Industry Analysis & Industry Trends
The strengthening dollar has made imported spirits relatively cheaper for Canadians, which has led to a decrease in revenue for the domestic Distilleries industry. Over the past five years, IBISWorld anticipates that the value of the dollar has increased relative to the currencies of the country's major trading partners. Adding to the industry's woes, per capita alcohol consumption is on track to decrease about 0.4% per year on average over the same period. Thus, revenue is expected to fall at an annualized rate of 1.3% over the five years to 2014, including a 3.2% decline in 2014, to total $933.9 million.
Despite a contracting market for domestic brews, the Distilleries industry has seen an influx of new businesses... purchase to read more
Industry Report - Industry Investment Chapter
The majority of the production process is mechanized, and little labour is needed; the average company only employs 29 people per establishment. Like all large-scale manufacturing, liquor production requires substantial amounts of machinery. Stills, filtration systems, bottling lines and other machinery are bought when a plant is first established, but require continuous maintenance and repair. The specific amount of capital spending varies each year and is dependent on factors like the size and location of the plant. On average, however, companies in this industry spend $0.70 on capital for every dollar they spend on labour... purchase to read more