Top 10 Distribution Tips For Local and Imported Craft Breweries in Australia

10 Tips for Beer Distribution in Australia

Looking to find new distribution partners in Australia for your Craft Brewery?

Wondering if you should open your own Brew Pub retail store or partner with large wholesalers?

David Lipman, founder of Beer & Brewer magazine and Drinks Hub, outlines ten top tips for distributing your craft beer in Australia.

With 3000+ local and imported beers regularly available in Australia and room for only 150 beer SKUs in a bottleshop, or 30 in a pub, does a craft brewery open their own retail venue to guarantee distribution, but lack volume, or go for volume in the wholesale market with lower margin and fierce competition? Beer Distribution in Australia has a lot less barriers to entry in the supply chain compared to the 3-tier system in the USA. However, with a small population and high production costs per carton compared to imported beer, local craft brewers really need to do their business planning prior to start-up to ensure the route to market chosen suits the target retail price, category/style of beer, brand story and cash flow of the business.

Distribution and excise are two of the most underestimated items in the business of brewing by craft breweries. 

1.       Have a quality product and credible brand identity/story/packaging

  • Invest in a consultant brewer or appoint a head brewer for the recipe development
  • Invest in a design agency for the packaging (label, cluster or other, cartons, bottle, decal, tap handles)
  • Invest in research (Roy Morgan and Survey Monkey or media readership/subscriber lists for e.g.) on what consumers are the target audience and sales data (IRi Aztec and the LMAA) on what styles and categories your beers will sit in (i.e. what are the best-selling beers in the regions and categories you are positioning your brand in.)
  • Enter your beers in competitions to prove quality as some retail beer buyers will buy based on gold medals and trophy winners even though consumers will rarely buy craft beer based on awards.  Consumers tend to buy based on occasion, price and the brand story most of the time.
  • Ensure the brand story is authentic, original, credible, and you have brand notoriety in your local market to prove its popularity. The brewer is the rock star and consumers love meeting the brewer while the region the brand is from (or the history or circumstance the brand was established) is important to promote the story. Don’t just focus on selling the brand based on quality and awards.

Heat is a major contributor to aging the beer, particularly in transit from brewery to retailer as it’s expensive to transport beer in cold-freight. Pasteurization heats up the packaged beer for a short period of time, it is not affected by heat in transit as much as an un-pasteurized beer. Craft beer is all about flavour; it’s a selling point to be unfiltered and unpasteurized. Pasteurization is said to remove 30% of flavour, however it all depends on your distribution model and the style of beer.

If you have a brew pub then there is no need for pasteurization as there is no time period from beer being transported from the brewery to the retailer and very little time sitting on a shelf or in a keg. However for the wholesale market, flash or tunnel pasteurization should be considered to control quality rather than let heat affect the beer for extended periods of time. Given beer is very rarely cold-freighted all the way from brewery door to the retailer shelf, the beer is not being consumed as the brewer intended. This is particularly the case for lagers, which are fermented at colder temperatures and affected by heat more than ales. The cardboard smell of heat affected beers is particularly noticeable in lagers that have little aroma or full-flavoured taste to hide behind.

2.       Understand Australian distribution (on- and off-premise), regulations, excise, and parallel importing

When the brewer understands the challenges, pressures, margins and price points of the importer/distributor and retailer, it makes the relationship and sell-in professional and respectful.

There are approximately 14,000 on-premise and 9,000 off-premise licensed outlets nationally. However, there are a lot more licensed venues when you include Restaurants, Clubs and Cafes. In NSW (18,000+) and Vic (20,000+) alone there are 38,000+ non-traditional licensed venues. Restaurants are a great target for craft beer. Given the beer lists are small, it makes the chance of getting picked by the consumer much better. Restaurants are also more willing to pay the listed wholesale price because they can mark the beer up more than bottleshops. Craft beer is all about pairing great beer with great food and restaurants also give the consumer that ultimate experience.

Parallel importing is legal in Australia, meaning an imported beer can be imported via a wholesaler and not the brewery. Retailers can buy direct from breweries and exporters, there is no 3-tier system like the USA.

Tap and Fridge Contracts exist in the on-premise and, with the average number of taps per pub being 8, venues are very limited in what they can put on tap outside the contracted brands. The opportunities for third parties (not in a contract) are guest taps, approaching freehouses with no contracts, or hoping the hoteliers catch on that customers are demanding more variety than what the contracted breweries are offering. The last opportunity hinges on the hotelier having not contracted out 70-100% of their taps, and hoping for 50% or less.

Given tap contracts, alternative routes to market are using growlers or stand-alone draught beer systems which provide the venue another tap point for the bar or event/function room.

