Relationships

Beverage Brokers deliver drink sales. They develop local, regional, and national product campaigns with attention to long-term sustainable success, are effective at managing the cost of goods and they assist in matching brands with the needs of an evolving market. Beverage distribution decisions have a significant impact on the overall cost structure. Some buyers review categories only at specific times of the year; others secure a distributor for the line of drinks before they can be presented to the trade. Scheduling appointments, making presentations, securing product approval, and shelf resets, have added greatly to the time line from ship to shelf, making the role of the beverage broker all the more important.

Cost Effective

Beverage Brokers represent the most cost-efficient method of doing business for many drink brands. As a direct employee, a sales representative is a fixed cost, but a commission based Beverage Broker is a variable cost directly tied to the volume sold. Beverage Brokers also enjoy a close relationship with their accounts and have in-depth market knowledge. They understand the needs and goals of their accounts and build their programs around them. The familiarity of the broker/distributor relationship adds credibility for new brands entering the market.

Beverage Sales

Sales efforts consist of procuring new channels of distribution and distributor support. A top-flight sales strategy will deliver top line revenue and bottom line profits. Beverage brokers provide a service to both beverage producers and buyers by selling to chain wholesalers, independent wholesalers, and retail stores. Producers often find it more efficient and cost effective to sell through beverage brokers since it saves on maintaining a sales staff. Wholesalers and retailers also benefit by working with one broker rather than with many manufacturers' representatives.

Finding Profitable Supply Channels

The food distribution system in the U.S. is complex. By the time a drink is placed on a grocery store shelf, it has traveled countless miles and has been handled by many people. The product needs to be profitable for the broker, distributor, and retailer. Look for a distributor that offers direct store delivery (DSD) and provides merchandising services. Having a product sit passively on the shelf is a harbinger of bad things to come. Retailers do not like stale products. Remember, shelf space is always at a premium.