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Glossary

ABC. Alcohol Beverage Control or other name of a state agency that is responsible for regulating the production, sales and distribution of alcoholic beverages.

ABV. Percent alcohol measured by volume.

ABW. Percent alcohol measured by weight.

ATF. The former Alcohol, Tobacco and Firearms. Now the Alcohol and Tobacco Tax and Trade Bureau (TTB).

All-other House. A distributor that is not aligned with a major brand brewery (such as A-B, Coors or Miller). Usually carries many regional, craft and import beers.

At-rest Law. State law that mandates beer be shipped and stored at a licensed wholesaler for a minimum amount of time prior to delivery to a retailer. Initiated to eliminate brewers shipping directly to retailers while utilizing the wholesaler for billing function only.

Bill Backs. Items previously agreed to by the brewer, which are billable to the brewer by the distributor. Often includes donations, samples, incentives, co-op pricing discounts, promotional discounts, etc.

Brand Manager. Distributor employee who is responsible for a particular brand or brewery.

Broker. Agent who arranges distribution for a brewery - Often is also responsible for sales and marketing function.

CFR. Code of Federal Regulations. Book of federal laws. Volume 27 (27 CFR) covers alcoholic beverages.

Call Frequency. The frequency in which a distributor visits a retail account (once a week, etc.)

Case Equivalent. Unit of measure equal to a case of beer or 24 12-ounce bottles (2.25 gallons).

Control state. State where alcoholic beverages are sold by the state rather than by wholesalers. Places where this is applicable to beer include Montgomery County, Maryland, and in Utah for beer greater than 3.2 percent by weight.

Cornelius keg. A five-gallon keg most commonly used for dispensing soda syrup concentrate. Used as a finished beer package generally only by brewpubs or homebrewers. Cornelius keg tap fittings may differ between two types: ball lock and pin lock.

Cost of goods. To a food and beverage buyer at a hotel: Cost of item as a percent of total price charged to consumer. For example, a food and beverage buyer will describe a bottle of beer that cost $1 and is sold for $4 as having a 25 percent cost of goods.

Counter card. Free-standing card advertising a brand or promotion, placed on a counter near the cash register at an off-premises account, typically measuring 8 x 11 or 8 x 14 inches.

Cross merchandise. Display of beer together with another, nonbeer product (i.e. potato chips, charcoal). See also: cross promotion.

Cross promotion. Promotion of a brand together with another, nonbeer product (i.e. potato chips, charcoal). See also: cross merchandise.

DI. Days inventory. The number of days worth of inventory available in a distributor's warehouse based on its average sales.

Depletion allowance. Sales incentive program based on depletions. Program crediting distributors by a set amount (such a $1 per case) for depletions during a set period of time.

Depletion report. Report generated by distributors on a monthly basis that tracks sales and inventory depletions. Report generally contains the following: beginning inventory, purchases, ending inventory, and depletions.

Depletions. Total number of cases sold by a distributor to retailers. Reported depletions excludes product loss due to breakage, products given away as samples, or any other non-income generating movement of product.

Distributor incentive. Incentive provided to distributor in return for achieving predetermined sales goals.

Dock sales. Sales of beer directly from a brewery to a retailer, allowed only in certain states.

Door talker. Promotional signage, mounted on door of cooler or refrigerator, often used by retailers of beer, wine, and other alcoholic beverages. Same as Static Sticker

Drop charge. Fee charged by trucking company or trucker for each stop to unload.

Dry shelf. Non-refrigerated shelf.

End cap. Display of beer, usually stacked by the case, at end of retail aisle. Generally, highly valued retail placement. Syn: end display.

End display. Display of beer, usually stsacked by the case, at end of retail aisle. Generally, highly valued retail placement. Syn: end cap.

End-facing. Placement of a six-pack with the end of the holder facing out or placed shortways on the shelf, i.e. two bottles facing out. See also: side-facing.

European Sankey keg, European Sankey tavern head. Straight-sided keg with ball-type fitting or tavern head different from standard American-style Sankey kegs.

FET. U.S. Federal Excise Tax. Current FET is $18 per barrel for large brewers. Domestic small brewers (defined as selling less than 2 million barrels) pay $7 per barrel FET on their first 60,000 barrels and $18 per barrel for beer sold beyond that amount. Brewers outside the United States pay the $18 per barrel rate regardless of the size of their company.

FOB. Freight-on-board, i.e., the price with shipping charges not included.

Flagship brand. Largest-quantity-selling brand.

Floorstack. Cases stacked on a retailer's floor, numbering anywhere between 5 to 60 or more cases.

