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Bev net live channel management presentation bill sipper cascadia managing brands 12 05 14

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This is an overview of the various distribution channels for food and beverage companies.

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Bev net live channel management presentation bill sipper cascadia managing brands 12 05 14

  1. 1. Cascadia Managing Brands Consultants specializing in the non- alcoholic beverage industry; large and small companies alike; Brand managers Outsourced VP Sales or VP Marketing We implement the agreed upon strategy whether we were involved as consultants or not
  2. 2. Need to Know How many of you have purchased a new, non alcoholic beverage for the first time at Costco? How many of you have purchased a new, non alcoholic beverage for the first time at a Drug Store? How many of you have purchased a new, non alcoholic beverage for the first time at a deli? Key Takeaway: Don’t Try to fit a round peg into a square whole. Plan your journey into the channels carefully, especially how it relates to effecting your distribution network and/or your pricing and brand positioning
  3. 3. The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. DEFINITION of 'Distribution Channel’
  4. 4. Channel Management What is Channel Management? Channel = types of stores Management gets broken down into two parts: PLANNING Managing “Plan Your Work and Work Your Plan” “Don’t Expect What You Don’t Inspect” “Who’s Checking the Checker?”
  5. 5. Channel Strategy Decide which channels you want to conquer and in what order Understand there are ramifications to each strategy you need to understand before moving forward
  6. 6. Examples of Distribution Channels
  7. 7. Types of Distribution DSD Direct Store Door Convenience Broadliner Food Service Distributor Club Direct to Retailer Natural Distributor Specialty Food Distributor General Wholesaler Warehouse
  8. 8. Know Your Channels ☞The answer is 261,061 ☞What is the question? ☞How many stores are there in the US that sell beverages?
  9. 9. Channel Breakdown # US Stores 148,126 36,569 21,311 20,000 13,570 9,133 5,000 4,000 3,352 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Convenience Supermarkets Dollar Drug Mass Merch Natural/Specialty Other Club Military
  10. 10. % of Non Alcoholic Beverage Sales By Channel *National Average, Regions Are Very Different; Plan Accordingly
  11. 11. Channel Margins Manufacturer Gross Profit Target = 45% 45%- 55% C-Store 25%- 35% 40%- 50% Drug 45%- 50% Club 11%- 13% *6%- 8% Major Natural Food and Gourmet Chains work on 40% - 44% Margin
  12. 12. Almost The End This is not a difficult business. Do not over think it; Planning is critical; If you don’t know something, ask for help; Be entrepreneurial Use the “rules” we discuss today as guidelines, not absolutes!
  13. 13. The End & Thank You www.cascadiamanagingbrands.com Bsipper@cascadiamanagingbrands.com 201.962.8622

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