Industry Analysis & Industry Trends
The Alcoholic Beverage Wholesaling industry has endured mixed fortunes during the past five years. During the past decade, several trends in both downstream and upstream markets have damaged alcohol wholesalers by constraining revenue growth and eating into profit margins. Consolidation in the beer, wine and spirits production and retailing industries has strengthened the market power of wholesalers' suppliers and customers, resulting in wholesalers often being bypassed in the off-trade supply chain.
On-trade markets have also come under pressure because falling patronage, declining beer consumption, rising operating costs, increasing alcohol duties and the introduction of a smoking ban have forced pubs to close... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry's contribution to the greater economy, or industry value added, is expected to grow at a compound annual rate of 1.6% over the decade through 2019-20. This falls roughly in line with the overall rate of GDP growth, which is expected to expand at a compound annual rate of 2.2% over the same period. However, the number of operators is drying up due to supply chain consolidation, which has forced this industry into a decline phase of its life cycle.
The industry faces problems in its two major markets. The poor performance of British pubs has severely constrained demand from the on-trade market... purchase to read more