North America’s drinks industry saw a drop of 34.3% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 46 deals worth $619.29m were announced for the region during Q2 2020, against the last four-quarter average of 70 deals.

Of all the deal types, venture financing saw most activity in Q2 2020 with 30, representing a 65.2% share for the region.

In second place was M&A with 14 deals, followed by private equity deals with two transactions, respectively capturing a 30.4% and 4.4% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in North America’s drinks industry with $385.07m, while venture financing and private equity deals totalled $174.22m and $60m, respectively.

North America drinks industry deals in Q2 2020: Top deals

The top five drinks deals accounted for 83.2% of the overall value during Q2 2020.

The combined value of the top five drinks deals stood at $515m, against the overall value of $619.29m recorded for the quarter.

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

1) SazeracInc’s $255m asset transaction with Constellation Brands

2) The $130m asset transaction with Constellation Brands by E. & J. Gallo Winery

3) Engaged Capital and Oaktree Capital Management’s $60m private equity deal with SunOpta

4) The $45m venture financing of Flow Alkaline Spring Water by Chase Utley and Post Malone

5) Acronym Venture Capital, Anthos Capital, Baron Davis, Echo Capital Group, Mason Plumlee, Patrick Schwarzenegger, Rx3 Ventures, Skyview Capital and ZX Ventures’ venture financing of Kitu Life for $25m.

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.