Beverage School Summer 2023 Understanding Route to Market 1920x1080 MP4

Summary

The speaker at a beverage industry event emphasizes the importance of understanding distribution for beverage entrepreneurs. He outlines various distributor types, the significance of natural specialty distribution, the role of brokers, and the challenges of selling to retailers and consumers. He advises focusing on the right accounts, managing margins, and being strategic about slotting fees. The presentation concludes with insights on achieving success in the competitive beverage market.

Takeaways

• 📹 The speaker emphasizes the importance of the initial part of the show, which focuses on educating new beverage entrepreneurs and providing refreshers for others.
• 🎥 Presentations will be recorded and made available for later viewing, and there will be no direct Q&A after each presentation but rather a group Q&A session at the end.
• 🏆 Bill Sipper, the first presenter and managing partner at Cascadia Managing Brands, discusses the various types of distributors and their roles in the beverage industry.
• 📈 DSD (Direct Store Delivery) distributors are highlighted as the most competitive but also the most demanding, requiring exclusive contracts and buyouts.
• 🌿 Natural specialty distributors are noted for their slightly lower barriers to entry and their appeal to a more premium customer base.
• 📉 The script warns about the potential for high deductions in the natural specialty channel, which can significantly reduce payments to suppliers.
• 🏪 Convenience store distributors are praised for their wide coverage but criticized for not merchandising products effectively.
• 📊 The speaker stresses the importance of understanding the different sales pitches required for various distribution channels, from supermarkets to food service.
• 💼 The role of brokers is underscored, particularly in securing pre-commitments from chains, which are crucial for getting products into distribution.
• 💵 Margins vary widely among distributors and retailers, with DSD typically offering around a 33% margin, while supermarkets might work on a 30-35% margin.
• 💼 The script concludes with a reminder of the importance of persistence and strategic growth in the beverage industry, as well as the reality of the financial investments required.

Q & A

What is the primary focus of the speaker's presentation?

The speaker's presentation primarily focuses on educating new beverage entrepreneurs and providing insights into the distribution process for CPG (Consumer Packaged Goods) companies, including the different types of distributors and the considerations involved in choosing them.

What does the acronym 'DSD' stand for in the context of the presentation?

In the context of the presentation, 'DSD' stands for Direct Store Delivery, which is a type of distribution where distributors not only deliver products to stores but also merchandise them, ensuring the product is well-presented on the shelves.

Why are DSD distributors considered the best but also the most challenging to work with?

DSD distributors are considered the best because they merchandise the stores, ensuring the product remains on the shelves. However, they are also the most challenging to work with because there are fewer independent DSD distributors, they often require exclusive contracts, and they may demand a buyout.

What is the role of natural food brokers according to the speaker?

Natural food brokers play a crucial role in getting commitments from independent stores, especially when trying to get products into natural and specialty channels. They help secure pre-commitments from stores, which are necessary for some distributors to take on a new product.

What are the potential financial pitfalls of working with natural specialty distributors?

The potential financial pitfalls of working with natural specialty distributors include high deductions that can significantly reduce payments on invoices, sometimes leading to receiving a much smaller payment than the invoiced amount.

How does the speaker describe the evolution of a beverage brand's distribution strategy?

The speaker describes the evolution of a beverage brand's distribution strategy as starting at a certain point (Point A) and having the goal to reach another (Point Z), with many stops in between. It's an evolutionary business where one might not be ready for certain types of distributors like DSD initially but may progress to that stage over time.

What is the importance of creating success stories for a new beverage brand?

Creating success stories is important because it helps to build a brand's credibility and can be used to convince larger chains to carry the product. It's about breeding success from smaller accounts and using those achievements to negotiate with bigger accounts.

What is the typical margin that DSD distributors and retailers work on, according to the speaker?

The speaker mentions that DSD distributors typically work on a margin of 33%, while retailers can vary but are commonly around 30-35% for supermarkets, 40-45% for convenience stores, and 45-50% for drug chains.

