Brief Excerpt from Industry Overview Chapter:
Companies in this industry distribute beer, ale, wine, and distilled spirits on a wholesale basis. Major companies include Breakthru Beverage Group, Republic National Distributing Company, Reyes Holdings, and Southern Glazer's Wine and Spirits (all based in the US); as well as Brindco (India), Eastern Empire Distributing (China), Matthew Clark (UK), Nihon Shurui Hanbai (Japan), and Endeavour Drinks Group (Australia).
Demand for beer, wine, and spirits is increasing in emerging economies worldwide and creating opportunity for alcohol wholesalers. Africa, the Asia/Pacific region, and Latin America are key growth markets for the alcoholic beverage industry.
The US beer, wine, and spirits distribution industry includes about 4,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $135 billion. Key growth drivers include technological advances in distribution and a growing interest in locally produced and distributed wines, beers, and liquors. Suppliers and customers of beer, wine, and spirits distributors are covered in separate profiles for Breweries; Distillers; Wineries; Bars & Nightclubs; and Beer, Wine, and Liquor Stores.
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 beer wholesale industry is fragmented: the top 50 companies account for about 40% of industry revenue.
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