Working with...or in spite of.// Wine and Spirit Distributors in the US
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Tightly focused and very practical presentation on what wine and spirit suppliers and brands can expect from U.S.distributors and how to work successfully with them.
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Working with...or in spite of.// Wine and Spirit Distributors in the US
- 1. 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
- 2. Who Are They U.S. Drinks Conference 2015
- 3. U.S. Drinks Conference 2015 Working with Distributors • What do Distributors Want • How to Find/Connect with Distributors • Managing the Relationship • Resources
- 4. U.S. Drinks Conference 2015 What Distributors Want Money Margin Manpower Marketing Media
- 5. U.S. Drinks Conference 2015 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
- 6. U.S. Drinks Conference 2015 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
- 7. U.S. Drinks Conference 2015 Manpower • Feet on the street: Brand Ambassadors, Market Managers…can be deal maker or breaker. • In-country brand management
- 8. U.S. Drinks Conference 2015 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”
- 9. 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
- 10. U.S. Drinks Conference 2015 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
- 11. U.S. Drinks Conference 2015 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
- 12. U.S. Drinks Conference 2015 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
- 13. U.S. Drinks Conference 2015 KISS Keep the brand proposition simple No more than 2-3 statements
- 14. U.S. Drinks Conference 2015 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
- 15. Involved vs. Committed U.S. Drinks Conference 2014 The chicken is involved, but the pig is committed
- 16. U.S. Drinks Conference 2015 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
- 17. U.S. Drinks Conference 2015 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?
- 18. Sources for Information U.S. Drinks Conference 2015 Trade Publications like New York Beverage Media “Around Town”
- 19. What You Want Distributors to call you U.S. Drinks Conference 2015 But how do you make that happen?
- 20. 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.
- 21. U.S. Drinks Conference 2015 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.
- 22. U.S. Drinks Conference 2015 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
- 23. U.S. Drinks Conference 2015 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
- 24. 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 U.S. Drinks Conference 2015
- 25. Resources Steve Raye President Bevology Inc. 401 Park Ave. South, 9th Floor New York, NY 10016 212-613-2713 steve@bevologyinc.com U.S. Drinks Conference 2015
Editor's Notes
- Shout out thank you to Bruce Levine of Charmer Sunbelt
- Money: enough banked to not just for launch, but for years 2-3-4-5. ..you can not build the brand by using current revenues. Make sure the budget is comprehensive…did you allow for shipping and storage of POS, sampling programs Payment terms…better than they provide to their customers Focus: Do limited number of things extremely well…limit markets to just one or two …remember goal is to be perceived as hot. Don’t think launch, think test. You’ll get half of it wrong at the beginning, key will be measuring what you’re doing, figure out what’s working and why, and then keep improving and measuring it.
- Margin: Recco no less than 25% after all is said and done, 40% front line will get their attention, build it in to price structure for that specific state, in the format that distributor uses. How to get that…be creative.
- Feet on the street…brand ambassador(s), market managers…people whom you pay to be 100% focused on your business and “prime the pump”. This is becoming a deal maker…or deal breaker.
- Your plan should include a rock solid strategy for getting consumer awareness and trial…advertising in print mags, newspapers, local radio, online ads on sites that support on premise accounts (Thrilllist, Urban Daddy) Social media: It’s mandatory…and remember the goal is not just to amass a large base of fans/followers…it’s to engage them and empower them to become your advocates and ambassadors. (whole presentation
- They don’t want to take risks with you, they ‘re looking for you to reduce their perception of risk on their part Tools: celebrity, a compelling marketing plan, brand ambassador assets, existing customer orders (one guy we’re working with has a mandatory authorization for Outback Steakhouse)Pickup location (and impact on freight costs). If you’re trying to sell in CA with a pickup location on the east Coast, it’s not going to workBlocking and Tackling:. Sufficient inventory: seems simple but it can kill a brand to be out off stock at launch/roll out or time of maximum attention that you’ve set up. Example: Blue Chair Bay Rum oos for a month in the summer. don’t build in inefficiencies. Chances are, if you’re going to NY first (and think long and hard about that)…don’t make CA #2. You’ll burn up your people’s time in unproductive travel. Smarter to do NY, NJ, CT, MA where one guy can easily get to all to all the markets
- Quality of juice is a given, when asked what is the difference that makes a difference for your brand, Don’t start with a better liquid. At the current competitive quality levels you can’t win on quality alone. It’s necessary, but not sufficient. Generally won’t be a Point of Difference that Makes a Difference Packaging: Not just bottle/label/cap and all the quality cues inherent in your choices there. But also the “trade packaging: reshipper, quality of inserts. Think of the reshipper as a display…what do you want to communicate to the consumer reshipper…Pisco Porton unfamiliar category, designed reshipper to also show off end use-the drinks that can be made from it Easy handling (SCC on bottom). should allow for Repeat key info on multiple sides. # bottles, size of bottle, UPC code, vintage, varietal…don’t make anyone work to figure out what’s in the box. They won’t Make sure when cut the reshipper is still your second most important sales tool (after the bottle itself) Use the back label, gift cartons, fact cards etc. to tell the three most important facts
- Get independent ratings: Helps convince the distributor you do indeed have a good product Also communicates to consumer as well… Ratings from valued contests such as BTI, SFWSC, Ultimate Beverage, Also publications will review your products Wine Spectator, Wine Enthusiast, Sante. ON premise,off premise, online and off line liquor.com Influencers: A good review from Steve Olsen, Robert Plotkin, Dale DeGroff Also credible bloggers such as Alder Yarrow of Vinography Numbers work. Even it the rating is not from one of the big Keep the brand proposition simple. No more than 2-3 at the max, key statements that you can repeat in your sleep.