What is a slotting fee in the context of supermarket distribution?

A slotting fee is a payment made by a supplier to a supermarket chain for the privilege of having their product stocked. It secures shelf space but does not guarantee that the product will be placed on the shelves.

Why is it crucial for a new beverage brand to select the right accounts for distribution?

It is crucial to select the right accounts because not all stores within a chain may align with the brand's target demographics. Distributing to stores where the brand is unlikely to sell well can lead to wasted time and resources, including slotting fees.

What advice does the speaker give regarding the startup phase of a beverage brand?

The speaker advises that most startups do not make money on the products they sell initially and that the real opportunity for financial success often comes from an exit strategy, such as being acquired by a larger company.

Outlines

00:00

🎤 Introduction to Beverage Entrepreneurship

The speaker opens the show with enthusiasm, highlighting the importance of the initial segments of the program, which are designed to educate new beverage entrepreneurs and provide refreshers for others. The speaker mentions that the presentations will be recorded for later viewing and outlines the structure of the event, including the absence of Q&A after each session but the availability of speakers at tables for questions afterward. Bill Sipper, the managing partner at Cascadia Managing Brands, is introduced to discuss distribution perspectives for CPG companies, emphasizing the company's involvement in various aspects beyond sales, such as marketing, operations, logistics, and social media.

05:00

📈 Navigating the Distribution Landscape

Bill Sipper delves into the different types of distributors in the industry, with a focus on DSD (Direct Store Delivery) as the most competitive and beneficial for keeping products on shelves, albeit with the challenges of exclusivity and cost. He discusses the decline of independent distributors and the shift towards chain authorizations. The presenter also covers natural specialty distribution, which has a lower barrier for product entry and targets a more premium customer base. The importance of pre-committed orders and the role of natural food brokers in securing these commitments are highlighted, along with the cautionary note on the potential for high deductions that can impact profits.

10:03

🛒 The Role of Distributors and Retailers

The paragraph emphasizes the various distributor types, including convenience stores, wholesalers, food service distributors, and direct retail channels like Walmart and Costco. The challenges of selling on Amazon are mentioned, along with the hybrid model that combines elements of different distribution strategies. The speaker outlines the distribution channels and the roles of brand owners, distributors, and retailers in the supply chain. The importance of understanding the value proposition for distributors and retailers is stressed, as they are primarily concerned with what's in it for them, such as margins, promotions, and incentives.

15:06

📊 Sales Dynamics and Margins in Distribution

This section discusses the importance of selling to distributors and retailers differently than to consumers, focusing on what's in it for them, including features, benefits, and the value of the product. The speaker uses the analogy of UPS and FedEx to illustrate the delivery focus of most distributors, who may not have the time or resources to sell products effectively. The need for brand owners to be prepared to sell and train salespeople is highlighted, along with the idea that success breeds more success. The paragraph also covers typical margins for DSD distributors and retailers, and the financial realities of slotting fees and the necessity to choose the right accounts for a brand.

20:08

💸 Slotting Fees and Strategic Distribution

The final paragraph addresses the reality of slotting fees, which are payments to supermarket chains for shelf space. The speaker shares experiences and insights on the challenges of securing distribution and the importance of being strategic about where to allocate resources. The focus is on selecting the right accounts that align with brand demographics and being prepared to say no to opportunities that don't fit. The discussion also touches on the financial aspects of running a beverage business, including the reality that many startups do not make money on their products and the importance of having enough capital to sustain the business until an exit strategy, such as acquisition, can be realized.

Keywords

💡DSD

DSD stands for Direct Store Delivery, a method of product distribution where the manufacturer or distributor delivers goods directly to the retail store. In the context of the video, DSD distributors are highlighted as the best and most competitive because they merchandise the stores, ensuring that products are well-stocked on the shelves. However, they are also noted for being expensive and requiring exclusive contracts.