Excise is an indirect tax as a fixed cost to draught and bottled beer. It goes up every 6 months by CPI. Its payable in seven days of leaving the brewery or bond store, even though it’s not paid for, for up to 90 days by retailers which can create a cash flow crisis for many craft brewers. There is an excise rebate for local microbreweries, up to $30,000 per annum received in the following financial year. Microbreweries are able to apply with the ATO to pay excise in 30 days rather than seven days. Many distributors or brewers will use a bond store to postpone payment of the excise until the beer is ordered and dispatched from the bonded site to allow maximizing production runs as well as minimize costs per carton and help margins and profitability.

3.       Understand COGS, margins and retail pricing for the category your beer sits in – are you competitive? Do you start contract brewing first or own equipment?

Distributors work off around 30% margins and retailers will buy cartons around a 25% margin while making around 40% on 6-packs and more on single bottle sales.

Repeat business is crucial to run a sustainable business. If your price is too high you run the risk of your beer being ordered once by consumers looking to try it one time before they move back to their regular, more affordable craft beers (known as repertoire drinkers.) However if you have low COGs or low fixed operating costs and are happy with less profit dollars, then higher prices can work if you sell the volumes needed to cover your costs.

The average retail price for a carton of local craft beer (any style, any ABV) in Australia is $64.50, whereas for imported craft beer its 13% higher at $74 per carton (8 litres). As mentioned in a previous article on the AuTT blog, the average ex-excise brewer wholesale price for imported craft beer is $17.50 and local craft beer is more like $35. Being 100% higher, local craft brewers are faced with a lot of competition from imported beer. However with the AUD/USA drastically softening (end of 2014) this will help local craft brewers’ price competitiveness.

Most consumers are purchasing craft beer as 6-packs, mixed 6-packs, or by the bottle. If you are pricing your beer to be sold above these prices then volumes will come down. It’s a matter of summing your COGs, the fixed operating costs you need to recoup, and your distributor and retailer margins to arrive at a retail price that is competitive against the mainstream craft or smaller craft brewers.

To work out excise here is the calculation: You need to find out the excise per litre of alcohol for kegs (>49.5 L) which is 40% less than kegs/bottles (less than 49.5 L).

Formula: Volume in Litres of the package x (Alcohol strength – 1.15) x Per Litre Cost of Alcohol.

E.g. from excise prices in February 2014

·         Carton of 24 x 330mL 4.3% ABV = 7.92 x (4.3-1.15) x $46.30 = $11.55+GST.

·         50 L keg of the same beer 4.3% ABV = 50 x (4.3-1.15) x $32.60 = $51.35+GST.

If price is important then you could contract brew to begin with, then once beer volumes get large enough you can invest in brewing equipment. This option allows the capital to be invested in sales teams, recipe development, packaging, promotion, travel, events, etc, and not sitting in stainless steel.

4.       Decide on the route to market and volumes to be profitable – wholesale or retail?

For the most part, this comes down to how much capital you have or can raise (for items in point 1),  how much profit you wish to make for shareholders, and if you going to work in the business with long hours or hire staff. The retail route is very profitable from a production and sell price perspective, while high costs in rent, staff, loadings, and other overhead such as marketing, is needed to ensure enough daily patronage. From a production point of view, you can make decent returns from producing 100,000 litres a year. On the other hand, if you go the wholesale route, you need to produce around 1-1.5 million litres a year to be sustainable and decide on owning equipment or contract brewing.

5.       Retail Distribution – Fresh beer and recruiting or partnering with a hospitality and marketing team to ensuring daily patronage

As mentioned in point 4, this is the most profitable form of selling craft beer and requires a fraction of the beer to be produced to be sustainable, as long as the venue itself is run efficiently and marketed to the local community. There are approximately 70 brewpub/breweries with hotel operating hours out of the 200 breweries in Australia.

Craft Beer Distribution in Australia

6.       Wholesale Distribution – Pasteurization and deciding on whether you will have a sales team, use a warehouse/logistics company, or appoint a distributor/retailer

As mentioned in point 4, given the costs of packaging and the fact that excise is 40% higher in bottles (unless you focus on 50L kegs, which is stifled by tap contracts), you need to brew a lot more beer to make the business sustainable.  See point 1 regarding considering pasteurization for the wholesale market, it’s a necessity for export.

There are three clear options in deciding the route to market for wholesale and they depend on your capital raising and how much volume you plan or need to achieve to meet profit targets:

(i)      Have your own sales team

This is the most ideal scenario.  As you have your own employees representing only your brand(s) in a highly competitive market, you know your brand is #1 on the list and #1 priority. The biggest obstacles in being able to use this route are having enough beer sales to support the sales team and a retailer or distributor’s insecurity in ccommitting to such large volumes with no track record, unless you have some serious ATL and BTL marketing budgets. A logical plan would be to start with point (ii) or (iii) then aim to get to have your own sales team in the medium to long term.

