Industry Analysis & Industry Trends
While spirits and wine will continue to gain popularity, industry growth will be restrained significantly by strict regulations. The industry will always be one of high revenue but small profit margins and, therefore, controls over stock and in all areas of the supply chain and logistics will continue to be important. The growing popularity of direct-to-consumer and internet sales will challenge the industry's traditional role, and the three-tier distribution system that protects profit for industry firms may be subject to change in the coming years, foreshadowing future shifts in the industry... purchase to read more
Industry Report - Industry Key Buyers Chapter
IBISWorld estimates that the top four firms account for about 29.3% of total industry revenue. Due to the strict regulation of alcohol distribution under the three-tier system, operators tend to be small; about 60.0% of establishments have fewer than 20 employees. Despite a growing trend toward industry consolidation, the low level of concentration is expected to continue through 2018.
According to Wine Business Monthly, distributors increased consolidation efforts in recent years and mergers and acquisitions are forecast to intensify during the five years to 2018. Distributors are consolidating in an effort to continue growing sales after the economic downturn, during which organic sales growth was difficult... purchase to read more