How the beverage distribution business works (yawn)

Discussion in 'LTL and Local Delivery Trucking Forum' started by Mike2633, Feb 14, 2015.

  1. Dumdriver

    Dumdriver Road Train Member

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    We're cracking down on those private vending companies. We just had a big investigation. Literally had undercover people following guys around, documenting them filling machines.

    Ironically the whole thing actually costs us business but the private vending guys don't respect territory rights and it ends up in huge fines for whoever sells them the product and whoever manufactured the product that ended up violating the territory agreements.

    Takes forever to prove you didn't actually violate the rights. It's pretty wild to see it all unfold
     
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  3. androidloyd

    androidloyd Light Load Member

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    10-4, I'm getting my start in the beverage alcohol distribution LTL...
     
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  4. Russian Rabbit

    Russian Rabbit Road Train Member

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    1) Why would a store, large chain or small mom+pop WANT to carry a micro-brew or give it a chance, even if you have good salespeople?

    2) i want to distribute energy drinks such as monster, redbull etc. Do the same "rules" apply to them as alcohol?

    3) Getting the warehouse etc. is not a problem, however i would never buy a ford truck. i would not use a ford truck even if it were given to me----i would sell it.
    What is basically involved with getting a license?
     
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  5. Mike2633

    Mike2633 Road Train Member

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    Energy drinks do have sales territories, but there not state sanctioned, it's an agreement between you and the manufacturers. Arizona Tea had really weird sales territories and stuff, like anyone could distribute Arizona Tea, but Arizona had certain distributors assigned to certain stores, it was really strange. I rember the one Convenient Food Mart I did, somehow they switched over to buying Arizona Tea from us, but the store had to ask Arizona for permission to switch.

    Monster was done by Budweiser and then switched over to Coke here in Cleveland and Coke had the entire Cleveland territory.

    The Micro Brew thing is beyond me personally I think there are to many. A bigger Micro Brew like Sweetwater or Great Lakes what they do is create buzz and hype and get consumers to demand the crap and that forces the stores to carry it. Yungling is a good example of this.

    As far as getting a license to distribute Alcohol you would need a lawyer first and some cashola, because it's not cheap and I don't know the in's and outs with that.

    Energy drinks though like RedBull and stuff that's non alcoholic that would be as simple as getting a hold of Red Bull and asking them what there territory is. See here in Cleveland Red Bull did there own distribution kind of* They delivered to grocery stores and C-Stores on there own, but did not do bars, clubs or restaurants so that niche may exist where you could have the energy drink distribution for that stuff.

    Pepsi unless they changed used to want to strong arm, C-Store owners into carrying there whole line of everything not just drinks and a lot of guys didn't want that. So what happened was that opened the door for people like you to get a warehouse and a straight truck and buy a bulk load of Pepsi from Pepsi and then resell it to the C-Stores for cash or check.

    Lots of Izuz Straight truck guys running around C-Town selling Pepsi to C-stores and gas stations.
     
  6. Mike2633

    Mike2633 Road Train Member

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    Rabbit are you interested in starting a beverage distribution business? I know there are some small time and I mean small time wine sales companies the guys just have a cargo van or whatever and they sell just the real expensive stuff. A lot of these places don't always sell to the big time super markets, a lot of these micro brews end up at bars and stuff that's kind of where it all begins.

    The life cycle is, it starts at the bars, then creeps it's way to the specialty beverage stores and then from there if it sticks around and becomes big ends up in the big super market. There's a lot of them though micro brews that go to super markets.

    The thing about super markets is, the sales people at the beer company have say into what goes into the super market, they tell the manager I want to bring this in he says fine will try it and that's it. That's how these micro brews can get into the big supermarkets. The sales people can kind of put them there without having to ask for permission sometimes.

    Like the beer company I worked for had merchandisers who set up displays and everything, same with the potato chip people they have space allotted to them at the store and can put what eve they want in that space to a certain extent.
     
  7. Mike2633

    Mike2633 Road Train Member

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    I had one gas station who he wanted to expand his beer section and he wanted some of that fufu stuff and wanted "real high quality beer", I mean we had a bar here in Cleveland that had over 400 beers or something, I think it's just a hobby for a lot of people they like to drink craft beer for fun and taste. I know the one bar I did the whole basement was full of kegs it was a mess all different kinds of beer, there's a guy on You Tube from Cleveland Doctor Dave the beer professor and all he does is drink and review specialty beers, so go figure.
     
  8. speedyk

    speedyk Road Train Member

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    Yeungling is the oldest brewery in PA. There used to be a lot of little regionals before you were born, they got bought up and the distribution went with it. Yeungling is made out east in PA, yet it's sold in C-town, because they decided to market like Rolling Rock and Coors did, both of those used to be strictly regional to the point where people would smuggle them to other markets for resale.

    Yet closer to you, also old, is Jones Brewing (used to be that, same family as Shirley Jones of The Partridge Family), they sold odd stuff like Esquire Ale which came in little returnables as well as Stoney's. They're not that far from Pintlehook, but you may not have heard of them and they were around well before I was born.

    So you first had bars making their own right there, and people would take big containers called growlers to go pick some up for home consumption. They used to rub butter on the inside to keep the beer from foaming so they'd get more to carry home. Then brewers started bottling, but didn't distribute very far so there were lots of oddities all over the US. If you traveled and didn't mind going in some odd places, there were things you could try that were not available anywhere else. Corporatisation has done away with a lot of that novelty.

    Then the little guys got bought up and all corp beer started to taste the same. I remember when PBR started making Olympia in their PA facility, Oly used to be a wonderfully odd brew from Washington state, very hoppy. It started tasting like the fake PBR made in PA right beside it, same Pottsville water, and PBR itself turned to meh when it was made in PA and not Milwaukee. That's about where I stopped having a beer at all, they all tasted the same vaguely metallic way.

    The craft brew movement is about reversing that corporatisation, but they have to break into a locked market where the efficiencies of sales and shipping have already been figured in mass quantities. There is no substitute for local ingredients and water and climate (although that's out the window now, in 30 years much of the US will be unlivable), but corps thought they could spice things and people wouldn't notice.

    So looking at it from a bulk driver's POV I can see where little companies are a PITA, and some of the labels now are undoubtedly a little precious, but if I wanted to meet more interesting people than con-store clerks I'd start a distro doing only little guys and see what little bricked alleys I might find myself in. Just because variety and non-corporatised stuff is more interesting to me.

    Funny unprecious beer label from OOOtah...
    [​IMG]
     
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  9. androidloyd

    androidloyd Light Load Member

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    I believe the micro brew movement gives the consumer a feeling of sophistication while enjoying the suds. Imagine, after a long week at work you meet your buds at your favorite watering hole to discuss current events and choice Hops from some remote region of the world. It's similar to the wine lovers. All of sudden, winery's are popping up all over America.
     
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  10. Rocketmansid

    Rocketmansid Bobtail Member

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    I enjoyed reading your post Mike2653, I'm highly interested in beverage delivery, primarily beer delivery.
     
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  11. localguy65

    localguy65 Light Load Member

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    I couldn't find the answer anywhere on here so Ifound this awesome thread and figured I could ask the question on it...

    How long are beer trailers typically?

    Looks like my best bet to start driving a truck locally will be with a beer distributor.

    Thank you!
     
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