As craft beer lovers, we often think and talk about the many aspects of beer. Including how it is made, what it tastes like, and even the marketing. But rarely do we discuss the people and logistics required to get beer onto retail shelves. The process of distributing beer has been around for a very long time but unless you work in the industry you probably haven’t given it much thought. One thing that is certain is it is a complicated world that can be challenging for independent craft breweries. That is where Adena Distributing plans on making their mark as a craft beer focused distributor in Cincinnati, Ohio.
Distribution 101
Before learning about Adena Distributing, let’s get a high level breakdown of distribution.
Prohibition impacted beer in many ways. One of those ways was the creation of the three tier distribution system. Federal law mandated that there be a separation between brewers, distributors, and retailers.
Over the years, distributors have evolved to act as an overall sales and operations partner for breweries – not just warehousing and fulfillment. They provide a sales force, storage, delivery, and help drive marketing initiatives. In many situations, the distributor is the face of the brewery to retailers and consumers.
In Ohio, breweries that produce less than a million barrels of beer can act as their own distributor. The goal is to allow small producers to have more flexibility in their business plans. This includes all craft breweries in the Cincinnati area and many have chosen the route of self-distribute.
However, by acting as their own distributor, they take on the costs of delivery, storage, vehicles, etc. Deciding how to distribute is a major decision for craft breweries. In many cases, self-distribution is a great place to start but eventually breweries will look for a partner to help them.
In some situations, the brewery has no choice but to use a distributor. For example, breweries outside of Ohio must use a distributor to sell into Ohio.
Distribution Made For Craft Beer
The modern beer world is full of options. With more breweries than ever before, consumer can pick and choose from a myriad of flavors and breweries.
And we love this freedom to choose.
However, this provides an issue when it comes to distribution. In the past, distributors only had a handful of brands to promote; now there are so many that a distributor may struggle to fully promote each of them.
For small craft breweries, this often means being at the bottom of a long list of competitors as they struggle to get their beer promoted. This is another reason to self-distribute because the brewery has more control over their brand.
Michael Amann of Adena Distributing puts it this way, “All the box trucks in all the world cannot expand the human mind. When a distributor sales rep walks into an account, he or she cannot hope to represent dozens of brands equally- nor can they hope to forget that they represent one of the largest beer companies in the world.”
To overcome this, breweries send out their own sales representatives to promote their beer to retailers – a job once owned by the distributor. But the distribution rep is still the one that must place the order so the brewery rep is limited in their impact.
This doesn’t mean that large distributors aren’t able to produce results for craft beer but it is reasonable to see how a brewery new to distribution can get lost in the shuffle among hundreds of other brands.
Adena Distributing: Craft Focused By Design
The rise of craft beer has created many changes in the landscape of retail beer sales. But the means to getting that beer there is often the same.
New products deserve new resources to ensure they are properly handled and promoted. That is why small, craft beer focused distributors have started to pop up around the country. And despite having over 50 craft breweries, Cincinnati didn’t have one – until now.
Adena Distributing was created to focus on a small, curated portfolio. Their focus along with passion, knowledge, and enthusiasm creates a great opportunity for craft breweries to distribute their beer and get noticed.
One of their biggest advantages is communication. The owners of Adena have direct relationships with the owners of the breweries and often the retail owners as well. This direct line of communication allows for alignment in brand messages, promotions, and overcoming obstacles.
And with a passion for craft beer, they are diligent in keeping beer cold during storage and delivery as well as monitoring code dates to ensure freshness.
The Adena team also knows that craft beer is about community and partnerships. For that reason, they use limited term contracts that give breweries flexibility. This means that Adena has to fight for their business rather than relying on a contract to keep a brewery with their service.
Who Is Adena Distributing?
All of this sounds great but many are going to question who is behind Adena and what gives them the knowledge or experience to execute a distribution plan for craft breweries?
If you love craft beer, then you’ve probably wondered what it would be like to open a brewery. The owners of Adena Distributing are no different. But they quickly realized they didn’t have the skill to make beer that anyone would want to drink.
But they did realize that Cincinnati didn’t have any new, independent craft distributors. Owner of Adena, Michael Amann, tells me, “the ‘youngest’ distributor with a warehouse in Cincinnati is over 25 years old.” Yet other areas of the country have already gotten new, modern distributors.
Opening a distributor is how they would be able to bring value to craft beer as well as help bring new brands to the city of Cincinnati.
But distribution isn’t new to either of the owners of Adena. Michael and his business partner both started out as beer merchandizers at a local beer distributor – this is a glamorous way to say they delivered kegs of beer.
This physically demanding job allowed them to see what beer distribution looks like on the ground level, meet people that sold beer every day, and develop an appreciation for the process. Both eventually became sales reps and continued to increase their knowledge of the system.
This experience is critical to Adena Distributing as it gives them the knowledge, skills, and connections necessary to execute their business plan.
What Does Adena Mean?
Are you wondering why they called their company Adena? It is a term that might seem familiar but there’s a good chance that most don’t know what it means.
The Adena people were the first civilization to live in the area now known as Southwestern Ohio. They inhabited this area over a thousand years prior to European explorers visiting for the first time. The Adena’s mounds, metalwork, carvings, and jewelry have left their mark on Ohio’s landscape and history.
Adena Distributing isn’t the first to distribute beer so they acknowledge how the industry has grown. Their aim is to make their own mark. It’s about recognizing the history of beer while helping to ensure that independent beer has a voice in the future.
Michael Amann says it this way, “We recognize that we are not the first people to be a part of this (craft beer) world, and we want to make sure we aren’t going to be the last.”
Want To Listen To Michael Amann Talk About Beer Distribution?
Check Out The Cincy BrewCast’s Interview!
Final Thoughts
Most beer drinkers aren’t concerned about who or how beer gets to their liquor or grocery store. They just know they want to be able to get their favorite beer or discover something new occasionally.
Beer distribution is a complicated business that is dominated by the large beer brands – which isn’t surprising because it is their beer that is most distributed.
But just like other elements of the beer world, craft beer is fighting to have a strong voice. Adena Distributing is that voice in Cincinnati, Ohio. They are dedicated to independent, craft beer.
Initially, Adena will represent Alexandria Brewing Co., Darkness Brewing, St. Arnulf Alery, and Wooden Cask Brewing. Irocnically, these are all Kentucky based breweries that Adena is bringing into Ohio for the first time. Keep an eye out as they add more partners.
Variety and choice are two elements that have driven craft beer. The ability to try new styles and new breweries keeps us engaged and learning more about beer. But that only happens when all size breweries have the ability to compete and distributors like Adena provide the support that they need.
Keep an eye out for Adena Distributing as they bring more craft beer brands into distribution and foster strong relationships with retailers and consumers.
