On tap: Rising operating costs have caused a dip in industry revenue

Revenue for the Beer Wholesaling Industry in California has dipped over the past five years, namely due to volatile operating costs. In the five years to 2022, the Beer Wholesaling Industry in California is expected to return to growth due to continued consolidation and a shift toward premium-priced craft beer. While market share concentration is low overall, wholesalers are likely to engage in further acquisition activity to keep up with the major consolidation happening with upstream suppliers...purchase to read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
-0.2%
Forecast Growth 17-22
Profit
Employment
10,807
Businesses
194

Industry Threats & Opportunities

  • Fuel prices have fallen overall, but have been volatile, making it hard for operators to control transportation costs
  • Many wholesalers expand operations through acquisition rather internal organic growth
  • Consolidation has been a consistent trend in this industry, depsite high fragmentation
  • Industry Report - Industry Investment Chapter

    For every $1.00 spent on wages, the Beer Wholesaling Industry in California spends $0.07 in capital investment. The industry's primary capital expenditures go toward the use and replacement of buildings, trucking fleet and equipment. Consequently, this industry has a low level of capital intensity compared with labor, which is an integral part of receiving, packing and shipping beer products.The process of receiving and delivering alcoholic beverages from manufacturers and import locations to end-users requires a high amount of labor. Dock workers manually lift and transfer product at warehouse receiving centers, which is highly labor intensive. Over the past five years, capital intensity has not increased; in 2012, for every $1.00 spent on wages, industry operators spent $0.07 o...purchase to read more.

    Additional Insights for the Beer Wholesaling in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beer Wholesaling in California Industry are

  • Access to niche markets
  • Ability to control stock on hand
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Per Capita Alcohol Consumption in California and Per Capita Disposable Income in California in the Beer Wholesaling in California industry impact industry performance..

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    What's in this report

    What is the Beer Wholesaling in California Industry?

    This industry comprises establishments that primarily purchase, store, sell and distribute beer and other fermented malt beverages made by the Breweries industry (IBISWorld report 31212). This industry does not include establishments that distribute distilled spirits and wine.

    Industry Products
  • Kegs
  • Bottles and cans
  • Exports
  • Industry Activities
  • Beer purchasing
  • Beer storage
  • Beer sales toers
  • Beer transportation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per Capita Alcohol Consumption in California
  • Per Capita Disposable Income in California
  • Healthy eating index
  • Price of diesel

  • Current Performance
  • Industry landscape
  • Steady demand and rising costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • Higher demand, higher costs
  • Table: Beer Wholesaling in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beer Wholesaling in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Beer, Wine & Liquor Stores
  • Pharmacies & Drug Stores
  • Gas Stations with Convenience Stores
  • Hotels & Motels
  • Casino Hotels
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Food Service Contractors

  • Key Selling Industries
  • Breweries
  • Distilleries
  • Wineries

  • Products & Services
  • Bottles and cans
  • Kegs
  • Exports
  • Chart: Beer Wholesaling in California Industry Products and Services Segmentation

  • Major Markets
  • Grocery stores
  • Liquor stores
  • Restaurants and bars
  • Chart: Major Market Segmentation for the Beer Wholesaling in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases and transportation
  • Wages
  • Chart: Cost Structure Benchmarking – Sector vs Beer Wholesaling in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beer Wholesaling in California Industry

  • Reyes Beverage Group Inc., DBI Beverage Inc., Columbia Distributing, Straub Distributing,
  • Table: Reyes Beverage Group Inc. - financial performance
  • Table: DBI Beverage Inc. - financial performance
  • Table: Columbia Distributing - financial performance
  • Table: Straub Distributing - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beer Wholesaling in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Beer Wholesaling in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Alcohol Consumption in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beer
  • Alcoholic beverages usually brewed using hops and malt or other similar grains.
  • Craft Beer
  • General term for beer that is created in, or in imitation of, small-scale breweries that place greater emphasis on flavor and quality ingredients.
  • Excise Tax
  • Government taxes usually levied according to the alcoholic content of beverages.
  • Three-Tier
  • Interstate alcohol distribution system which requires by law that all alcoholic beverages be sold to licensed wholesale distributors before being sold to retailers.
  • Wholesaling
  • The sale of beer in quantity, usually for a retail merchant to resell to the public.
  • What Our Customers Say

    Why buy this report?

    The Beer Wholesaling in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Beer Wholesaling in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Beer Wholesaling in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Beer Wholesaling in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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