1.9 billion servings of Coca-Cola products are consumed daily in more than 200 countries. This figure is for Coca-Cola products alone. Look at the rate of consumptions across board in every country. The number will be huge. This shows how much the work is in the beverage distribution industry. Manufacturers turn out several products daily and the reception is warm. It however takes massive effort on the part of distributors to get the products to millions of consumers daily.
From energy drinks used by sport persons and millions other people, to soft drinks taken with meals or just randomly, to alcoholic beverages, the demand in the market is big.
Brokers are basically agents. Some people call them commercial agents. What they do is to enter into contract as agents for persons technically known as principals. In this case, the principals are manufacturers. They work independently and receive commission for the job done. Simply, they work on connecting the manufacturer and the retailer. To do this successfully, they gather a substantial wealth of knowledge and contacts to network their ways into retail stores and inevitably have their products stocked.
Brokers should not be confused with distributors and wholesalers. Brokers don’t distribute to stores. They work at establishing a connection among the players in the supply chain. For instance, in the beverage industry, the beverage broker can help a manufacturer look for retailers who can enter into distribution agreements. The same for retailers; they can get a broker to help get suppliers of the beverages to supply to them. The beverage broker can be described as an arranger – someone who arranges a relationship between players in the supply chain.
Beverages are consumed every day and new markets are opening up in several parts of the world. Sport events, bars, clubs, cinemas, events, restaurants, and several other places beverages are consumed make the industry a highly profitable one. However, there are new brands of beverages. Several breweries are producing new beers and new alcoholic brands are being produced almost every year. The market for these products has to be sought as they are new to be market. Getting markets for the product may not be a problem for established brands as they have a ready market but new brands may face this problem.
One of the benefits beverage brokers can provide a new brand is the professional advice from years of experience of dealing in the business. Brokers have been in the industry for long; they are consulted for their wealth of experience and network. A beverage manufacturer can work with a broker on getting the products to big stores and big brand retailers. Starting up can be quite challenging as there are a lot of variables in the market. Many consumers are dedicated fan of a particular beverage and it takes a lot to puncture the bubble they are in. The new brand however has no choice than to enter the market and carve a niche and thus the need for brokers to set the path.