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I would assume it's in the contract.  If your brand is big enough (Bell's is quite large) they could possibly rationalize having more than one distributor in a region; especially if it's very fragmented.  I guess it would ultimately come down to whether or not the distributor agreed to not having full control though.

I've never heard of distributors going through distributors, but I guess it's possible...

Grant

Good answers from Grant and David. 

I would add that you occasionally see a "master distributor" for a state who might handle the most populous area (e.g. Chicago) and contract for small sub-distributors to handle other parts of the state.  This is rare, but I have heard of it. 

Anyone have experience with an arrangement like this?

Cheers,

Ray

Thanks for all of the perspectives and facts here guys. It's much appreciated.

Enjoy the weekend.

There is really a push towards "Master Distributors", (MD).  A MD may get a statewide territory, but only directly service part of the geography, and essentially subbing out the rest of the territory.  The master distributor will provide other services that are valuable to both the supplier and the sub, such as bulk breaking, Merchandising materials, and, making key retailer calls to gain retailer authorizations.  Those authorizations are CRITICAL to the success of any brand.  As more and more retailers become part of chains, or advertising co-ops, the Key Account Manager becomes more important.  But, this is a chicken or the egg situation.  Distributors want the authorizations prior to taking on the brand (guaranteeing volume), while retailers want their stores covered before adding the authorization. 

Again, these MDs are more critical for small brands.  So, in fact someone like Stawski or Glunz distributes directly in the Chicago market, they will bring on subs to cover the rest of the surrounding geography.  Most distributors drive by the MDs on their way to pick up other products, like from Miller in Milwaukee.  To find a brand, call the local distributor, or the brewery; they wil be able to tell you of any retailers handling the brand in your market