Liquor Store Distributors
Distributing to Liquor Store Distributors is all about satisfying the store’s needs in what type of products their customers demand. Liquor Store Distributors want a product that has been established and will sell quickly. Contacting local Liquor Store Distributors is a good first step to get a feel for what products do well in that market.
Finding a distributor who already has an established relationship with independent specialty retailers is essential. The distributor and retailer relationship is important in product placement in Liquor Store Distributors. If a distributor has a good reputation with an independent specialty retailer the process of getting products into the store is a lot smoother.
Building a relationship and a positive track record is a very important part for the distributor. It is important for the distributor to do some research on what kind of specialty products do well in each specialty store, which can be dependent on where they are located. If a product does well in one independent specialty store the likeliness the distributor will put it in other stores is high. In Liquor Store Distributors and independent stores in general it is all about shelf space and what sells well will claim that shelf space. Products that do not, will be given less space or no space in order to move in a new product that sells well.
Liquor Store Distributors look for products that are innovative and will set them apart from competitors. So, new products have a better chance of making it into an independent specialty store vs. a big box retailer. An independent specialty store will have a stronger personal relationship and knowledge with products compared to big box stores as well. This is beneficial to everyone involved because having knowledge about the product in stores will improve sales.
In order to get a product into an independent specialty market contacting the correct distributor is the first step. The next step would be sending samples and other pertinent information to that distributor if requested. They like to see proof of sales and selling points of that product. Communicating about price points and minimum order quantities is very important. If the distributor likes the product and thinks it would be a good fit for their route they will purchase the product.
If the product does well in stores, the distributor will continually order more. Proof of sales will bring more orders and getting in contact with other distributors in other parts of the country is the next step. A product with proven sales in a few Liquor Store Distributors will make its way to Liquor Store Distributors all across the nation through different distribution channels. Establishing and building relationships with distributors is the best way to get products into Liquor Store Distributors.
Here are the 6 steps you need to take to have your product picked up by a distributor.
1. Start with the right questions.) Before you try distributing your product, you need to ask yourself a few basic questions. Do you need to build demand for your product, or is there already a demand for it? Do you know that the distributor would be interested in selling your product? If you can strike a deal with them, can you handle the production volume? Do you want to sell directly to the distributor, or do you want to license your product to a manufacturer that will handle distribution?
2. Be prepared to profit.) Does your product offer enough of a profit margin for a distributor? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check the distributor’s guidelines for other fees that you will have to build into the cost of your product in order for you to be able to turn enough of a profit to make the effort worth your while. If you work with a discount retailer, they will try to strip your profits down to zero in order to keep their prices as low as possible.
The typical breakdown of margins are: If a products costs $1 to produce, that product will retail for $4. That product that retails for $4 will wholesale for $2 to distributors and stores that purchase direct. Big box retailers like Walmart may offer to pay $1.25 to the manufacturer if the product costs $1 to produce. That is the typical profit margin.
3. Determine if the distributor is the right one for your product.) The relationship between you and the distributor starts with you browsing the store’s that they service for competing products. If the stores already has a similar product, it is going to be very difficult to get your product picked up. Picture in which zone your product would best fit on the shelf and keep in mind that the most precious asset that these big box stores value are their shelf space. Keep this information in mind when you are preparing your presentation to the distributor.
4. Pitch your product.) Decide whether it will be you or a representative to present your product to the distributor. Your presentation depends heavily on your strengths as a businessperson as they will most likely ask financial questions and logistics questions.
It’s common for companies to hire a broker to pitch their product to a distributor, as it will be more likely that your product will make it to the next stage if the individual pitching your product has industry knowledge or a personal relationship with them. The percentage of commission verses, however generally a broker will take around 5% to represent your product.
We at Mr. Checkout have experience dealing with brokers and know that there are several retail brokers that have poor business practices that can potentially damage your brand. If you are seeking a legitimate broker, please give us a call for a recommendation. It could save you a huge headache and a lot of money.
5. Complete the required paperwork.) Often a distributor will have you go through an application process. However, before submitting the paperwork required, you should contact them and let them know your intentions. Having a contact inside of the company will potentially move your application more smoothly through the process.
6. Anticipate the need for increased volume.) Having a distributor pick up your line will most likely mean a significant increase in volume. You should be prepared to ramp up your production and informing your manufacturer of this opportunity.
Having production, logistics and distribution to sync is not only difficult, it requires a significant amount of time invested in customer relations. Also, distributors may have stipulations in the contract that may penalize you for delays in shipping and production. Have an attorney explain all contracts to you if you don’t understand the terms.
If you’re looking to distribute your product through a distributor, be sure to thoroughly assess the marketplace, carefully prepare for production growth, and take full advantage of resources available to help you grow your business.
The 6 Best Liquor Store Distributors List
The liquor industry is one with over 250 billion US dollars in worth. Liquor is one item that flows throughout all the states in the country. The industry is so large there are actors at several points.
In 2015, the industry was valued at approximately 230 billion U.S. dollars. It is expected to reach 258 billion U.S. dollars by 2020.
However, despite the ever-increasing manufacturing done in the United States, without distributors, there would be a disruption in the supply chain. Here is a list of wholesale liquor store suppliers in the United States.
Breakthru Beverage Group
Breakthru Beverage is a leading North American distributor of the world’s top luxury and premium wine, spirits and beer brands.
Breakthru Beverage Group wholesales and distributes beverages. It offers its products to the retailer, bars, restaurants, and beverage businesses. Formed out of the 2016 merger of Charmer Sunbelt and Wirtz Beverage, Breakthru operates in 13 states and the District of Columbia.
Opici Family
With roots in the wine business dating back to 1913, Opici Family Distributing is a fourth-generation, family-owned wine and spirits wholesaler operating in New Jersey, New York, Connecticut, Florida, Washington DC, Maryland and Delaware.
Opici Wines and Spirit Division, Market St. present some of the most well-respected wine and craft spirit brands from around the globe, for every taste and budget.
Johnson Brothers
Johnson Brothers is a leading wine, spirits, and beer distributor, providing world class service to customers across the U.S. We’ve been in business for more than 66 years, representing industry-leading suppliers as well as the best local brands.
Winebow Group
Winebow is a national importer and distributor that offers a dynamic portfolio of fine wine and spirits from around the world. Since 1980, the company has represented some of the most established properties in prominent growing areas, as well as a new generation of winemakers and distillers who are dedicated to innovation and quality. Winebow’s national distribution platform comprises 22 markets that cover 70 percent of the wine consumption in the U.S. Winebow Imports’ four divisions—Craft + Estate, LLS, MundoVino, and Negociants USA—are each dedicated to specific regions and have their own sales, brand, and marketing specialists.
Beer Boxes
For more than 30 years, Diversified Wholesale LLC has been a reliable supplier of quality wine, bar, and beer accessories to the beverage industry. Their customers have come to depend on them for competitive prices, on-time deliveries, and marketing assistance including supplying them with merchandising displays. Beer Boxes is proud to offer full range of products which can be marketed in retail beverage stores.
RNDC
RNDC is one of the nation’s leading wholesale beverage alcohol distributors, specializing in wine and spirits. As the preferred partner for alcohol producers who value the three-tier system, they create branded products and productivity for all parties involved. They serve as a product liaison between suppliers and those who sell alcoholic beverages – defined by its impeccable customer service, unrivaled expertise in beverage education, and a broad product portfolio.