Beverage Distribution Employment Opportunities

Even though I am no expert, I firmly believe that our country is in the midst of a "great recession". Feelings of hard times ahead abound. With our sagging economy, employees in the beverage industry are becoming more and more unsatisfied with their present employment. Many face cutbacks in salary and deductions in their paychecks from the rising cost of fuel, freight, insurance, and products. Beverage distributorships are facing tough times. Many are carrying a large amount of debt and others are trying to take added costs out of their systems. We will find in the future that a large amount of new beverage company suppliers will start losing distributors because of the higher costs of keeping inventory and low turnover of these smaller brands. Large beverage distributors today want brands and packages that turnover quickly, have decent margins, and are not labor intensive (or brands we don't have to hand sell). This is a tremendous opportunity developing for entreprenuers wanting to enter the beverage business.

If you are an employee with a beverage distribution company and you are unhappy with your present employment, you have a few decisions to make:

• Stay in your present position and be glad that you at least have a job.


• Go back to college and get the education you need to better yourself.


• Find employment in another field of work.


• Be proactive, go out on your own, and start your own beverage business.

I have some employees that do nothing but complain. Complaining gets in the way of progress. They are offered sales incentives and extra cash for driving results, and most can't (or are too lazy to) meet simple quotas. Why stay in a position that you are not happy in and waste not only yours, but everyone else's time? Is it a level of comfort, is it the only skill you know, are you lazy, do you like to be miserable and make the people around you miserable. I think it's a combination of all the above with a high level of insecurity and unsuredness about themselves mixed in. If you don't want to be a part of a team in a sales-oriented, results-driven business then you need to seriously consider the other three decisions I mentioned above.

Going back to college to learn a new technical skill or get an advanced degree will pay dividends for the rest of your life. Go into a field that you are passionate about and excel. I've always liked the quote that "you should find a job that you would like to have if you were a millionaire". This can be defined as doing something that you love, enjoy, and feel good about.

The third one about finding another line of work goes without saying anything.

I love the fourth one though. The opportunity for small, nimble beverage distributors that hand sell products and build small, niche brands is exploding. If you want to stay in the beverage business and believe in yourself, why not start your own beverage distribution company? You can do it better than anyone else can, can't you? The best source for information is the total beverage package. Everything you need to get started in the beverage business is in there and it will save you a ton of time and money. Why not let a beverage industry professional give you the direction you need to start your own beverage distribution or production company?

Remember everyone has choices to make as to whether they better their place in society. When you don't take the opportunity of getting or doing something better for yourself, you make sacrifices. Your decision to make these sacrifices determines your job position and title. In other words, if you don't take the time to learn and be the best at what you do, then it's your own fault and not anyone else's.

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Build a Marketing Plan or a Business Plan for a Beverage Company

Whether you're a seasoned beverage industry professional or an entrepreneur with an idea for a beverage company you will need a business plan or a marketing plan for the advancement of your go to market strategy.

The distinct differences of the two are, mainly:
-Business plans are for banks, lenders, and borrowing money.
-Marketing plans are for suppliers, retailers, and making more money.

These plans are also fundamentally different, in that:
-Business plans should be based on factual data that embody your entire business architecture or conception yielding precise information about your company or proposition.
-Marketing plans should pertain to certain areas of focus of an existing brand or package, new product agreements and rollouts, and new ideas to help secure business alliances.

But, they both contain similar and essential components:
1.Pre-planning...information and fact gathering time.
2.You, your skills, and your company...remember you are selling yourself.
3.Historical data...anything pertinent to past performance.
4.Sales figures, projections, and trends...everyone wants to know what you've done, what you think you are going to do, and how you think you're going to do it.
4.Geographics...know the territory and the accounts inside and out.
5.Competition...the more you know about them the better.
6.Demographics...what the population looks like in detail.
7.Estimates...tell them how much money you are going to make them.
8.Responsibilities...who is charge of what.
9.Organizational...job titles and functions.
10.Funds...everyone is all about cash flow.
11.References...throw some names around.

