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 Analysis Chapter
Alcohol wholesalers have struggled because the changing face of the UK alcohol retailing market has constrained growth. During the past five years, the strong buying power of the major supermarkets has led to specialist wholesalers increasingly being cut out of the supply chain, while the hospitality sector has been smashed by a host of negative factors. Demand for alcoholic beverages was also constrained by the economic downturn, which led many consumers to moderate their drinking habits. Strengthening economic conditions and rising demand for wine, cider and craft beers have resulted in moderate growth since 2011-12. Over the five years through 2014-15, revenue is forecast to grow at a compound annual rate of 1.6% to £10.9 billion... purchase to read more