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U.S. Beer Industry
Beer Distribution
The brewing industry is organized into a so-called "three-tier" distribution system: 1) brewers and importers, 2) wholesalers, and 3) retailers. Under this system, brewers and importers generally transport their beer to distribution warehouses, where they are temporarily stored and then reloaded onto distribution trucks and delivered via a routing system to individual retailers.
Beer Importers
Beer imports enter the United States through import companies which serve as main wholesalers selling the brands to wholesalers in local markets. The largest import brands are distributed locally by major beer wholesalers (i.e., those handling leading national or dominant regional beers) or, in some markets, by major wine and liquor wholesalers. Smaller import brands, unable to attract major distribution, are sold through smaller wholesalers.
Beer Wholesalers
Beer wholesalers serve as the middle tier in the three-tier system. They purchase beer from suppliers and importers and, in turn, sell beer to retailers. Although most beer wholesalers handle beer exclusively, a growing portion distribute food products and other beverages – primarily soft drinks, iced teas, and bottled waters – in conjunction with beer.
Most of the leading beer wholesalers in the country fall into one of two general categories: exclusive wholesalers or independent multi-brand wholesalers located in one or more regions. Exclusive wholesalers are usually partially owned by the brewer. For example, Anheuser-Busch distributes about 75% of its beer through independent wholesalers; the remainder is marketed through exclusive wholesalers. In recent years, multi-brand beer wholesalerships have been proliferating. This is due, in great part, to the consolidation that has marked the industry for nearly two decades. The number of wholesalers has declined from more than 5,000 nationwide in 1970 to fewer than 2,500 today. Unlike wine and spirits wholesalers, which are generally multi-state operators, beer wholesalers tend to operate within the boundaries of a single state. In the last few years, however, more wholesalers have been venturing outside their home states. These moves are being accelerated by the support of leading brewers and "super retailers.
Beer Retailers
Over the last decade or so, the off-premise retail segment for beer has changed dramatically. While traditional liquor stores and mom-and-pop operations continue to account for a significant share of off-premise beer sales, national retail chains – be they supermarkets, drug stores, membership clubs, or convenience stores – are increasingly accounting for more beer sales. Part of this trend is due to the American consumer’s search for convenience and the competitive pricing and brand selection these stores offer. Similarly, while independently owned taverns, restaurants, and night clubs account for a sizeable share of on-premise beer sales, national restaurant/hotel chains are growing in importance.
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