Europe’s drinks industry sees a drop of 18.8% in deal activity in Q2 2020

Europe’s drinks industry saw a drop of 18.8% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

A total of 26 deals worth $50.47m were announced for the region during Q2 2020, against the last four-quarter average of 32 deals.

Of all the deal types, venture financing saw most activity in Q2 2020 with 17, representing a 65.4% share for the region.

In second place was M&A with nine deals, representing a 34.6% share of the overall deal activity for the quarter.

In terms of value of deals, venture financing was the leading category in Europe’s drinks industry with $41.36m, followed by M&A deals totalled $9.11m.

Europe drinks industry deals in Q2 2020: Top deals

The top five drinks deals accounted for 67.6% of the overall value during Q2 2020.

The combined value of the top five drinks deals stood at $34.11m, against the overall value of $50.47m recorded for the quarter.

The top five drinks industry deals of Q2 2020 tracked by GlobalData were:

1) Felix Capital Partners, Five Seasons Ventures, Fonterra Ventures and New Ground Ventures’ $15.99m venture financing of YFood Labs

2) The $9.11m acquisition of Rude Health Foods by PepsiCo

3) Crowdberry and Slovak Investment Holding’s $6.62m venture financing of GymBeam

4) The $1.26m venture financing of Sullivans Brewing by Enterprise Ireland

5) Bpifrance and Generis Capital Partners’ venture financing of MyBrazil Factory for $1.13m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.