Self distribution vs. wholesalers

[Voodoo]

Folks--

I am in the business plan development process stage for the future opening of a microbrewery. My state has a three tier distribution system. However, I live only twenty miles from a state that allows self-distribution. We are leaning toward opening where we can self distribute at our discretion. Any thoughts? Thank you.

Voodoo
Newbrewery@yahoo.com

[tarmadilo]

I worked for a micro in a 100,000 person college town, and we self-distributed in our city, using a distributor for the rest of the state. A very large part of our profit came from that arrangement! We sold a lot of beer in our town, and that extra 20 bucks a keg sure came in handy.

It makes less sense if you're relocating to an area of low population density and have to do a lot of driving around over distances to distribute...

Cheers, Tim

[admin]

There will be a two day seminar specifically for specialty distributors and self-distributing breweries in San Diego on April 13-14th. It will be held just prior to the Craft Brewers Conference and at the same hotel. For more information you can visit: http://www.beertown.org/events/cbc/attendee/wholesaler.html

Good luck.

[frigatebay]

I've been debating that for some time now and have choosen the wholesaler route. only time will tell if if made the right decision.

[tlenahan]

Much depends upon what arrangements you have made with distributors in your state. The trade off is distance verse focus. Self distribution gives you focus but only within a small geographical region. In high population centers this could be a benefit, self distribution. The other factor is the additional capital needed for trucks amd warehousing to sell your beer. Any questions feel free to call (303)431-9168. Tim lenahan