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  • Back door distribution

    Finding Your Wholesaler through a Retailer


    One of the greatest challenges for foreign wineries these days in the U.S. market is to find a point of entry, and to sustain it once you do. Importers are inundated with requests for representation and most brands don’t appear to distinguish themselves from any other unrecognizable brand name. Once an importer takes a brand on, this can appear the answer to your prayers, but it is just the beginning of the journey.

    How do you stand out from all the other wines? How do you ensure that one order from the importer turns into two, and then years of brand building?


    The key is often to think outside the box.

    In the case of a winery which has a U.S. importer, but is unhappy with the level of sales or simply wants to ensure the relationship continues, opportunity can be found in developing a rapport with a chain. Not the typical chain that readily comes to mind – supermarkets and enormous national accounts with hundreds or thousands of stores. Not only are these almost impossible to penetrate and require an established broker or national distributor to develop the relationship, but they may require more volume than the average winery can provide. No, I’m referring to smaller restaurant and retail chains which are theoretically easier to approach and may provide all the case movement a winery could wish for.

    The importer is providing the basic infrastructure and the wines are warehoused and available in the U.S., allowing a chain to build from one store or a handful, from a few cases to a pallet. Whatever the size, they don’t normally start with a container order unless they have made a commitment to a very inexpensive brand with a national distribution network. Container orders can come, even for small or higher priced wines, but taking a chance on wines that are already in the country is a much more feasible option.

    If you haven’t already met buyers on sales calls around the country, start by asking the importer for any distributor’s placements that are part of a chain. It may just be one wine in one city at the moment, but if it is Fleming’s restaurant, a Whole Foods specialty grocery store or a Costco, this opens up opportunities for other areas. Cultivate the buyer, ask how you can expand on distribution in theirs or other areas, and capitalize on healthy sales already in place by speaking with regional buyers. Offer to give volume discounts, do wine dinners, in-store tastings or ask for a meeting with store managers.

    For some time, I sold to a retail chain in Texas where the buyer arranged for me to meet with over a dozen store managers at once. I provided lunch, conducted a tasting, gave them a presentation on the regions and wines and supplied them with POS material to take back to the stores. A personal connection was made and at least some of them started stocking and paying attention to the brands.

    If you have lost an importer, the knowledge of these placements can mean the opportunity to get back into the country through a chain, rather than starting the whole process all over again of contacting importers who may or may not have any interest.

    I know of one such brand that is doing very well after losing their last importer. They contacted a small, but robust retail chain that was interested in continuing with their wines, and have sufficient sales to currently order 2-3 containers in the first year.

    There were other advantages on both sides:
    • The brand had built up a loyal consumer base across the country that the chain can supply through direct shipping;
    • The chain is a multi-million dollar business that pays on time every time;
    • The chain works with a local importer/distributor that clears their products for them for a reduced fee, thus allowing the retailer to make significantly more on the sale and encourages them to continue promoting the brand.

    The disadvantages for the winery are:
    • All their eggs are in one basket. In the event anything changes with the chain they could lose all U.S. distribution;
    • They have no control over sales and which wines are sold, which could conflict with which wines they produce of the greatest volume;
    • Distribution is limited to one state and at the off-premise retail level.

    However, for this brand the advantages far outweigh the disadvantages. They are a small, family-owned, boutique vineyard which had an unfortunate history with two importers who went out of business owing them money. The current situation gives them steady sales to augment their domestic and other foreign business, a presence in the U.S. which they enjoy, and peace of mind.


    Consider other ways in which you can “think outside the box” when looking at back door distribution and approaching potential customers:

    • Do you have a particularly popular wine of the moment, such as Moscato or a sweet red at a good price point? Could you produce one for this market?
    • Are these wines of considerable cachet elsewhere and highly rated?
    • Did you develop relationships with any particular distributors in the old importer network and can approach them for either an importer recommendation, or ask if they are interested in bringing them in themselves. Many distributors also have their own importer licenses;
    • Do you have any special connections, or wines suited to wine clubs, military bases or other potentially large buyers of wine?
    • Could you offer exclusive arrangements based on either limited availability of your wine or providing a specialty label for them?

    Often it means starting small, it usually always means being tenacious, focused, consistent and working hard, but the rewards of being creative in this market are often worth it.



    Deborah, an Australian native, has been importing wine into the U.S. since 1992, beginning with her family's own vineyard, The Cowra Estate. Since that time, she has represented many iconic brands from small vineyards in Australia and New Zealand.

    The journey of the last twenty years has been a constant adventure, but it began with no instruction or assistance, resulting in a steep learning curve and, what seemed to her, far too much trial and error.

    Deborah finally decided to bring her many years of experience to a book on wine importing and distribution to allow others to benefit from this journey and not have to reinvent the wheel.
    Cheers!
    Banjo Bandolas
    Probrewer.com
    v- 541-284-5500
    banjo@probrewer.com
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