Over the past five years, beer consumption has declined in favour of wine and spirits, though craft and imported beers have become more popular.
Melbourne, Australia (PRWEB) February 03, 2014
The growing sophistication of the Australian palate combined with an expanding range of available liquor has led to consumers increasingly trying new beverages. Over the past five years, beer consumption has declined in favour of wine and spirits, although premium, craft and imported beers have become more popular. The Liquor Wholesaling industry in Australia has benefited from these trends as most industry operators deal mainly in wine, spirits and imported beer. According to IBISWorld industry analyst Ryan Lin, “only a few major wholesalers trade with the largest retailers, like supermarket chains, and these tend to deal with large volumes of high-turnover, low-value products.”
The Liquor Wholesaling industry is sensitive to factors that affect alcohol consumption, including trends in alcohol demand, tax changes for alcoholic products, real household discretionary income, regulations affecting the consumption of alcohol and changing social attitudes. “In the five years through 2013-14, the industry has fluctuated due to generally weak consumer conditions, shifting tastes, falling per capita alcohol consumption and increasing wholesale bypass,” says Lin. IBISWorld estimates that industry revenue will grow by an annualised 1.3% over the five years through 2013-14 to reach $6.2 billion. Revenue is expected to increase by 0.8% in 2013-14. The Liquor Wholesaling industry is characterised by a moderate level of market share concentration, with Metcash Limited and Diageo Australia Limited wielding significant market power.
The Liquor Wholesaling industry is forecast to record moderate revenue growth over the next five years. While some favourable product trends will boost liquor sales, the growing market power of the major supermarket chains and the associated increases in wholesale bypass will hurt industry operators. To combat these factors, liquor wholesalers will be looking to improve on the industry's reach and performance across the liquor market. Improvements in operating efficiency will be paramount to remaining competitive and retaining clients, as will cost cuts and warehouse efficiency improvements, which aim to reduce labour costs. The industry should benefit from evolving food and beverage trends and consumers' willingness to try new products.
For more information, visit IBISWorld’s Liquor Wholesaling report in Australia industry page.
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IBISWorld industry Report Key Topics
Liquor wholesalers buy beer, wine and spirits from manufacturers and sell these products to pubs, bars, supermarkets and other liquor retailers. The industry also includes the wholesale operations of alcohol product manufacturers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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