The 7 largest alcohol distributors in the world control the majority of alcohol sales around the world, with six of the companies generating revenue in excess of $15 billion per year. The largest alcohol distributors are also the largest producers of alcohol, as their size and vast brand portfolios allow them to keep their own distribution networks.
The alcohol market is estimated to be worth around $81.3 billion. Every year, people from all around the globe consume around 28.3 billion cases of wine (a case of wine or liquor usually contains 12 bottles of 750 ml each, while a case of beer has 24 bottles or cans). According to a report by IWSR Forecast, by 2021, global alcohol consumption will reach 29.3 billion cases. In this way, the market will register a compound annual growth rate of around 0.6% until 2021, which indicates an expected leveling off of growth, as a CAGR of 0.6% was also seen between 2010 and 2015.
Among alcohol categories, beer is an absolute leader, amassing around three-quarters of global alcohol consumption and the IWSR expects it to register the highest increase through 2021, driven by strong demand from Asian markets, like China, India and Vietnam. Among spirits, whiskey is expected to experience the highest growth, although it will be offset by declines in the sales of vodka and brandy. Overall, the spirits market is projected to grow at a CAGR of 0.3%. On the other hand, wine will register a decline, which won’t be helped by growth in sparkling wine, mixed drinks, and cider segments.
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In terms of regional growth, the largest alcohol distributors and their smaller peers will most likely focus on emerging markets, mainly China, which a couple of years ago faced a government crackdown related to anti-extravagance, which reduced the demand for premium brands of alcohol. China has recently been showing recovery in these categories as restaurants in the country are purchasing more imported brands. Africa is another region that is expected to drive an increase in demand, while North America is projected to see increased sales of wine and spirits.
Even though beer remains the preferred drink among Americans, its consumption has declined slightly. More expensive craft beer has been capturing some market share from the mainstream domestic beer brands, but the beer category has been losing territory to spirits. In this way, we should expect that the 7 largest alcohol distributors in the world will focus primarily on the North American spirit market. Europe will continue to see sales of alcohol beverages decline, as Germany, Britain and France have seen steep drops in consumption over the last two decades.
Having said that, let’s take a look at the 7 largest alcohol distributors in the world based on their 2016 sales. As stated earlier, the largest alcohol distributors are also among the 10 largest alcohol companies in the world, as they represent large conglomerates with offices and production facilities around the globe.
7. Carlsberg
Sales: $9.7 Billion
The Carlsberg Group is based in Copenhagen, Denmark and is a global beer brewing company with operations mainly in Western Europe, Eastern Europe, and Asia. Its portfolio of brands includes its flagship Carlsberg brand, Russian best-selling beer brand Baltika, Tuborg, Kronenbourg, and many other smaller local brands.
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6. Pernod Ricard
Sales: $9.9 Billion
French distilled beverages manufacturer Pernod Ricard is another one of the 7 largest alcohol distributors in the world. The company is known for its liqueurs, Pernod Anise and Ricard Pastis, which are usually referred to by the names of Pernod and Ricard. The predecessor to Pernod Ricard had been a large manufacturer of absinthe until the drink was banned in France. Currently, Pernod Anise is sometimes used as a substitute for absinthe.
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5. Asahi Group Holdings
Sales: $15.3 Billion
Asahi is another large beer and soft drink company, headquartered in Tokyo and Japan. It is one of the largest distributors of alcohol due to its large market share in the beer industry. Last year, Asahi Group Holdings acquired SABMiller’s business in Poland, the Czech Republic, Slovakia, Hungary, and Romania following Anheuser Busch Inbev NV (ADR) (NYSE:BUD)’s acquisition of SABMiller. Later that year, Asahi bought Anheuser Busch Inbev NV (ADR) (NYSE:BUD)’s Grolsch Brewery, Peroni Brewery and Meantime Brewery.
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4. Diageo plc (ADR) (NYSE:DEO)
Sales: $16.1 Billion
Diageo plc (ADR) (NYSE:DEO) is the largest producer of premium liquors in Europe and its Guinness beer is one of the best selling beer brands in Europe. Other well-known brands in Diageo plc (ADR) (NYSE:DEO)’s portfolio are Johnnie Walker, Smirnoff, Baileys, Yeni Raki, Captain Morgan, and Tanqueray.
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3. Kirin Holdings
Sales: $18.2 Billion
Kirin Company is a Japanese integrated beverages company that also has operations in logistics, engineering, restaurants, real estate, and agrobusiness. Its alcohol business has a presence in many countries. Kirin owns the Four Roses Distillery in the U.S, which manufactures bourbon, Kirin Europe, Kirin Brewery of America, San Miguel Brewery in the Philippines, and Lion Nathan Limited (Australia/New Zealand).
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2. Heineken Holding
Sales: $22.8 Billion
Heineken International is a Dutch brewing company that is known for its flagship beer brand Heineken. However, Heineken International also owns 165 breweries in more than 70 countries and produces 250 international, regional, local, and specialty beers. Among its well-known beer brand names are Amstel, Dos Equis XX, Cruzcampo, Starbrno, Tiger Beer, and Newcastle Brown Ale. Heineken International has subsidiaries that are responsible for the import and distribution of its beers, which makes it one of the 7 largest alcohol distributors in the world.
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1. Anheuser Busch Inbev NV (ADR) (NYSE:BUD)
Sales: $45.52 Billion
Anheuser Busch Inbev NV (ADR) (NYSE:BUD) tops the list of the largest alcohol distributors in the world, and also ranks as the largest alcohol producer. The company generates revenue mostly from the sale of beer, but it also produces non-beer products (like carbonated soft-drinks) and also serves as a third-party producer for other companies. Anheuser Busch Inbev NV (ADR) (NYSE:BUD) has a very large brand portfolio, which includes renowned names like Budweiser, Stella Artois, and Beck’s.
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These are the 7 largest alcohol distributors in the world. It’s not surprising that most of the companies on this list are engaged in the beer industry, since the beer market is the largest among all alcoholic drinks. One company that is missing from the list is SABMiller, because it was acquired by Anheuser Busch Inbev NV (ADR) (NYSE:BUD), but prior to that acquisition it was the second-largest alcohol company in the world.
Disclosure: None
