The pandemic set in motion major changes to the global wine industry that will play out in 2021, according to a new report by RaboResearch.

Larger wineries will have the upper hand, leading to further consolidation. A much higher level of activity around mergers and acquisitions will make up for a cautious 2020 as well, according to the industry analysts.

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Three specific factors have been driving the changes. Sales at restaurants and bars plummeted during the shutdowns and will not recover for several years, with large restaurant and wine brands filling the void. Large wineries have made more inroads with e-commerce as well. Private equity funds have also become flush with cash and are scooping up small businesses and rolling them up into larger, better-funded chains.