How To Call On National Retail Chain Accounts

Understanding how chain stores source new wine, beer and spirits means taking the time to research each chain respectively and perfecting your pitch to fit the buyer's profile. Ratings, reviews, price, margin, supply, merchandising - these are all key aspects of a well-developed brand ready for national distribution. Even after you've targeted your key partners and done your due diligence it can take a very long time to secure a meeting with a chain store buyer and getting them to focus on your brand is difficult.

Display of a Trade Joe's wine area.

From developing your local distribution network to working with category managers inside the offices of large retailers, each new relationship you develop is an important aspect of successful expansion. SCA interviews Adam Vignola, Former Sales and Operations at Total Wine, on how to pitch your liquor, beer and wine to a national chain.

SCA: In your first call to a large chain buyer, what points should you cover in your 5 minute pitch?

Adam: My first point would be: Does it have a local tie in?

Chain retailers generally do localized sets in the US. If the wine brand has a local connection, start by showcasing the highlights of your local markets. If you've done a good job at establishing your brand, then it should be easy to leverage the built in customer base as a strong selling point. For example, a Whole Foods in Marin County (north of SF) would look at a Marin County Wine or a Sonoma County as more desirable to than a wine from Temecula. Focusing on a local store specific set is a good way to establish your relationship with the buyer. Expand your way across the chain after you build your reputation as a dependable supplier to local accounts.

Wine in retail store. If you are representing an international brand that doesn't have a local tie in, focus on the specific requirements that the chain is known to ask for when sourcing a new wine, beer or spirit.

For Costco you should be ready to present a good portfolio of ratings. Make it a priority to pitch your brand to nationally renowned reviews and competitions and.

In the case of Whole Foods, it would be a “sustainable” tie in – either a SIP certificate (Sustainable in Practice), an organic designation or Biodynamic designation. No matter the chain, they are always looking for a specific 'fit' for their stores, so make it your priority to do understand the needs of each Chain you pitch.

If you still have time at your meeting, talk about the lack of this “type of wine.” I’ve noticed from doing store wine set surveys for Costco and Whole Foods that they are always looking for a unique offering that will service a trend. For example, you should underline the strength of your timing by saying something like, “I didn’t see any Provence Rose’s in your set and we’re moving into warm weather – perfect Rose wine season,” or, “This is a great Seasonal Wheat Beer. It’s getting warmer and Witbier has seen double digit growth in the US over the last 52 weeks.”

SCA: What do they want to hear when you make a detailed presentation? What would be 5 key points you must include in the presentation.

Adam: Buyers respond well to:

1. Competitive price, Ratings and Reviews;

2. Exclusive Offering;

3. Your lowest price being available for any size of order;

4. Solid IRI data - top 25 national off premise SKU that has seen double digit growth over the last 52 weeks in the Nielsen’s IRI data;

5. 40% Margin through incentive programs. This margin may come from either a temporary invoice price reduction (TPR), or through an IRC (Instant rebate coupon given at check out) or a CQD (cumulative case discount). For example, you can say, “If you buy 300 cases in a 90 day period I will give you back $12 a case on all 300 cases which effectively makes margin of profit closer to 40%.”

SCA: How important is it to prove your brand in the test stores they start you with? And how do the data impact following orders.

Adam: It is vital for the test stores to do well - I’ve even heard of instances where the vendor will purchase their own product to make the numbers look better. I wouldn’t recommend this approach, but it should be any brand’s priority to get their product moving at a steady rate in their stores. Once you get the test stores showing your SKU is resonating with the customers, then you are likely to get more locations. Usually, you have your placement in a set of category stores known to have a consumer base for your product.

Costco will sometimes give your product a certain amount of weeks to get into the “consciousness” of the consumer before passing final judgment. Even a Cost-Plus World Market or Safeway can show patience. If your wine doesn’t move in the most consumer savvy locations for the retailer, it may still fit a niche like a Brunello di Montalcino, flavored Vodka or novelty craft label and therefore won’t be discontinued. However, if you can't prove to them that your brand is a consistent performer you are likely to never see any more locations.

SCA: What role does merchandising play once the product is on shelves? [...] Continue reading full article on SCA