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Ten Things to Know When Entering the US Beverage Market
- Consumer demand is 90% of everything. Articulate why consumers will want to buy it.
- Be patient. Brands go through different phases—proof of concept, pain of growth, mainstream. It takes time to build a brand.
- Sell a little, learn a lot. Start in a limited geography and then build on success.
- Distributors will not build your brand for you. Demand creation is the responsibility of the brand owner.
- Rate of sale is more important than distribution. If it doesn’t sell right away, it is hard to recover.
- Manage inventory and logistics carefully. Supply chain costs can eventually suffocate profitability.
- Pay in US dollars if you can. Let the manufacturer take the currency risk.
- Laws and trade channels are different in every state. Be aware!
- Expect to burn cash in the first two years. Don’t go in undercapitalized thinking profit will fund growth.
- Get good advisors that have experience and understand the US market.

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