Distilleries
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 global revenue in the spirits segment is forecast to reach about $535 billion in 2023, and is expected to grow at a CAGR of about 6% during the 2023-2025 forecast period, according to Statista. The distilleries industry is undergoing increased globalization. Many of the world's largest liquor conglomerates have expanded into multiple regions.
The US distillery industry includes about 800 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $12 billion.
Competitive Landscape
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 50 companies account for about 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. About 80% of imported liquor comes from the UK, Mexico, France, Ireland, and Canada. Top export markets include Canada, the UK, Australia, Panama, and Germany.
Products, Operations & Technology
Major products include vodka (about 20% of revenue) and tequila (about 15%). Other products include whiskey (nearly 15%), brandy (about 10%), and cordials
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