This is an overview of the various distribution channels for food and beverage companies.

2. Cascadia Managing
Brands
Consultants specializing in the non-
alcoholic beverage industry; large and
small companies alike;
Brand managers
Outsourced VP Sales or VP Marketing
We implement the agreed upon strategy whether
we were involved as consultants or not

3. Need to Know
How many of you have purchased a
new, non alcoholic beverage for
the first time at Costco?
How many of you have purchased a
new, non alcoholic beverage for
the first time at a Drug Store?
How many of you have purchased a
new, non alcoholic beverage for
the first time at a deli?
Key Takeaway: Don’t Try to fit a
round peg into a square whole.
Plan your journey into the
channels carefully, especially how
it relates to effecting your
distribution network and/or your
pricing and brand positioning

4. The chain of businesses or
intermediaries through which a good or
service passes until it reaches the end
consumer. A distribution channel can
include wholesalers, retailers,
distributors and even the internet.
DEFINITION of
'Distribution Channel’

5. Channel Management
What is Channel Management?
Channel = types of stores
Management gets broken down into
two parts:
PLANNING
Managing
“Plan Your Work and Work Your Plan”
“Don’t Expect What You Don’t Inspect”
“Who’s Checking the Checker?”

6. Channel Strategy
Decide which channels you want to
conquer and in what order
Understand there are ramifications to
each strategy you need to understand
before moving forward

7. Examples of Distribution Channels

8. Types of Distribution
DSD
Direct Store
Door
Convenience
Broadliner
Food Service
Distributor
Club
Direct to
Retailer
Natural
Distributor
Specialty
Food
Distributor
General
Wholesaler
Warehouse

9. Know Your Channels
☞The answer is 261,061
☞What is the question?
☞How many stores are there in the
US that sell beverages?

10. Channel Breakdown
# US Stores
148,126
36,569
21,311
20,000
13,570
9,133
5,000
4,000
3,352
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
Convenience
Supermarkets
Dollar
Drug
Mass Merch
Natural/Specialty
Other
Club
Military

11. % of Non Alcoholic
Beverage Sales By Channel
*National Average, Regions Are Very Different; Plan Accordingly

12. Channel Margins
Manufacturer Gross Profit Target = 45%
45%-
55%
C-Store
25%-
35%
40%-
50%
Drug
45%-
50%
Club
11%-
13%
*6%-
8%
Major Natural Food and Gourmet Chains work on 40% - 44% Margin

13. Almost The End
This is not a difficult business. Do not
over think it;
Planning is critical;
If you don’t know something, ask for help;
Be entrepreneurial
Use the “rules” we discuss today as
guidelines, not absolutes!

14. The End &
Thank You
www.cascadiamanagingbrands.com
Bsipper@cascadiamanagingbrands.com
201.962.8622