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  • Contractual Performance Benchmarks

    Howdy All,
    I am wondering if anyone has any performance benchmarks for their distributors written in their distribution contract? What I'm thinking of is a defined amount of units (1/2 bbl, 1/6 bbl, cases, etc) sold to accounts via the distributor in a given amount of time.
    Any thoughts or examples is appreciated.

    Prost!
    Dave
    Glacier Brewing Company
    406-883-2595
    info@glacierbrewing.com

    "who said what now?"

  • #2
    Anyone have anything to input on this?
    Glacier Brewing Company
    406-883-2595
    info@glacierbrewing.com

    "who said what now?"

    Comment


    • #3
      In past agreements, I have had unit sales goals and sales percentage increases in the distro contracts.

      Essentially it meant to us as the brewery, if you buy this amount of beer, it best get sold. THe contract stipulated that if the distro asked for certain percentage increases then they were responsible for selling said product. They cannot come back to us and return beer they committed to selling. This worked for me with a certain brand and distro years back.

      Currently, I don't have that kind of deal, but the wholesaler that sells my product has 'exclusive rights' through a contract agreement that makes them our 'master' distro. this means they make a little on each new market we enter. With this comes some serious commitment from them and a slightly favorable margin for us. IF they can't move the beer… they eat it. Also, it is stated in the contract that they cannot move out of date beer at a discount.(IMPORTANT) The brewery is not entirely responsible for the distro over committing to growing our brand. obviously we do our best to assist in selling the beer, so it doesn't fall all on their shoulders. this is working well so far.
      ________________
      Matthew Steinberg
      Co-Founder
      Exhibit 'A' Brewing Co.
      Framingham, MA USA

      Head Brewer
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      Seller of Liquid
      Barreled Beer Aging Specialist
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