(ii)    Use a warehouse/logistics company with brand ambassador(s)

Start-ups with little budget or small overheads, can do the sales themselves, and grow the distribution organically, albeit over a longer period than point (iii) below. The important part of this route is to ensure you have warehouses on the east and west coast (given the sheer size of Australia) to store product close to customers. The reason for both warehouses is so that you can provide customer service with a short turnaround time from order to delivery and you can provide metro freight costs, rather than interstate freight costs. You will need to do the sales yourself, or appoint brand ambassadors/sales reps to generate the orders, for the warehouse/logistics company to pick/pack the orders for you. Consider if you can find bonded stores to warehouse your stock on the east and west coast, to help paying excise later. See point 7 below for a company list.

(iii)   Appoint a distributor/retailer

More and more these days, retailers are time poor and getting bombarded by sales reps from individual brand owners. Retailers will see around 40 reps a week for existing supply, let alone new brands/SKUs. Retailers prefer to talk to distributors who they already deal with that represent a number of brands all handled by the one account manager. This step ensures your brand is sitting in a portfolio that has relationships already in place. There are a number of distributors to choose, such as wine only (where you beer brand is their exclusive beer brand), a drinks distributor, or a dedicated craft beer distributor. It’s important, for any of these, that you ensure your brand doesn’t sit in the portfolio. You need to be continuously communicating with all reps looking after your brand.  Inform them of the product, its USPs, sales data success in other markets, awards, festivals/dinners at which customers can meet the brand team, sales targets, incentives and promotional support (as mentioned in point 9 below).  It’s a matter of asking what they need and what you can afford, to ensure volumes are met so that both you and the distributor are making profit.

Another option is go direct to the retailer as they can act as importer / distributor / retailer. This can be achieved via offering your brand exclusively to the retailer (if they are large enough), certain SKUs exclusive to the retailer, or brewing specific SKUs under an exclusive brand name for the retailer.  The last option gives them a lot of rapport with the beer to sell it, as it’s their own beer and they make more margin.

7.       Warehouse/Logistics Companies in Australia

Elite Logistics NSW www.elitewinelogistics.com.au
Warehousing & Distribution Solutions NSW www.wads.com.au
Locke Logistics Vic www.lockelogistics.com.au

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8.       Distributors in Australia