Now you know the difference about beverage company business plans and beverage company marketing plans.

I've been getting many emails about starting new beverage companies and beer distributors lately, so I wrote down some new ideas about business plans for some of you budding beverage entrepreneurs out there. I've helped a few guys and gals get started in the beverage business, so if you want to pick my brain feel free to send me an email.

If you need some business plan and marketing plan examples about starting your own beverage business, please take a look at the Total Beverage Package.

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100 Resources Needed to Start Your Own Soft Drink Beverage Company

I am compiling a checklist for aspiring beverage company distributors. Included in the checklist is everything you will need, in the form of resources, to start your own soft drink, new age, beer, or energy drink beverage distributorship:

1. Warehouse/Storage              51. Cell Phone
2. Van/Delivery Truck             52. Voice Mail
3. Uniforms             53. Route Book
4. Two Wheeler             54. Distribution Channels
5. First Aid Kit             55. Company Policy
6. Route Accounting             56. Employee Policy
7. Point of Sale             57. Fuel Supplier
8. Route Sheets             58. Electricity
9. Tape Gun             59. Gas/Water
10. Build To Lists             60. Blade Cutter
11. Pricing/Label Gun             61. Tape Strips
12. Products             62. Cleaning Supplies
13. Shelf Strips             63. Breakeven Analysis
14. Customers             64. Receiving
15. Insurance             65. Legal Ownership
16. Cash Flow             66. Organizational Chart
17. Glide Racks             67. Filing Cabinet
18. Imagination             68. Stapler
19. Patience             69. Security
20. Health             70. Inventory Controls
21. Banker             71. CMA Programs
22. Calculator             72. Discounting
23. Invoices             73. Rebate/Return Policy
24. Fork Lift             74. Promotions
25. Static Stickers             75. Damaged Product Procedure
26. Pallet Jack             76. Forecasting
27. Computer             77. Ledger
28. Suppliers             78. Petty Cash
29. Street Sheets             79. Budget
30. Presentations             80. Long Term Plan
31. Wallet Chain             81. Margins
32. Honesty             82. Laid Ins
33. Internet             83. FOB’s
34. Pen/Pencil             84. Order Staging
35. Notepad             85. UPC’s
36. Printer             86. COD or Credit Terms
37. Humor             87. Rotation
38. Mission Statement             88. OSHA Guidelines
39. Goals             89. CDL
40. Business Plan             90. Balance Sheet
41. Excel Spreadsheet             91. Franchise/Contract
42. Fire Extinguisher             92. Brand Programming
43. EDI Capabilities             93. Merchandising skills and Tools
44. Word             94. Dependability
45. Power Point             95. Versatility
46. Space Management             96. Laptop Computer
47. Enthusiasm             97. Briefcase
48. Comfortable Shoes             98. Business Cards
49. Samples             99. Back Brace
50. Dealer Loaders             100. TIME

Please let me know what I've left out!

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Start a Beer Distributing Company

So you came up with a wonderful idea on how to get rich by starting a beer distributorship. Are you crazy? Are you drunk? Or.... do you have what it takes to work 16 hour days, seven days a week to be your own boss? Do you like pushing one of these things in the picture on the right? Do you enjoy setting your own goals, interacting and conducting business with many different people with multiple demeanors and diverse backgrounds, and analyzing progressive consumer trends and habits in the marketplace? I enjoy teasing the folks that think beer distributors just deliver beer and make tons of money. Nothing is further from the truth. Beer distributors are entreprenuers that evolve everyday. Change is eminent and constant. Believe me, the breweries change marketing focus and organizational structure every few months. To be a beer or beverage distributor, you have to be able to go with the flow and always do what you say you'll do.

Following is some basic information to see if you've got what it takes:

First you need a federal license to sell alcoholic beverages and a federal permit so you can store them.

Second you need a state permit for the counties you service. Once you get a state wholesaler permit you will receive a tax roll of all the accounts that hold a retail license for the area you service. This roll is important because it will be your universe to which you can sell alcoholic beverages. Its also where you will keep up with taxes collected from retailers.

