Packaging

Obligations of beer wholesalers – What you should expect

posted Apr 22nd, 2014 by Stan Hieronymus

The relationship between a brewer and wholesaler is a very complex and regulated one. State alcohol regulatory agencies mandate certain responsibilities of both the wholesaler and brewer such as payment terms, incentives, price posting, contracts, etc. Every state has a different set of regulations. It is extremely important that you familiarize yourself with the rules and regulations pertaining to the brewery and wholesaler relationship before doing business in that state. Many states also have franchise laws that define very specifically the parameters for terminating a wholesaler. Even in non-franchise states, a brewer can not terminate a wholesaler without cause unless they are willing to compensate the wholesaler for relinquishing the brand.

Generally, it is safe to consider your wholesaler as a warehousing and delivery service, with perhaps some brand maintenance (merchandising, retail rotation, POS) provided. But distributors are not sales mechanisms and are not responsible for the marketing of your products. These functions are incumbent on the brewer to provide.

There are no strictly defined responsibilities of the beer wholesaler, but the following are considered standard obligations of both parties:

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Distribution 101 – The distribution handbook

posted Apr 22nd, 2014 by Tom McCormick

In the current distribution climate, where distributors have many more brands than they are able to adequately and properly attend to, it is imperative for the supplier to take steps to gain and retain mind-share within each distributor. Many times, the distributor needs information about a particularly brand, either by request of a sales rep or a retailer. The easier it is for the distributor to access the information, the more likely that information will be passed on as a sales tool to the person in need.

An easy and effective way to make sure your distributor has easy access to the information they need about your brand and company, is to provide a “Distributor Handbook”. This is typically in a spiral bound binder so that pages can easily be taken out to photocopy. Managers and sales reps should each be supplied with a copy. Often, it is a good idea to also provide a copy to key internal management such as the inventory and warehouse manger, etc.

Contents should include:

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Distribution 101 – A short course in distribution basics

posted Apr 22nd, 2014 by Tom McCormick

Distribution is one of the most important, yet commonly overlooked components in the operation and success of a craft brewery. A common misconception by those entering the craft beer industry is that once the beer is brewed, packaged, and shipped to a wholesaler, the brewer can essentially forget about it, leaving the sales, marketing and promotion to the wholesaler. This is not the case, since beer distributors function primarily as a delivery and warehousing mechanism. Most distributors do little, if any, selling and promotion of the beers in their portfolio, with the exception of the top selling two to three brands. Hence, it is imperative that the craft brewer know and understand the second tier of the business – distribution – in order to ensure their products are adequately marketed.

Self-distribution

One option brewers have available to ensure good distribution is to distribute themselves. This practice is not allowed in some states and is only practical within the local market area. Self-distribution should be limited to within about a one-hundred-mile radius of the brewery (depending on market density) in order to maintain cost efficiencies. The local market is both your most important market and also the easiest to gain recognition and retail placements because of the “local appeal.” Self-distribution has the advantage of personal, hands-on selling that beer distributors cannot give to most products, given the extent of their product portfolios. The disadvantages are the time and resources involved in running a company within a company. Distributing yourself requires a focus from management, additional personnel and equipment and an investment in time and money.

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Distribution – Our Top Distribution Resources and Info

posted Feb 27th, 2014 by pbrewadmin

Distribution is perhaps the most difficult and frustrating issue facing the specialty beer segment. In a highly regulated three tier system, access to market has grown exponentially more difficult for small brewers in just the last decade. Consolidation within the distribution tier has created far fewer and much larger wholesalers to choose from.

Understanding and awareness of these newly created dynamics is imperative to navigate a small brewer’s beers through the distribution and retail tiers and into the consumers hand. ProBrewer.com has created the Distribution Toolbox as a means to disseminate information, empowering the small brewer with the proper tools to achieve proper and successful distribution.

Questions on distribution?

Post your questions, find answers on ProBrewer’s moderated discussion boards.

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