Industry Analysis & Industry Trends
The strengthening loonie 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 the value of the dollar to increase at a 1.2% annualized rate relative to the currencies of the country's major trading partners. Adding to industry woes, per capita alcohol consumption is on track to deflate about 0.8% per year on average over the same period. Thus, revenue is expected to fall at a 1.0% annualized five-year rate, including a 0.5% decline in 2013 to total an estimated $943.0 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 Analysis Chapter
Over the past five years, the strengthening dollar has resulted in competitive pricing for imported spirits, posing a challenge to the domestic Distilleries industry. With the Loonie expected to appreciate at a 1.2% annualized rate in the five years to 2013, consumers have increasingly substituted toward comparatively cheaper imports. Furthermore, Canadians have been drinking less spirits overall during this five-year period; per capita consumption is on track to decline 0.2% annually on average. As a result, revenue for the Distilleries industry is expected to fall at a 1.0% annualized rate over the same period... purchase to read more