American Market: Foreign Trade “focuses on hatching small brands”
April 13, 2018
President Trump, the United States calling itself a “very stable genius”, probably has no reading problems – it’s just fake news. Whether he had time to read winesearcher.com while enjoying his (allegedly) bedtime cheeseburger was not known, but in November, the site posted a direct appeal that he and his family in Virginia had The winery’s words: “Listen, Mr. Trump, the proposed merger of the second and third largest liquor sales companies is not good for wholesale Christmas costumes companies like you.” This is a national distribution company for the Republic (RNDC ) The reference to the merger decision with Breakthru Beverage Group.
If approved, the new RNDC-Breakthru company’s sales will reach about 12 billion US dollars, while South Glazer’s sales of 17 billion US dollars, which makes the two wholesale giants estimated that accounted for 56% of the US alcohol market share. In ten states such as Texas, Florida and Kentucky, the combined share will exceed 90%. How this will affect the supply chain remains to be seen, but many predict that small brand owners will face tough times, whether they are artisanal wineries or presidential wineries. As Ronnie Cox, Brand Director of Berry Bros & Rudd (BBR), puts it: “If you don’t have big brands in your portfolio, it’s hard to have any influence on these major players.”
However, Edrington Americas CEO Chris Spalding said: “At the end of the day, consumers will choose whether you are successful. All other things are about opening the valve. If the brand declines in the recession category, it can support for some time, But it will eventually fall off the cliff.” He pointed out that everyone can now access consumers through cheap media channels and claim that “the retail industry used to just like big brands, but in fact it is usually anti-big brands”. Spalding believes that there will be a “completely focused on hatchery alternatives,” which he calls “bone” or “digital” distributors.
Including Liberty Distribution, or LibDib, was founded by Sheryl Murphy after 20 years in marketing his family’s California wine in 2016. Murphy was frustrated with the existing mainstream market route and described LibDib as “the first technology wholesale Christmas costumes company to provide a three-tier compatible Web-based platform for the sale of wholesale wine.” Currently it is located in New York and California, but the goal is to travel the country within two years.
Ralph Erenzo of Tuthilltown Spirits, New York, said: “The problem with very large distributors is that they have big brand goals. The salespeople and buyers who walk in have limited time and he will push this month’s incentive brand. He will not spend 40 minutes explain some beautiful new craft spirit. ”
Erenzo co-founded Tulthilltown and its Hudson Whisky brand in 2005 and stated that since Prohibition became the first whisky distillery in New York, when it was sold to restaurants and restaurants, “it was a big advantage and it was a manufacturer. I can jump out of the lineup of all sales people “shops.
In his words, five years of hard work have paid off, “Each little distiller’s prayer will come one day.” This is the acquisition of the brand and care distribution provided by William Grant & Sons, leaving Erenzo and his team to continue what they are best at – Distilling. “When I started, I thought dealerships were demons,” he said. “But I realized they really understand the market. If you want your brand to go to other countries, they know the local laws.” It is doubtful that the introduction of Hudson’s whisky today will be more difficult, and not that the army of process distiller facing fresh bread will be discouraged. But everyone will soon discover that being listed by distributors is just the beginning. If you want to avoid being pushed behind the warehouse and forgotten, then the real work starts after the transaction is completed.
“It was very difficult when you were young,” said Dennis Carr, CEO of Anchor Distilling Company. BBR now has a controlling stake. “If you are a brand from outside the United States, you really need to find an import partner with resources and relationships with distributors to seize the opportunity.” As an importer, he worried about the influx of new brands in recent years and said: “It’s hard to stay focused for a long time.”
Interbev, whose brands include Old Pulteney and Speyburn single malt and Caorunn Gin, merged with Sazerac of the United States in 2015. “Sazerac has a strong sales force and strong influence in controlling the situation,” says Milo Thompson, who helps take care of the US market. Despite the challenges of dealing with large distributors, he is still optimistic. “You must be patient and ultra-efficient to share the voice with these guys,” he explained.