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Beer, Wine & Liquor Stores
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US beer, wine, and liquor store industry includes about 30,000 stores with combined annual revenue of about $40 billion. No major companies dominate; individual states have different laws regulating liquor stores, complicating the ability to form national chains. The industry is highly fragmented: the top 50 companies account for 20 percent of sales.
COMPETITIVE LANDSCAPE
Personal income, consumer tastes, and entertainment trends drive demand. The profitability of individual companies depends on effective marketing and competitive pricing. Large companies offer wide selections and deep discounts, but small companies compete by offering specialized merchandise, providing superior customer service, or serving a local market.
Liquor stores compete directly with grocery stores, warehouse clubs, convenience stores, and gas stations, and indirectly with restaurants, bars, and other establishments that serve alcohol.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include distilled spirits, beer, and wine. Spirits or liquors account for 40 percent of sales, wine for 30 percent, and beer for 25 percent; other products include groceries, cigarettes, and cigars. Liquor (or hard liquor) includes gin, vodka, rum, whiskey, brandy, and liqueurs. State laws dictate the type of alcohol sold in a particular venue. In some states, only liquor stores can sell hard liquor.
Liquor stores may also be known as “package stores,” referring to the post-Prohibition law requiring stores to cover or “package” alcoholic beverages in public. Each state has an alcohol control agency, and state laws regulate the sale of alcohol, including specifying what types...
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