Overview
The 2,100 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 54% of industry revenue, while wine is about 43%.
Potential Regulatory Changes
Legal challenges to the current federal three-tier system for alcohol distribution could change the relationships between suppliers, distributors, and retailers.
New Product Proliferation
Liquor suppliers are focusing on product innovation and line extensions as a way to position themselves in the future marketplace.
Industry Financial Benchmarks
Here are typical financial statements for wine & spirits distributors.
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