ABSTRACT

In most countries, the major intermediary between producer and retailer is the wholesaler, a sector also marked by rising concentration in most DMEs. In much of the developing world, no strong nationwide wholesaling network exists, and large producers often distribute their products directly to retailers. While specific data on alcohol wholesaling are fragmentary in most countries, an indication of its structure can be gleaned. Stemming from their massive merchandising turnover, these retailing giants can and do underprice competitors with their own brand labels. Basically, there are four types of alcohol retail outlets, each with its own specificities, and each varying from country to country: multiple retailers; exclusive alcohol outlets; duty-free shops; and social retail outlets. A recent innovation is the emergence of large private owned retailers, often subsidiaries of conglomerates, selling only alcohol. Restaurants, pubs, cafes and other social retail outlets remain small scale and labour intensive, notwithstanding the rise in concentration of pubs and restaurant chains in certain countries.