Diageo - Competitors

Diageo Competition

Now Viewing Diageo's competition in: Distillers (primary)

Recent Developments

Washington's Distillery Open to Public - For the first time in 200 years, the public will be able to buy whiskey at George Washington's distillery. The distillery at Mount Vernon will be permitted to sell whiskey at the Distillery and Mansion Visitor's Center at a special state ABC store, according to the Distilled Spirits Council of the United States (DISCUS). The Mount Vernon distiller will blend 11 of the US' most famous brands, including Jack Daniel's, Jim Beam, Wild Turkey, and Maker's Mark.

Bourbon Market Expanding - Distillers are expanding their bourbon production and storage as surging exports, a weak US dollar, and rising popularity among young Americans spurs demand for bourbon. Wild Turkey began a $36 million expansion that will double its production capacity. Maker's Mark is about to start a second expansion, and Jim Beam began a $70 million expansion.

Distilled Spirits Ads Follow Standards - The FTC ruled that the alcohol beverage industry adhered to industry standards by having 70 percent of its ads targeted to adults 21 or older. The 70 percent 21+ standard is voluntary, but the FTC says that the industry shows "high levels of compliance" and concludes that industry advertising is aimed at adults. Due to industry compliance, the FTC didn't recommend a change to the 70 percent 21+ demographic standard.

Competitive Landscape

Demand is driven primarily by trends in alcohol consumption and personal income. The profitability of individual companies depends on efficient operations and strong distribution channels. Large companies have advantages in brand recognition and economies of scale. Small operations can compete effectively by specializing in high-end or unusual spirits. Average annual revenue per employee is about $1 million.

Full Industry Overview For Distillers

Distillers Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of the US distilleries is forecast to increase at an annual compounded rate of 3.9 percent between 2008 and 2013.

Distilleries Growth Slows and Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.