Beer Marketer's Insights - Beer Distribs "Can Win This Whole Thing," Jim Sez of Move to Total Bevs; NAs "Accretive" for Maletis

In the merging world of beverage distribution, Columbia Dist ceo Chris Steffanci is right, Boston Beer founder/chairman Jim Koch said during our Beer Insights Spring Conference yesterday. Distribution is "migrating" toward total bevs, with beer and 4th category RTDs likely to be "all on the same truck with soft drinks," because "the efficiency is there," Jim agreed. Retailers like 7-Eleven "would love it if that was all on three trucks," not 8. And tho he's made comments like this in the past, Jim went "even further" than agreeing that there will be more consolidation to capture those synergies. "It's very possible that beer distributors win this whole thing," he said, repeating "beer distributors can win this whole thing" and in fact, "the deck is stacked in their favor," in his view. Later in the day, Maletis Bev sales gm Robbie Maletis riffed on that prospect, explaining how his co looks at the biz "as a total beverages distributorship." Building NA bevs to upwards of 20-25% of the co's biz has been "a great way to increase our overall payload" and increase its "share of voice or mind" with key retailers, he said. "There can be a lot of synergistic value," Robbie agreed. Distrib networks "born through beer" have "a lot of infrastructure, retailer relationships, call frequency in some of the most desired channels out there for NA suppliers. And so, if done right, I think it can be extremely accretive to the business and be a great route to market for those suppliers who maybe aren't with a Coke or a Pepsi," he explained.But "wholesalers need to invest into it a little bit." That return may not come from the 1st, 2d or 3d NA brand, but eventually it will pay dividends throughout the supply chain, "most importantly for the retailer." Because "there almost becomes a halo effect for your entire business," Robbie commented. Headed "into big weekends," for instance, "you want your sales rep to be able to walk in there [and] take care of multiple locations throughout the store in multiple aisles. And that will help every category that you service," Robbie said, allowing distribs to build revs and "reinvest in the overall business."

Beer Distribs "Can Win This Whole Thing," Jim Sez of Move to Total Bevs; NAs "Accretive" for Maletis

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