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Companies in this industry distill, blend, or mix liquors. Major companies include Bacardi (Bermuda), Brown-Forman (US), Diageo (UK), Gruppo Campari (Italy), Kweichow Moutai (China), Pernod Ricard (France), and Suntory (Japan).
The distilleries industry is undergoing increased globalization and many of the world's largest liquor conglomerates have made international merger and acquisitions deals. International deals allow for broader global distribution.
The US distillery industry includes about 300 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $11 billion.
Demand is driven primarily by trends in alcohol consumption and personal income. The profitability of individual companies depends on efficient operations and strong distribution channels. Large companies have advantages in brand recognition and economies of scale. Small operations can compete effectively by specializing in high-end or unusual spirits. The US industry is highly concentrated: the top 20 companies account for over 90% of industry revenue.
Some companies in the industry distill alcohol on site; others take neutral spirits and infuse alcohol with flavoring agents. Distilleries compete with wineries and breweries for alcohol spending.
The US, a net importer of liquor, imports more than $6 billion in liquor per year and exports about $2 billion. Imports account for 40% of the total US market. Around 80% of imported liquor comes from the UK, Mexico, France, Ireland, and Canada. Exports represent around 15% of total industry revenue. Top export markets include Canada, Mexico, ...
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