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Cicerone Certification Program Forums > General Category > General Discussion (Moderator: admin) > distribution/sales question
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Author Topic: distribution/sales question  (Read 3932 times)
john baughman

Posts: 3
« on: August 09, 2010, 02:53:56 PM »
Hi folks,
I'm a noob here & soon to take my first of hopefully 3 exams. 
In keeping with the 3 tier system of distribution, how do small, newer breweries introduce their product into new markets without aligning themselves with a large distributor.
The reason i ask is, I am considering the possibility of offering representative services locally to breweries looking to expand into my area.  Is this something that is even possible?
I'd appreciate any input here whatsoever.  Many Thanx!
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Adrianna Danley

Posts: 1
« Reply #1 on: August 11, 2010, 10:53:03 PM »
A smaller brewery can approach a small distributor if they feel that the portfolio, philosophy, and sales force of the company are a good fit for them. There are over 30 distributors who sell spirits, wine, and/or beer in my area. There are upsides and downsides of working with a distributor of any size. It sounds like you are talking about being a broker. In Georgia (3-tier), their business isn't protected like a distributors, but they work alongside the distributors as a rep of the brewery. (A brewery can decide to fire a broker at any time. Once they are signed on with a distributor, they need to be bought out from the distributor, pull out of the state completely for almost 5 years, or get a letter of release from their current distributor.) Keep in mind you will also need several clients. Brokers often bill based on time worked and then bonus based on their effectiveness. Good Luck!
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john baughman

Posts: 3
« Reply #2 on: August 12, 2010, 01:44:36 PM »
Thanx so much Adrianna for the responce.
Essentially, I hope to become an on-site rep for multiple breweries directly.  Providing them with services that would include placement in new markets thru both bar & package tpye retail channels.  Following up with tastings, seminars/staff education on proper sales of craft brews, and info on what's new, etc. 
If anyone else could provide even more insight, I would be grateful.
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Michael Agnew

Posts: 5
« Reply #3 on: August 14, 2010, 02:14:07 PM »
In Minnesota small breweries can self-distribute. Most opt to do that in the beginning before going with a distributor. But they have to have a distributors license in addition to their brewers license.
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john baughman

Posts: 3
« Reply #4 on: August 14, 2010, 04:06:44 PM »
Which, if I understand correctly, would enable them to sell their product personally.  Or hopefully with the assistance of a 3rd party "sub-contractor" so to speak.
Thanx Michael.
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Z David Larimore

Posts: 1
« Reply #5 on: October 15, 2010, 05:16:16 PM »
Quote from: john baughman on August 12, 2010, 01:44:36 PM
Thanx so much Adrianna for the responce.
Essentially, I hope to become an on-site rep for multiple breweries directly.  Providing them with services that would include placement in new markets thru both bar & package tpye retail channels.  Following up with tastings, seminars/staff education on proper sales of craft brews, and info on what's new, etc. 
If anyone else could provide even more insight, I would be grateful.

The kinds of job functions you describe are those performed by distributor personnel and/or brewery reps so far as I can tell.
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Brian Tarver

Posts: 6
« Reply #6 on: October 28, 2010, 11:37:37 PM »
From the info you posted, Adrianna's info is spot on; you are describing a brokerage position in many states. However, regulations vary quite a bit from state to state so you should check with someone familiar with your state's rules. Where are you located?

Good Luck,
Brian
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"Give me a woman who truly loves beer, and I shall conquer the world"
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