💡Beverage Entrepreneurs

Beverage Entrepreneurs refers to individuals or companies that are starting or running a business in the beverage industry. The video is aimed at these entrepreneurs, providing them with insights and advice on navigating the distribution landscape. The script mentions that the information provided is particularly valuable for new entrants or those seeking a refresher on industry practices.

💡Brokers

In the script, 'Brokers' refers to intermediaries who facilitate the sale of products between manufacturers and retailers. They are especially important in the natural food sector, where they help secure commitments from stores to carry a product. The video emphasizes the value brokers add, such as getting products into independent stores and helping with the complexities of the natural specialty distribution channel.

💡Slotting Fees

Slotting Fees are payments made by suppliers to retailers for the right to have their products stocked. The video discusses the reality of slotting fees as a cost of doing business with certain supermarket chains. It also touches on the strategic decision of whether or not to pay these fees, depending on the potential return on investment and the demographics of the store.

💡Demographics

Demographics in the video refers to the statistical characteristics of a population, such as age, gender, and income levels. It is important for beverage entrepreneurs to consider the demographics of the areas where their products are sold to ensure alignment with their brand's target market. The script mentions that if a supermarket chain's demographics do not match the brand's target, it may not be a worthwhile investment.

💡Natural Specialty

Natural Specialty refers to a type of retail channel that focuses on products that are natural, organic, or specialty items. The video mentions that these stores have a lower threshold for the types of products they will carry and cater to a customer base that is willing to pay a premium price. This channel is seen as an important stepping stone for new brands.

💡Convenience Stores

Convenience Stores are a type of retail channel focused on offering a limited range of essential items for immediate consumption. The video discusses the pros and cons of distributing to convenience stores, noting that while they can cover every store through distributors like mlan, they may not merchandise the products effectively, leading to potential missed sales opportunities.

💡Distributor Presentation

A Distributor Presentation is a pitch made by a brand to a distributor to secure a distribution agreement. The video emphasizes the importance of tailoring these presentations to address what is in it for the distributor, such as margins, incentives, and exclusivity. It contrasts this with presentations aimed at consumers, which focus more on features and benefits.

💡Critical Mass

Critical Mass in the video refers to a threshold of sales volume that makes a product more attractive to distributors. Once a brand reaches this level, distributors become more interested and invested in the product's success. The script uses the example of selling 5,000 cases a month as a point at which distributors become more engaged with the brand.

💡Exit Strategy

An Exit Strategy in the context of the video refers to the plan for a beverage company to sell or merge with another company. It is noted as a potential source of profit for entrepreneurs, especially if they do not make money on the products they sell. The video implies that many beverage startups rely on a successful exit for their return on investment.

💡Success Stories

Success Stories are examples of achievements or positive outcomes that can be leveraged to persuade other potential partners or customers. The video advises entrepreneurs to create and share their own success stories as a way to build credibility and attract further business, such as using success in a small chain to negotiate with a larger chain.

Highlights

Introduction to the show and agenda

Presentations will be recorded for later viewing

No Q&A after each presentation, but opportunity to ask speakers at tables

Importance of the first steps for new beverage entrepreneurs

Bill Sipper introduces Cascadia Managing Brands

Cascadia's involvement in marketing, operations, logistics, and sales

Different types of Distributors in the industry

Advantages and challenges of DSD Distributors

Importance of natural specialty distribution for new products

Challenges of getting pre-commitment from stores

The role of natural food Brokers in distribution

The impact of deductions on payments in the distribution process

Different channels and their corresponding distributors

The role of brand owners in the distribution process

Importance of creating success stories for brand growth

Margins worked on by Distributors and retailers

Understanding slotting fees and their necessity

The reality of slotting fees in convenience stores

Selective distribution based on brand demographics

The financial reality of starting a beverage business

The importance of capital for brand survival and growth

Contact info provided for further questions and resources

Transcripts

[Music]

