Industry Analysis & Industry Trends
Although the Distilleries industry managed muted growth over the past five years, it was not immune to the economic downturn. What kept the industry from declining during and immediately after the recession was a trend toward premiumization, which is an increase in the consumption of high-grade liquors and spirits. An increase in the popularity of cocktails, over beer and wine, through the recovery also drove demand for low-quality industry products used for mixing drinks in bars and restaurants. IBISWorld estimates that industry revenue will increase in the five years to 2014. During the next five years, the industry will benefit from stronger consumer sentiment and discretionary spending, which will help increase demand for higher-priced craft and imported spirits... purchase to read more
Industry Report - Starting a New Business Chapter
The difficulty of entering this industry varies depending on the target market for new entrants. Production is extremely capital intensive for all distilleries, and substantial volume is needed to spread out these costs. Additionally, the long interval between the start of production and the final product being available means that cash flows are not established for some time. While some products can be distilled over shorter periods of time, some whiskeys can take over two years to age. Delayed revenue can deter players with smaller cash reserves from entering the market.
Due to the relationship between aging and quality, these players may still compete in the value segments of the market... purchase to read more