Type Distributor/Logistics Company State Web site
Beer Artisans of Amber NSW www.artisansofamber.com
Beer Beer Importers & Distributors National www.bidbeer.com
Beer Experienceit / Birra Italiana NSW www.birraitaliana.com.au
Beer Hops and More NSW bradflowers@hotmail.com
Beer Nordic Beverages (Balmain) NSW http://nordicbevs.com/
Beer Micro Beer Club NT www.microbeerclub.com.au
Beer Australian Trade Partners Qld www.australiantradepartners.com.au
Beer Calibre Craft Beer Trading Co Qld www.calibrebeer.com
Beer Europacific Liquor Pty Ltd Qld www.europacificliquor.com.au
Beer Fluid Boutique Liquor Qld www.fluidboutiqueliquor.com.au
Beer Decant Beer SA http://decantbeer.com/
Beer Palais Imports SA www.palaisimports.com.au
Beer Beer Importers & Distributors Vic www.bidbeer.com
Beer Better Beer Imports Vic www.betterbeerimports.com
Beer Boutique Beverage Distributors Vic www.boutiquebev.com.au
Beer Kaya Group for Efes Pilsener Vic www.kayagr.com
Beer Northdown, Craft Beer Movement Vic www.northdown.com.au
Beer Trumer Australia Pty Ltd Vic www.trumer-australia.com
Beer Beverage Australia Pty Ltd WA www.beverageaustralia.com.au
Beer PDH Imports WA phdimports@bigpond.com
Beer Trumer Australia WA www.trumer-australia.com
Beer/Cider DrinkWorks NSW www.drinkworks.com.au
Beer/Cider Phoenix Beers WA www.phoenixbeers.com.au
Beer/Cider The Beer & Cider Company WA www.beerandcider.com.au
BWS Bevchain National www.bevchain.com.au
BWS Bacardi Lion NSW ww.bacardilion.com
BWS Beach Ave Wholesalers NSW www.baw.com.au
BWS D’Aquin Group (NILWA) NSW www.daquinogroup.com.au
BWS Diageo Australia NSW www.diageo.com.au
BWS G H Cole & Son NSW www.nilwa.com.au
BWS Granduer Brew NSW www.grandeurbrew.com.au
BWS Kollaras NSW www.kollarasgroup.com
BWS LION Co NSW www.lionco.com.au
BWS Peter Doyle Cellars NSW www.nilwa.com.au
BWS Pure Beverages Pty Ltd NSW www.purebeverages.com.au
BWS Suntory (Aust) Pty Ltd NSW www.suntory.com.au
BWS Liquid Specialty Beverages Qld www.liquidsb.com.au
BWS Rivercity Wholesale Liquor Qld www.rivercity.com.au
BWS Empire Liquor SA www.empireliquor.com.au
BWS VOK Beverages SA www.vok.com.au
BWS Polkadot Liquor Tas www.polkadotliquor.com
BWS BDS Marketing Vic www.bdsmarketing.com.au
BWS Beach Ave Wholesalers Vic www.baw.com.au
BWS Enoteca Sileno Vic www.enoteca.com.au
BWS HT Beverages Vic www.htbeverages.com.au
BWS FM Liquor WA www.fmliquor.com.au
BWS Liquid Mix WA www.liquidmixwa.com.au
BWS Food Combined Wines and Foods NSW www.combinedwines.com.au
BWS Food Blackwood Lane Vic www.blackwoodlane.com
BWS Food Festival City Food & Liquor Vic www.festivalcitywines.com.au
Chinese BWS Food ETTASON Pty Ltd NSW www.ettason.com.au
Distributor ALM Liquor National www.almliquor.com.au
Distributor Hotel Liquor Wholesalers National www.bottlemart.com.au
Distributor ILG Co-operative Ltd NSW www.ilg.com.au
Distributor Paramount Liquor Vic www.paramountliquor.com.au
Distributor Premium Beverages Vic www.premiumbeverages.com.au
Distributor S & P Liquor NSW peterpizanis@optusnet.com.au
European BWS Urban Beverage Imports NSW www.urbanpurveyor.com/urban_imports
Hospitality Stirling Global Services NSW www.gohospitality.com.au
Japanese BWS Food Japan Food Corp NSW www.jfcaustralia.com.au
Logistics/Warehousing Elite Logistics NSW www.elitewinelogistics.com.au
Logistics/Warehousing Warehousing & Distribution Solutions NSW www.wads.com.au
Logistics/Warehousing Locke Logistics Vic www.lockelogistics.com.au
On-premise NILWA National www.nilwa.com.au
IBEV GLOBAL P/L Vic www.ibev.com.au
RTS The Daiquiri Group Qld www.daiquirigroup.com
Spanish wine/cider/beer Broadway Liquor NSW www.broadwayliquor.com.au
Whisky barmania! NSW www.barmania.com.au
Wine Red & White National www.redandwhite.com.au
Wine Bacchus Wine Merchant NSW www.bacchuswinemerchant.com.au
Wine Vintners NSW www.vintnersmerchants.com.au
Wine Off the Vine Wine Merchants SA www.offthevinewines.com
Wine Samuel Smith & Son (Yalumba Wine Company) SA www.samsmith.com
Wine Vintners Vic www.vintnersmerchants.com.au
Wine Dave Mullen Wine Agency WA
Wine Lionel Samson WA www.lionelsamsonandson.com.au
Wine/Beer Wines of Chile Pty Ltd NSW www.winesofchile.com.au
Wine/Beer Arquilla NSW/Vic www.arquilla.com
Wine/Beer Arquilla Vic www.arquilla.com
Oz North Food & Liquor Wholesalers Pty Ltd NT www.ozfcws.com.au
G&S Wasseige – Belgian Imports QLD
Australasian Imports Pty Ltd SA www.aimportg.com.au

9.       Promotion and Marketing

Support the distributor/retailer with social media, events, eNewsletter, marketing dollars, PR, point of sale, merchandise, in-store tastings, meet the brewer, dinners, festivals, samples, Buy 10 get 1 free, etc.

Join and support the industry associations (the retail association members are your prospective customers and helps you understand their challenges and opportunities). Some industry associations are: ALSA, CBIA, ARCBA, AHA, LMAA. Also see the retail associations for their member lists for retailer banner groups and retailers to target as sales prospects.

10.   Growing Pains/Customer Service – What contingencies are in place to cope with excess demand?

When the great thing happens of demand exceeding supply, what plans do you have for access to more capital for more fermenters and bright beer tanks. Rather than buying equipment, you could contract brew your excess demand. Don’t forget to go over all considerations for ensuring you don’t miss out on any sales and you can provide good customer service to existing and future customers.