it's a pleasure to see you all here for

another great year of the show and this

is really one of my favorite Parts

because beverage school is just a quick

really uh beginning part of our agenda

today we have a lot of great stuff

coming up but I think in terms of

pound-for-pound the information that uh

you're going to get the things that we

like to provide in terms of these first

steps for for uh new beverage

entrepreneurs and people just looking

for a little refresher is really one of

my favorite parts of the show so just a

few housekeeping things before we get

started um these presentations will be

recorded

um so we will have those available for

you to view afterwards uh we're going to

go pretty quickly through our 20-minute

sessions here there will not be any Q&A

directly after each presentation but at

the conclusion of our speakers we're

going to open up these tables as you see

here where you guys are standing or

sitting uh with these signs and um each

of our speakers is going to be a table

host so you can ask your questions there

um we'll have plenty of time for people

to move around and and get all your

questions in then so uh without further

Ado i' like to get things started and

our first presentation is from Bill

sipper who's the managing partner at

Cascadia managing Brands Bill thank you

so much come on

up good morning how are

you I feel like being the first one up

at 7:45 is a little bit scary so just

I'm really happy everybody showed up

this early cool um so we're going to

talk about things that you need to know

from a uh distribution perspective as it

relates to cpg companies whether you're

a food company Beverage Company Etc um

we are a brand management company that's

kind of a hybrid term a lot of people

will say oh you are a master broker not

really because we get very involved in

the marketing the operations the

logistics the Amazon the social media so

there's a lot going on behind the scenes

as well as uh what we do in sales but we

are definitely known for our uh sales uh

there are several types of Distributors

uh in this industry the best and most

competitive is

DSD uh the good news is DSD they

merchandise the stores for you um they

do a much better job of keeping your

product on the shelves the bad news is

there's not many Independence left you

know even the independent Coke and Pepsi

Distributors have slowed down the

Budweiser Distributors are really

looking for chain authorizations before

uh they put you into their system so it

it is the best it's the the most

expensive they will require an exclusive

contract they will require a buyout um

but if you can get there at some point

and this business is very much an

evolutionary business you start in point

a and your goal is to get to Point Z but

there's a lot of stops in between and

you may not think that you're ready for

DSD today but you might be one of the

channels or the distribution areas that

a lot of these companies go through is

natural specialty and natural specialty

is important because they have a

slightly lower uh threshold for what

products they will take and their their

customer is somewhat of an elevated

customer you're not dealing with you're

not dealing with the Costco customer per

se you're dealing with people that are

in a store that already understand

they're going to pay a premium price Etc

although that's a complicated business

too

because again they want you to get a

chain if you don't have a like if if you

get Sprouts Khe will take your product

in every warehouse but if you don't have

Sprouts they're going to want you to

either get a small chain or get 30 to 50

pre-commit well how do you get 30 to 50

pre-commit if you're a one person

organization you hire natural food

Brokers natural food Brokers are

probably the only area that I've ever

find found that W with some exceptions

that that Brokers add value to what you

know you're trying to do and they go out

and they go to all these independent

stores like you see in New York City and

uh or LA or wherever and they get a

commitment if UNFI or k he take the

product uh we will distribute the

product now that's the good news it's

easier to get in the bad news is the

deductions will kill you if you're not

careful it's not unheard of of to have a

30,000 invo $30,000 invoice and receive

a $2,000 payment and there's all these

Bill backs so you have to have somebody

that knows the system and and you have

to know what you're promising them when

you sign up in the first place and then

you have convenient store Distributors

and we use uh we use two right now mlan

and uh I just drawing a blank on the

other one and the the the strength is

that if you get 7-Eleven they going to

cover every single store not a problem

the bad news is they don't merchandise

they don't have people in the stores so

if your delivery goes in on Monday it

may not get on the Shelf until Wednesday

and if it gets on the Shelf Wednesday

and sells out on

Thursday you're not there for the

weekend the buyer doesn't care that mlan

didn't merchandise the shelves the buyer

