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 - Starting a New Business Chapter
The barriers to entering the Alcoholic Beverage Wholesaling industry are low, since entrants only need links with upstream producers and downstream retailers and a decent distribution network. However, the fact that many wholesalers are in fact manufacturers themselves makes entering the industry considerably more difficult. Firms seeking to enter the industry with any meaningful market share are therefore subject to the same barriers to entry as beverage producers: significant investment in production facilities, a large portfolio of brands, a well-established distribution network, a high advertising and marketing budget, and a relatively skilled workforce... purchase to read more