The Distribution Dictionary is a glossary of commonly used terms and acronyms that the distributor and retailer use to talk about moving product from the distillery to the customer.
Accounts Sold
A single liquor store that carries your brands
Activations
You activate the account by going into the liquor store and have a tasting. Every state is different.
Bill Backs
Lifeblood of the distributor. A way for the wholesaler to maintain margins at a certain programs that a brand would want to run. Pricing, incentives, tastings, etc. Important for the Supplier to be creative on how they pay their billbacks. Pay for billbacks via goods. Crerative way for your dollar to go further if it is product. Keep your FOB the same. Creative tool not always known to the supplier.
Competitive Set
Know the inernal vs external competitive set when looking at your wholesale partner.
DA
Distributor allowance, ties in with billbacks, usually set for the year. A kickback in price support from the producer or supplier based on quantity or type of sale. Each state different.
Depletions
These are your sales.
FOB
Price to the warehouse
GSM
General sales meeting, where you sit down with your wholeseller. There may be a quick tasting so everyone can talk openly about the products. You need to be able to tell your story. How romantic and easily repeatable is your story. If your sales reps can tell your story to bartenders, that is where you see success. 20-30 minute, talk about your products, have handouts. You can do it vitrually and show your distillery with your phone.
IRC
Instant redemable coupon
MIP
Manager incentive programs for the head of the division
MIR
Mail in rebate
Off Premesis
Retail Liquor store
On Goal
You give them a number, may be broken down by month, January and February are not as important. How many cases are we on goal, how many accounts are we on goal, what do we have to make up. Some wholesellers will give you an incentive to make th4e goal, and a penalty if you do not. ex. goal is 3000 cases. You are at 2000. Are you going to put a program in place or are you going to pay the penalty?
On Premesis
Your resturaunt, your bar. You might divide into multiple demographic channels.
OOS
Out of stock. Key element in your relationship management with your wholeseller. What are their inventory levels. Did you put out a great program and now you are out of stock?
POD
Points of distribution, one product in one account.
POS
Point of sales materials activate your account and make general awareness of your brand. Some suppliers look at an account and identify zones. e.x. an on premesis account, resturaunt or bar, elements that are on the table top, elements in the back bar, etc. Being in one zone is necessary.
RIP
Retailer incentive pricing, Some available, some not.
SIP
Price in the store, particularly Control States when you go on sale in the store, flash sales.
SPA
These trays do not have downcomers. The liquid level results from the pressure drop caused by the counterflowing streams.
TTB
Alcohol and Tabacco Tax and Trade Bureau
VAP
Value added pack, e.x. Holiday sale gin with a wartini glass. Will need to be set up as a different item.
VOR
Vendor of record, wholesaler acting as a broker, portal of access.
Work With
A ride along . Working the market with your wholeseller at acconts that buy your products. Be ready, have your samples ready, make the bottles as for sample only, have leave behind materials. This is relationship building.
