Here I have to add the standard liability clause: I am not a lawyer, and that is not legal advice. The instructions should only be used here for informational purposes. However, I have checked hundreds of distribution contracts and worked with many lawyers to interpret and verify the documents. Let`s get to the details on how to get a better distribution contract. It`s up to you to find a big distributor. It is up to you to make sure you have a good agreement to settle the relationship. Take advantage of the steps described here, talk to other craft breweries and consult your lawyer. A good distribution contract is in your hands. Now go ahead and get it. Finally, it is necessary for the Craft-Brauer to select and secure distributors. In each market, there are a number of distributors to choose from. Normally, each market has two or three major brands (traders are often referred to as “home”), one for Anheuser-Busch, Miller and/or Coors.
The major branded houses are the largest and most dominant beer distributors. They have a very high level of service, do business with virtually all licensed retail accounts and are aggressive. You have excellent contacts within the retail business, including the main branch buyers. The downside for the Craft-Brauer is that he or she is a small fish in a very large pond. First, these distributors sell their primary brand and are therefore often unwilling to pay much attention to the small brands in their portfolio. The big brands are also very selective in the choice of new brands. Subsequently, state legislators responded to merchant complaints about mistreatment by large brewers by obtaining laws to protect large-scale distributors that went beyond the provisions of distribution contracts. National sales protection laws generally have indefinite distribution rights, despite what a contract might say.
Under these laws, the distribution contract is still in effect, unless the brewer can prove that a brauer option is available to ensure that a good distribution is to distribute itself. This practice is not permitted in some states and is only practical in the local territory. Self-distribution should be limited to a radius of about a hundred miles around the brewery (depending on market density) in order to maintain cost-effectiveness. The local market is both your largest and easiest market to gain recognition and retail investments because of “local attractiveness”. Self-distribution has the advantage of a hands-on, hands-on sales that beer distributors cannot offer to most products, given the size of their product portfolio. The disadvantages are the time and resources associated with running a business within a company. Self-distribution requires a focus on additional management, personnel and equipment, as well as an investment of time and money. In today`s competitive craft beer market, it`s important to stay in regular contact with each of your distributors. Many small breweries do not realize how much time and effort it takes. Each distributor should be contacted almost weekly to ensure that they have an appropriate POS, discuss inventory and order forecasts, progress on key accounts, etc. It is customary for the brewery`s salesperson to drive “driver” with sales staff, where he spends a day with a salesperson on the daily way to help distributors present and discuss your products.
It is also very useful for brewery representatives to spend time in the market independently of the distributor`s salespeople, make new investments and promote the brand in general.