Buffett Bets on Baby Boomers Drinking Wine
Berkshire subsidiary pays top dollar for distributor
By Kevin Spak, Newser User
Posted Mar 10, 2010 10:19 AM CST
Businessman Warren Buffett speaks at the 2008 Women's Conference at the Long Beach Convention Center on October 22, 2008 in Long Beach, California.   (Getty Images)

(Newser) – Warren Buffett, who watchers had expected to buy a beer distributor, made a recent bet on wine instead, reports Business Insider, in a move that reflects the drinking habits of aging baby boomers. A subsidiary of Buffett’s Berkshire Hathaway has a deal in place to buy Empire Distributing, a niche wine distributor based in Atlanta and operating in Georgia and North Carolina—and he probably paid top dollar, reports Wine & Spirits Daily.

Why? Well, the same Wine & Spirits post notes that, according to a recent Nielsen study, wine is one of the biggest spending categories for seniors, who shell out $124 on it per year. Boomers spend even more—$125, compared to $78 for gen x'ers and $61 for millennials. The deal isn't expected to be Buffett's last in the wine industry.

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Showing 3 of 6 comments
johnhardisty
Mar 11, 2010 4:41 AM CST
That does it. I'm investing in wine. As someone on the leading edge of "Boomerdoom," I agree that it will be more a choice of this aging generation that beer.
finkster
Mar 10, 2010 5:50 PM CST
That's like betting on a sure thing.
Observer
Mar 10, 2010 4:52 PM CST
Smart guy. People I'm around spend $125 a month on wine and a lot more sometimes. Both wine and beer are great beverages. Once you rise above the crap sold mass market and start buying brands by choice and taste. There are hundreds of good beers and thousands of great wines if you make the effort to find them and try them.