Beer is one of the most popular beverages in the US. In the past decade, the craft beer revolution has drastically changed the beer market. A growing number of independent breweries have opened in recent years (see more information on how to start a brewery), and they’ve expanded the variety of beers on the market. Beer distributors have adapted to the increased demand for craft beers by partnering with nano and micro breweries. Although well-established beer brands still hold the biggest market share, the craft sector is expanding significantly. In this post, we’ll share more about the different types of businesses that partner with wholesale beer distributors. We’ll also explain the main factors to consider when searching for a reliable supplier in the beer niche market.
Key takeaway: Beer distributors are companies that purchase in bulk from craft breweries and well-established beer manufacturers. They sell to restaurants, bars, stadiums, and various other businesses. Many breweries create their own distribution networks. Some businesses choose to partner directly with manufacturers or to use the services of broadline distributors for their beer needs.
What Businesses Partner with Beer Distributors
There are two main categories of businesses that partner with beer wholesalers: buyers and manufacturers. There are different types of beer producers on the market. Let’s briefly examine them.
- Breweries. This is the biggest category of beer manufacturers on the market. It includes both craft beer microbreweries and large producers of well-established beer brands. Some breweries specialize in contract brewing for other brands as well.
- Brewpubs. This business model combines brewing and selling beer with offering dishes.
- Taprooms. They are very similar to brewpubs. However, taprooms have a limited food menu that consists primarily of snacks and shareables.
Businesses That Buy Bulk Beer
- Food service businesses. From large hotels and resorts to small businesses in the restaurant industry, various food service companies purchase beer in bulk. Some bars and pubs might focus on specific types of craft beer. On the other hand, hotels might order only popular beer brands.
- Retailers. Grocery stores, convenience stores, specialized liquor stores, and various other retailers partner with beer distributors who offer different brands and beer varieties.
- Event venues and organizers. This category includes catering businesses, mobile bars, festival organizers, and other event planners. Stadiums, halls, and other venues that host large crowds also might partner with beer distributors. Typically, these venues offer only one or a few beer brands.
How to Choose a Wholesale Beer Distributor
When picking a beer supplier, the first thing to consider is your business needs. For example, some businesses might need a wide variety of beers and other products like branded glass coasters, bottle openers, or other restaurant merchandise. Other businesses might be limited to a single beer brand.
Beer distributors can also help restaurant managers with marketing materials (read more about beer marketing), draft beer equipment, restaurant training programs for waiters and bartenders, and more. Some distributors and breweries also offer other services such as contract manufacturing, inventory management (vendor-managed inventory), and beer menu engineering.
Beer can be used as part of a restaurant’s marketing. That’s why it’s important to partner with distributors who are knowledgeable about the latest trends in the beer industry. This will allow you to stay ahead of the competition and can help your restaurant’s customer acquisition efforts.
Naturally, factors such as minimum order quantities (MOQ), distributor reputation, delivery frequency, volume capacity, and reliability are also important.
Beer Suppliers VS Breweries VS Broadline Distributors
There are three categories of beer distribution: local suppliers that specialize in beer and other spirits, broadline distributors, and breweries. Let’s examine the main differences between them.
- Breweries. They produce different types of beer and focus on B2B sales to distribute. Business owners might choose to partner directly with breweries instead of ordering in bulk from suppliers. However, that has limitations as breweries typically offer only the beer varieties they manufacture.
- Broadliners. They are one of the integral parts of the food and beverage industry. Broadline distributors typically offer products in all categories. However, partnering with them is suitable primarily for medium and large businesses as they offer less flexibility in terms of minimum order quantities and delivery frequency.
- Specialized beer distributors. These companies partner with various craft and mass-produced beer breweries. Some wholesalers also partner with winemakers, spirits manufacturers, and producers of non-alcoholic beverages. They are the right choice for businesses of any size. Due to their comprehensive knowledge of beers and other drinks, specialized beer distributors can help the management of restaurants in various ways.
Frequently Asked Questions about Beer Distributors
From tips on how to achieve high ROI and how to increase the likelihood of restaurant success to information on the eCommerce sector, there are hundreds of useful resources on BlueCart’s website. Below are the answers to frequently asked questions regarding beer distributors and their operations.
What Are the Biggest Beer Distributors in the US?
Unsurprisingly, Anheuser-Busch is considered the biggest wholesale beer distributor in the US. The company manufactures and distributes some of the most popular beer brands. Furthermore, they also partner with independent breweries across the country. Reyes Beverage Group is another well-known supplier in this field. With a wide variety of products offered, they are a great option for businesses that wish to have an extensive craft beer menu. Columbia Distributing is another large beer supplier. Based in Oregon, the company’s primary area of distribution is the Pacific Northwest region.
How to Become a Beer Distributor?
Starting a wholesale distribution business that specializes in beer and spirits can be a profitable idea. The main tasks of building a beer distribution business are related to arranging enough storage space and a fleet of vehicles. Furthermore, as wholesale beer distributors act as middlemen between businesses and breweries, partnering with enough manufacturers is crucial. This will help you create a portfolio of different beers and other beverages to offer to restaurant businesses and other buyers of bulk beer. Keep in mind that wholesale sellers of alcohol are more strictly regulated compared to other distributors.
What Is the Beer Supply Chain?
The beer supply chain includes the different stages in transforming grains and other raw ingredients into beer offered by food service businesses or on grocery store shelves. Here are the main stages of the beer supply chain:
- The main raw ingredients for beer brewing are water, different varieties of hops, yeast, and different types of grains;
- The raw ingredients then go through a few processes, like malting and brewing. The result is freshly brewed beer;
- Once it’s done, the beer needs to be packaged in kegs, cans, or other packaging solutions;
- The packaged beverage is then distributed to retailers, eateries, and other businesses that serve customers or sell beer.
BlueCart: Where Beer Distributors Can Find New Customers
BlueCart’s marketplace connects tens of thousands of businesses that want to find suppliers in various fields. That’s why, thanks to our platform, beer distributors can increase their wholesale sales. In addition, our solutions allow suppliers to automate certain tasks and to make their operations more efficient. Restaurants, retailers, and other businesses can use our wholesale ordering software for a variety of things, such as restaurant inventory management or searching for new distributors. Schedule a demo and see why BlueCart is the SaaS platform your business needs!