The Rise of the Independent Brand in 2018

Champagne and corks have settled. We are collectively wiping the crud out of the corner of our eyes and getting back the grind. This time however, it is not just a start of the new week, it is the start of a new year. I remember these days when I was in retail. I remember the major fear I always had the first work day after NYE. Where were the sales going to come from? When was that first customer going to come into my store? How can I possible get back to $100M in sales by December when I have not sold my first 1/2 pint in the year yet? All legitimate fears and all of them should be entering your collective conscious.

From a supplier perspective, the fears are a bit different. The fear is real, the obstacles are higher and the landscape of the “maker” game is very different in 2018. Fewer retailers to sell into, fewer distributors to use, and more competition than ever before. To me, this is next level fear factor. Real life scares that do not seem to have a wake up button in 2018.

Let’s look to 2018 as the year that makers embrace their new role within the three tier landscape. 2018 NEEDS to be the year that makers/ suppliers accept the big distributors as exactly what they are, logistic companies that charge you 30-45% of the price for the pleasure of driving and clearing the goods. Let’s look to 2018 as the year that the maker says, F*^($&%^$ it! I will do it myself. With that attitude, success will come, we promise you that much.

In about 2-3 weeks depletion reports will begin coming out from your distributor for the year 2017. All across the globe I can collectively hear the jaws hitting the table with your own personal WTF moment. The follow phrases will be uttered globally.

• What about the goals we set last January?
• You had that many (brand category) in your portfolio, I didn’t know that!
• What do you mean I need to buy back goods?
• Brand redundancy? You are firing me?
• I was counting on these sales, and you did not perform as promised, thanks.

The 2018 reality will be that small, independent brands are going to get smoked if they do not take matters into their own hands. Aside from a select group of distributors, nationally, it will be up to the brand to sell themselves. This really is a Darwinism reality. The very best brands will continue to be sold, and the smaller brands will need to fight for survival like the also- rans from the Lord of the Flies.

We deal in what the market gives us, and this is not all gloom and doom. This is just the current state of the adult beverage business. Let us collectively embrace it and change the rules of the game, and give our retailer audience the goods they need to grow and survive.

Long live the independent brand, the brewer, distiller, and wine maker that still has passion! Who is with me?