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Beer, Wine, and Spirits Distributorships Industry Profile Excerpt
| SIC Codes: 5181, 5182 NAICS Codes: 4248 Page Length: 10-12 Last Quarterly Update: 6/30/2008 View Sample Industry Profile |
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The beer, wine, and alcoholic beverage distribution industry includes about 5,000 companies with combined annual revenue of about $100 billion. Major companies include Southern Wine & Spirits, Glazer's Distributors, National Wine & Spirits, and Charmer Sunbelt. The beer wholesale industry is fragmented: the top 50 companies account for about a third of industry revenue. The wine and distilled spirits wholesale industry is more concentrated: the top 50 companies account for more than 70 percent of industry revenue.
The beer, wine, and alcoholic beverage wholesale industry doesn't include alcohol beverage retailers or suppliers that manufacture beer, wine, or distilled spirits.
COMPETITIVE LANDSCAPE
Demand is driven by consumer preferences in alcohol consumption and demographic trends. The profitability of individual companies depends on effective sales operations and maintaining low operating costs. Large companies have advantages in exclusive distribution rights in large markets. Small operations can compete effectively by distributing rare and expensive products. Average annual revenue per employee is nearly $450,000 for beer wholesalers and $700,000 for wine and distilled spirits wholesalers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are beer, wine, and distilled spirits (hard liquor). Distributors tend to specialize in either beer or wine and spirits. About half of industry revenue comes from the sale of beer, 30 percent from liquor, and 20 percent from wine.
Most alcoholic beverages sold in the US move through a federally mandated three-tier distribution system. Producers or importers must sell to distributors, who then sell the ...
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