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Beer, Wine & Distilled Spirits Wholesalers
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US beer, wine, and spirits distribution industry includes about 4,000 companies with combined annual revenue of about $100 billion. Major companies include The Charmer Sunbelt Group, Glazer's Wholesale Drug, Republic National Distributing, and Southern Wine & Spirits of America. The beer wholesale industry is fragmented: the top 50 companies account for about a third of industry revenue. The wine and spirits wholesale industry is concentrated: the top 50 companies account for more than 75 percent of industry revenue.
Suppliers and customers of beer, wine, and spirits distributors are covered in separate profiles for Breweries; Distillers; Wineries; and Beer, Wine, and Liquor Stores.
COMPETITIVE LANDSCAPE
Demand is driven by consumer preferences in alcohol consumption and demographic trends. The profitability of individual companies depends on effective sales operations and maintaining low operating costs. Large companies have advantages in exclusive distribution rights in large markets. Small operations can compete effectively by distributing rare and expensive products. The industry is capital-intensive: average annual revenue per employee is about $530,000 for beer wholesalers and $750,000 for wine and distilled spirits wholesalers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are beer, wine, and distilled spirits (hard liquor). Distributors tend to specialize in either beer or wine and spirits. About half of overall industry revenue comes from the sale of beer, 30 percent from liquor, and 20 percent from wine.
Most alcoholic beverages sold in the US move through a federally mandated three-tier distribution system. Producers or importers...
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