How to attract a distributor | Jonny Garrett

It is an overused adage that the UK craft beer scene is five years behind America. That notion is far too simplistic. The UK cask scene is lightyears ahead, as is the ability  – and willing – to brew true, session-strength beers. However, there is one area in which UK brewers are still exceptionally behind the times, and that is how our beer gets from the brewery to the consumer.

In America, they operate the three-tier system, keeping the producer, distributor and retailer legally separate and forcing breweries to use distributors. While this system is open to abuse and is starting to break down as States modernise, it has resulted in a professional and well-organised logistics system, with companies making it their sole aim to deliver beer quickly, efficiently and cold.

In the UK there is no requirement to use a distributor. This gives breweries flexibility in how they get their beer out there, but it also means the systems in place are less efficient and structured. Most breweries rely on couriers to deliver their beer outside of the local market, but couriers present huge issues for unstable products like beer.

You can cold store your beer until the moment it leaves, but if the courier arrives at the pub and there is no one to collect it, the odds are they will leave it outside, in full sunlight. You’ll also have no guarantees on how the beer is stored, how long it will be in transit and when it will get to its final destination. On top of that, there is no technical support for the pubs and people pouring the beer – and that can lead to wastage and even refunds that are avoidable.

A good importer and distributor controls all these variables and more, as well as having a wider customer base with accounts set up and ready to buy. Getting access to those customers outside of your network is the quickest and most efficient way to achieve volume growth and keep control over your product quality. But good distributors in the country are still few and far between, particularly for those looking for both volume and help building their brand sustainably.

If finding them is difficult, getting on their books can be even harder and the rules to follow can be applied to finding exporters too. Cave Direct has hundreds of breweries approach from all over the world, looking for representation in new areas. Almost all of them are rejected for the same reasons, and avoiding these common pitfalls is key to developing any meaningful relationship.

The most important thing is to understand the who you are approaching. There are two broad kinds of speciality beer distributor – Portfolio companies and Curators. Portfolio companies are often brand-focused, with a core range of breweries they promote first and foremost, backed up by a larger range of secondary beers. Their business model is built of volume from their core brands, backed by their ability to fill the rotational taps and fridges to become a one-stop shop for the pubs and bars they work with.

A curator will be less brand focused, instead relying on a very wide range of seasonal and one-off beers and generating volume across the entire portfolio. Given the very large range, sale reps from curator distributors have more of an account management role – rather than pushing beers and growing brands, they make sure customers are aware of the myriad beers coming in. While portfolio companies often do this as well, they tend to keep their ranges much tighter and from a smaller number of breweries to make selling in more manageable.

Pubs and retailers typically work with both kinds of distributor but that isn’t really an option for the brewery. The most important factor for a distributor in choosing a new brewery is exclusivity. They don’t want a rival selling the same beer in the same area, and nor does the brewery – it results in price wars and confusion for the end customer. So it’s vital to make clear the area you want to cover by working with them and to offer them the sole rights to sell within that area.

You also need to be clear in your expectations. Are you aiming to be a primary brand in a portfolio distributor? If so you’ll need to look at their other core brands and make sure that your core beers are distinct from the others on offer. Most portfolio distributors will have gaps they are looking to fill – core IPAs, nitro stout, pale ales around the £80 a keg mark – and if you don’t fill one of those niches it’s going to be a much harder sell. Timing can be everything, so getting in touch when a brewery moves distributor is a great way to skip the queue. Whatever your approach, you’ll need to show volume expectations and targets, and the ability to keep up with demand as it grows.

If you produce more specials than core beers then working with a curator or in the secondary tier of a portfolio distributor is likely the best way to go. Getting listed is a little easier, but you’ll need to understand there will be some selling on your behalf too – the sales reps won’t be pushing your brand half as much, and it will be down to your marketing approach to help make sure the beers go out fresh.

When you’re talking to a distributor about a listing, it’s important to do as much of it as possible in person. That doesn’t mean hounding them for a meeting, but making sure that you grab a beer at festivals or events – in such a young industry, a lot of deals are done between people who get on and have a similar approach to business, marketing and beer in general. The best way to find out if you share similar ideals is to spend time together.

It’s also always best to sample your beers with them – that way you can ensure they are tasting their best and you can talk through the beer rather than rely on marketing materials. The best way to get on a distributor’s list is to make them as excited about the beer as you are, and that usually happens over a pint of it

 

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