Industry Analysis & Industry Trends
The Distilleries industry is currently at a crossroads. While hard liquor remains a very popular alcoholic beverage category among drinkers between the ages of 19 and 30, demand for domestically produced spirits is increasingly vulnerable to the effects of globalization. Imports represent a significant portion of consumers' demand for distilled spirits, but steady increases in imports over the past five years have come at the expense of domestic distillers. In the coming years, distilleries will likely continue to face similar challenges that plagued industry operators over the period to 2015, including flailing per capita alcohol consumption and significant competition from foreign alcoholic beverage manufacturers... purchase to read more
Industry Report - Starting a New Business Chapter
The difficulty of entering this industry varies depending on the target market for new entrants. Liquor production is costly and very capital intensive, and new producers should not purchase massive distilling equipment unless their planned output justifies the initial investment. Additionally, the long interval between the start of production and the final product being available means that cash flows are not established for some time. While some products can be distilled over shorter periods of time, some styles of aged liquor can take several years to mature before hitting retail shelves. Delayed revenue can deter prospective entrants with smaller cash reserves from entering the market.
However, distilleries with low output can be formed with minimum initial expenses... purchase to read more