Thanks for the great article - it is indeed very helpful. One question though - and forgive me if it is a stupid one - how exactly can producers target their advertisement if they are not allowed to sell directly to consumers? As you have pointed out above, this applies to the US which is not the centre of the world, but could it be a limitation in other markets and specifically India/China/Africa? Thanks a lot in advance for your time.
Great article. One question, out of curiosity, some of the competitive advantages mentioned seem to resonate more with alcoholic drinks (aging, origin, branding…). Do you know if they are somehow applicable to non-alcoholic drinks too? This seems not a minor issue, if true, when transitioning to a more non-alcoholic drinks product mix, the moat is degrading.
I think you might be overstating the social aspect, and understating the potential effect of glp-1 drugs.
In the US, the top 10% of the population averages more than 10 drinks a day. They are responsible for more than half of all alcohol consumed. These aren’t social drinkers. Growth comes from adding to this group, not selling slightly more premium tequila. The alcohol industry has a lot of tricks to disguise this fact.
This group is also sick and fat and diabetic, and therefore most effected by glp-1 drugs.
Thanks for the great article - it is indeed very helpful. One question though - and forgive me if it is a stupid one - how exactly can producers target their advertisement if they are not allowed to sell directly to consumers? As you have pointed out above, this applies to the US which is not the centre of the world, but could it be a limitation in other markets and specifically India/China/Africa? Thanks a lot in advance for your time.
Great work Leandro. Very interesting read.
Great article. One question, out of curiosity, some of the competitive advantages mentioned seem to resonate more with alcoholic drinks (aging, origin, branding…). Do you know if they are somehow applicable to non-alcoholic drinks too? This seems not a minor issue, if true, when transitioning to a more non-alcoholic drinks product mix, the moat is degrading.
Possibly of interest: https://valuesque.com/2020/01/25/diageos-liquor-business-the-maturing-inventory-financial-analysis-problem/
I think you might be overstating the social aspect, and understating the potential effect of glp-1 drugs.
In the US, the top 10% of the population averages more than 10 drinks a day. They are responsible for more than half of all alcohol consumed. These aren’t social drinkers. Growth comes from adding to this group, not selling slightly more premium tequila. The alcohol industry has a lot of tricks to disguise this fact.
This group is also sick and fat and diabetic, and therefore most effected by glp-1 drugs.