Episode Overview

Chris interviewed CPG distribution veteran Mike Levinson, founder of Food Service Octopus. The discussion focused on strategies for craft beverage brands to expand distribution beyond traditional large-scale retail.

To Unlock new growth opportunities in Food Service and Alternative Channels, connect with Mike Levinson on LinkedIn for direct insights, or discover his full suite of solutions on by heading to his website at fsotopus.com.

-Music Credit-

Neon Drive by Punch Deck | www.soundcloud.com/punch-deck

Music promoted by | www.free-stock-music.com

Unlocking Growth: Alternative Retail Channels & Strategies for Craft Breweries

Are you a craft brewery founder feeling squeezed by traditional retail? In a recent episode of the Get Hoptimized Podcast, host Chris sat down with CPG distribution veteran Mike Levinson, founder of Food Service Octopus, to explore how craft beverage brands can creatively expand their reach beyond the crowded "ocean" of major grocery chains. Mike's two decades of experience in the consumer packaged goods, foodservice, and retail sectors offer invaluable insights into how small brands can thrive by thinking differently about distribution.

Beyond the "Ocean": Navigating Alternative Channels

Mike introduces a powerful analogy: major retail, with its 77,000 distribution points and 40-50,000 items per store, is the "ocean" – vast, competitive, and often overwhelming for smaller craft brands. Instead, he champions "alternative channels" as the "lakes, rivers, ponds, and streams" where craft breweries can achieve significant growth.

These alternative channels represent a staggering 150,000 convenience stores, 5,000 colleges and universities, 20,000 micro-markets (office pantries), business and tech campuses (like Google and Meta), military facilities, hotels, and a vast array of independent restaurants and hospitality venues. Mike's core advice? Focus on "velocity over distribution." It's not about being in thousands of locations, but about achieving strong sales in strategically chosen, often local, alternative spots.

The Power of Strategic Marketing & Branding

Mike emphasizes that success in any channel, especially in the competitive beverage industry, hinges on robust marketing and branding. Here are his key takeaways:

Your Packaging is Your "Silent Salesman": In a world where consumers often pick up a product without prior knowledge, eye-catching and well-designed packaging is paramount. It must tell your brand's unique story and differentiate you from competitors. Think about brands like Voodoo Ranger – their packaging is memorable, even for non-beer drinkers!
Build an Emotional Connection: People buy on emotion and brand identity. Your brand needs to resonate with consumers, fostering loyalty and a sense of connection that goes beyond just taste.
Leverage Merchandise (Merch): Don't underestimate the power of cool, affordable merchandise. T-shirts, hats, and koozies with unique designs turn customers into walking billboards, spreading brand awareness organically.
Social Media Drives Sales: Retailers and distributors are increasingly checking your brand's website, online reviews (Amazon), and social media presence (especially Instagram and TikTok) to gauge popularity and demand. Why? Because "sales gets product on the shelf, but marketing takes it off." Strong social media engagement and brand loyalty are crucial for ensuring your product moves. Mike shares a fantastic example of a coffee shop that offered free coffee for dancing and posting on social media – an instant viral success that built immense positive brand association.
Collecting Customer Data: Restaurants and taprooms should actively collect customer information and encourage them to share their positive experiences on social media and review platforms. Bad news travels fast, so incentivizing positive sharing and addressing negative feedback directly is key.

Optimizing Your Taproom & Distribution Partnerships

For breweries with a taproom, Mike highlights the importance of the overall customer experience – from the environment and music to the beer quality and, crucially, food options. With rising labor and food costs, pre-prepared, high-quality options like gourmet grilled cheese can enhance the taproom experience, encouraging longer stays and repeat visits without the overhead of a full kitchen. This provides a valuable upsell opportunity, appealing even to non-beer drinkers in a group.

When it comes to distribution, Mike advises working with your local alcohol distributor as a partner. Even if a distributor is required by law, actively selling your product and driving demand can influence their willingness to carry and push your brand. The ultimate goal? For a buyer to come to you, saying, "I tried your product, I love it, and I want it in my store!" – the result of being "so good they can't ignore you."

Ready to Get Hoptimized?

Mike Levinson offers a fresh, outside-the-box perspective on how craft breweries can strategically approach distribution and marketing. By focusing on alternative channels, leveraging powerful branding, and creating memorable customer experiences, even smaller brands can achieve significant growth and stand out in the crowded craft beverage landscape.

To learn more from Mike Levinson and Food Service Octopus, visit fsotopus.com or connect with him on LinkedIn.

Don't miss the full conversation! Listen to the "Alternative Retail Channels and Strategies" episode on the Get Hoptimized Podcast on Apple Podcasts and Spotify, or watch on our YouTube channel

Alternative Retail Channels and Strategies with Mike Levinson of Food Service Octopus