Double shot: Online vineyard sales and changes in distribution methods may threaten growth

IBISWorld’s Wine & Spirits Wholesaling Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Wine & Spirits Wholesaling industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.


Industry Threats & Opportunities

  • There is a concern that the three-tier distribution system may be subject to further deregulation
  • Value wine brands and spirits have increased in popularity
  • Continued growth in the US economy is expected to boost consumer purchases of wine and spirits
  • Industry Analysis & Industry Trends

    Wine and spirits wholesalers are quite vulnerable to sudden changes in consumer spending on alcohol, a harsh reality that became amid the growing popularity of craft beer. In addition, many consumers have switched solely to purchases of low-margin value wine products or ceased spending on alcohol entirely. As the US economy continues to grow, revenue is expected to rise slightly over the five-year period. Industry revenue is forecast to experience minimal growth over the five years to 2022. The industry's largest operators will likely continue steady acquisition activity, while smaller operators will likely increase overall emphasis on regionally based craft spirits.

    Industry Report - Industry Key Buyers Chapter

    The Wine and Spirits Wholesaling industry has a low level of industry concentration, although several of the industry's largest companies operate vast distribution networks throughout the country. The top four companies in the industry generate an estimated 41.5% of industry revenue in 2017. Industry concentration has generally increased modestly over the past five years, primarily as a result of larger corporations acquiring independent, regionally focused distributors. This trend is expected to increase as overall spending on alcoholic beverages increases and established wholesalers continue to acquire smaller distributors to expand its outreach to niche markets.

    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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    Industry Products

    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
    Desert wine
    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Changing consumer tastes shift demand
  • The three tiers threatened
  • Chart: Revenue Growth

  • Industry Outlook
  • Decreasing costs may boost demand
  • Changing distribution methods
  • Table: Wine & Spirits Wholesaling Industry Revenue Outlook

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

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

  • Demand Determinants
  • Demographics

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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
    Major Companies
    Southern Glazer's Wine and SpiritsRepublic National Distributing Company Breakthru Beverage Group
  • Table: Southern Glazer's Wine and Spirits - financial performance
  • Table: Republic National Distributing Company - financial performance
  • Table: Breakthru Beverage Group - financial performance

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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