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
Jul 20, 2024 - Prices Rising Amid Shrinking Demand
- Producer prices for beer, wine, and distilled alcoholic beverage merchant wholesalers rose 5.6% in May compared to a year ago after rising 7.4% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by beer distributors dipped by 0.5% in May year over year, while average wages at alcohol distributors fell 1.7% over the same period to $25.93 per hour, BLS data show. Beer is losing ground to other alcoholic beverages, notably spirits. Last year, US beer shipments reached their lowest levels in 25 years, according to data from Beer Marketer's Insights.
- Bud Light, once a favorite among beer drinkers, has slipped to third place behind Modelo Especial and Michelob Ultra, The Wall Street Journal reports. Bud Light’s slide follows a devastating boycott of the brand last year and a reduction in retail shelf space allocated to the brand, according to WSJ. Bud Light represented 6.5% of beer dollar sales in US stores in the four weeks ended July 6, compared with 7.3% for Michelob Ultra and 9.7% for Modelo, according to an analysis of NielsenIQ data by the consulting firm Bump Williams cited by WSJ. Anheuser-Busch InBev, which makes Bud Light, also makes Michelob Ultra. Overall, however, AB InBev’s share of the US beer market is slipping, sales data show.
- Breweries struggling to compete with hard seltzers, canned cocktails, and slack demand from younger consumers are promoting beers with alcohol content approaching 10%, essentially double the alcohol by volume (ABV) of traditional brews, Axios Denver reports. Colorado breweries, including Coors-owned A.C. Golden, New Belgium Brewing, and Breckenridge Brewery, have all introduced beers with ABV at or above 9.5%. The high-ABV trend is driven by consumers looking for more bang for their buck, brewers and analysts told Axios. At the other end of the spectrum, consumer interest in nonalcoholic and low-ABV beers is booming, with non-alcoholic beer the fastest-growing segment of the US beer market, The Wall Street Journal reported in February. Segmentation in the beer market is driven by consumers seeking out beers for different occasions, which means beer distributors will want to source and supply beers across the ABV spectrum to meet changes in demand.
- The number of craft breweries in the US continued to rise in 2023 despite a tough year for the industry, the Brewers Association reported in April. In 2023, the number of operating craft breweries reached a record 9,761, including 2,092 microbreweries, 3,502 brewpubs, 3,910 taproom breweries, and 257 regional craft breweries. There were 495 new brewery openings and 418 closings. Openings fell for a second straight year, reflecting a more mature market. The closing rate increased but remained relatively low, at approximately 4%. Collectively, small and independent brewers produced 23.4 million barrels of beer in 2023, a decline of 1% from 2022. However, craft’s overall beer market share by volume grew to 13.3%, up from 13.1% in 2022, as craft’s declines were smaller than overall beer volume losses, per BA production data.
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