just cares that he lost those sales so

if you can't get him those sales he will

find somebody else that

will uh and then you have have

wholesalers like superv value that sell

to supermarkets DP and companies like

that you have food service Distributors

which are a little more complicated for

most brands um in terms of you know

they're not going up and down the street

to Deli they're going to restaurants the

Caterers and things like that hotels so

you need a slightly different sales

pitch there you can go direct to uh

retail like Walmart and Target and

Costco uh there are some downsides to

that about about four years ago we got

in the Amazon business in a big way and

four years later we're kicking ourselves

uh because it's really hard to make

money on Amazon with all the shipment

fees these days but that is another

another type of distribution and then

you have a hybrid which is a lot more

common than anything else where you have

a little bit of Amazon a little bit of

DSD in some areas you have natural

Etc and then there the types of channels

kind of lined up with the distributor

you have traditional Supermarket you

have natural and Specialty uh you have

convenience stores drug Club Mass uh

Food Service you have military and you

also have you know digital to

Consumer so what are what is everybody's

role here so you're a brand owner you

are 90% of the time going to sell your

product to a distributor who's then

going to take that product and sell it

to a retailer who's then going to take

that uh product and sell it to a

consumer

right well that sounds really simple and

believe me there's nothing in this

business that is rocket science

otherwise I wouldn't be here and there's

nothing you can't overcome it's it's a

common sense business so you know don't

give up if something doesn't work the

first time

um I want to mention Brokers again

because it with that pre-commit program

that UNFI and K require or getting a

chain on board they're incredibly

important um and sometimes you know we

we happen to find for small brands that

the regional Brokers are better than the

national Brokers mostly because they're

going to get more attention um they're

used to working harder I always tell

people that the last guy that had a sell

Budweiser died 20 years ago I mean the

brand sells for itself when you have a

broker and they're used to selling

Clorox bleach and they just put it on

the Shelf when it goes not a big deal

when you need some 10 to1 care in the

beginning especially the regional

Brokers may be better for you um and you

know this there are times where you will

find a tactical broker that does for

example military or that does drug and

they may be good for a oneof or two off

situation uh but in general natural food

is the is the area that we uh recommend

Brokers

for and Distributors and retailers need

to be sold um and you have to put your

presentation into their psyche okay when

we put together presentations we meaning

collectively we all want to sell right

we're telling everybody our features and

our benefits and why they should buy

it that's good but Distributors don't

really care they want to know what's in

it for me how am I going to make more

money if I have 10,000 ft of of

warehouse space and I have no more room

I have to eliminate something in order

to take your product why should I take

your product as opposed to the 40 other

products that we just got the other day

what's in it for them what is your

program you know what is your price to

them what is your promotion what is your

incentive do you have an exclusive

contract that you're willing to offer

them Etc so that's a big thing when you

when you create your distributor

presentation it's what's in it for me

when you create your retailer

presentation yes more features and

benefits but you're still talking about

what's in it for me cuz as fin night

space um too often people try to sell

their products to Distributors and

retailers like they would consumers well

you're three steps away from any

consumer ever seeing your brand you've

got to get the distributor to do his job

you've got to get the retailer to do

their job and then you get to the

consumer so think about how you're going

to get past the first

two the beverage industry is essentially

UPS and FedEx and what I mean by that is

UPS has a lot of brown trucks that run

around and they deliver they do an

amazing job of delivering could you

imagine if they had to sell

something most Distributors don't have

time to sell they have a huge when I was

so when I was coming up I'll never

forget a conversation with Philadelphia

Coca-Cola and they said we are not going

to go over 100

skus just no matter what we do we're

going to make sure that we're under 100

skus fast forward 20 years there's

probably 500 skus in that company so

there's a lot of proliferation they

don't have the time to sell every single

product and you'll see that they focus

on the things that uh they focus on the

path of lease

resistance so be prepared that you or a

broker or a brand management company or

a combination of all of that are going

