Washington, USA- The alcoholic beverage industry in the United States has been severely shaken after four companies declared bankruptcy within a short period.
This is a development that reflects a growing crisis threatening further stagnation
within one of the traditional sectors of the US market.
According to US reports, struggling companies have filed for bankruptcy protection
due to declining sales and rising production and transportation costs.
This is in addition to increasing financial pressures resulting from inflation and rising interest rates.
Causes of the alcohol crisis
Industry experts attribute this wave to a range of factors,
most notably changing consumption patterns, especially among young people.
With the growing trend towards reducing alcohol consumption
or replacing it with less harmful products,
In addition to stricter laws and taxes in a number of states.
Increased competition from non-alcoholic beverage and healthier alternatives
also contributed to reducing market share.
This applies to some brands, especially small and medium-sized enterprises.
Warnings of a widening circle of bankruptcies
Financial institutions have warned that the bankruptcy of these companies could be
the start of a wider wave, given the continued economic pressures.
The difficulty in obtaining new funding threatens to cause other companies
to exit the market in the coming period.
In contrast, some major companies have begun restructuring their businesses
and expanding into the production of low- or alcohol-free beverages.
This is an attempt to adapt to new shifts in consumer behavior and avoid a bankruptcy scenario.
