Exclusive extracts from this 110-page-long report:
- What is the business?
The alcoholic drink industry is highly fragmented, with countless local and international brands of wine, beer and spirits, and huge differences in drinking patterns across the globe, depending on local incomes, habits and cultures. More high-end spirits are drunk in mature markets than emerging markets and this is mainly attributable to gaps in income levels. Alcoholic beverage consumption also varies according to region: Asian consumers prefer spirits, while African consumers are more likely to choose beer. […]
- What are the main markets?
Alcoholic beverage supply and demand patterns strongly vary by region. Although wine production remains largely local because of the importance of appellations, global demand has turned countries such as France, Italy, Chile and the US into major wine exporters. Likewise, the spirits segment includes a myriad of mostly local brands, but demand is balanced between local and international beverages, particularly in emerging markets. Demand for beer is both local and global, with global players owning both international brands (Guinness, Heineken) and hundreds of local breweries. [...]
- Who are the key players?
Industry leaders tend to be either wine and spirits groups or beer giants. Leading players in the wine and spirits segments include Pernod Ricard, Diageo, Suntory, Brown-Forman or LVMH, which usually market their brands internationally. The beer industry is highly consolidated, with the top four brewers (Heineken, Carlsberg, and the soon-to-merge AB InBev and SABMiller) concentrating over half of global demand. [...]
- How intense is competition?
Competition in the alcoholic beverage industry has traditionally been moderate, as evidenced by the industry's high profit margins (average profitability of the top 10 players analysed in this report stood at over 20% in the past five years). However, rivalry is intensifying amid changing demand patterns and the emergence of new players. Key aspects of competition include innovation, marketing initiatives, supply chain efficiency, scale, as well as the capacity to provide products across all price points. [...]