5 Steps to a Better Distribution Contract

In today’s podcast we dive into the magical world of distributor contracts, and provide Five Steps you can follow to a better contract for your brewery.The distributor contract is a big point of contention between craft breweries and distributors. Before any beer is delivered, the contract has to be reviewed, debated, negotiated, and eventually signed.The challenge with most contracts is that both parties want the terms to be in their favor. Breweries want options to get out of the contract, and freedom to move their brand if the business relationship isn’t working.Distributors want the brewery to be committed to them indefinitely. From the distributor perspective, they invest millions or tens of millions, in infrastructure and want to be sure that brands stay on the trucks to pay for all the investment.Both parties want the advantage, but at a minimum, neither party wants to get stuck with a bad contract.With so much emphasis on the distributor contract, what steps are you taking to ensure you get the best arrangement possible?In this podcast I will outline five steps you can take to improve your contracts, and contractual relationships.Five Steps to a Better ContractSeek first to understand: Basic contract structure and termsKnow your state lawsDo your research, ask questions, determine the distributor optionsPlay a game you can win – Develop your own standard contract.Self-distribute – Enter into a contract with yourselfResourcesGet the free finance newsletter for breweriesLearn more about the Beer Business Finance Association - a network of beer industry professionals focused on improving financial resultsToday’s episode is brought to you by BevCap. At Beer Business Finance, we talk a lot about installing systems that improve profitability and health insurance should be no exception. BevCap helps beverage companies apply the same discipline they use across the rest of the P&L to employee benefits, helping create smarter plans, more visibility into costs, and significant savings over time. To learn more visit BevCapManagement.com. Ready to transform financial results in your beer business? Learn more about the Beer Business Finance Association, a network of owners and managers working together to build more profitable companies.