big purchasing campaign, therefore, is about to begin.
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