Distilleries

Distilleries

Brief Excerpt from Industry Overview Chapter:

Companies in this industry distill, blend, or mix liquors. Major companies include Bacardi (Bermuda), Brown-Forman (US), Diageo (UK), Gruppo Campari (Italy), Kweichow Moutai (China), Pernod Ricard (France), and Suntory (Japan).

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 US industry is highly concentrated: the top 50 companies account for about 90% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include bottled whiskey (about 55% of revenue) and distilled whiskey (about 40%). Some distillers generate additional revenue by selling dried grains for animal feed.