Warren Buffet bets on Wine
March 11, 2010
Warren Buffet is a hero of mine.
If you haven’t read the following book- Snowball: The Business of Life - you should.
The title of this post is somewhat misleading too - because Buffet doesn’t really take ‘bets’ - when he backs something he has generally analysed it to death and knows it will pay off.
Interesting then that one of Berkshire Hathaways subsidiaries has taken a ‘bet’ on US Wine and in particular paid top dollar for a stake in a wine distribution company Atlanta-based Empire Distributing.
Read the full article here.
Some extracts:
…a subsidiary of Warren Buffett’s Berkshire Hathaway has struck a deal to purchase Atlanta-based Empire Distributing, which has operations in Georgia and North Carolina. Empire is owned by brothers David and Michael Kahn.
and the reason..
Nielsen analyzed the shopping habits of four key generations - greatest generation (aged 64+), boomers (45-63), gen x (33-44) and millennial’s (15-32) - and gave a rundown on what marketers should expect when targeting these groups. Interestingly, wine is one of the largest spending categories for seniors at $124 per year. Boomers spend $125 per year on wine, while gen x spends $78 and millennial’s spend $61 annually.
Time to invest in local wine distributors perhaps?
Posted in Views & Opinions
March 11th, 2010 at 11:38 pm
The big difference is that in the U.S. , wine consumption is growing and that trend is forecast to continue. In SA it has been falling. And predicting where that trend goes is a tough call.