Third you need an operational strategy. This means vehicles and warehouse space. You will also need a decent route accounting software system to keep up with your invoicing, distribution and sales reports.

Fourth you need products and customers. Call and email every supplier you can find...from alcohol to non-alcohol. Check the margins they offer, terms, pos, support, etc. A good starting point is BevNet.com.

Fifth you are going to work your tail off. Do you have a sales force? If you can do all this on your own...you are my hero. I consider owning and operating a beer distributorship with no employees to be the Holy Grail of the beer wholesaling profession. That is, if it could be done.

I hope that doesn't scare you off. I admire that you want to do this. It is a rewarding business and can be very fulfilling, but you have to know that it can also be excrutiatingly painful, depressing, and all-time and all-thought consuming. I know a lifetime of answers to any questions...feel free to email me at any time, my knowledge is at your disposal. For more information online, see how to start your own Beverage Distribution Business.

Now make a list of questions to ask yourself, your retailers, and prospective suppliers. Some examples:

• FOB's and laid in's for different brands and packages.
• Rising fuel, freight, insurance, taxes, and supplier demands and their effect on the beverage business.
• Your location and your competitors.
• Demographics of your territory.
• Service level expectations and payment procedures of various retailers.
• Laws affecting transportation and distributing alcoholic beverages in your area.
• Credit terms with suppliers and retailers.
  

And now a little cheat sheet to wet your appetite:

1. Contact all of the beverage distributors in your area. Don't tell them all of your plans, just say you are conducting research. Ask about the brands in their portfolios and see if they handle the full package line from some mid-major brewers. Start with the Pabst supplier. If the distributor is not carrying some Pabst packages you can request these brands. A few other breweries to contact are Gambrinus, Pittsburgh, Cold Spring, or any small regionals in your area. It will take time to build a product line. Also, you will have to be ready to order and deliver as soon as you start getting the product....remember beer is perishable.

2. Ask about their non-alcohol portfolios...there is more margin in soft drinks and you don't have to pay sales taxes in most states. The only drawback is some retailers will ask for credit terms (larger ones) and Coke and Pepsi control the cooler sets. But sometimes we get lucky with these new niche products..many did with Snapple, Red Bull, and Vitamin Water. Try to get a few of these beverages. A couple to look at are Cocio Chocolate Milk, Hat Trick Beverage's Pumped Fitness Water, and IrnBru. Go to BevNet and research some of these brands. Don't be afraid to call or email them. They will send you samples and pricing.

3. Contact the National Beer Wholesalers Association and ask about your State Association and who the local distributors are. You can also find a wealth of information about starting a beer distributorship on the NBWA website, as well as your state association's website.

4. Never pay for any franchise from anyone in the beverage business...you get the rights from a supplier based on the expectations of your performance at the levels agreed upon in the beginning of entering a contract with a supplier. Any payment to a supplier should only be for inventory and promotional items that help you sell more product. At least, that is my conviction.

5. It would be best to start off with some non alcohlic drinks first, unless your market is heavily skewed to the on premise. Many breweries nowadays let you order small pallet quantities to help with cash flow. So do the smaller soft drink companies.

6. You need to make at least 25% margin on beer and 30% plus on soft drinks.

7. Look in to adding beef jerky, cups, or salty snacks to your routes.

8.It is imperative that you have a superior understanding of computers, the internet, excel, word, and power point. You wouldn't be able to order or sell the first case without 'em.

Hope that helps a little, at least you have a starting point now. Anyway, feel free to email me with any questions. I believe that with consolidation of more and more beer distributorships, there will be breweries and beverage companies that will welcome smaller wholesalers. There is a niche for small, nimble wholesalers...you just have to patient, hardworking, and lucky. Just remember, the beverage business is about making friends...that is forgotten when you're trying to sell 500 sku's.

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How to Develop Your Own Energy Drink or Start a New Age Beverage Company.

