The importance of a good relationship between a brand owner and its distribution partners cannot be understated. It’s crucial to the brand’s long-term success and it requires the two parties work together to build something mutually beneficial. With that in mind, below is some advice from recent Park Street University experts for each step in the relationship.

 

Nailing the First Meeting

When planning to pitch a new distributor for the first time, a brand owner should research and put together a thorough packet of information including current sales data in other markets, the resources and tools the supplier will bring to the table, as well as proposed terms and goals, said Spencer Forhart, the co-founder of Proof Collective. He also believes it is a good idea to research the distributor’s existing strategy and needs to shape the pitch.

 

What Distributors Look For

Southern Glazer’s Wine & Spirits reviews as many as 20-30 brands a month for potential partnership, said Rudy Ruiz, former executive vice president of emerging brands for SGWS and newly appointed managing director at Park Street. Rudy said some of the key elements distributors evaluate include brand facilities, pricing, the brand owner’s experience in the business, and the sales plan among other things. 

 

Negotiating the Distribution Agreement

Once the brand owner finds the right distribution partner an agreement will be drawn up. For those that have never experienced this part before, some of the key components of a distribution agreement include renewal stipulations, payment terms, mutually agreed upon goals, and local marketing fund, according to Ryan Malkin, the principal attorney for beverage industry firm, Malkin Law. 

 

Maintaining Effective Communications

One of the best ways to stay top-of-mind with distributors is to simply ask what the distributor’s expectation is on how often representatives should visit the market and/or touch base, said Doug Epstein, the director of regional sales for Horizon Beverage. Additionally, he advised brand owners should share good news with distributors when they have it, regardless of the market. “All of that positivity is always welcome.”

 

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