Distilleries
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. The industry is capital-intensive: Average annual revenue per employee is about $800,000.
Opportunities
Micro-Distilleries - A new generation of small distillers is trying to replicate the explosive growth in the craft beer industry. These "micro-distilleries" emphasize hand-crafted, artisan spirits and...
Business Challenges
Dependence on Consumer Tastes - US liquor companies compete directly with wine, beer, and international spirits manufacturers. Consumer alcohol preferences can shift quickly based on news articles, entertainment and celebrity...