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 Investment Chapter
Alcoholic beverage wholesaling requires a medium level of capital investment as measured by the capital-to-labour ratio. In 2014-15, IBISWorld estimates that the capital-to-labour ratio in the industry is about 1:3.42. This means that producers require £3.42 worth of labour for every £1.00 of capital invested. This ratio reflects the labour-intensive nature of the industry, which requires stock personnel, sales staff, drivers and marketing professionals to carry out its daily functions. However, labour costs are falling because it is becoming easier to monitor stock electronically and automate tasks for long-term cost savings... purchase to read more