Private credit managers are increasingly stepping in to finance wineries, distributors, and distilleries, filling a gap left by banks amid falling alcohol consumption, tariff pressures, and a string of sector bankruptcies, according to a report by Bloomberg.
Recent deals include loans from Wells Fargo and Centerbridge Partners’ direct lending partnership to beverage distributors Hand Family Cos. and Southern Crown Partners. Earlier this year, Ares Management–backed Cooper’s Hawk Winery & Restaurants explored private credit refinancing, while InvestBev Group’s credit arm extended up to $50m to Lofted Custom Spirits, secured against aging whiskey barrels.
Private lenders are exploiting opportunities where regulated banks remain cautious, according to Brian Rosen, founder of InvestBev, which also runs a private equity arm. Rosen estimates returns of up to 30% on alcohol-related private credit deals.
But the strategy carries heightened risk. Recent failures include Uncle Nearest, which defaulted on $108m of loans, and bankruptcies at Luca Mariano Distillery and Stoli Group USA’s Kentucky Owl brand. In 2023, MGG Investment Group acquired Napa’s Spring Mountain vineyard out of bankruptcy, underscoring the need for sector-specific expertise.
