Article written in collaboration with Alexandra Berry.

Before starting, ask yourself the right questions…

Direct or via a distributor?

If you are in the early stages of your development, your sales volume will likely only allow for direct sales. In this case, here are some tips to keep in mind when approaching clients:

1. Evaluate your working time

Many brewers are venturing into direct sales to bars and restaurants, wanting to do everything and work with everyone. For many, this approach allows them to gain local recognition and develop their brand image. However, be careful to preserve your working time and the quality of your service: distribution to the hospitality sector* requires a significant amount of time for negotiation, order preparation, and delivery. Determine in advance how much time you are willing to dedicate to it.

*CHR: Cafes, Hotels, Restaurants.

Of course, the advantages of selling directly are numerous: margins, visibility, contact with the customer, the guarantee of a well-presented product, as well as the possibility of doing animations, events and supporting the customer in the development of your beer.

But the disadvantages are also numerous: many deliveries and trips for small volumes, impeccable customer follow-up, logistical costs for small shipments…

Having one or more distributors allows you to negotiate prices on all your products, to ship by pallet, to focus on production, to access customers you would not have known otherwise, to see your beers in the distributors’ catalogue, and to have brand ambassadors who talk about your products.

2. Choosing your distributor

Establishing a partnership with a distributor can offer numerous advantages, including:

• Time saving : The distributor will most often order by pallet, which will save you time in order preparation, price negotiation, invoicing, thanks to these shared shipments.
• Negotiating volumes and prices : With pallet orders, you can better estimate production volumes and the profit margin you can generate with a single partner, which is more difficult with around twenty direct clients. Your inventory turnover will be smoother and more predictable.
• Better cash flow : It’s a fact that a well-established distributor with years of experience will take less of your time and cause less stress regarding payments than dealing with twenty or so bar owners. You’ll have a single accounting contact with guaranteed regular payments, delivered on time as agreed. No more chasing up clients, chasing checks, or dealing with issues like discounts, credit notes, or anything else.
• Access to contracted points of sale : Sometimes, a bar isn’t necessarily contracted with a brewery, but rather with its distributor. Therefore, it won’t have the right to buy kegs from you. Indeed, a wholesale distributor can also finance a point of sale, its draft beer system, or even its renovations, in exchange for regular orders to recoup this investment. This means that the bar will be contractually obligated to buy its beverages (and therefore its beer) from its distributor. If you’re listed in the distributor’s catalog, a bar manager will have every incentive to add you to their menu! This type of contract is common with regional wholesale distributors.
• Catalog placement and brand ambassadors : The distributor can provide you with broader exposure to points of sale that may have never heard of you, or that you yourself might not know. You thus gain a brand ambassador to promote your products. We’ll come back to this, but this point is crucial: the distributor’s sales representative becomes a key to many opportunities: cultivate them!

There are several types of distributors you can collaborate with:

Choosing the right distributor is crucial. They will be the face of your product: they must guarantee FIFO (First In, First Out), proper maintenance of your kegs and bottles, the freshness of your beer, and so on. Take the time to visit the warehouse, meet with the sales representatives, and conduct sales calls to understand the type of client portfolio they manage. This could significantly influence your decision.

A bar that handles high volumes and hosts student nights can be a major client, but at the expense of the quality of your products and your profit margin. A network of specialty bars and “beer geeks” will give you great publicity, but will demand a lot of new products, high turnover, and could quickly replace you with a trendy new brewery.

Pay close attention to the beer catalog this distributor already carries . You want to differentiate yourself from other brewers, but you also need to ensure the quality of the catalog that represents you. Does the distributor source directly or through a distribution platform? Are they familiar with their product range? Do they have special agreements with certain breweries? Try to position your prices at the same level as your competitors: the salesperson selling your products will be looking to maximize their profit margin and will prioritize the breweries that will bring them the most profit.

Finally, just like the customer, pamper your distributor . When a salesperson has a catalog of ten or more breweries, make sure you’re the first one they think of when suggesting a beer to a point of sale. Motivate the salesperson to represent you, to talk about your brand rather than another. This can be done through incentives , samples, merchandise… Yes, it’s commercial, yes, it’s a sales tactic, and it might not align with your values, but this salesperson owes you nothing; all that matters to them is a profit margin and a good end-of-month salary! Be the best choice for them… and for the customer!

Choosing your influence

When you start a distribution business, think about your sales strategy: Where would you like us to consume your beers?

