1. Passion: If your distributor is not passionate about the product they’re selling then they’re just moving boxes and you’re just a commodity. Can a distributor do right by a supplier that they’re not passionate about? Yes, but you need to ask yourself what will happen when something new and more profitable comes along. Don’t mistake making money on craft beer as passion for craft beer.

2. Honesty: This should be a given in any business interaction, but strangely enough, many distributors work in the grey area of honesty. When choosing a distributor, be aware. Do your research and go with your instinct about the people you meet – there’s a lot of power in instant assessments of a person’s character.

3. Reputation: You wouldn’t hire someone without checking on their references, so do your homework and call some suppliers your prospective distributor works with. Make a point to contact a few of the top suppliers as well as some in the middle of the pack and even some lower volume suppliers to get the best picture of how everyone is treated and where that distributor excels or falls short.

4. The Real Necessities: Don’t let the distributor shape your needs or the questions you ask. They want you to ask how many trucks they have on the road, how many sales people on the street and how much chain penetration they have. Brewery owners have been conditioned to think that these are the questions that matter. Ask first, is this a chain store-driven market and would my brand be considered “chain worthy” in your portfolio? How many brands are your sales reps responsible for selling and what percentage of sales do your top five suppliers make up? A hundred reps spending 95% of their time selling the top five brands leaves you with the mindshare equivalent of five reps, at the very most, selling your beer. Now consider how many trucks would truly be necessary to deliver your goal?

5. Record of Achievement: What has this distributor done with comparable craft products? Keep in mind that “a rising tide lifts all boats.” With the recent craft beer boom, selling craft beer has never been easier – so what have they achieved beyond current market growth? Is the company an innovative trailblazer or just riding the wave?

6. Mutually Aligning Goals: Are you both looking for the same thing? Are they willing to carry your whole portfolio? Define your goals and be up front with possible partners. If all you need is a logistics/delivery company then make sure your partner has those capabilities. If you have a flagship product that fills a hole in a distributor’s portfolio, then maybe they’re best suited. If you need your distributor to be an extension of your company and a steward of your brand, then look for a distributor with the passion, capability and personality to do so.

7. Complementary Portfolio: Be realistic about your position in the portfolio. Understand that, to an extent, you will be competing with the suppliers in that book for the mindshare of the sales staff. Get to know the sales staff and see how well they know their portfolio. The less they know about their book, the more worried you should be about their ability focus on your brand.

8. Craft-Knowledgeable Staff: Are the managers you meet capable of inspiring their staff to achieve your goals? Does the company have the right culture and employees to get the job done? Of course your immediate contact will be knowledgeable, but he’s not the sales rep that’s out there every day representing your brand. If the sales manager is not knowledgeable about craft beer, can you honestly expect the rest of the staff to be? It must start from the top and flow down to the street sales rep – he will be the face of your brand. When considering a new market, go out and talk to retail customers to get a feel for who they like working with and why.

Matt Hartman is a Certified Beer Judge, Certified Cicerone and founder of Remarkable Liquids Importing and Distribution.
www.remarkableliquids.com