I'm new to understanding this side of the industry and I'm really appreciating your articles about it! Have you written anything that dissects (for a relative beginner) how the three-tier system benefits international producers?
Hi Kara, thank you. No I have not written anything on that topic yet. It is a strange area as the regulations once again favor the wholesale/retail tiers over those of the producer and consumer. When it comes to international wines, in general their only route to market is to import to the US, then sell to a wholesaler, to a retailer, then to the consumer. The hardest issue, as it is for craft producers in the US, the "product book" of wholesalers are so full already it is exceptionally hard to get a wholesaler to take the product and then if you can, the producer needs feet on the street to actually promote and generate the sales for the wholesaler. Ideally, international products should be able to ship directly, identify their key markets, then approach the wholesaler with market facts on their products. Unfortunately, the wholesalers lack basic business understanding that this would be good for them, and so they do all they can to block changes to make this possible. I hope this helps a little, happy to answer questions, Steven.
I'm new to understanding this side of the industry and I'm really appreciating your articles about it! Have you written anything that dissects (for a relative beginner) how the three-tier system benefits international producers?
Hi Kara, thank you. No I have not written anything on that topic yet. It is a strange area as the regulations once again favor the wholesale/retail tiers over those of the producer and consumer. When it comes to international wines, in general their only route to market is to import to the US, then sell to a wholesaler, to a retailer, then to the consumer. The hardest issue, as it is for craft producers in the US, the "product book" of wholesalers are so full already it is exceptionally hard to get a wholesaler to take the product and then if you can, the producer needs feet on the street to actually promote and generate the sales for the wholesaler. Ideally, international products should be able to ship directly, identify their key markets, then approach the wholesaler with market facts on their products. Unfortunately, the wholesalers lack basic business understanding that this would be good for them, and so they do all they can to block changes to make this possible. I hope this helps a little, happy to answer questions, Steven.