Beverage Trade Network News

Independent Distributor Network Poised to Offer Wine & Spirits Producers a Distribution Alternative



According to the brewbound

The wine and spirits business continues to evolve, with producers and buyers alike looking for more service, more flexibility, and more choice. Independent Distributor Network (IDN) is a unique model, whose members are local, family-owned distributors working together to offer wine and spirits producers an alternative solution to establish a national footprint, and buyers with a greater choice in selection.

“The top 10 wine and spirits distributors account for roughly 75% of the national market,” says David Stubblefield, President of the IDN Board or Directors. “Distributor consolidation has been a trend for the past 20 years. It has led to more efficiency and economies of scale for those companies, but has also left more niche or craft wine and spirits brands with fewer options for 3-tier sales.”

According to Wines Vines Analytics, there were approximately 3,000 distributors in 1995, but only 1,200 of those remained by 2017. The top two distributors now account for $27 billion in wine sales or more than half of the nearly $50 billion U.S. consumers spend on domestic wines per year. At the same time, the number of domestic wineries has grown three-fold and imports are at more than 475 Million gallons annually (IndexBox estimates).

Read more at source: brewbound

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