 

By David Lipman, Founder Beer & Brewer Magazine and Drinks Hub.

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David Lipman Bio:

David’s passion for beer began in 2002 as a Cellarman at The Whitehorse on Parson’s Green and The Porterhouse Covent Garden, two institutions for great local and imported beer in London. In 2007 David founded Beer & Brewer magazine and www.beerandbrewer.com, and finished up as Publisher/Editor in May 2014. David has published as Editor-in-Chief five books on beer, including Ultimate Beer Guide Australia & NZ (2011), Craft Beer Trade Buyers Guide (2012), Breweries of Australia: A History 2nd Edn (2012), Best 100 Beers Australia (2013) and Beer Buyers’ Guide Australia & NZ (2013) www.beerbuyersguide.com.au. David has also published booklets on beer & food matching for Beer & Brewer magazine and BBQ School. David has launched three beer events including Beer & Brewer Expo (2009, Melbourne), Beer & Brewer Awards (2010, Sydney) and Beer & Brewer Conference (2012, Melbourne). These days David continues his passion hosting corporate tastings (including at the Sydney Opera House and Taste Festivals Australia). David has also just launched Drinks Hub, an exporter of Australian premium drinks, including craft beer, cider, spirits.

How can you Sell your Wine, Beer, and Spirits in the USA? Here’s A Brief Overview of the 3-Tier System.

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Are you looking for a guide on what it means for your Australian brewery, winery, or distillery to do business in the three-tier sales system in the USA?

The three-tier system was put into place after the abolition of Prohibition to control and regulate the distribution of adult beverages in the USA.  Production, importation, packaging and marketing are all federally regulated. Once federally approved for sale within the USA, further compliance with state distribution laws is necessary for market-entry anywhere in the USA.

The following article examines industry terminology used by suppliers, importers, wholesale distributors and retailers and outlines the role of each tier in the three tier system.

Here are some frequently used terms & abbreviations and their meanings for breweries, wineries and distilleries ready to start contacting importers, distributors and retailers in the USA:

FOB Price– Freight on Board: Supplier’s price (per case). The amount producers will get paid per case for their products. When talking about distributing their brand in their state, suppliers need to be ready by saying, “Its $54 per case FOB (New Jersey) / $4.50 per bottle.” When talking to a potential importer who plans to import their product, the FOB would be quoted as $36 per case FOB (Sydney) / $3 per bottle. If a supplier is picking the international freight tab they can quote $40 FOB (New York Port) to the importer.

On-Premise Retail: Bars, Clubs, Tasting Rooms, Brew Pubs, etc.  Any retail location where beverages are sold for consumption on premise.

Off-Premise Retail: Liquor Store, Chain Store, Box Store, etc.  Any retail location where beverages are sold for consumption off premise.

Call Frequency – How often a distributor rep visits a retail account

Control State – A state where sales are controlled directly by state-run establishments

SRP – Suggested Retail Price: Suggested final offer price to consumers in on-premise and off-premise accounts calculated using assumed mark-up percentages, as determined by market research by the supplier.

PTC – Price to Consumer.

PTD – Price to Distributor.

Margin – Based on sale price, this is usually reported as a profit percentage.

Markup – Based on cost, this is usually reported as a profit percentage.

Dry Shelf:  Retailer shelf that is not refrigerated

DTC – Direct to Consumer:  Any sale of beverage directly from the producer to the consumer.  Typically, this is done by local producers through internet sales, tasting rooms, fan clubs, events, etc.

FET – Federal Exercise Tax

Hand-Selling: The act of promoting and selling your beverage face-to-face.

Programming: Tastings, bottle-necks, marketing campaigns, etc.  Any promotional material you can provide to help market your beverage.

DI – Days Inventory: How many more days of inventory left of a certain product at a distributor warehouse.

Incentives: Coupons, discounts, free cases, give-backs, etc.  Any programs given to help promote sales in the three-tier system.

BTG – By The Glass: Price for beverage, offered by the glass at on-premise accounts.

Frontline Price: Highest listed retail price

Street Price: Lowest listed retail price

Retail Price:  Price listed by retailers to consumers.

 

An Overview of the 3-Tier Sales and Distribution System.

 

Supplier Sales

In this sales tier, the supplier (winery, brewery, distillery, producer, or importer) sets the distributor’s FOB, which is the only price that the supplier has any direct control over.  Suppliers can influence the PTC through give-backs, discounts and promotions, but ultimately the price offered by distributors to retailers (wholesale price) and the PTC is in the hands of the distributor and retailer. Depending on the FOB paid, distributors have a good understanding of what SRP will be for retail accounts and will go-to-market accordingly.

