Forming a healthy relationship with a distributor is one of the most beneficial things a brewer can do to ensure long-term success. What do distributors expect from their supplier partners? How can both work together to achieve goals?
Scout Distribution CEO and co-founder Jeff Hansson and Reyes Beer Division VP of craft and innovation Jessica Muskey shared insights and offered advice for suppliers during the Brewbound Live business conference in Santa Monica, California.
Hansson and Muskey represent distributors with vastly different business models. Scout focuses on craft producers, many of whom are in their first few years in business, and operates in Southern California, Arizona and Idaho. Reyes is the country’s largest beer distributor, with wholesalers in 13 markets and a portfolio that includes some of the nation’s largest brands, such as Molson Coors, Constellation Brands and Boston Beer, as well as regional and local craft suppliers.
Both leaders offered similar advice for brewers: communicate as clearly and as often as possible and treat the supplier/distributor relationship as a partnership.
“That’s the beneficial part of having a good partnership with your supplier partners,” Hansson said. “It’s not just we sign you, we’ll talk to you next year at ABP [annual business planning]. It should be a very programmed and systematic communication process with your supplier partner.”
One of the highest items on their list of things brewers can do? Get to know the distributor sales staff who will be in the market representing their brands.
“It’s great to have a relationship with me, but you need to have a relationship at the local level with our folks who are out there talking to our customers on a daily basis and selling – that’s where you need to get that focus,” Muskey said.
Hansson echoed the sentiment and encouraged suppliers to be “always engaged with the team.”
“Go out and deck our drivers out with merchandise,” he said. “Anything to get share of mind with our people, first and foremost, especially mid-level management and down is so important, because it’s true, like brands will call me and I’m like ‘Look like you can talk to me all day, but it’s the people that are gonna go get the wins for you and the placements in the trade, those are the people you got to talk to.’”
Muskey cautioned brewers against signing with the first available wholesaler once they secure chain authorization in a new market.
“You hate to tap into a state, especially a franchise state, and just pick distributors because Stan’s Groceries is going to take you in,” she said. “The most important business partnership you’re going to have as a brewer is with your distributor and you shouldn’t just pick the guy who’s going to answer the phone and say yes the first time.
“You really need to put a lot of thought into it, a lot of due diligence, and you’ve got to make sure that you know they want you just as much as you want them,” she continued.
Watch the conversation above and learn more about how Hansson and Muskey consider innovation products from both existing partners and new ones, how often they evaluate their portfolios, and what level of promotional support they expect partners to provide in the market.