The energy drink and new age beverage category is delivering phenonemal growth year in, year out. Especially the growth of New Age Beverages like Red Bull, Monster, Rockstar, Vitaminwater, Fuze, Sobe and others. As a beverage distributor, I constantly look for new opportunities that compete across the entire beverage spectrum. I need to constantly update my portfolio with new high margin beverages in order to drive consistent, profitable growth to sustain my investment in manpower, infrastructure, inventory, and technology. I keep detailed files of new beverages, beverage distributors, pricing, marketplace trends, development, merchandising, marketing, positioning, and promotion. I get calls and emails daily on how to start a beverage company or who to contact with a new beverage idea. Learn the secrets to starting your very own beverage company today.

The Total Beverage Package includes the following and more:

• 38 Pages of Articles and Case Studies about Energy Drinks and New Age Beverages.



• How To Get Started in the Beverage Business and Distributor Business Plans.



• Beverage Production and Bottling Costs.



• How to Sell to Beverage Distributors.



• Bonus - Free 15 minute Beverage Company Consultation.

Now you can benefit from experience and sales to learn about the New Age Beverage business. Get the advice you need about how to go into the business, get more market share, more sales, more distributors and lower production costs. This package will save you money and months of research on the internet and calling distributors and bottling plants.

Click here to get all the information you need to start your own Energy Drink Company or New Age Beverage Business.

Now you can begin the rewarding challenge of starting your own beverage business. Let a beverage industry veteran give you the advice and intellect you need in starting a beverage company.

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Distributor Opportunities with Cott Beverages

As a beverage distributor, I constantly look for opportunities to partner with established suppliers that bring extensive knowledge and expertise to my market, as well as terrific products. Many new beverages are from start-up companies that, either, don't have incremental dollars to invest in my market or don't have the manpower to help drive the business. Many of these companies have trouble getting chain authorizations in national accounts and suffer out of stocks due to the contract production of their beverages. To my surprise I have recently found that Cott Beverages is agressively pursuing independent distributors to partner with and carry their exisitng lines, as well as new product introductions.

To those who may not know, Cott Beverages is the fourth largest soft drink beverage company in the world and the world’s largest private label soft drink producer. Cott has 17 manufacturing facilities and one concentrate house in North America. Cott Beverages manufactures private label product for the world’s largest retailers, such as Wal-Mart, Loblaws, SuperValu, and Safeway. Cott has recently launched Throwdown Energy and Emerge Water, and is diversifying their portfolio as we speak.

For more information you can visit Cott.com or send an email to Cott. Type WHOLESALE BEVERAGE DISTRIBUTOR as the subject.

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The Pros and Cons of being a Red Bull Energy Drink Distributor

Many people recognize Red Bull Energy Drink as a phenomenon in the beverage industry. Retailers are in awe of the power of Red Bull Energy Drink. I find that these same retailers that will not budge an inch during beer cooler resets, will give Red Bull two to three shelves and a display piece for nothing (usually the Red Bull Full Bull contracts are for one case, one shelf per quarter, like I said, nothing).

Red Bull is defined by its mystique, its originality, and its significance as the de facto creator of a category. This carries over from the ranks of the supplier, Red Bull North America, and spills over into the retailer side. It kind of skips the hard working people that really built the brand into the powerhouse it is today…the distributors. I see Red Bull NA terminating beer distributors very frequently these days. Red Bull is fortifying its ranks with Red Bull only wholesalers that sell Red Bull Energy Drinks exclusive. These terminated distributors are left with nothing to show of the brand because of the biased distributor agreements from Red Bull NA. That being said, Red Bull is still a cash cow for the remaining wholesalers. Now, a look at the good and the bad of being a Red Bull Energy Drink wholesale distributor:

The Pros of being a Red Bull Energy Drink Distributor

1. Exceptional product awareness and quality.

2. Two-year shelf stability.

3. Ordering process. Freight is included in the price and the turnaround time from ordering to delivery is always less than two weeks.

4. Excellent margin.

5. POS designed for any retail establishment.

6. CMA programs for retailers.

7. Huge allowances for sponsorship opportunities.

The Cons of being a Red Bull Energy Drink Distributor

1. Red Bull Distributors are buried in a glut of paperwork. Full Bull on and off premise programs, daily sales number requests from Red Bull chain departments, and incentive programs for distributors sales forces.

