Buffett Bets on Baby Boomers Drinking Wine

Berkshire subsidiary pays top dollar for distributor
By Kevin Spak,  Newser Staff
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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