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Charles Merinoff. WSWA Chairman. AGENDA. Living My Two Roles Chairman & CEO of The Charmer Sunbelt Group Chairman of WSWA Value of a Distributor How Our World is Evolving Looking Forward 5-10 Years. Aligning with key suppliers Building brands faster, garnering market share
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Charles Merinoff WSWA Chairman
AGENDA • Living My Two Roles • Chairman & CEO of The Charmer Sunbelt Group • Chairman of WSWA • Value of a Distributor • How Our World is Evolving • Looking Forward 5-10 Years
Aligning with key suppliers • Building brands faster, garnering market share • Delivering exceptional customer service • Developing associates • Externally • Unique legislative challenges in each market • Responsible consumption • Opportunities & risks • Drive collaboration across three tiers to deliver a healthy vibrant market • Strong consumer selection • Broad range of players: suppliers, wholesalers & customers • Insuring legislative change involves input from all constituents • Responsible consumption
VALUE OF A DISTRIBUTOR SKUs Producers Brands Suppliers State Government DISTRIBUTORS Outlets Bars Package Stores Clubs Wine Shops Grocery Restaurants
VALUE OF A DISTRIBUTOR To the State • Precise Control Throughout Route to Consumer Ensuring Quality • Tax Collection & Requisite Record Keeping of Location/Quantity/Price • Advocates for Responsible Consumption
HOW OUR WORLD IS EVOLVING:CONSOLIDATION All Other Suppliers Top 4 Suppliers Source: Adams Liquor Handbook and Market Knowledge
WHAT’S CHANGING – Supplier Alignment • Traditionally, distributors heavily focused on securing supplier relationships Today Historically Few Large Suppliers Many Mid-Sized Suppliers Distributors carrying exclusive brands with dedicated orgs Distributors carrying the same brands Many Customers Many Customers • Gain or loss of a supplier makes our distributor businesses profitable or unprofitable
HOW OUR WORLD IS EVOLVING:CONSOLIDATION Wholesaler Market Share Evolution (2005-2011) All Other Wholesalers Next 5 Wholesalers Top 5 Wholesalers Source: Impact Ranking – estimated revenue
WHAT’S CHANGING – Alignment Traditional Supplier Management Model Central SVP Southwest SVP Central Control SVP 6 3 Northeast Control SVP 2 7 Distributor Contacts West Control SVP 1 IL/IN SVP Northeast SVP 2 6 West SVP 3 CA SVP 1 Mid-Atlantic SVP 3 South Central SVP 5 Southeast Control SVP 2 FL SVP 1 TX/LA SVP 1
WHAT’S CHANGING – Alignment Franchise Business Unit Director Control Business Unit Director Wirtz, Martignetti Johnson & Other Business Unit Director Southern W&S Business Unit Director Glazer’s Business Unit Director Charmer Sunbelt Business Unit Director New Supplier Management Model AK CA HI IN FL KY AZ CO DE MD DC NY SC AR CT GA KS MO NJ NM NV TN WI IL MA MN ND NE RI SD LA OK TX AL IA ID ME MI MS MT NC NH OH OR PA UT VA VT WA WV WY
WHAT’S CHANGING – Customer Focus • As supplier-distributor alignment deepens, distributors are highly focused on customer relationships • Brands (and hence both distributors and suppliers) can only win with customer ambassadorship • Distributors & suppliers understand value of a broad customer base – critical for product access