Wine & Spirits 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 2,200 wine and spirits distributors in the US represent the second tier of the federal three-tier system of approved alcohol distribution. This system, which has been in place since the lifting of Prohibition, requires that a supplier sell to a distributor, who then sells to a retailer (bar, restaurant, grocery store, liquor store, or other consumer-oriented channel). Spirit sales account for 56% of industry revenue, while wine accounts for about 41%.
Regulatory Changes
Challenges to the current federal three-tier system for alcohol distribution could disrupt the relationships between suppliers, distributors, and retailers.
New Product Proliferation
Liquor suppliers are focusing on product innovation and line extensions to position themselves in the future marketplace.
Industry size & Structure
The average wine and spirit distributor has about 44-45 employees and generates $43 million in annual revenue.
- The US has about 2,200 wine and spirit distributors with annual sales of about $94.5 billion and 98,000 employees.
- California, New York, Florida, Texas, Illinois, and Colorado have the largest populations of wine and spirit distributors.
- 79% of distributors operate a single warehouse.
- The wine and spirits wholesale industry is concentrated: The top 50 companies account for 82% of industry revenue.
- Large distributors in the US include Southern Glazer's Wine and Spirits, Republic-National and Breakthru Beverage Group.
Industry Forecast
Wine & Spirits Distributors Industry Growth
Recent Developments
Apr 8, 2025 - Import Tariffs
- The global wine industry is bracing for the financial impact of President Trump’s 20% import tariff on all goods from the European Union, including wine. While the 20% tariff announced on April 2 is far less than the 200% Trump initially threatened in March, the new tariffs will affect everyone from distributors to restaurants to consumers, according to the Wine & Spirits Wholesalers of America, which notes that imported wine makes up 38% of the US marketplace. Beyond the EU, wines imported from other countries – including Argentina, Chile, Australia and New Zealand – will face 10% tariffs, while wines from South Africa will face a 30% duty and wines from Israel will be tariffed at 17%. Higher costs are the last thing the wine industry needs right now with wine sales falling due to lukewarm interest from younger consumers and competition from spirits and other alcoholic and nonalcoholic beverages.
- Year-end data from the Wine & Spirits Wholesalers of America’s (WSWA) trend tracker SipSource show 2024 was a challenging year for distributors. In 2024, total wine and spirits volume and revenue declined 5.5% and 5%, respectively, over the 12-month period. Spirits outperformed wine with volume and revenue down 3.7% and 4.3%, respectively, while total wine volume fell 7.2% and revenue was down by 6.3% year over year. Looking ahead, SipSource analysts expect favorable comparisons in Q1 to produce “slow but marked improvements” despite challenges including changing consumer preferences, potential tariffs on imported single-origin products like tequila, and supply chain disruptions. “In 2025, we should expect to see less impact from inventory management at the retail level,” said SipSource analyst Dale Stratton, adding “Retailers can only destock so far before failing to meet their consumers’ needs.”
- Distributors of wine and spirits are struggling as US sales decline, The Spirits Business reports citing data from the Wine & Spirits Wholesalers of America (WSWA). The WSWA data, which looked at sales from wholesalers to more than 450,000 retailers nationwide, showed a combined decline of 6% for wine and spirits in the 12 months ending in August, with spirits sales falling 3.9% and wine declining 8%. The decline was seen in both the on- and off-premise channels. The WSWA notes the recent decline in sales signals potential challenges for the rest of 2024 and 2025. The report highlights how premiumization, once a major growth driver, is facing pressure in a tightening market. The $100-plus price tier in spirits in bars and restaurants performed worst, declining 12.5%, while mid-range tiers, such as $50-$99.99, saw a more moderate decline of 3.9% in on-premise depletions.
- Employment by wine and spirits distributors shrank 0.7% in January compared to a year ago while average industry wages climbed by 9.2% over the same period to $27.67 per hour, their highest level in two-and-a-half years, according to the latest US Bureau of Labor Statistics data. Rising producer prices are helping to mitigate distributors’ rising labor costs and falling sales. Looking ahead, sales for the US wine and spirits distributors industry are forecast to grow at a 4.66% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to the Interindustry Economic Research Fund’s latest forecast.
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