DTC vs 3 Tier Distro...chicken or egg conundrum
POSTED BY jlr45193 ON Tue, 03/16/2021 - 17:35

I was having a conversation about beverage alcohol distribution with an industry colleague last weekend (yes, I'm that much of a nerd) about the evolution of DTC sales vs traditional 3 tier distribution in the US, and I felt like we went round and round forever, so I wanted to post this up to this group for discussion.

On one hand, more lax DTC laws spurred by Covid restrictions in various states are an amazing thing. Growing brands that might not want to enter into a traditional distribution agreement with a wholesaler have a fighting chance to expand the reach of their brand. But what happens when your brewery begins to expand and is seeking distribution either around your home state or in another state? Do we think distributors will start to frown upon those brands that are finding success with DTC sales - as in it would hinder distribution level sales in the wholesale channel by driving down demand at the retail level?

Would love to hear everyone's thoughts

Julie Rhodes