DISTRIBUTION ELOCUTION WRITTEN BY STEVEN SEIM
In February at the annual ACSA conference there were several panels meant to highlight helpful information for distilleries on dealing with distribution. Artisan Spirit was there to sift through it all and report some of the most important advice. This article is meant to guide and prepare you for meeting with and deciding on the right distributor which can help you grow at the pace you desire, and to help you make the most of a partnership which should benefit you both.
FIND YOUR MATCH One of the big questions on the table is: “Which distributor do
want to drink local, even sometimes unconsciously, and even
we work with?” In order to get the scoop on who works best with
if a product is actually lesser quality. Distributors may look to
retailers and restaurants, distilleries should talk to them directly.
see if you’ve made headway in the easier home market before
If you hear several retailers mention the same distributor, they’re
deciding on a partnership. Moreover, distilleries should know
probably worth approaching. Especially locally, finding out who
that a successful home turf sales strategy may be harder to
is good at getting their stuff on shelves and who everyone likes
execute in other cities. When showing a distributor plans for
working with will give you a leg up.
growing in other markets, make sure you’ve factored in more
When communicating with potential distributors, make sure you have a marketing plan ready. Presenting your goals,
than what worked locally. Perhaps most important is making sure you get along with the
strategies, and production plans will help any distributor give
people who will be distributing your product. Most successful
you accurate information about how they can help achieve those
distilleries have recognized that they are in the relationship
goals. Inventory forecasting is also important for the distributor
business. If your contacts aren’t people you are friendly with, a
to know that they won’t get stuck with too much product, or not
successful partnership will be harder. Sales reps and managers
enough. One panelist said it is helpful for a distillery to plan
that like you might push your brand more. Think of it like
months in advance when interviewing distributors (like getting
this: you are struggling for mindshare with the employees of
your UPC code certified). Understanding retail tiers, product
a distributor just like you are struggling for mindshare in the
positioning and your expected pricing will make conversations
consumer market.
easier. Finally, your knowledge of local laws is crucial. Knowing what distributors are allowed to do for you can ensure them that working with your distillery won’t be a waste of their time.
WORK ON YOUR RELATIONSHIP
One of the biggest advantages a distillery has is selling in their
A productive ongoing relationship with your chosen distributor
home city. It was repeated across most panels that consumers
will help grow both businesses. So what did the representatives
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