Self distribution vs. wholesalers
I am in the business plan development process stage for the future opening of a microbrewery. My state has a three tier distribution system. However, I live only twenty miles from a state that allows self-distribution. We are leaning toward opening where we can self distribute at our discretion. Any thoughts? Thank you.
I worked for a micro in a 100,000 person college town, and we self-distributed in our city, using a distributor for the rest of the state. A very large part of our profit came from that arrangement! We sold a lot of beer in our town, and that extra 20 bucks a keg sure came in handy.
It makes less sense if you're relocating to an area of low population density and have to do a lot of driving around over distances to distribute...
Samll distributors conference
There will be a two day seminar specifically for specialty distributors and self-distributing breweries in San Diego on April 13-14th. It will be held just prior to the Craft Brewers Conference and at the same hotel. For more information you can visit: http://www.beertown.org/events/cbc/a...holesaler.html
I've been debating that for some time now and have choosen the wholesaler route. only time will tell if if made the right decision.
Much depends upon what arrangements you have made with distributors in your state. The trade off is distance verse focus. Self distribution gives you focus but only within a small geographical region. In high population centers this could be a benefit, self distribution. The other factor is the additional capital needed for trucks amd warehousing to sell your beer. Any questions feel free to call (303)431-9168. Tim lenahan