Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/446939
www.beveragedynamics.com January/February 2015 • Beverage Dynamics 41 DISTRIBUTOR RELATIONSHIPS says his distributors have been essential in providing product shelf talkers. Addi- tionally, some of Gauthier's distributors participate in the store's events. "In the state of Virginia, our reps are allowed to pour tastings for our cus- tomers," Gauthier explains. "They can also engage with the customers and tell them more about the product. Our customers love hearing about what's new, what new wineries are popping up, or when a new vintage is available. It all translates into better sales for our distributors and for us." Distributors can be a great resource to retailers when it comes to marketing and merchandising, often providing product displays to be showcased in stores. At Grizzly, Crouch reserves space on the sales fl oor for all of his main distributors to rotate different displays. In addi- tion to featuring products in a distinctive, eye-catching way, many of the displays promote different contests and giveaways run by the distribu- tors. Crouch says these displays are a win-win for everyone involved. "The displays get customers excited about the product, which ultimately translates to higher sales," he says. BALANCE IS IMPORTANT While the information and resources provided by distributors are generally helpful to have on hand, retailers should never let distrib- utors completely dictate their business practices. At Binny's Beverage Depot, one of the Midwest's largest bever- age alcohol retailers with 31 locations across Illinois, communications direc- tor Greg Versch says that although his company maintains strong ties with its distributors, it's important to remem- ber that the information they provide is only part of the story. "The product info provided by dis- tributors isn't unhelpful, and a lot of it is very useful. But it's not necessarily my job to market the product," Versch says. "I need to market Binny's." Wary of market information in general, Binny's chooses to stay out of the Nielsen Beverage Data Network (NBDN) and other bev- erage retail sales ranking data. Instead, they focus on analyzing their own customer purchase information internally in order to make decisions about which products will best meet the needs of their consumers. With a company slogan of "If you can't fi nd it at Binny's, it's probably not worth drinking," the company focuses on the impor- tance of marketing its vast product selection to customers. An example of this strategy can be found in Binny's consumer e- mail marketing campaigns. Instead of advertising specifi c product sales in their e-mails, Binny's tends to push out features such as "The Whis- key Hotline" and "The Beer Buzz," which direct to robust websites in- cluding detailed information on a variety of category trends and brands. Versch says that Binny's is known most for its low prices, excellent customer selection and variety of products, and the marketing that is pushed out reinforces those goals. That said, he appreciates the rela- tionships Binny's has developed with its distributors over the many decades the company has been in business. "They're valuable business partners, and we have good relation- ships with everyone we work with," Versch says. PROVIDING UNIQUE SERVICES TO RETAILERS In addition to things like product displays and market research re- ports, retailers may be able to take advantage of other resources that distributors make available to them. One innovative benefi t is offered by Southern Wine & Spirits. In addition to many of the traditional re- sources that distributors offer to their retail partners, Southern Wine & Spirits is in the process of rolling out a new service intended to help protect retailers from counterfeit wines. "We've seen the amount of counterfeit wines our customers are tricked into buying increase over the years," says Larry Ruvo, Senior Managing Director. "We've hired a wine counterfeit expert to provide an exclusive service to our customers, at great expense to our company. This counterfeit wine expert, Michael Egan, has a background in fi ne and rare wine authentication. Egan began working on behalf of Southern Wine & Spirits in November 2014, kicking things off with a free seminar and Q&A session in Las Vegas. He will also be available as a consultant to retailers, offering them tips and suggestions on how to prevent themselves from becoming victims of fraud. "It's extremely important that we work with our retailers to help them combat this terrible thing that's happening in our industry," Ruvo explains. MAXIMIZING RELATIONSHIPS WITH DISTRIBUTORS How can retailers best take advantage of their relationships with distributors? Here are some tips from retailers and distributors alike: Communicate. This goes for both parties. Retailers and distributors need to stay up-to-date with each other to maximize opportunities and avoid misunderstandings. Crouch recalls an instance when a distributor started touting a product to some of Grizzly's wholesale clients, who then contacted him and were disappointed to learn that the product hadn't yet arrived in the state. "Distributors selling to our customers be- fore we have the product is our single biggest diffi culty," Crouch says. Also, be sure to connect with distributors to share information about what's working for your store and what isn't. The more specifi c information a distributor has at their disposal, the more they will be able to offer you resources and products that best fi t your needs. Focus on consumer demographics. Distributors often have useful market research available to share with retailers, but retailers should also share their own information with distributors. This mutual sharing of information will help identify products that are a best fi t for each retailer's customer segment. Incorporate your own knowledge into your business planning. Distributor market research is helpful to have on hand, but remember that a distributor's goal is ultimately to sell more of their products. Retailers need to take their own specifi c business strategies into con- sideration when determining which products are best for their specifi c customer demographics. Many retailers view distributor representatives simply as vendors. While supplying retailers with needed products is a distributor's primary function, often they have much more to offer in terms of information and support services.