to have to do the sales even after you

get the distributor to yes even after

you give them a great program even after

you give the salespeople a super

incentive program after you've given

free cases to the stores to get

in but they will not sell your product

in the beginning now when you get to a

point of what I would call critical mass

and in a big Market I would say critical

mass is about 5,000 cases a month when

you get to that level all of a sudden

the distributor becomes more interested

they're more focused on your brand

because now they believe if gee if these

guys got us 5,000 cases a month I can

get 30,000 cases a month now I just have

to rejigger the tools

and but you have to really be prepared

to uh sell the product to train each

individual salesperson to incentivize

all the salese uh to work with them you

know more often than not we we I hear

stories that they sell a product to a

distrib

and the owner of the company never goes

into the street how are you going to

know what's going on how are you going

to know what's going to what's what's

good and what's bad what what's getting

you results and what isn't if you're

just relying on information that you're

hearing from the field you've got to go

see it at least one day two days when

you kick off a

distributor um and you have to

merchandise your best accounts uh it's

really important it sounds crazy um

going back years when I was at Nantucket

nectar's we had accounts that were by

our office in Cambridge

Massachusetts and you would think there

we go and um you know you would think

that there was an army of employees at

ncka nect resetting every shelf in

Boston we I think had eight people in

Boston like it wasn't a ton of people

but we made sure that we got to the

right accounts and we merchandised them

and we did the the right things

right um and success breeds more success

and failure breeds more

failure please do yourself a favor and

I'll talk about this a little bit later

do not look for the home run in this

business there are very few home runs we

did liquid death first three months of

selling liquid death was pulling teeth

people telling me I'm not putting death

on my truck and then six months later

they would forget that we present it to

them that why'd you go to the other guy

you told me

no so you know you you've got to try and

breed success stories take those success

stories from a 30 store chain bring it

to a larger chain and tell them what you

did how you achieved it Etc but you've

got to create your own success stories

you've got to create your own uh case

studies so what margins do Distributors

and retailers work on it's kind of all

over the board but I would say on

average uh a DSD distributor is going to

make 33%

margin and you know there is a

distributor in New York probably the

best distributor they work on about 40%

margin um it it gets very difficult to

make money when you're selling to some

of these bigger compan uh bigger

Distributors UNFI and Khe typically work

on 25 to 32% margin excluding key

accounts like Whole Foods or sprouts for

example where they work on 8 to

12% and you have to be prepared to have

a lot of Bill backs coming in from your

distributor from UNFI and from any

distributor in general traditionally

superar supermarkets work on a 30 to 35%

margin uh convenience stores usually 40

to

45% typically drug chains are 45 to 50%

but we're seeing a lot more 50% right

now uh Club stores will usually work on

11 to 13 and if you go to a New York

Deli and sell it to them for a dollar

they're going to sell it for $2 don't be

scared everybody else is getting their

price doubled too so it it's just the

reality what are slotting fees and

should I pay it well a slotting fee is

basically a money that you pay to a

supermarket chain for the luxury of

doing business with them the only thing

it gets

you is the Shelf space it doesn't even

get you on the Shelf we once had Safeway

National and uh we had distribution 18%

of the stores and went to the buyer and

said hey man we need help you you know

we're only in 18% of the stores and his

reaction was that's your problem you go

deal with it after we've paid all the

money for slotting and and everything

else that we invested in so you know you

do have to pay slotting it is a reality

there are people like we worked with

Matt from chlorophyll Brands and he was

really good about saying no you have to

be in a position to say no when it's not

the right chain if you have an upscale

product and you're going to Weg Wegman's

does not charge slotting but if Wegman's

wanted slotting for an upscale type

product it's probably worth doing if

Fairway wanted slotting it's probably

worth doing at the same time if you are

an expensive item and you're trying to

go to Dollar Stores you're going to fail

well I mean you're not going to fail

there's a good chance that you're going

to fail and you're going to have more

failure than successes okay so pick your

accounts

wisely um

let's see uh this is the money by the

way that the supermarket makes they

