The Evolution of Craft Beverage Distribution with Sam Anderson of BevAssets
Episode Overview
Chris speaks with beverage industry veteran Sam Anderson of BevAssets. Sam unpacks the intricate strategies enabling craft breweries to master complex distribution systems, guiding breweries on how to efficiently move products from production to wholesaler and strategically maintain their vital shelf space in retail stores.
Head over to www.Bevassets.com to gain direct insights from Sam's experience in Beverage Distribution Channels.
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Mastering Craft Beverage Distribution with Sam Anderson of BevAssets
The world of craft beverage distribution is constantly evolving. For many craft brewery founders, navigating this complex landscape can feel like an uphill battle. How do you expand your reach, boost sales, and ensure your unique product finds its way into more hands?
In a recent episode of the Get Hoptimized Podcast, host Chris sat down with Sam Anderson, a true titan of the beverage industry. With nearly 40 years of experience working with giants like Coca-Cola and Gallo, to leading his own venture Bev Assets, Sam offers unparalleled insights into beverage distribution strategies and craft brewery growth.
From Corporate Giants to Empowering Craft Brands: The BevAssets Mission
Sam's journey from the structured world of major corporations to co-founding BevAssets stemmed from a clear observation: a high failure rate among smaller brands struggling to find their path to market. BevAssets was created to minimize this risk, providing strategic guidance, knowledge, and resources to help brands find distribution and connect with customers.
"The big guys teach you process, structure, and strategy," Sam explains. He brings this corporate discipline to founders and startups, helping them build the foundational elements needed for sustainable brewery growth.
The Production Predicament: Are You Ready for Demand?
One of the most critical lessons Sam shared, often learned the hard way by growing brands, is the importance of production capacity. He recounted a cautionary tale of a craft brewery that secured distribution in 38 states but ultimately failed because they couldn't consistently meet demand.
"You have to have a 95% fill rate when these people come knocking on your door," Sam warns. "If you don't, they're going to disappear because that shelf space is at a premium." This highlights the "chicken and egg" dilemma for craft beverage brands: how do you build inventory without risking spoilage, while also being ready for a sudden surge in orders?
Sam's advice: "Careful what you wish for." Securing a major account like Walmart is exciting, but without the capital and production capability to back it up, it can lead to demise.
The "Test, Build, Scale, Sell" Framework: A Roadmap for Craft Brewery Expansion
To navigate this risk, Sam advocates for a methodical, four-phase approach:
Test: Start by building your brand in your local market – "an inch wide and a mile deep." Prove your concept and build familiarity with your brand and consumer base.
Build: Based on your successful local testing, begin to expand cautiously.
Scale: Once you have proven success and data from your "building" phase, you can confidently approach larger retailers and expand regionally or nationally.
Sell: Continuously drive demand and optimize your sales efforts.
This framework minimizes risk by ensuring you understand your target consumer and market before making significant production or distribution commitments.
The Power of Data: Proving Your Brand's Potential
For craft breweries aiming for wider beverage distribution, data is your most powerful ally. Sam emphasizes that major buyers (like Walmart) look for proof of performance, including:
Velocity: How quickly is your product selling off the shelves?
Reorder Rates: How consistently are customers replenishing their stock?
Contribution: What revenue is your product generating per item, per week, per store, compared to category benchmarks?
Sam shared a compelling example of a non-alcoholic brand, Even, which used local Colorado data (showing strong velocity and contribution at golf courses and retail) to prove its potential to a Walmart buyer. This "proof in the data" is what makes a brand attractive to large distributors and retailers.
While robust data tools exist (like IRI, Nielsen, 5G Group), Sam advises starting simple: "Just get it from your wholesaler." Depletion data (what's shipped from wholesaler to customer) can provide initial insights into takeaway and reorder rates.
Feet on the Street: Driving Product Pull-Through
In today's competitive landscape, distributors are often overwhelmed with brands. Sam's solution at Bev Assets is the Feet on the Street program – dedicated sales agents who actively work in the marketplace to support brands.
The "Brand with a Plan": Bev Assets approaches wholesalers with brands that are well-supported and financed, and crucially, have a plan for market activation.
Push & Pull Strategy: While distributors "push" products into accounts, Bev Assets' "Feet on the Street" agents actively "pull" products through by working at the point of purchase. They visit accounts (on-premise like hotels/restaurants, or off-premise like liquor stores), ensure proper merchandising (shelf tags, displays), and ask for menu placements or new orders.
The Power of Follow-Up: Sam highlights the "Power of Three" or "Three Knocks" – it often takes at least three persistent contacts before a buyer commits. This consistent follow-up is where many brands fall short, but it's crucial for securing and maintaining placements.
Cost-Effective Support: For startups, this offers a more affordable alternative to building a full sales force, providing dedicated time and market relevance by representing a portfolio of 6-8 complementary brands.
The Future of Alcohol: Evolving, Not Dying
Addressing the common concern, "Is alcohol dead?", Sam's answer is a resounding "Absolutely not!" He sees the industry evolving, driven by changing consumer preferences:
The Rise of NA/Low-ABV: The non-alcoholic (NA) and low-ABV categories are booming (growing at 245%!). Offering these products significantly increases "ticket ring" and "basket ring" by catering to designated drivers and those seeking moderation. The "designated driver determines the trip," so having compelling NA options is a competitive advantage. (Dive deeper into [NA Beer Trends - Inbound Link Opportunity]).
Diverse Drinking Occasions: Consumers have multiple "drinking occasions" throughout the day and evening. Providing a range of options, from traditional craft beer to NA alternatives or even options for "zebra striping" (mixing NA with a shot of spirits), caters to these varied preferences.
In-Home Entertaining: The growth of at-home entertaining means consumers want diverse beverage options for their guests, including NA and potentially cannabis-infused products (where legal).
Product Diversification: Sam advises craft breweries to diversify their offerings to meet these moments, potentially through co-packing or in-house production of NA, low-ABV, or even cannabis products.
The industry is vibrant, with wine having a significant moment and innovations like canned wines gaining traction. The key for craft beverage brands is to be consistent, authentic, clear in their message, and willing to diversify to meet evolving consumer demands.
Ready to Get Hoptimized?
Sam Anderson's insights offer a comprehensive roadmap for craft breweries looking to navigate the complexities of beverage distribution, optimize their go-to-market strategy, and capitalize on emerging trends. By embracing process, leveraging data, actively pushing their products, and adapting to consumer shifts, craft beverage brands can achieve remarkable brewery growth and stand out in a competitive market.
To unlock your brand's full potential and gain direct insights from Sam's extensive experience in Beverage Distribution, connect with him on LinkedIn or explore his comprehensive solutions at bevassets.com.
Don't miss the full conversation! Listen to the "Evolution of Craft Beverage Distribution" episode on the Get Hoptimized Podcast on Apple Podcasts and Spotify, or watch on our YouTube channel.