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Consumers the Losers in Mega-Merger

November 22, 2017

The middle tier, distribution, is a license to print money. Producers and retailers carry all the risk: producers risk bad harvests or other production problems; retailers risk economic downturns and every other hazard of pleasing finicky consumers. Distributors get about one-third of the money you spend on every bottle of wine, whiskey and beer, and they do very little for it. They pick up boxes at one place and drop them off at another place. In most cases they make more money for this than the winery gets for making the wine, or the retailer gets for selling