Australian wineries, distilleries and breweries are required by federal law to enlist the services of a registered importer.  Once the product has cleared customs and is state side, the importer and supplier begin marketing the product to distributors.

Instead of soliciting distributors directly, Australian suppliers often engage an agent or consultant company to broker sales and provide marketing support to distributors.  Often, the firm will have importers and distributors that they work with to establish a solid market-entry strategy for new beverages.  These representatives must be fully licensed in the states you are planning on entering.

Even if you plan on selling ‘out-of-state,’ compliance with state laws is a must when working with state importers, brokers, distributors and retailers.   The costs and complexities of compliance vary considerably from state-to-state, so plan market-entry accordingly.

 

Distributor Sales

Once purchased, the distributor warehouses supply until further delivery to retail partners.  Freight, storage, and operating costs, as well as mark-up, will all be added to the wholesale price (note that some states have regulatory mark-up margins).

Even though the supplier does not have overall control of the price offered to retailers, often they are expected to provide incentive programs (tastings, promotional campaigns, etc.) in target markets to help build customer recognition, create a competitive offering and ultimately deplete stock at retail accounts. Both Distributors and consultancy firms will have reps working to help sales for your beverage, but you will need to provide incentive programs to really encourage them to concentrate on your brand.  Beyond incentives for your distribution tier reps, in order for successful market entry you will personally need to employ a team dedicated to support programs at retail accounts.

Some distributors are ‘multi-state’ or ‘national,’ which means their distribution network spans across various states and each branch of their company specializes in compliance for the state they operate in. Depending on the state, some wholesale distributors can also hold import licenses.

Working with national distributors or wholesale distributors with import licenses can sometimes simplify the import process in the three tier system, but it does not mean you will not be required to provide incentive programs, support programs and marketing campaigns to go along with those provided by your distributor reps. No matter what state you enter and with what import and distribution partners, be prepared to build a healthy market for your beverages.

 

Retail Sales

Retail sales are separated into two main account types – on-premise and off-premise. Retailers will buy stock from distributors at the wholesale price where-upon the product will be distributed to the retail store for further sale to the consumer.  Each state regulates retail sales and each set of laws, licenses and taxes, for both on-premise and off-premise accounts, varies from state-to-state considerably.

Chain and box stores often receive the best pricing and volume deals (incentives) from wholesalers while independent retailers work hard to market their offerings (variety, POP, POS, support programs, etc.)  Depending on what type of distributor you are working with, you will need to be able to service the type of retail partners they work with.

Independent retailers typically need to price their offerings higher (approximately 25%-50% margin) because they are unable to sell at the volume that Chain and Box stores (20%-45% margin) can.

Breweries, Wineries, Distilleries and Suppliers often have a SRP that they want to see as a final listing price at the retail level, but they seldom have any direct control over the final PTC.  Depending on any discounts, incentives, % mark-up, compliance factors, programming, marketing, and promotional campaigns that has gone into getting the product to market, the retail price can be dramatically different from that of a supplier’s initial SRP.

On-premise retail accounts are usually limited to selling to consumers by-the-glass, or by the bottle, and for consumption at their establishment only. Some states allow on-premise accounts to sell to consumers for off-premise consumption and some even allow securely sealed, opened bottles to leave the premise.  Support programs (promotional give-aways, merchandising, etc.) are also highly encouraged to build customer bases at important on-premise locations.

Depending on state laws, some wineries, breweries , distilleries and suppliers can sell direct-to-consumer (DTC).  This is often limited to producers selling directly to consumers at tasting rooms and brew pubs or at events, but DTC internet clubs directly associated with the producer are very popular in states where it is permitted.

For a good pricing overview for the USA market, please read Three Tier System and Pricing Overview for USA Market 

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Are you a winery, brewery or distillery looking to export your beverages to the USA?  Come network at Australia Trade Tasting and grow your brand.

Spirits, Liquor & Beverage Trade Events in Australia

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We’ve compiled a list of beverage trade events where Australian spirits and liquor companies like adult beverages, craft distilleries, breweries and wineries can connect and grow their companies.

The Melbourne International Spirits Competition

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The Melbourne International Spirits Competition is the first major international spirits competition with TRADE ONLY judges.

The judges are comprised of: buyers from the top retail stores, restaurant owners, cocktail bars, hotel beverage directors, distributors and importers. Unlike other spirits competitions, these judges have purchasing power and the ability to make a direct impact on brand sales.

The spirits industry is seeking a TRADE ONLY blind judging panel spirits competition to be held in Melbourne. The retail store buyer, sommelier, restaurant beverage director, hotelier, distributor and importer will be our judges. These judges whose livelihood rely upon their skill set truly know what the consumer wants as they receive on a daily basis the feedback from the consumer of what is good and what will sell at what price.

