Darryl Rosen, a long time industry consultant expands on the benefits of building strong business cultures.
Whether you are an importer, distributor or producer of alcoholic beverages, nurturing a vibrant community within your company is one of the most important parts to ensuring sustainable long term growth. USA Trade Tasting sat down with business veteran and USATT speaker Darryl Rosen to explore the importance of business culture. Here is what he had to say:
Why do you think business culture is so important for beverage businesses that are in the midst of growing their companies?
Every day I speak to the owners of emerging businesses. Many speak in glowing terms of the culture they’ve designed or cultivated within their growing organizations. When I press for the secret sauce to learn exactly how they create an environment where everyone is rowing in the same direction, I get generalities. “It just feels right!” or “Everybody is just dialed in on making good beer or exquisite wines or dynamic widgits.”
I imagine that, in their spare time, these leaders read the surveys, just as I do. Recently, I read a Booz Allen study sharing that, [Tweet ““60% of business owners stipulate that culture is more important than their company’s strategy or operating model,“”] and it got me thinking about how we really quantify how our business culture is growing. Despite these studies and numerous others just like it, many of the leaders I speak to feel that the concept is still a bit nebulous – so they share anecdotes. Which brings me to my first point, “You don’t measure your cholesterol anecdotally!”
The three-tier system is considered by some as one of the most controversial aspects of the US Wineries, Breweries and Distilleries industry. In theory, the three-tier control system is in place to control the distribution of alcoholic beverages and protect consumers against counterfeit products by ensuring that any single entity can only have direct business interests in no more than one tier of the supply chain.
As each state is responsible for governing the sale and distribution of alcoholic products inside their borders, the laws governing each territory can vary dramatically. Some states have stricter laws in place that provide extra protection to wholesalers.
In non-franchise states, suppliers and manufacturers can freely negotiate the terms of their distribution contracts with wholesalers, effectively laying a clear foundation for terminating a contract if the terms of said contract are not being satisfied by the contracted distributor.
In franchise states, once a distribution contract has been established between the supplier and the wholesaler, the supplier must have ‘good-cause’ to terminate the contract. The definition of ‘good-cause’ in franchise states is very limited. Often, this translates to the manufacturer being locked into their partnership, regardless of the wholesaler’s sales performance.
The USA Trade Tasting 2017 will be hosting some of the beverage industry’s top market makers as they present successful strategies to pitch your Wine, Beer and Spirits brands to prospective importers, distributors and retailers.
Are you looking to secure new distributors, importers and retail accounts for your wine, beer and spirit brands? The USA Trade Tasting conference is a full day event dedicated to helping beverage professionals develop their sales network and adopt successful distribution strategies into their everyday operations.
With instructional seminars exploring practical ways to address the current market, executives from some of the country’s leading company’s will be presenting their tried and true blue-prints to successfully pitching new accounts.
Network with hundreds of beverage professionals and learn from the industry’s most innovative minds at the USA Trade Tasting.