Issue link: http://read.dmtmag.com/i/111102
WINE WISE MARKETING ELIZABETH SLATER Know Thy Distributor Brand pros share advice for working with wholesalers hile direct-to-consumer wine sales are growing rapidly, most producers still want (or need) to have their wines available in restaurants and retail stores, both in and out of their home states. Even if your winery sells most of its production directly to consumers, having your bottles in selected retail stores and restaurants can drive people to the winery and your website, where they likely will make more purchases. This means you'll work with one or more distributors, and like every other part of the wine business, the relationship you have with a wholesaler must be nurtured and carefully managed. This was a topic tackled in late 2012 at the North Coast Wine Industry Expo Trade Show & Conference in Santa Rosa, Calif. There, I moderated the discussion "Effective Distributor Management in 2013," with three experienced brand managers – Dan Kosta of Kosta Browne Winery, Julie Pedroncelli St. John of Pedroncelli Winery and Janet Viader of Viader – as the panelists. Their advice was so valuable that I'm sharing it here, as well as the insight of Scott Varner, vice president of sales for beer, wine and spirits for PromoWorks, which sets up tastings for wineries in supermarkets and other venues. How do wineries of all sizes find the right channels of distribution for their brands? One thing the panelists and Varner made clear is the need for a complete understanding of your winery's goals and needs. Only then can you begin researching distribution companies to find a good fit for your brand. Determine the types of customers you want distributors to reach. Are you focused on retail sales? Chains? Restaurants? A mix? Investigate distributors that are adept at the type of sales focus you require, and w w w. v w m media.com those who are able and willing to work with your production volume. Would your wines be better suited with a small, specialized distributor, or a larger one with a broader reach? UNDERSTAND THE SYSTEM Once you have some ideas on the type of company you need, it's time to dig deeper. The panelists stressed the importance of knowing how the wholesale system works. It's critical to understand what distributors look for in brands, how they operate, their business mod+ Know the wholesale system and els and their goals. For speak its language. example, is a potential distributor seeking wines + Keep your website up to date with at certain price-points, or information your distributors need. perhaps those that will + Be confident and flexible. fit well with accounts in which they want to have + Establish personal relationships with more presence? What sommeliers and retailers kind of support do they + Think about what you will get out of expect from you in terms the relationship with a distributor as of market visits and prowell as how you will get in. motional materials? You want to help your distributors meet their goals, enabling them to help you meet yours. Know the brands distributors already carry. If one that you're interested in represents wines that are similar to yours in price, style and/or volume, that distributor might not want to take you on – and you might not want to be in that book. In most cases, distributors look for wines that are complementary to the brands they already carry, rather than brands to replace those they already have. Also research the competition. Know where your competitors are selling their wines and at what price-points. SHORT COURSE M a r - A p r 2 0 13 | V I N E YA R D & W I N E RY M A N A G E M E N T 21