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 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 dollar expected to continue appreciating in the five years to 2014, consumers have increasingly shifted toward comparatively cheaper imports. Furthermore, Canadians have been drinking less spirits overall; in fact, per capita alcohol consumption is on track to decline at an average annual rate of 0.4% over the five years to 2014. As a result, revenue for the Distilleries industry is expected to fall at an annualized rate of 1.3% over the same period. This includes an estimated 3.2% decrease to $933.9 million in 2014... purchase to read more