Comments on: The Decline of the Small Distributor http://artisanfamilyofwines.com/blog/?p=1683 Winemaker Journal Sun, 19 May 2013 20:35:45 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Tonie Kerfoot http://artisanfamilyofwines.com/blog/?p=1683&cpage=1#comment-7902 Tonie Kerfoot Sun, 09 Dec 2012 17:07:30 +0000 http://artisanfamilyofwines.com/blog/?p=1683#comment-7902 It's hard to find knowledgeable people about this subject, but you seem like you know what you're talking about! Thanks| It’s hard to find knowledgeable people about this subject, but you seem like you know what you’re talking about! Thanks|

]]> By: Stonedwino http://artisanfamilyofwines.com/blog/?p=1683&cpage=1#comment-4036 Stonedwino Thu, 30 Jun 2011 03:08:24 +0000 http://artisanfamilyofwines.com/blog/?p=1683#comment-4036 As the owner of a small distributor you are 100% on all counts....It has not been easy the last few years and only the most resilient small distributors are able to keep things going... As the owner of a small distributor you are 100% on all counts….It has not been easy the last few years and only the most resilient small distributors are able to keep things going…

]]> By: Jim Forchini http://artisanfamilyofwines.com/blog/?p=1683&cpage=1#comment-4032 Jim Forchini Tue, 28 Jun 2011 18:07:03 +0000 http://artisanfamilyofwines.com/blog/?p=1683#comment-4032 I completely agree. The 3 tier system + a lack of small distributors leaves small wineries w/o market opportunities out of state. Big distributors w/ their hard liquors & wine book plus lavish entertaining use this leverage to crush small distributors. Small wineries need a percentage of wholesale to keep inventories from increasing. Without this, small wineries must rely on wine clubs, direct sales and special events. These venues take a lot of time, energy & costs to sell a case. Small wineries are also hampered by the fact you can't ship wine direct through UPS and must go through a 3rd party where shipping costs go to $5/btl. The prohibits by airlines of carry on bottles also restrict small winery sales to out of town customers. Tough times for small wineries. My answer, reduce production to align w/ what you can sell direct in tasting room or through Club. I completely agree. The 3 tier system + a lack of small distributors leaves small wineries w/o market opportunities out of state. Big distributors w/ their hard liquors & wine book plus lavish entertaining use this leverage to crush small distributors. Small wineries need a percentage of wholesale to keep inventories from increasing. Without this, small wineries must rely on wine clubs, direct sales and special events. These venues take a lot of time, energy & costs to sell a case. Small wineries are also hampered by the fact you can’t ship wine direct through UPS and must go through a 3rd party where shipping costs go to $5/btl. The prohibits by airlines of carry on bottles also restrict small winery sales to out of town customers. Tough times for small wineries. My answer, reduce production to align w/ what you can sell direct in tasting room or through Club.

]]> By: Vic Motto http://artisanfamilyofwines.com/blog/?p=1683&cpage=1#comment-4031 Vic Motto Tue, 28 Jun 2011 18:01:54 +0000 http://artisanfamilyofwines.com/blog/?p=1683#comment-4031 Good article, Jeff - and too true. Most small distributors are under-capitalized, so when finances get tight, they borrow from their suppliers by not paying them. Then the supplier cuts them off so they sell someone else's wine. Your business suffers. What you've pointed out that there is no good way for a small winery to be able to rely on someone else to sell their wines. That's why the most successful small wineries are those with direct customer relationships, with the trade, consumers, or both. The wine market is way too fragmented for any distributor to be able to cover it well for very many suppliers, so they can't afford to sell small wineries products unless they basically sell themselves. Good article, Jeff - and too true. Most small distributors are under-capitalized, so when finances get tight, they borrow from their suppliers by not paying them. Then the supplier cuts them off so they sell someone else’s wine. Your business suffers.

What you’ve pointed out that there is no good way for a small winery to be able to rely on someone else to sell their wines. That’s why the most successful small wineries are those with direct customer relationships, with the trade, consumers, or both.

The wine market is way too fragmented for any distributor to be able to cover it well for very many suppliers, so they can’t afford to sell small wineries products unless they basically sell themselves.

]]> By: Jason Bucher http://artisanfamilyofwines.com/blog/?p=1683&cpage=1#comment-4030 Jason Bucher Tue, 28 Jun 2011 17:31:54 +0000 http://artisanfamilyofwines.com/blog/?p=1683#comment-4030 Sales people are motivated by money so they will always sell what is easiest. Same for many wineries who would rather make wines that are easier for the consumer to purchase. American and Southern get their bills paid before the small guys because a restaurant/bar can't have their spirits distributor not deliver their order. Restaurants/bars slow pay smaller distributors because there is another one in line when the first one doesn't get paid and stops delivering. What I find ironic is that businesses fail all the time. Wineries are businesses. Sales people are motivated by money so they will always sell what is easiest. Same for many wineries who would rather make wines that are easier for the consumer to purchase.

American and Southern get their bills paid before the small guys because a restaurant/bar can’t have their spirits distributor not deliver their order. Restaurants/bars slow pay smaller distributors because there is another one in line when the first one doesn’t get paid and stops delivering.

What I find ironic is that businesses fail all the time. Wineries are businesses.

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