How to Open a Beer Distributor

Beer Distribution can be a rewarding business

Beer distributors are hardworking entrepreneurs who must constantly evolve to the changing needs of their industry, work long hours and really love what they do. While it is possible to make large sums of money over time in the beer distribution business, the first few years require an incredible amount of hard work before you're able to turn a real profit.

Things You'll Need

• Federal license to distribute and store alcoholic beverages
• State permit for the counties you serve
• Vehicles
• Warehouse space
• Industrial refrigerator
• Accounting system and software for inventory
• Sales force
• Beer
• Customers

Instructions

1. Obtain the necessary licenses and permits from the Federal Government. The Federal Government must issue an operations permit once your distribution application is approved in writing by the Alcohol and Tobacco Tax and Trade Bureau (TTB). There is no tax or fee for this permit.

2. Obtain a state permit for the counties you will be distributing beer to or multiple state permits if you plan on distributing to numerous states. (It is probably better to start with one state at a time.) This varies greatly from state to state---in Louisiana obtaining a distribution permit is reasonably easy while in places like Utah it is a bit more difficult. There are often fees associated with obtaining this permit, varying from state to state as well.

3. 

   Create an operational strategy. Purchase trucks and a warehouse with an industrial cooler in which to store the beer you are distributing.

4. 

   Hire employees. You will need delivery drivers, a sales force and an accountant to pay attention to invoices and inventory. You may be able to do a lot of this yourself, but most likely you will need help.

5. Find customers. Have your sales force contact every liquor store, convenience store, bar and restaurant. Find out what their margins are, what kind of beer they distribute, how often they need more of each product and who their usual suppliers are. Figure out if you can cut them a deal. A good place to start is BevNet.com or liquidbrandsmanagement.com. For a fee, these companies will help you find customers.

6. Deliver the product to your customers. Load the truck with your customer orders and deliver them in a timely, professional manner. If your customers remain happy, you're bound to grow and get more customers.

Tips & Warnings

• Be ready to work hard at the beginning, it will pay off in the end. Talk to other beverage distributors beforehand without telling them too many details about what you are looking to do. Their experience will teach you volumes. Think about adding other things to your routes, such as chips and other snacks.

• Make sure your permits and insurance paperwork are in order. Fines cut into your profit and can sink a business.

References

• Beer Distribution Advice
• Federal License Info
• Distribution Management

Resources

• Read this Article in Spanish