The competition is open to all commercially produced spirits from around the world. You may submit if you are not currently being sold in Australia or the Melbourne Market.

For more information about the MISC please contact: Adam Levy (Founder) ; Tel +61 386521989 Fax + 61 386521989; adam@melbourneintlcomp.com

ALSA National Conference

Australian Liquor Stores Association

The ALSA National Conference is a must attend event for liquor retailers, owners, managers and staff.

Hear the latest thinking from influential industry and business leaders. Gain deeper insight into liquor market trends and tomorrow’s consumer. Learn to stay ahead of the curve and maintain a strong competitive position. Experience the tastes of the tropics!

An important component of the ALSA Conference is the Expo & Trade Day, which gives delegates the opportunity to have direct interaction with primary and secondary suppliers to the industry.

Is your company interested in exposing or promoting your products and services to over 200 liquor retailers, senior chain store representatives, key retail liquor industry stakeholders and suppliers?  If so, why not consider becoming an exhibitor?  You could be the missing piece of the puzzle!

For more information about the ALSA Conference, please contact: Michael Waters, Conference & Events Manager (P) 02 8335 3250.

WA Hospitality Supplier Awards

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The WA Hospitality Supplier Awards recognise outstanding suppliers, promotions and products provided to the West Australian hospitality industry.

The awards are voted on by the supplier’s customers and winners benefit from the promotion and marketing opportunities that being a WA Supplier of the Year brings.

As the authoritative voice for the hospitality industry in Western Australia, the AHA will inspire innovation, unity and industry excellence.

Purpose
To protect and develop our members interests, to achieve new levels of success and excellence and maintain the vital role of the hospitality industry as an integral part of the Australian way of life.

Contact Info: 38 Parliament Place, West Perth, WA 6005, Postal Address, PO Box 660 – West Perth, WA 6872.  Tel (08) 9321 7701, Fax: (08) 9321 7730, E-mail: exec@ahawa.asn.au

FoodService Australia

FoodService

The major attraction of FoodService Australia are the 160 exhibitors showcasing the latest food, drink and equipment.

The next show will run from 31 May – 2 June 2015 at the Royal Exhibition Building in Melbourne. It will be bigger than ever, with most exhibitors rebooking immediately at the show. Click on the links for more information on exhibiting or visiting.

If you work in the food or hospitality industry then you should be planning a visit to Foodservice Australia. Why? Because there is simply no better way to discover new ideas, new products and new suppliers.

Contact Info: Tel: 03 9999 5460, Fax: 03 9999 5461, Email: food@specialisedevents.com.au, PO Box 209, South Yarra VIC 3141

Fine Food Queensland

Fine_Food_Queensland

The next Fine Food Queensland event is taking place at the Brisbane Convention & Exhibition Center on April 10-12, 2016.

The perfect mix of Queensland’s own world class producers, alongside the best food, drink and equipment suppliers from around Australia. The new show format also offers a selection of exciting and informative new features and seminars.

Drinks at Fine Food will feature a number of local experts in the beverage industry, presenting a range of interactive and informative masterclasses. Topics will include tea, coffee and alcoholic drinks. The Beverage Theatre will also play host to the Australian Smoothie & Juice Championships 2014 – Queensland Region.

Contact Info: Diversified Communications Australia Pty Ltd, Level 5, 636 St Kilda Road, Melbourne, Victoria, 3004, Australia, Tel: + 61 3 9261 4500, Fax: + 61 3 9261 4545

The Good Food & Wine Show

Good_Food_and_Wine_Show_Melbourne

Melbournites eat & rejoice at The Good Food & Wine Show! The wait is over as Melbourne is set to become the centre of the food & wine universe over a dynamic three day weekend from 30 May – 1 June at the Melbourne Convention & Exhibition Centre.

Tour the very best food and wine regions of Australia; Yarra Valley, Barossa and McLaren Vale just to mention a few.  We’ve got them all in one destination; simply have your tasting glass and taste buds at the ready.

Drink and be merry at the Riedel A+ Australian Wine Bar, rub shoulders with famed sommeliers and vintners at the Riedel Wine Theatre or relax with a cold one in the Grazing Garden with famed food trucks.

Contact Info: Diversified Communications Australia, 424 St Kilda Road, Melbourne, 3004, Email: goodfood@divcom.net.au, Phone: 03 9261 4500

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Are you looking to connect and grow your beverage company with leading Australian Impoters, Wholesalers and Distributors?  Get Involved at Australia Trade Tasting and exhibit your brand in front of industry VIP.

