New Report Says Distribution System Good for All Brewers | NBWA: America's Beer and Beverage Distributors

Media Contact: ERIN DONAR

EDONAR@NBWA.ORG; (703) 229-3702

Blog| Jun 24, 2014

The Boston Consulting Group has published a report that suggests today’s system of alcohol distribution – and state alcohol laws – creates an open market for brewers of all sizes, large and small. The report, “For Small and Large Brewers, the U.S. Market Is Open,” begins by saying that the American beer market is “freely competitive, and driven by consumer choice.” It goes on to say that, “Despite fears that small brewers can’t compete against the scale and reach of large, mass-market brewers, the opposite has proved to be true… Ironically, small brewers’ ability to reach more drinkers has been enabled by the open U.S. beer-distribution system — a system that was once thought to lock out smaller players.”

The report explains that craft brewers can “leverage an effective route-to-market distribution system… this open distribution system enables small brewers to avoid significant, if not prohibitive, costs to entry, while also gaining deep access to large and small retailers.”

Having studied direct store delivery for 20 years, the Boston Consulting Group also says that “the independence of the distributors creates the opportunity for smaller brewers to ‘get on trucks’” and get distributed at a lower cost than if they self-distributed, citing specific data to support the claim.

This four-page report provides a solid explanation of the daily relevance of today’s system. The report is a very useful tool when promoting the economic and commercial value that distributors deliver before a wide range of audiences.