Benefits Of Working With An Experienced Beverage Distribution Company In Minnesota

Distribution companies play a vital role in helping product manufactures get their products out to end customers

. In some cases, a distributor might buy products from a manufacturer and then resell the products directly to the end customer using a chain of distribution centers. In other cases, a distributor might be part of a three-tier distribution process in which the distributor first buys products from a manufacturer, then warehouses the products and later resells them to retailers, who in turn sell to the end user.

Typically, large distributors have strong manpower and financial resources, well established market relationships and numerous marketing programs for getting a product into the market far more quickly and efficiently than a manufacturer itself can. Often, distributors also play a role in promoting a product and in offering after- sales support and service.

The beverage industry is one area where product distributors play an especially important role. After the United States government formally repealed its Prohibition on alcoholic beverages back in the 1930s, all 50 states have implemented a three-tier system for alcohol distribution.

Under the three-tier model, producers of alcoholic beverages, as well as owners of vineyards and breweries, can only sell their products to a state-licensed distributor, which then sells the beverages to retailers. Only authorized retailers are allowed to sell alcoholic beverages to the end consumer. There are a few exceptions to this rule, but in general, the three-tier model is something that is used in all states, including Minnesota (MN).

Producers looking to do beverage distributing in MN need to ensure that their beverages are sold only to a licensed Minnesota beverage distribution company that is subject to Minnesota regulatory authority. The state currently has close to 80 such licensed distributors of beer, wine and liquor, almost all of which are family-owned businesses.

Minnesota beverage distribution laws require distributors to ensure that alcoholic beverages are made available only to licensed retailers. They are also required to provide retailers with a wide selection of products from multiple manufacturers, both big and small in order to ensure that one manufacture does not exert undue influence on retailers. In addition, distributors are also responsible for educating retailers about the products they carry and for ensuring that only the freshest, highest quality products are sold to end consumers.

Choosing and working with a distributor that has experience with beverage distributing in MN can yield many benefits. Firstly, the producer can be sure that their products are being made available only to licensed retailers and in a manner that is consistent with all applicable state laws. Experienced and established distributors are also more likely to commit to long-term partnerships with beverage manufactures and are likely to be more vested in protecting the integrity of the brands they carry.

Local distributors typically are proud to carry brands brewed in Minnesota by companies employing Minnesota workers. They also have strong relationships with retailers and typically are well versed in developing successful promotional campaigns, as well as sales and marketing programs. Some even take out commercials on local radio and TV to promote the brands they carry.

by: Chris Renilson

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