Double shot: Growth in per capita expenditure on alcohol is expected to support industry revenue growth

The Wine and Distilled Alcohol Wholesaling industry is comprised of establishments primarily engaged in the merchant wholesale distribution of wine, distilled alcohol beverages or neutral spirits and ethyl alcohol used in blended wines and distilled liquors. This industry's continued relevance, especially in relation to other wholesaling industries, is partly the result of US state alcohol distribution laws. Under the three-tier distribution system adopted by most states, industry wholesalers are required to act as an intermediary between producers and retailers. Only licensed retailers may sell directly to consumers, and retail establishments are required to purchase from licensed wholesalers...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Operators will continue to staunchly oppose any proposed policies that might threaten the industry’s growth projection
  • The three-tier system remains intact despite states enabling direct-to-consumer shipments
  • Per capita expenditure on alcohol is expected to increase
  • Industry Report - Industry SWOT Analysis Chapter

    The Wine and Spirits Wholesaling industry is in the mature phase of its life cycle, which is characterized by industry expansion in line with the overall economy, consolidation among the industry's largest operators and stable levels of demand. Industry value added (IVA), which measures the industry's contribution to the economy, is forecast to grow an annualized 3.1% over the 10 years to 2022. This growth is higher in comparison with IBISWorld's GDP forecast of 2.1% during the same period. Growth has depended largely on the increasing consumption of wines and spirits, especially those of higher value, and large wholesalers using consolidation as a means of expanding revenue and market share...purchase to read more.

    Additional Insights for the Wine & Spirits Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wine & Spirits Wholesaling Industry are

  • Ability to control stock on hand
  • Establishment of brand names
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from beer, wine and liquor stores and Per capita expenditure on alcohol in the Wine & Spirits Wholesaling industry impact industry performance..

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    What's in this report

    What is the Wine & Spirits Wholesaling Industry?

    This industry distributes wine, distilled alcoholic beverages and various neutral spirits. Alcohol products are purchased from alcoholic beverage manufacturers and sold at wholesale volumes to licensed alcoholic beverage retailers.

    Industry Products
  • Table wine
  • Vodka
  • Whiskey
  • Rum
  • Desert wine
  • Tequila
  • Gin
  • Other wine and spirits
  • Industry Activities
  • Procuring wine and spirits from alcoholic beverage manufacturers
  • Transporting beverages from beverage facilities
  • Providing financial assistance toers by supplying products on credit
  • Assisting in properly labeling and inspecting goods
  • Distributing wine and spirits to licensed alcoholic beverageers
  • Stocking and itemizing products at locations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from beer, wine and liquor stores
  • Per capita expenditure on alcohol
  • Excise tax on distilled spirits
  • Excise tax on wine

  • Current Performance
  • Consumer confidence and increased consumer spending
  • The three-tier structure
  • Stable excise taxes
  • Increasing profit encourages industry entrants
  • Chart: Revenue Growth

  • Industry Outlook
  • Decreasing excise taxes, increased demand
  • Direct-to-consumer online sales
  • Industry structure and profit
  • Table: Wine & Spirits Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wine & Spirits Wholesaling Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Distilleries
  • Wineries

  • Products & Services
  • Table wine
  • Whiskey
  • Vodka
  • Other wine and spirits
  • Tequila
  • Rum
  • Desert wine
  • Gin
  • Chart: Wine & Spirits Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Demographics

  • Major Markets
  • Retailers
  • Wholesalers/regional distributors
  • Food service providers
  • Other
  • Chart: Major Market Segmentation for the Wine & Spirits Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Wine & Spirits Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wine & Spirits Wholesaling Industry

  • Industry Globalization
    Southern Glazer's Wine and Spirits LLC, Republic National Distributing Company LLC, Breakthru Beverage Group LLC,
  • Table: Southern Glazer's Wine and Spirits LLC - financial performance
  • Table: Republic National Distributing Company LLC - financial performance
  • Table: Breakthru Beverage Group LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wine & Spirits Wholesaling 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 Wine & Spirits Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita expenditure on alcohol (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Control State
  • A state in which the government, not private entities, manages the distribution of alcoholic beverages. Generally, the control state acts as the wholesaler of spirits and sometimes wine.
  • Direct Shipping
  • A distribution method that allows a winery or retailer to sell and ship directly to a consumer.
  • Distilled Spirit
  • An alcoholic beverage obtained by distillation from wine, other fermented fruit juice or various cereal grains that have first been brewed (e.g. whiskey, brandy and rum).
  • On-Premise Consumption
  • Alcohol purchased at a licensed establishment (e.g. restaurant, bar or nightclub) for immediate consumption.
  • Shrinkage
  • The loss of product during shipment as a result of damage, fraud, theft, expiration or other form of human error.
  • What Our Customers Say

    Why buy this report?

    The Wine & Spirits Wholesaling 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 Wine & Spirits Wholesaling:
    • 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 Wine & Spirits Wholesaling 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 Wine & Spirits Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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