I’ve noticed a marked increase in wine brands searching for a wholesaler. This situation is not relegated to new producers, and too many established producers have found themselves without any representation in one of the country’s most important markets. The increased cost of doing business in NY has forced many wholesalers to cease their participation in the Beverage Media. This consolidation trend spelled the end of major wholesalers like Paramount Brands, resulting in newer, up-and-coming producers suddenly searching unsuccessfully for a home.
Without wholesale representation, years of distribution work evaporated. Surf the net and you’ll discover a number of small, predominately specialized wholesalers. Most opted to use firms like USA, MHW, Fruit of the Vine, to name a few. These companies perform the NY State mandatory requirements for their price filing, invoicing and basic accounts-receivable duties. It’s also important to note: these operations provide basic, bare essential service. What is not provided is a sales staff. So how does your product move?
To add to the predicament, these wholesale operations will not indicate any profit until you achieve a volume level of about 400 cases sold per month. Until you reach that volume number, you’ll be operating in the RED!
After witnessing this unfold for many companies, I started newyorkwinedistributor.com. Utilizing my over 30 years’ experience in the industry, I function similarly to a match-making service — only, my clients are wine producers, distillers and NY wholesalers. I can say with confidence, there are some viable alternative wholesalers out there.
If you’re currently unhappy with your wholesaler – or you currently don’t have one – then its time you take action. There are no simple answers, however creative, practical solutions do exist.
Please, take the time to contact me. Procrastination will only make the problem worse!