Beer Distributors
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,400 beer distributors in the US are the middlemen between the suppliers (breweries and importers) and retailers (grocery stores, convenience stores, bars, restaurants, sporting venues etc.). Distributors must provide climate-controlled storage, transportation, and maintenance for perishable malt beverages from the time they leave the brewery until they arrive at the retailer.
Competition from Larger Distributors
Beer distributors are typically small, local operations, but the industry has been consolidating as larger distributors expand through acquisitions.
Declining Market Share
Beer has been gradually losing market share since 2000, when it accounted for over half of all beverage alcohol sales.
Industry size & Structure
The average beer distributor operates 1-2 warehouses, employs 80 workers, and generates about $48.5 million in annual revenue.
- The US has about 1,400 beer distributors with annual sales of about $68 billion and about 112,000 employees.
- The largest populations of beer distributors include California (221), New York (176), Texas (167), Florida (134) and Pennsylvania (119).
- Average inventory is about $5 million.
- 77% of distributors employ less than 100 employees.
- Top distributors in the US include Reyes Holdings, Goldring Gulf Distributing, Ben E. Keith Beverages, Silver Eagle Distributors LP, and Manhattan Beer Distributors LLC.
- The number of breweries that supply the distribution industry is rapidly increasing. Currently, there are about 9,700 breweries in the US, up from 250 in 1990 and 2,300 in 2010.
Industry Forecast
Beer Distributors Industry Growth
Recent Developments
Mar 20, 2025 - Prices Rising, Shipment Falling
- Producer prices for beer, wine, and distilled alcoholic beverage merchant wholesalers rose 5.3% in December after rising 2.4% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by beer distributors declined 0.5% year over year in January, while average wages at alcohol distributors rose 9.2% over the same period to $27.67 per hour, BLS data show. Beer is losing ground to other alcoholic beverages, most notably spirits. In 2024, domestic beer shipments were 3.3% lower – or five million barrels less – than in 2023, according to The Beer Institute.
- New research from Cornell University shows beer drives grocery store sales and supports relaxing laws to allow alcoholic beverages to be sold in grocery stores, Food Manufacturing reports. The Cornell study found that when a grocery store starts selling beer, beer-chasing households visited a grocery store 3.6% more often and increased their grocery store expenditures by 8% per month. Moreover, shoppers increased their spending on related categories (items likely to be purchased with beer) including snacks, cheese, deli items and soda by 17%. The research, which used nationally representative data at the store and household levels, found that the introduction of beer into grocery stores in Colorado – which began allowing grocery stores to sell full-strength beer in 2019 – can change how people shop, where they shop, and what they buy, says Bradley J. Rickard, a professor of food and agricultural economics Cornell University.
- The price of the US’s best-selling beer – Modelo – along with its compatriot Corona and Canadian beers would rise if President Donald Trump follows through on his threat to slap 25% tariffs on goods produced in Mexico and Canada, CNN reports. Constellation Brands, which imports Modelo and Corona beer (and tequila) from Mexico, could see its costs rise 16% under Trump's proposed tariff and would likely have to raise prices by about 4.5%, Wells Fargo equity analyst Chris Carey told CNN. To stave off potential price hikes, some business owners have begun stockpiling those beers and tequila, which can be made only in Mexico. "A lot of those companies, especially the smaller ones, don't have much choice except to pass those costs along," Dave Williams, president of Bump Williams Consulting, a provider of consulting and analytics services to the alcoholic beverage industry, told CNN.
- Craft beer underperformed in 2024 and performance deteriorated as the year progressed, according to the Brewers Association’s yearend recap. Per the association’s midyear survey, craft beer saw an estimated decline of 2% in production, compared to a 1% decline for the full year 2023. In the second half of 2024, third quarter scan data suggested weaker performance than the first half of the year, suggesting weaker performance for the full year than was indicated in the midyear estimate. “Craft has been going through a painful period of rationalization as demand growth has slowed and retailers and distributors look to simplify their offerings or add options for flavor and variety outside of the craft category,” said Bart Watson, the BA’s VP of strategy and membership. Also, closings have outpaced openings so far in 2024, with the BA tracking 335 new brewery openings and 399 closings.
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