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), Suntory (Japan), and United Spirits (India).
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 20 companies account for over 90% of industry revenue.
Products, Operations & Technology
Major products include whiskey, which accounts for about 35% of liquor sales in the US, according to the Distilled Spirits Council of the US, and vodka (25%). Other products include cordials, rum, and tequila, each of which accounts for about 10% of sales, as well as brandy, cognac, gin, and pre-mixed cocktails. Some distillers generate additional revenue by selling dried grains for animal feed.