distribution

What is the strategy for distributing beer in bars? Part 2

article written in collaboration with Alexandra Berry

Brewers' contracts.

Your biggest barrier in the referencing of your beers in bars will be the brewer's contract. This means that the draught of the point of sale has been financed by a brewery (often industrial like Heineken, AB InBev, Kronenbourg etc.) in exchange for the referencing of their range over several years, the time to amortize the financing.

This implies that the bar is contractually obliged to purchase the brewery's beers until its draught is fully funded. By breaking the contract, he risks the withdrawal of his draught. This amortization is often calculated over 3 to 5 years.

                                                                                                                                                      Source : https://www.lecho.be/

When you enter the bar, you will immediately see if the bar is contracted: if all the draws belong to one of those big industrial groups, you will surely be in a contracted place. But don't be discouraged!

In this case, first make sure that the buyer has a real interest in your products and ask him to check his contract and the progress of his amortization.

Very often bar owners have little or no knowledge of the volumes sold and remaining to be amortized on their contract.

A very successful bar can amortize its contract in 2 or 3 years instead of 5. In addition, amortization is calculated on the number of barrels sold. If a bar is doing much more volume than contracted for on all its spouts, it is within its rights to reserve a draft for you while doing its contracted volumes.

It is always interesting to ask what volumes are contracted, for how long and to find a solution to place your beer, or at least to be present the day the contract is 100% amortized. Often the bosses keep their pressures for the sake of convenience. If you show him that you will be an easy choice, local, maybe cheaper, in any case qualitative and differentiating, it may tip the balance in your favor 😉

If it's really impossible to place kegs, offer bottles or cans. The owner and his clientele will get used to seeing you on the menu and you will be the first brewery that comes to mind the day he pays off his contract.

                                                                                                     Source : https://vinepair.com/wine-blog/the-correct-way-to-pour-a-beer-out-of-a-bottle-or-can/

How to build loyalty in a point of sale?

Beyond the taste and the success of the beer, a bar owner needs first of all consistency: a foaming keg, a blocked draft, an infected keg... this kind of incident can completely disrupt a service during its rush and will guarantee that your beer will not come back on draft.

Of course, there may be incidents, sometimes even beyond your control (a plastic keg stored in the heat during a heat wave, a beer plugged in for two weeks, lax line sanitation...) In this case, be sure to make a commercial gesture to cover the inconvenience, the beer down the drain etc.

It is always useful when referencing your products to give the team a new tutorial on how to store barrels and bottles (out of the light, in the cooler) and the importance of regular sanitation of the pressure print lines.

                                                                                                                 Source : https://www.happybeertime.com/blog/2020/11/09/nettoyer-une-tireuse/

If you have a problem with the beer, be proactive and offer discounts and solutions that are attractive.

Once the manager has been reassured about the quality and consistency of a brewery, you need to make sure that you will not be replaced by the next salesperson or brewer who comes by to do a tasting.

How to ensure this?

  1. Collaboration and support.

Offer a few fixed beers but be proactive in "animating" the drink menu with ephemeral or seasonal beers to offer a changing and attractive menu. The bar needs to distinguish itself from others in the area, help it to do so!

If you can, offer tastings, Tap Take Overs, not only to help them, but also to make your range known to their customers. After all, they are the ones who will guarantee your future!

                                                                                                                                                   Source : https://www.theurbanlist.com

 

The servers or bartenders are your brand ambassadors, make sure they know your beer, enjoy it and know how to serve it. As we've seen, it's always a good idea to do a tasting for the team, to re-explain the basics of beer styles and how to present them properly. This will give them the skills to talk about your beers, to taste them, to make sure that the product is still fresh and good, that the beer will be well drawn...

You can have the best product in the world, if it is served warm in a dirty glass by a waiter who does not know how to talk about it, it will never seduce a customer!

  1. A financial interest.

Even if he/she is passionate, a bar manager or owner is still a businessperson! Make sure he/she has a good reason to stay with you and promote you over another brewery. As we mentioned, if you have the means to finance the press runs of a future bar, or the work on an existing bar, this can get you into a multi-year contract with the outlet.

If you don't have the cash flow for this kind of operation, a very simple way is to offer a discount per hectoliter on an annual basis. Calculate your costs and sales rates and instead of offering promotions from time to time, guarantee a discount at the end of the year based on the volumes sold.

You can offer more and more interesting discounts according to the volume levels reached. (100HL = x€ discount per liter, 200HL = X€ discount etc.) It will be in the owner's interest to buy all his beer from you, to push it to his customers etc. Moreover, this will also allow him/her to rotate your range, to offer different beers without being penalized. The bar will be able to become a real brand ambassador for you without constraining him or restricting his choices. In the long run, this will also save you a lot of hours of price negotiations.

How to differentiate from other breweries?

  1. Access to limited edition beers.

For a selection of bars you want to work with, take the time to let them know about upcoming releases so they can be your ambassadors. Are you releasing a new passion fruit TIPA for the summer? Offer a release party to the bar so they can showcase it! You are doing a collaboration with another brewery? Offer a double Tap Take Over of your two breweries at the bar.

Make proposals and animations to not only build loyalty in your points of sale, but also to create real brand ambassadors.

  1. The Collaboration or Beer of the bar.

For those who can afford it, suggest to your ambassador bars that they create a beer together for that outlet. Make sure they can provide good volumes, and create a recipe together that you could sell to them possibly cheaper but in large volumes every year.

If he/she is involved in the creation, the boss (and the team) will be proud to present the fruit of this collaboration and to carry your brand.

                                                                                                                                     Source : https://www.porchdrinking.com/articles/2021/09/27/

If this is not possible for you, make sure to organize a tasting evening for the team, have them participate in a brew day, so they can discover your brewery and your beers.

  1. Visibility.

No we are not advertising agencies, nor industrialists, but unfortunately, goodies work.

Having beautiful glassware with your logo, original coasters, "collectibles", a team behind the bar with a nice T-shirt of the brewery... it helps to be noticed on a very saturated market. If you also have your own brand universe that differentiates you, you have to make the most of it.

                                        

                                                                  Source : https://www.thecoolector.com/beer-lover-8-of-the-best-bits-from-beavertown-brewery/

Beavertown Brewery has done a phenomenal job of marketing their brand visibility.

Once again, be sure to "reward" the loyal customers who support and develop you. A staff will always be happy to receive nice T shirts/pullovers, glasses or other goodies. Even better, leave samples of each new product you brew in "preview".

And what beer will they recommend to their customers?

To conclude, once you have overcome the challenge of the brewer's contract, the challenge will be to develop the loyalty of the points of sale. This is done with support, by identifying the financial needs of the managers, and simply by pampering them. The more important a team feels to you, the more they will want to put you forward. Involve your clients to the maximum so that they naturally - and enthusiastically - become your best ambassadors.

Leave a comment

This site uses Akismet to reduce spam. Learn more about how your comment data is used.