Industry Analysis & Industry Trends
Participants in the Alcoholic Beverage Wholesaling industry purchase alcoholic beverages from producers and distribute them to on-trade and off-trade retailers. Changing consumer habits and trends within the downstream markets have knock-on effects on alcoholic beverage wholesalers. As a result, the industry has endured mixed fortunes over the past five years.
At the start of the five years through 2015-16, downstream markets were under pressure from declining alcohol consumption, high alcohol taxes and challenging economic conditions in key downstream markets. The closure of many traditional pubs throughout the United Kingdom had a knock-on effect on wholesalers... purchase to read more
Industry Report - Industry Investment Chapter
Alcoholic beverage wholesaling requires a high level of capital investment as measured by the capital-to-labour ratio. In 2015-16, IBISWorld estimates that the capital-to-labour ratio in the industry is 1:2.45. This indicates that producers require £2.45 worth of labour for every £1.00 of capital invested. Labour costs have fallen over the past five years because it has become easier to monitor stock electronically and automate production tasks. Although this will result in long-term cost savings for many operators, it requires a high level of capital investment in the short term. Despite greater investment in automated production methods, operators still require staff for overseeing production lines, downstream sales, transportation and marketing... purchase to read more