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Home » Blogs » Management & Strategy » Competing Distributors Sharing a Warehouse?
Lindsay Young Konzak

Competing Distributors Sharing a Warehouse?

October 2, 2009
More about:  Distribution Trends,  Grocery/Foodservice,  MDM Blog,  Sales & Marketing
Beer wholesalers told by one beer supplier they need to cut costs to remain relevant.
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Sharing a warehouse?  That's one suggestion to competing distributors that was made by Boston Beer Co. Chairman Jim Koch recently in a speech to the National Beer Wholesalers Association. In this article in the Wall Street Journal, he said that the supply chain is filled with "deliberate inefficiencies." He thinks distributors need to cut 20% from their cost structures to remain a relevant and valuable part of the alcohol distribution channel. With respect to sharing warehouses, Koch said that competing distributors in the same city could do so, as well as share a fleet of trucks to deliver their brands.

Beer distributors have been fighting to maintain their legal place in the channel for several years now.
 
Read the full Wall Street Journal article here. (Subscription may be required.)

 

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