Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,800 distilleries in the US produce liquors, blend liquors, and blend and mix liquor and other ingredients. Major product categories include vodka, whisky, rum, tequila, and gin. Firms may also produce other types of alcoholic beverages, including beer and wine.

Concentrated Distribution Channels

The US distribution system for wine and spirits is concentrated and continues to consolidate.

Heavy Government Regulation

The alcoholic beverage industry is heavily regulated by federal, state, and local governments.

Industry size & Structure

The US distillery industry consists of about 2,800 establishments that employ over 20,000 workers, produce 251 million cases of spirits, and generate about $31 billion annually, according to the Distilled Spirits Council.

    • The US craft spirits industry consists of about 2,265 active distillers that sell over 11 million cases of product, generate $6.1 billion in sales, and employ over 30,000 workers, according to the American Craft Spirits Association. A craft spirit distillery produces no more than 750,000 proof gallons and is not controlled by a large supplier.
    • The distillery industry is highly concentrated; the top 50 companies account for 92% of industry revenue. The craft distilling industry is also concentrated; almost 2% of producers are responsible for almost 58% of cases sold.
    • Large firms with distillery operations, which include Diageo, Pernod Ricard, Brown Forman, and Bacardi, typically have business in foreign markets.
    • Over half of distilleries are formed as partnerships.
                              Industry Forecast
                              Distilleries Industry Growth
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              Apr 11, 2022 - All States End Mask Mandates
                              • Demand for spirits may increase in the hospitality sector as pandemic conditions have improved and restrictions have eased. Hawaii, the final holdout among states with indoor masking mandates, let its mask mandate expire on March 25. The Centers for Disease Control and Prevention still recommends that masks be worn in areas of substantial or high transmission, regardless of vaccination status.
                              • Amid falling COVID-19 cases, vaccines requirements for indoor dining and bars are being lifted. Major cities that had required proof of vaccination for indoor dining – including New York, Los Angeles, San Francisco, Seattle, Philadelphia, and Boston - have since removed the requirement. As of April 4, 2022, 23 states had banned vaccine requirements, including mandates and passports.
                              • Some distilleries that pivoted to making hand sanitizer during the coronavirus pandemic are now stuck with products that they are struggling to sell. “We’ve got about 5,000 bottles,” said Ferino Distillery owner Joe Cannella, whose inventory includes a mix of 4-ounce squeeze bottles, 40-ounce spray bottles and 60-ounce refill jugs. “My only option at this point would be to basically sell it at a loss — I could get it out the door, but I’d have to sell it for pennies compared to what we made it for. And that’s something I’m interested in doing probably in the near future just to get something.” Cannella says many distillery owners are in the same boat.
                              • Seasonally adjusted US sales at food services and drinking places rose 2.4% in February 2022 compared to January. On an unadjusted basis, sales rose 28% in the first two months of 2022 compared to the same period in 2021.
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