It’s no secret to anyone who produces – or enjoys – spirits that the industry is going through some significant changes. Tariffs and economic uncertainty are putting pressure on even the largest and most established brands. Societal changes, such as the rise of legalized marijuana and a decrease in drinking among younger consumers, are impacting sales in every corner of the market. Competitors, like ready-to-drink beverages, are making a run at traditional alcohol, mixers, and craft beer.

So it’s not surprising that the industry is undergoing significant consolidation. That’s not always bad news for owners and brands that are open to possibilities. Here are some things to think about:

Large brands are buying up smaller brands for a variety of reasons. In some cases, it’s simply about the right opportunity at the right time. A distiller with a good product could benefit from an infusion of capital or a well-established distribution system. A producer with means might be looking to acquire a company that’s in trouble for a discount, then sit and wait out the market. It’s less expensive and less risky to acquire a brand than to start one from scratch.

There might be 20 different strategies and reasons for 20 mergers or acquisitions. If you’re a producer with a strong differentiator and a good story to tell, you might be able to attract capital and other needed resources – even if your company isn’t in trouble.

“Sell” / “don’t sell” are not your only options. A business intermediary who specializes in the alcohol industry has many relationships. Good brokers understand what specific buyers are looking for and what they’re hoping to achieve through a merger or acquisition.

They also understand that investment in a brand might take many forms. A producer might sell outright but stay on at the company, doing the work they love. An owner might accept a cash offer from a financial investor for a portion of the company. The investor has the capital to grow the brand and sell the (much larger) business later for more profit, giving the seller a “second bite of the apple.”

A strategic merger might be a win for both parties, giving the producer access to distribution, marketing, or other valuable resources, and giving the investor access to a new or larger market, or the chance to expand its product offerings. There might be financing options the producer has not considered, or that might not have been available to them at an earlier point in the company’s development.

Disruption provides opportunity for owners at every stage of business development. The alcohol business is unique in that a producer may have to wait years before their product is ready and their investment shows a profit (or even a sale). Most owners choose the industry because they love the creativity and lifestyle it offers. They know that developing and finding a market for a superior product is choosing to play the long game.

It’s important to realize that you don’t have to be in trouble or ready to close the doors to consider your consolidation options. Understanding your value and what you can offer, whether to a major brand or a smaller player like yourself, is the first step. It’s possible that the current and future disruption of the industry might just prove to be the key to your success.

The alcohol industry has had a 9,000-year run, and it’s never going to disappear. Change will always be with us, but it doesn’t mean only survival of the fittest. It’s also about survival of the smartest.