Franchise state. State in which a franchise law in place that specifically protects malt beverage wholesalers from brewers arbitrarily terminating a contract or working relationship. Franchise laws mandate that the brewer have cause for terminating and that it allows for reasonable time for the wholesaler to rectify a problem before pulling its brand(s) from the wholesaler. Violation of franchise laws may involve penalties for damages.

Glycol system. 1. Propylene glycol is a refrigerant liquid, whose freezing point is well below 0 degree centigrade. 2. Glycol is also used to chill bright beer vessels and yeast propagators.

Golden Gate keg, Golden Gate tavern head. Older style of keg, generally considered outdated, requiring two-piece tapping apparatus. Used by a few microbreweries and brewpubs, and recently finding favor among breweries producing a variation of cask-conditioned ale.

Gross profit. Absolute dollar profit; difference of sales price and total laid-in cost.

Growler. Historic term for a pail used to carry beer from the tavern to the home. Currently, name for half-gallon glass jug commonly used by brewpubs and microbreweries for selling draft beer "to go."

Guinness gas. Mixed gas consisting of 75 percent nitrogen and 25 percent CO2.

Guinness tap. Tap specifically designed for dispensing beers using nitrogen mixed gas. Found in taverns selling draft Guinness Stout. Syn: control flow tap, nitrogen tap.

Hand pump. A device for dispensing draft beer using a pump operated by hand. The use of a hand pump allows cask-conditioned beer to be served without the use of pressurized CO2.

Hand sell. Face-to-face selling. This can include a brewery representative talking with a wholesaler, or a brewery or wholesaler representative promoting a brand by personally visiting retailers and/or talking directly to the consumer.

Hand truck. Two-wheeled, upright cart used to transport beer cases or kegs.

Hoff-Stevens keg, Hoff-Stevens tap. Keg style requiring two-prong tap.

Jockey box. A beverage-dispensing system, usually beer, consisting of a picnic cooler with an internal cooling coil and one or more externally mounted taps. The cooler is filled with ice, and the beverage is chilled as it passes through the coil to the tap. This device is useful because it is portable, and it allows beverages to be served cold without refrigeration.

Julian date. A number between 1 and 365 referring to a specific date of the year for either the packing date or expiration date of the beer.

Kick-off meeting. Meeting usually held at wholesaler's office during which the supplier (brewer) discusses a new product, incentive program, or promotion with the wholesaler's sales team.

Laid-in cost. Sum total of cost of beer to distributor, including (1) FOB price at brewery dock, (2) freight charge, (3) tax, and if applicable, (4) state redemption charges.

Less than load (LTD) shipping. Long haul shipping of less than a full truckload. More expensive method of shipping (about twice as much, per unit) compared to a full truckload.

Line extension. A new brand introduced by a brewery that represents a variation of differently flavored version of one of its existing brands.

Major brand house. Beer distributor whose largest supplier is one of the top three major U.S. domestic brewers.

Major brewer. Large brewery.

Margin. Profit percentage based on the sales price. For example, a wholesaler will describe a case costing $15 that sells for $20 as having 25 percent margin. Sometimes confused with markup. See also: cost of goods, markup.

Markup. Profit based on cost. For example, a retailer will describe a case costing $15, which sells for $20, as having a 33 percent markup. Sometimes confused with margin. See also: cost of goods, margin.

Master distributor. Distributor that buys beer from a brewery and then resells it to one or more licensed wholesalers who then sell to retailers outside the master distributor's territory.

Menu card. Printed with brewery or brewpub logo and list of beers or other beverages sold by a bar, restaurant, or brewpub, designed to be inserted into clear plastic stand to be placed on tables or bars.

Merchandising (retail). The combination of cooler placement, stock rotation, and placement of point-of-purchase materials.

Mind share. Degree of focus upon or attention devoted to a beer or group of beers by a distributor.

Mother carton. Cardboard beer case box. Size and dimensions must correspond with exact bottle style and whether or not beer is packaged with six-pack carriers.

N/A. Non-alcoholic brew. Cereal beverage produced using beer ingredients, and formulated to taste similar to beer, but containing less than 1 percent alcohol by volume.

Nitrogen dispense. Dispensing of beer using a blend of 75 percent nitrogen and 25 percent CO2. See also: Guinness gas.

Off-premises account. A grocery store, liquor store, package store or other retail establishment selling packaged beer.

On-premises account. A bar, tavern, restaurant, or other establishment that sells draft or packaged beer for on-site consumption.

POP. Point-of-purchase materials.

POS. Point-of-sale materials.

