Wine, Beer, and Spirits Importation, Distribution, and Sales Consultants

Posted on: June 12th, 2023 by webolutions

When tackling the “monster” of the US Market, you have many options and “workarounds” when it comes to being successful.  A priority is setting your business up to succeed with importation, compliance, TTB registration, and warehousing options. The US is one of the most stringent, regulated markets in the world.

We are going to take you through the process and your choices:

There are plenty of options, do your due diligence with your research to settle on what is best for your brands:

• Be mindful of unexpected hidden fees and understand how the excise tax and any shipping fees will work upon shipping in a product. You will need to choose a customs broker to oversee the shipment of your brand.
• A brand will register with an and importer of choice. Some importers will purchase the goods, but many do not purchase the goods from the supplier.

Some services for warehousing, shipping, compliance:

• https://www.parkstreet.com
• https://www.compli-beverage.com
• https://www.shipcompliant.com

The above companies can satisfy all logistics, which creates a simple approach to having all the logistics done for you.  Another option is a brand developer who has trusted contacts with importers, warehouses, and distributors. Many have their own salesforce or network of brokers that work with them.

 Other information to keep in mind when choosing an importer, broker or distributor:

• Pricing and profit margins-work up a price grid along with your FOB (freight on board) and Laid In costs to make sure you are producing a healthy ongoing profit margin for your business. Pricing yourself below the market will only hurt you in the long run. For example: if a distributor or retailer looks for a discounted price.  You must be able to absorb the pricing and distributor support necessary to budget for without breaking your bank. Understand each state’s taxes.  Florida, Illinois, and New York have a high taxation rate.

Terms of payment by market:

• Know up front what the payments terms are, your business will be compensated through the 3-Tier system. Example: a retailer may have 30 days to pay a bill in a state, which means a distributor will be paid, then the importer is paid.  The importer then cuts a check to your business. You may agree to 30/60/90 days terms with a distributor.  Payment to your business maybe 45-90 days out the longer you offer payment terms.  It is common for a distributor to ask for longer terms that 30 days with a new brand.

 We suggest a budget for:

• Demos-marketing-advertising-events-reviews-competitions
• Distributor Budget-support with pricing and programming to hit the ideal price points
• Brand development fees-retainers-travel expenses. If you go with a broker be mindful of the length of contracts and any termination length and fees associated when parting ways.

 The USA has a three-tier system, importer-distributor-retailer or restaurant:

 Work with distributors across the country, register by state and distributors have preferences of trusted importers. The distributor will refer you to an importer they are familiar with. If you have a national importation license of your own, you can process all state licensing yourself.  This requires time, patience and a lot of paperwork.  Gauge if your time could be better spent on valuable projects focusing on proper placement of your brands. You will need a state by state approval and you will be required to file with each state. Every market is different in their rules and regulations.

Go direct-have a distributor clear and deliver your products. If your brand is pre-sold into chain accounts offering more of the profit margin to the retailer and less to the distributor. Understand the warehousing and delivery fees. Wholesalers typically offer a flat rate per case.  You can also sign on with a warehouse yourself.  Here are a few we have worked with:

• https://www.parkstreet.com (CA, FL, NJ)
• https://www.groskopf.com (CA)
• Billet Phone: (707) 649-9200 (CA)
• https://westerncarriers.com (CA, NY, NJ)

Distributors typically pick up on the east or west coast.  They can also pick up in TX but not as frequently as the east or west coast. Distributors prefer to consolidate your order with the other cases they are shipping.

The TTB site is a solid resource for entering the US Market:

https://www.ttb.gov/statistics/18dsstats.shtml

U.S. sales of alcohol estimated to reach $166.4 billion in 2019, according to IWSR Drinks Market Analysis.

Ratings and Reviews prior to entering the USA:

It’s a “Dog eat Dog” sea of competition in the landscape of the spirits and wine industry, according to https://spiritsratingsreviews.com

SpiritsRatingsReviews.com is a great Fast Track approach to garner the respected ratings and reviews your brand needs to launch in the US Market successfully. Find companies that can rank and review your brands with quick turn-around time.  Competitions typically are done by Spring or early Summer with their awards ceremonies.  Many other publications can take many months to review a brand.  A positive review and rating can help launch your brand’s credibility with immediate positive results for placements on retail store shelves and into consumer’s hands.