Skip to content

Beverage Industry Valuation Multiples

    Beverage industry valuation multiples are slightly higher than the food industry valuation multiples. 

    The average revenue multiple for the beverage industry is 2x whereas the average revenue multiple for the food industry is 1x

    In the dataset of 33 public beverage companies in the US, Canada and the UK, only 4 companies have a revenue less than $100 million.

    I remember seeing an episode of Shark Tank where a beverage company was pitching their business for an investment, and almost all the sharks were immediately out, because they said the beverage industry is highly competitive and it is near impossible to survive unless you are one of the main players like Coca-Cola and PepsiCo. 

    Not surprisingly, 19 of the 33 companies have revenue over $1 billion. 

    To maintain a healthy margin selling beverages, the capital and operating cost of the manufacturing and processing plant has to be far outweighed by sales and prices. 

    Beverage Industry Valuation Multiples

    Across the different sizes of companies in the beverage industry, valuation multiples are in similar ranges. 

    The average revenue multiple for the beverage industry is 2x. 

    The average EBITDA multiple is ~16x. 

    The average earning multiple is ~27x.

    Beverage Industry Valuation Multiples

    Beverage Industry Net Profit Margins

    The average gross margin for the beverage industry is 38%. 

    The average EBITDA margin for the beverage industry is 17%. 

    The average net profit margin for the beverage industry is 7%. 

    The profit margins are also in similar ranges across the different sizes of beverage companies, except there is a slight increase in EBITDA and net profit margins as the companies get larger. 

    This may be explained by the high capital and operating cost of the plant and that with economies of scale, the more they produce and sell, the more revenue can cover the fixed costs.

    Beverage Industry Valuation Multiples

    To see the food industry valuation multiples and profit margins, go to this post here.

    To see the food processing companies’ net profit margins, go to this post here.

    Download Data Set

    To download this dataset of 33 public companies in the beverage industry, enter your email address below to sign-up for the mailing list and the data set will be sent to your email directly. Sometimes, it may take a few hours for the email to go through, so please be patient.

    Thanks for reading as always and leave a comment if you found it useful!

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.