Industry Analysis & Industry Trends
After remaining resilient over the recessionary period, industry operators will continue to experience growth due to a trend toward premiumization and the increased popularity of cocktails. Over the next five years, consumers will continue trading up to higher-quality spirits and liquor. Additionally, the industry will benefit from rising consumer sentiment and expanding budgets... purchase to read more
Industry Report - Industry Investment Chapter
Production on liquor for consumption is a highly capital intensive process. The majority of the distillation process is mechanized and requires very little labor from actual workers. As a result, over half of all firms have fewer than 20 employees. However, larger players, such as Diageo and Beam Inc., are vertically integrated into wholesaling and marketing. This drives up their labor costs considerably because they must pay additional workers, such as salesmen and marketers, to help brand, sell and distribute their products. On average, companies in this industry spend $0.65 on capital for every dollar they spend on labor.
Like all large-scale manufacturing, liquor production requires substantial amounts of machinery... purchase to read more