don't they don't make any money anymore

from selling you know products they if

you look there's very few people that

are employed by the supermarket chain in

the store in fact if you look at the

checkout aisles they're self checkout

now um the Brokers are stocking the

shelves the vendors are stocking the

shelves and they're making money on

these slotting

fees and you know again convenience

stores also have slotting fees but they

will uh they'll have just like a flatter

fee per shelf you can pay between if

you're in the energy category you can

pay $350 to

$500 per store per shelf in the

convenience store Channel think about

how that adds up really

quickly so if you had a supermarket

chain of let's say

2700 stores and you had four SKS be

prepared to either write a check or have

them deduct from your invoice

$220,000 obviously the the more stores

they have the more expensive it is

Walmart does not have a slotting

slotting policy Wegman's does not have a

slotting policy Walmart does not have

I'm sorry uh Publix does not have a

slotting policy so you don't have to pay

for slotting but it's a lot harder to

get in there okay they're much more

selective independent accounts

the the accounts that you're going to

see in the New York City Market for

example in a California Market they are

the bread and butter of beginning a

beverage

distribution program you have to get

these Independents if you get these

Independents the the other big guys will

eventually come on board

okay uh the questions you need to ask is

this the right account for my brand

Wegman yes some Kroger no you have to

think about how am I going to make sure

that I'm in every Kroger location is the

are the demographics of every Kroger

location uh consistent with what I'm

trying to accomplish with my brand if

you find that 80% of the stores don't

have the same demographics as your brand

don't waste your time because you're not

going to unless you have a chain that

will say I'll start like for example

take HB in Texas HB will say all right

I'm going to put you in my 50 best

stores and in 6 months we're going to

come back and if it's doing well we'll

put you in another 50 stores and they

keep doing that until there's a

diminished point of return they're very

forward thinking with that other chains

go through phases used to be Kroger

would do the same thing now they want

ubiquitous distribution in every store

so it's really really uh different uh

interesting if you pay for slotting in a

chain that has poor demographics in 50%

of the stores are you making a mistake

and the answer is yes because if you

have to pay for those 50% of the stores

that you pretty much know you're not

going to sell in you're just wasting

your time and money um can I pay for

slotting uh just for the better chains

and just for the stores that my pran

will go into the answer is yes but you

have to be selective you have to learn

to say no respect ful and you have to

follow the Paro principle 80% of your

sales is going to come from 20% of your

stores 80% of your sales will come from

20% of your

Distributors it's a fact I mean it's the

one fact in the business that I think

you transfers from Brand to

Brand enough money to survive I'm not

going to go through this but as you're

going to

see you can go through a couple million

dollars very quickly in this business so

you have to spend it right there are

Brands like liquid death which we did 18

months with it kind of sounds like a

jail term um they they've raised $200

million so far so that's a lot easier we

work with Kylie Jenner on her glow

beverages they have access to Capital

when you're a small company don't think

you're going to hit a home run overnight

it's going to take time the longer you

can keep your product on the Shelf the

greater chance you have of success

seeding but that takes Runway that takes

you know money to drive the business and

if I haven't already mentioned it 90% of

people in the startup beverage business

do not make any money on product that

they sell you're going to lose money

when you start to think about how many

people do you have in your company and

marketing costs and everything else the

real opportunity from 90% of the

beverage companies is on the exit so

again liquid death has raised about $200

million they're also uh probably valued

at about $800 million right now so

they're going to exit for a lot of money

definitely worth the $200 million that's

been invested so far um I am not going

to go through this because I'm running

out of time but this is uh this is what

companies look for when they are looking

to acquire you so let me just say that

anything that you need from this whether

it's a question we also have a gloser of

terms that we give out for free um

anything you have you want a copy of the

presentation you want me to walk you

through the presentation again one onone

fine just shoot me an email at info@

Cascadia foodbev and we'll spend more

time going through the details of each

of the slides if you have questions so

thank

you

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