Issue link: http://read.dmtmag.com/i/230154
Marty Clubb, owner of L'Ecole No 41 winery in Washington state, self-distributes to 10 local accounts, in addition to selling through the three-tier system. NAVIGATING THE SELF-DISTRIBUTION MAZE When and where it makes sense to forgo a distributor BY JEFF or the first 10 years of its existence, L'Ecole No 41 winery in Washington state didn't think too hard about how it would distribute its wines – the owners would simply do it themselves. "In that era, self-distribution was the easiest way to do things," said Marty Clubb, L'Ecole's owner and managing winemaker. The winery was founded in 1983 by Clubb's parents-in-law, Jean and Baker Ferguson. "There were only 20 or 30 wineries in the state, and it wasn't that difficult to call on the necessary retail accounts." Today, after 30 years in business, L'Ecole uses a more traditional distribution model. The winery has grown to 40,000 cases per year 128 V I N EYA R D & WINE RY M ANAGEM ENT | SIEGEL and sells wine throughout the United States, which makes it too large and widespread to handle most of its distribution itself. Having said that, Clubb and L'Ecole still understand the value of self-distribution – the winery has kept 10 or so accounts in and around its home in Walla Walla, so that it can better manage its brand in its home area. In this way, self-distribution can be a valuable tool even for larger wineries, and several hybrid forms of the concept are gaining popularity. Yet the most common model of self-distribution remains that of a small producer selling its wines itself, usually because it doesn't make enough wine to interest a Jan - Feb 2014 distributor or hasn't yet established its brand. "You can't imagine the number of small producers at our door, fighting for a chance," said Terry Cekola, president of Elite Brands of Colorado, a distributor with a couple hundred wine brands. "That's why self-distribution is highly recommended for startups. They get to know their business, they learn the logistics and delivery side of the business, and they can make more money." DEFINING TERMS The three-tier system, which regulates wine sales in the U.S., requires that wineries sell their w w w. v wm m e d i a . c o m