The US drinks industry saw a drop of 36.5% in overall deal activity during Q2 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 40 deals worth $512.12m were announced in Q2 2020, compared to the last four-quarter average of 63 deals.

Venture financing was the leading category in the quarter with 27 deals which accounted for 67.5% of all deals.

In second place was M&A with 12 deals, followed by private equity with one transactions, respectively accounting for 30% and 2.5% of overall deal activity in the country’s drinks industry during the quarter.

In terms of value of deals, M&A was the leading deal category in the US drinks industry with total deals worth $385m, followed by venture financing deals totalled $127.12m.

The US drinks industry deals in Q2 2020: Top deals

The top five drinks deals accounted for 86.5% of the overall value during Q2 2020.

The combined value of the top five drinks deals stood at $443m, against the overall value of $512.12m recorded for the month.

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

4) The $23m venture financing of Kate Farms by Carol Ammon, Celeste Clark, Gregg Engles, Jeff Jacobs, John Hammergren, Kristin Loomis, Pete Nicholas, Robert Zollars and William Loomis

5) DANONE MANIFESTO VENTURES’s venture financing of Laird Superfood for $10m.

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.