The beverage industry is a thriving industry due to its indispensable relevance to human survival. This sector owes its success to efficient supply chain systems, especially the distribution segment.
Distribution in the beverage industry has taken significant turns. It is evolving with pressures from consumers for faster access to the products. In the same vein, manufacturers’ desire to make the most efficient use of its resources. A complex, but exciting scenario, builds upon the chain with pull from both ends.
Here are five things you should know about beverage distribution:
Different distribution systems.
The beverage industry is further divided into different sectors. The two main sectors being, alcoholic and non-alcoholic beverages. Each of them has various sub-sectors. These sub-sectors produce different beverage products, and they utilize different distribution channels to ensure that it gets to the consumers.
Distribution in the beverage industry is dynamic and is always improving. Technology is a significant influence. Technological initiatives are deployed in market analysis, customer management, inventory management, marketing, and business planning. The industry stakeholders are always seeking ways to operate with minimal costs and also increase efficiency.
This is an integral part of the distribution processes in the beverage industry. There is a plethora of products available in the market based on consumers’ preferences. The winning brand is one that convinces the consumer; thus, distribution channels are designed to create the perfect conditions for sales.
Beverage companies devise creative means to ensure that their products are purchased by consumers by highlighting their differences and benefits. Thus, creating a lasting impression that ensures the continual demand for the product.
Prices & Competitions.
The prices and competitors affect the distribution of a beverage brand significantly. Price pressure from retailers, and the competition for more market shares determines which distribution channels would be utilized for a beverage product. This is because stakeholders of the supply chain seek ways to operate their businesses at the minimum cost possible.
It is Risky
Distribution is based on demand, and this poses serious challenges. Demand is founded on consumer preferences, which are subject to changes, and responding quickly enough to these changes is a game of luck beverage distributors have to play. Anticipating these changes might be possible via market analysis, but human behavior is not always totally predictable. Other risks associated with beverage distribution include compliance with regulations and packaging hazards
Beverage distribution is a soup with many essential ingredients. There are limitless possibilities that could be explored in the beverage distribution industry if there are proper understanding and deployment of the principles of its operation.