Locally , you’ll have the advantage of easy direct sales and building customer loyalty, as customers will appreciate enjoying beer brewed close to home. In this case, try to find outlets that can become your flagship locations , your brand ambassadors, with permanent taps that will guarantee visibility and high sales volume. Then, make it a success! For both the owner and the customers, rotating your beer selection and hosting events to meet the brewer will cultivate a loyal clientele. Organize contests, tastings, and involve the bar staff as much as possible so they can fill their taps… and fill their glasses with your beer!

If you prefer a national reach , you can differentiate yourself through your origins or the approach you take to brewing your beers, but this will require greater vigilance regarding monitoring and quality control. When expanding nationally, the question of a distributor becomes truly necessary, but this option isn’t mandatory. You can target specific cities that seem interested in your products and establish agreements with local distributors. This would allow you to offload a significant portion of the negotiation and delivery work by giving you a few targeted contacts to work with.

When using a distributor, try to schedule time with them to visit retail outlets together. While the distributor can ensure seamless delivery and follow-up, the bar owner will be much more likely to sell a beer from a brewer they know. Furthermore, as explained earlier in the article, the distributor will introduce you to retail outlets you might not have considered or had access to before.

Not just in bars!

Don’t overlook wine shops and grocery stores, especially in touristy towns, which will showcase local products. Bistronomic and gastronomic restaurants will be able to feature craft beers brewed nearby. Consider cultural hubs: theaters, small performance and concert venues…

When you have seasonal traffic, partner with tourist offices or places offering physical activity: a draft beer in the climbing gym, next to the mountain bike rental shop, the ski slopes, or the kayak club. These are the places where you should promote your basic “blonde,” a thirst-quenching beer that you brew in large quantities and on which you can offer competitive pricing. This clientele will be looking for an affordable beer, but will be happy to drink local!

Also consider markets, cultural events, local events… renting a beer dispenser with two kegs at the end of a race with a few hundred people can bring you a lot of visibility!

Being present.

Whatever your choice, whether direct or through a distributor, and whatever your distribution partner, be present .

From the initial presentation of your products at the bar to the serving of your beer, ensure that the establishment and its staff appreciate and want to introduce your products. This includes explaining your brews, styles, and their unique characteristics. Make sure your kegs, bottles, or cans are properly stored in a cool place, away from light (there’s nothing worse than drinking your beer only to discover it’s gone bad). Check the maintenance of the dispensing lines, the FIFO (First In, First Out) system, and the cleanliness of the glasses. You need to be certain that each of your beers will be enjoyed in the best possible conditions and exactly as you intended.

As mentioned above, this is an extremely time-consuming process that requires significant support, patience, and trust. You might feel the need for a dedicated sales representative for this task, who can also engage with points of sale through tastings and tap takeovers. Again, choosing a reliable distributor who knows their customers well and enjoys animating and energizing their points of sale can be a tremendous advantage.

Similarly, if a bar complains about a quality issue with your beer, listen carefully, go and see the problem for yourself (if possible), and find a solution together. This shows you’re available and accommodating, but also helps determine if the problem lies with the tap installation or its hygiene. Don’t hesitate to point out any potential issues you notice, especially if they’re recurring problems.

BONUS: Stainless steel or plastic drum??

Depending on the age of your brewery, your production volumes, and your cash flow, you will choose between plastic kegs (Keykeg, Polykeg, etc.) or stainless steel kegs. The aim here is not to recommend one over the other, but rather to highlight the impact this will have on your distribution strategy.

If you sell directly, you’ll be faced with your customers’ preferences. Some prefer plastic kegs to avoid the hassle of storing and managing deposits. Others will prioritize the eco-friendly aspect of stainless steel kegs. If you’re dealing directly with local customers, you can be more flexible on this point.

On the other hand, national distribution will impose choices on you regarding packaging or a suitable distribution strategy.

Indeed, stainless steel kegs are returnable and expensive to purchase, so for shipping beyond your local area, it is strongly recommended to work with a regional distributor such as a wholesaler. They will be experienced in managing returnable kegs, collecting empty kegs daily or almost daily from their hospitality clients, and can therefore return the empty kegs to you with your next order.

Plastic kegs offer the advantage of being able to ship anywhere without the hassle of returns. However, it’s crucial to pay close attention to storage conditions within your distribution channel. If your plastic kegs filled with freshly brewed IPA are stored in a stuffy warehouse all summer long, the quality will be severely compromised!

Conclusion

Distribution strategy is therefore crucial for your growth, and there’s no single right answer. It will depend heavily on your target clientele, your reach, and your relationships with distributors.

If you’re using a distribution network, our best advice is to build strong relationships with them. Make sure they provide reliable storage and quality control for your products, that they have expertise in brewing, and that they offer excellent customer support. Above all, be there for them, just as you are for your customers. They can be fantastic brand ambassadors if you give them the right incentives 😉