PTC. Price to consumer.

PTR. Price to retailer.

Pallet, pallet of beer. Usually shrink-wrapped stack of cases of beer on a wooden pallet. A 10-block pallet refers to layers of 10 cases stacked 6 cases high (60 cases). Alternately, some pallets may be stacked with 70 cases (10 x 7), and some with 56 (8 x 7).

Placement. Sale of beer to a new account.

Point-of-purchase. Refers to promotional items such as cards, posters, coasters, stickers, etc. placed in a retail environment. Syn: point-of-sale.

Point-of-sale. Refers to promotional items such as cards, posters, coasters, stickers, etc. placed in a retail environment. Syn: point-of-purchase.

Post-down, post-off. Temporary price reduction for one or more brands in which a posted price, paid by the reailer, is "posted down" or "posted off."

Price card. A cardboard point-of-sale item featuring the brewery's (or brand's) logo and a large white space for writing in the price or sale price by retailer.

Price posting. Notification to the state liquor control agency, in writing, of the selling price to the wholesaler and/or to the retailer as required by some states. Price posting regulations also require advance notification of price changes. Each state has different requirements.

Price sheet. Sheet listing the brands in a distributor's portfolio and the corresponding prices.

Primary source law. Law that mandates a brewer ship to a licensed wholesaler.

Promotion schedule. Schedule for promotional events and/or discounting for a brewery's brands.

Ride-along, ride-with, rider. The activity of a brewery representative spending a day with a distributor's salesperson on the daily delivery route in order to visit accounts and assist in promoting the brewery's brands directly to retailers.

Route book. The distributor's call list of customers, organized by days and weeks. Some accounts will require one to three visits per week, other accounts only one or two visits per month.

SKU. Shelf- or space-keeping unit. Each different package of the same brand constitutes a separate SKU; i.e., one beer brand sold in both six-packs and twelve-packs represents two different SKUs.

Sales program. 1. An individual effort aimed at adding new accounts or increasing sales in existing accounts. 2. A focus on a new product introduction 3. A calendar of all such efforts organized by the brewery or by the distributor for increasing placement of both existing and newly launched brands.

Sales support. Generally promotional items such as table tents, posters, coasters, cards, or signage. Sometimes may include physical representation by a brewery representative, or incentives in the form of cash or awards (such as a trip to the Super Bowl).

Sample allowance. Allowance for distributor to give away samples of a new brand or line extension. Usually co-opped with (co-sponsored) by brewer.

Set. Grouping of beer brands or chart of facing by SKU together in a cooler or retail display. Sets are usually arranged by category, such as major domestics, imports, and specialty or craft. Usually very detailed- often dictates exact placement as determined by location of each SKU.

Shelf placement. Specific location of beer on retailer's shelf.

Shelf strip. Promotional item designed to fit exactly within the width of a standard grocery, liquor store, or package store shelf, with a lip on the top and bottom, and space for the retailer to add information such as the price or "on sale" notice. See also: Shelf talker.

Shelf talker. Shelf-mounted promotional signage often used by retailers of beer, wine, and other alcoholic beverages. Usually measuring about 2 x 2 inches and designed to hang down from shelf. See also: Shelf strips.

Side-facing. Placing of six-pack holder faced side- or longways on the display shelf, i.e., three bottles facing out. See also: end-facing.

Skirt dislay. Display of beer, usually one case high, along front of beer set on floor. Placed along the cooler "skirt."

Slotting fee. Fee paid to retailer in exchange for shelf space. Currently illegal in the alcohol beverage industry, although permitted in the retail food industry.

Static stickers. Non-adhesive point-of-sale item that sticks (or clings) to window of a beer set.

Table tent. Freestanding tabletop display, usually made of folded card stock, used in restaurants and bars to promote food and beverages.

Territorial agreement. Written agreement, required by the State Liquor Control Agency in some states, defining territory in which an assigned distributor can sell a beer brand. In such agreements the brewer typically grants the wholesaler exclusive rights to sell a brand or family of brands in the defined territory.

Three-tier system. A beer distribution system mandated in some states following Prohibition. It stipulates that beer must go from a brewery to a wholesaler before being distributed to retailer.

Tied-house law. Law preventing a brewery form owning one or more taverns. Tied-house laws are established in the United States in 1933 after the repeal of Prohibition. Specific provisions for restrictions vary form state to state.

Wall tacker. Poster.

Well position. On retailer's shelf: Lowest shelf in an open cold set.

Wine house, wine and spirits house. A distributor whose primary business is sales of wine or wine and spirits.

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