2. The contract between Red Bull NA and the distributor is worthless, unless the distributor was given some sort of special, perpetual rights of the brand.

3. Red Bull Distributors received a general price increase in January and were advised not to raise the price to retailers.

4. Red Bull chain department sells different programs to different chains and retailers. Some retailers get more than others. It’s hard to keep up with who is getting what and retailers get extremely angry when they find a competitor is getting a better deal.

5. Red Bull NA wants Red Bull only van teams. In other words, separate sales forces that sell Red Bull only.

6. Coolers and display racks that were once free to the distributors now have to be paid for by distributors.

7. We used to have one representative from Red Bull NA, now we have seven different people to deal with.

We have found that our profit margin from Red Bull has been cut nearly in half by these cons, but the huge volume increases have more than made up for it in dollars. I’ll take the bad with the good any day because when its all said and done, Red Bull Energy Drink is a proven winner on the shelf.

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The Beer Distributor is the Vehicle of Choice for New Beverages

After a long summer, I like to start looking for new, exciting brands to add to my portfolio. Usually, I take two to three months to decide which new beverage brand I’m going to add. The decision process starts in early fall and lasts to the end of the year. I make my mind up in December and make contact with the different companies. At the first of the year, we start setting goals and objectives, training our sales team, and adding infrastructure around these brands. Once Spring gets here, we can concentrate on sales leading into the Summer months. Then we start all over again. This process has been very successful for our company in the past with brands like Snapple, Sobe, Red Bull, Fuze, and Vitaminwater. In fact, our non-alcohol division was on track to pass our beer division in gross profits by mid-2008. Now the bomb has dropped, everyday Red Bull wants me to spend, spend, spend. Fuze and Vitaminwater will be going to Coke by the middle of next year. Snapple is giving away the ship. What in the world am I going to do? The first thing is not worry too much. I understand that this is the beverage business and these things happen everyday. Brands come and go. One thing I’ve learned is that you have to remember where you came from. I think many companies forget that and get to big to fast. The brands I mentioned above were built by hard working distributors case by case, not by corporate sales executives. When I lose a brand I always know there will be another company that is hungry. There are literally hundreds of beverage companies that will offer my beer distributorship a nice margin, a good beverage brand, and an incentive to sell their brand. After all, my company is just a vehicle to get their brand on the shelf. Some brands I am looking to add are as follows:

·Irn-Bru - A mixed fruit flavored soda made with 32 flavors. Can be used as a mixer.
·Metromint - Purified water flavored with natural mint.
·Hint - Pure water, nature's original refreshment, accented with a hint of natural flavor.
·Essn - One hundred percent natural sparkling juice beverage.
·Luvli Juice - All natural, low sodium juices.
·Function - Make your drink work for you.
·Bawls - Guarana-based soft drink has been out for a while, but the new cherry flavor is terrific.

I will keep you informed of my decisions on these beverages and how they are doing in my market.

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So You Lost Vitaminwater to Coke...

Add Vitaminwater to a long list of brands that are built from the ground up by hard working distributors only to be taken away once the brand gets its legs. Clearly Canadian, Snapple, SoBe, Fuze, Corona, and now Vitaminwater. These brands offered distributors added margins and helped fill drop size. Hopefully, the former distributors will receive a nice buyout package once they sell the brand and I am hearing many distributors with "so called" perpetual rights agreements, will. Anyway, you've lost another important brand to your portfolio, what do you do?

It's time to look for the next new thing. Try searching for products in new beverage categories. Get agreements with companies that offer different brands competing in different segments. The best segments an independent wholesaler can compete in today are as follows:

1. Energy Drinks---They keep coming and they keep selling.
2. Enhanced Water---You won't find the next Vitaminwater, but you may be able to hold space with another brand.
3. Infused Teas---Get new teas loaded with antioxidants.
4. Enhanced Juices---The next big one will come from this category.

That is my two cents.

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