Beer, Wine, and Liquor Stores
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 31,500 beer, wine, and liquor stores in the US sell alcoholic beverages to individuals and businesses. They are the third tier in the three-tier system of manufacturers, distributors, and retailers. Seventeen US states operate state-controlled liquor stores, known as Alcohol Beverage Control (ABC) stores.
Alternative Channel Competition
Supermarkets, big box and convenience stores that are permitted to market and sell alcohol have several advantages over specialty liquor stores.
Regulations Affect Operations
Alcohol retailers are one of the most tightly regulated retail industries.
Industry size & Structure
An average beer, wine, or liquor store has 6 employees an generates $2.3 million in annual revenue.
- 31,500 US firms generate $71.5 billion in revenue with 178,000 employees.
- 88% of firms are single establishments.
- The top 50 firms account for 24% of sales and 16% of employees.
- 46% of all revenue comes from stores with fewer than 10 employees.
- There are currently 17 monopoly or "control" states in the US where the state controls the distribution or retailing of alcohol. Large control states include Michigan, Ohio, and Pennsylvania. Control jurisdictions represent approximately a quarter of the nation’s population and account for roughly 23.0% of distilled spirit sales and a significantly smaller percentage of beer and wine sales.
- Large chains include BevMo!, Total Wine & More, and Government-controlled ABC (Alcoholic Beverage Control) Stores.
Industry Forecast
Beer, Wine, and Liquor Stores Industry Growth
Recent Developments
Feb 8, 2025 - Rising Sales and Wages
- Sales for beer, wine and liquor stores rose 4.6% in November compared to a year ago and 7.8% versus October, according to Census Bureau data. Liquor store sales are seasonal and typically peak in December amid holiday celebrations. Rising consumer spending, up 2.9% year over year in November, also helped to boost sales. In contrast, employment by beer, wine, and liquor stores shrank 2.8% YoY in November, while average industry wages rose 8.1% over the same period to $19.08, just shy of their high in September, according to the latest US Bureau of Labor Statistics data. Rising wages coincided with a decline in industry producer prices, which declined 3.9% YoY in December, putting pressure on margins, BLS data show.
- Dry January is over, but sellers of alcoholic beverages aren’t breaking out the champagne as the sober curious movement continues to gain momentum in the US. New findings from marketing firm NCSolutions (NCS) reveal that nearly half of Americans (49%) say they plan to drink less alcohol this year, a 44% increase since 2023. The percentage of people planning to cut back on alcohol consumption has been trending upward over the last three years. In 2023, 34% of Americans planned to drink less, rising to 41% in 2024. In 2025, 30% of Americans say they’re taking part in Dry January, a 36% increase from last year. Per NCS purchase data, Dry January is the least popular month to buy alcohol. In 2024, purchases of spirits tumbled 39% in January compared to December, while wine purchases fell 36% and beer/cider/hard seltzer purchases decreased 21%.
- Sales of premium-priced products, once a major growth driver for wine and spirits, are underperforming overall sales, data from the Wine & Spirits Wholesalers of America (WSWA) shows. The WSWA data, which looked at sales from wholesalers to more than 450,000 retailers nationwide, found off-premise sales in the $100+ tier fell by 8.5% in the 12 months ending August, while the $50-$99.99 tier dropped by 4.3%. The decline in wholesale sales of wine and spirits threatens retail sales due to reduced assortments in stores and on bar and restaurant menus. Moreover, the recent downward sales trend signals challenges ahead for most wine and spirits categories in the crucial holiday selling season and into 2025. As consumers pull back on purchases of higher-priced premium products, which carry higher margins at retail, it threatens revenue for beer, wine and liquor retailers.
- Wine sales are falling overall, but sales of non-alcoholic (NA) wines are experiencing significant growth, Wine Industry Advisor reports. In 2023, the NA wine market was estimated at approximately $2.26 billion and is expected to expand at a compound annual growth rate of 7.9% between 2024 and 2030, according to an analysis from Grand View Research. The low-alcohol wine movement is also growing, with an expected expansion of 3%, according to research from global drinks data firm IWSR. Moreover, more than three-quarters (78%) of people who purchase non-alcoholic beverages also purchase drinks with alcohol, according to NielsenIQ. Growing interest and sales of NA and low-alcohol wines presents beer, wine and liquor stores with sales opportunities – especially during Sober October – but also year round as a growing number of consumers look to reduce or eliminate alcohol from their diets amid health and wellness concerns.
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