Whisky Distilleries in Australia

List_of_Australian_Whisky_Distilleries

This is the first part (A-L) of a complete list of Australian Whiskies.

Bakery Hill

As with all classic single malt whiskies, Bakery Hill Distillery use only malted barley, yeast and water to ensure the true classic flavour and aroma of real single malt whisky.

Bakery Hill believes the addition of caramel dulls and mutes the exceptionally fine flavour and nose of malts so, nlike many other malt whiskies, no caramel is added to improve the appearance.

1/20 Gatwick Rd
Nth Bayswater Victoria 3153
Phone: +61 3 9761 7216, Fax: +61 3 9761 7216, Contact David Baker directly on 0408 705 770

Belgrove Distillery

The Belgrove Distillery is the only Rye Distillery in Australia. Located North of Hobart, Belgrove Distillery is also the only biodiesel powered distillery in the world and one of very few Whisky distilleries that grows all its own grain, malts, ferments, distills and barrel ages on site.

The copper still was handmade from scratch. Belgrove takes pride in it’s dedication to quality products and sustainable production.

3121 Midland Highway, Kempton, Tasmania Australia 7030.
Mob  0409 144 560   |   Int +61 409 144 560

Black Gate Distillery

The Black Gate Distillery  make high quality spirits from local grains and fruits, while providing a unique tasting experience for enthusiasts and the overtly curious.

They operate an online store and produce three spirits: Quandong Liqueur; Lemon Vodka; and Lime Vodka. They are open for visits by appointment.

72 Forest Road, MENDOORAN NSW Australia 2842 

Tel. 02 6886 1123, Mob. 0429 978 822

Bluestill Distillery

Bluestill Distillery offers a great line-up of diverse spirits:

James Bentley – Whisky, Black Widow – Bourbon, Red Kelpie – Sweet Dark Rum, Trafalgar – Gin, Young Drop – Brandy, Double Up – Vodka, Chiapas – Tequila, Young Drop – Slivovitz, Young Drop – Grappa, Black Widow Bourbon and Cola RTD’s.

They also have a restaurant which can seat up to 90 people. With panoramic views of the township of Young, you can enjoy country-style cuisine, either indoors or al fresco.

Kingsvale to 161 Henry Lawson Way, township of Young, info@bluestill.com.au, Phone +61 2 6382 2200
Fax No  +61 2 6382 4170

Great Southern Distilling Company (Limeburners Single Malt Whisky)

Great Southern Distilling Company is a boutique distillery, producing premium quality spirits using time honoured techniques and traditional copper pot stills. They are also Home of the Nationally and Internationally awarded Limeburners Single Malt Whisky.

Limeburners Whisky is produced and bottled by hand. By world standards they are a tiny operation… which is the way they like it.

Cellar Door and Distillery
252 Frenchman Bay Rd, Robinson, Albany, WA 6330
E-mail: 
manager@distillery.com.au
Phone:   +61 8 9842 5363    

Mailing Address 
PO Box 1597,  Albany WA 6331

Marketing and Distribution
E-mail: 
brent@distillery.com.au 

Hellyers Road Distillery

Hellyers Road is Australia’s largest single malt whisky distillery, but they really don’t feel that big. They think big and act big, but when compared to Europe’s finest, they’re actually quite small. And that’s good, because it keeps them trying hard to produce Australia’s very best single malt whiskies..

Address: 153 Old Surrey Road, (PO BOX 1415), Burnie, Tasmania 7320, Australia.

Phone : 03 6433 0439

Int’l : +61 3 6433 0439

Fax : +61 3 6433 1094

Email : sales@hellyersroaddistillery.com.au 

Joadja Whisky Distillery

Joadja Whisky Distillery is located in the Southern Highlands of New South Wales, Australia. The town of Joadja was established in the late 1870’s by the Austrailian Kerosene Oil and Mineral Co. and the hundreds of Scottish oil shale miners who brought with them their skills in the mining and retorting techniques……  and the stilling of “sly grog.”

1760 Joadja Road, Joadja, New South Wales, 2575 Australia.

(02) 4878-5129, info@joadjawhisky.com.au

Lark Distillery

Lark Distillery is an Australian single malt whisky, proudly unique in character and style, crafted in small batches exclusively from pure Tasmanian ingredients, matured in small barrels, hand-bottled by whisky lovers in Tasmania for whisky lovers world-wide.

40 Denholms Road, Cambridge, Tasmania, 7170, Australia.

Phone (03) 6321 9088 Fax (03) 6231 9082

Are you looking to source new Australian Whisky Distillers? Come and network with unique Australian distilleries ready to do business at Australia Trade Tasting.

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