E-Malt.com News article: USA: Total annual revenue of about $90 billion registered by wholesalers of beer, wine and other alcoholic drinks

About 4,400 wholesale establishments distribute beer, wine, and other alcoholic drinks in the US, with total annual revenue of about $90 billion, Research and Markets posted on February 28. Large distributors include Vierk, Tarrant, and wholesale units of major producers. Most distributors are privately-owned, local, or regional. Large distributors have annual sales over $200 million.

The average beer distributor employs 40 and has annual sales of $13 million; 85 percent of wholesalers are merchant wholesalers, who take ownership in the products that they sell. The 50 largest distributors generate 43 percent of industry revenue.

Demand for alcoholic beverages depends largely on population and income growth. Profitability for wholesalers depends on sales volume and efficient warehouse and delivery operations. Small companies can compete by winning exclusive distribution rights or by specializing in niche brands or markets. Large companies have advantages of scale in negotiating with producers and customers, and operating warehouse and delivery fleets. Average sales per employee for large companies are more than $800,000; for midsized companies, over $300,000.

Distributors tend to specialize in either beer or wine and spirits (hard liquor), but some handle both. About half of industry revenue comes from the sale of beer, 30 percent from liquor, and 20 percent from wine. Most alcoholic beverages sold in the US move through a three-tier distribution system: from producers or importers to distributors, and then to retailers.

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03 March, 2006