Pernod Ricard - Competitors

Pernod Ricard Competition

Now Viewing Pernod Ricard's competition in: Distillers (primary)

Recent Developments

Grain, Natural Gas Prices Drive Up Costs - Prices for grains and natural gas are rising, increasing costs for distillers. US producer prices for corn increased 41 percent in March 2008 compared to year-earlier levels; barley rose 67 percent and wheat, 160 percent. Natural gas producers increased prices 24 percent from a year earlier.

Industry Exports Rise from Year-Ago Levels - Distilled liquor exports are increasing, but changes from year-ago levels vary greatly among the top five recipient countries. US exports of distilled liquors increased 14.3 percent in value during first quarter 2008 compared to a year earlier. The value of exports to Canada rose 6.7 percent; to Germany, 18.9 percent; and to Mexico, 173.8 percent. Exports to the UK and Australia, however, each dropped 14 percent.

Alcoholic Beverage Makers' Employment Drops First Quarter - Domestic manufacturers of alcoholic beverages reduced their collective workforce each month of first quarter 2008 compared to year-ago levels. US employment in breweries, wineries, and distilleries fell 5.4 percent in March 2008 from a year earlier. Average annual employment increased 2.6 percent in 2007, in keeping with an upward trend.

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 3.1 percent between 2007 and 2012.

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.