Companies in this industry distribute beer, ale, wine, and distilled spirits on a wholesale basis. Major companies include Breakthru Beverage Group, Republic National Distributing Company, Reyes Holdings, and Southern Glazer's Wine and Spirits (all based in the US); as well as Brindco (India), Eastern Empire Distributing (China), Matthew Clark (UK), Nihon Shurui Hanbai (Japan), and Endeavour Drinks Group (Australia).
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. The beer wholesale industry is fragmented: the top 50 companies account for about 40% of industry revenue. The US wine and spirits wholesale industry is concentrated: the top 50 companies account for about 80% of industry revenue.
Products, Ops & Technology
Major products are beer, wine, and distilled spirits (hard liquor). Distributors tend to specialize in either beer or wine and spirits. About 40% of overall industry revenue comes from the sale of beer, 30% from liquor, and 25% from wine; nonalcoholic beverages account for the remainder.