Working with Wine and Spirit Distributors in the US

How to grow your brand in partnership

with, in spite of or without distributor

support.

Presented by Steve Raye, President,

Bevology Inc.

U.S. Drinks Conference 2015

Who Are They



Working with Distributors

• What do Distributors Want

• How to Find/Connect with Distributors

• Managing the Relationship

• Resources


What Distributors Want

Money

Margin

Manpower

Marketing

Media


Money

• Think test, not launch

• Launch PLUS Years 2, 3 ,4

• Payment terms: better than they provide

their customers

• Focus: Commit to do a limited # of things

but do them very, very well


Margin

• It’s your primary tool

– Min. 25% after all incentives, 35 to even 40%

frontline to get their attention

– Build into price structure, their state/structure


Manpower

• Feet on the street: Brand Ambassadors,

Market Managers…can be deal maker or

breaker.

• In-country brand management


Marketing

• Signals that you’re not ready yet:

– One bottle you can’t leave behind

– Ad/POS mockups vs. printed materials

– “We haven’t thought about that” as a

response to a question

• Don’t schedule the meeting until all the

support items are in place.

• A fully fleshed out marketing plan

vetted/presented by someone with

industry “street cred”

Media

• Strategies for generating consumer

awareness and trial AND to tell the trade

what’s happening

– Consumer:

• Traditional print, newspaper, radio

• Online: Urban Daddy, Thrillist,

• Social media adv: Facebook, Google AdWords

– Trade media and PR

• Social Media: not an option, it’s a

requirement. Focus on engagement not just

building fan/followers


But Wait…There’s More!

• Recognize distributor wants to minimize

risk

• Tools: Celebrity endorsement, compelling

marketing plan/positioning, brand

ambassadors, existing customer orders

• Blocking and Tackling:

– Be smart picking markets and warehousing

– Sufficient Inventory

– Sell where your people already are


Oh Right…the Product

• Quality of juice is necessary but

not sufficient: POD that MAD

(Point of Difference that Makes a

Difference)

• Packaging: beyond the bottle &

label

– Reshipper is your second-to-last ad

– SCC code on bottom too

– Repeat key info on multiple sides

– Clear Vintage/Varietal info


Product Cont.

• Scores Matter: Get US-recognized ratings

and reviews

• Tasting Events and Competitions

• Publications:

– Trade: Beverage Media, Santé,

– Crossover: Wine Enthusiast, Wine Spectator,

Tasting Panel, Imbibe, Mutineer, In the Mix

• Influencers: Paul Pacult, Dale DeGroff et al.

• Bloggers/Sites: Vinography, DrinkWire


KISS

Keep the brand proposition simple No more

than 2-3 statements


What Distributors Want

• The right “Chemistry”

• Fills a void in the portfolio: distrib. or division.

• New brands they feel their expertise can

develop and grow

• Brands with a Point of Difference that Makes

a Difference

• Won’t antagonize current suppliers

• Strengthens their position within the trade

• To see your passion and commitment

Involved vs. Committed


The chicken is involved, but the pig is

committed


What Distributors Want (cont.)

• You to be prepared:

– Understand the industry, competitive situation by

market, what drives distrib.

– Marketing support materials in inventory.

– Product in inventory


What Distributors Want (cont.)

• You to have reasonable expectations

• Timing: for the first meeting, to get to yes,

launch, roll out

• Willingness to listen, shape plans,

• Understand the wholesaler’s business (don’t ask

for just Hoboken and Jersey City)

• Humility and realistic, arrogance is deadly

• Reasonable volume expectations

– 1,000 cs/month

– Container for first order

• What happens if you don’t?

Sources for Information


Trade Publications like New York Beverage Media “Around Town”

What You Want

Distributors to call you


But how do you make that happen?

What You Want

• Focus, focus, focus…like a laser

• Getting it in is the easy part,

getting it out is hard

• The only metric that matters:

repeat orders at retail.

• Be so successful in a limited number

of accounts that you can support,

that you create trade word of mouth

buzz as a hot brand.


How to Find a Distributor/Get a Meeting

• Get professional help

• 100101

• Understand the landscape/Think out of the box:

– Usually 2-3 majors per market

– Supplier alignment

– Franchise states

• Find sales dept. for lease/hire with existing network

• New craft divisions

• Recognize it’s a zero sum game…if they take you in,

that means they’ve got to cut focus on something else

• Read: Trade pubs, newsletters and search archives.


Okay, I’ve Got One. Now What?

• Don’t ask them to teach you. Find a guide

• Recruit/focus on a limited set of

salespeople dedicated to your brand

• Recognize you’re not a priority…you’ll

need do the heavy lifting yourself

– Product training programs for accounts,

– Sampling on and off premise

– Leverage Brand Ambassadors


Resources

• Key trade publications:

– Beverage Media Santé

– Tasting Panel Bar Business

– Bev. Dynamics Market Watch/Impact

• Key industry newsletters:

– Industry News Update (Buffalo Trace)

– Wine and Spirit Daily

– Shanken News Daily

– Wine Industry Insights

– WineBusiness.com

Resources

• WSWA

• NWBA

• Natl. Assn. of Beverage Importers

• Competitions/Awards/Events

– BTI/Beverage Testing Institute

– Ultimate Beverage Challenge

– San Francisco World Spirits Comp., San Francisco

International Wine Comp.

– New York International Spirits Competition


http://www.wswa.org/

http://www.nwba.org/

http://www.bevimporters.org/

http://www.tastings.com/trade.html

http://www.ultimate-beverage.com/

http://www.sfspiritscomp.com/

http://www.sfwinecomp.com/

http://www.sfwinecomp.com/

http://nyispiritscompetition.com/

Resources

Steve Raye

President

Bevology Inc.

401 Park Ave. South, 9th Floor

New York, NY 10016

212-613-2713

[email protected]


Working with Wine and Spirit Distributors in the US

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