Over the past decade the alcohol industry in the United States has grown at a rapid rate, with it the culmination of thousands of new breweries, distilleries and wineries as well as micro versions of these kinds of producers. However, there has been much “exclusionary behavior” by the two biggest brewers in the U.S. (Anheuser Busch InBev, Molson Coors) influencing gatekeeping behavior in essential distributors and retailers nationwide. Complicated state to state laws and federal regulations also inhibit smaller producers to grow, some enactments even dating back to the 1930s during the prohibition era. These two powerhouses account for 65% of the annual $250 billion dollar industry, and the U.S. treasury has laid out reforms to increase the markets fairness and equitability for emerging producers. With the increase in competition, consumers would save upwards of $400 million annually as well as having a greater variety in the market to choose from.
There was news that reported that consumption for the past two years has risen due to COVID-19. Many people have consumed more alcohol than usual because everyone has been at home.This industry has been growing a lot and will grow more.
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ReplyDeleteI didn't realize how much this market was monopolized. I wonder why the government chose to focus on it, are there a lot of smaller alcohol sellers that are struggling because of the grip hold that the big players have. Is this one of the most monopolized markets? Because I know that utilities is quit monopolized as well. Is the government focusing on these other highly monopolized markets or do they have a specific reason for targeting the alcohol market.
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