Wine Distribution Business Plan

Lib Dib Founder and CEO, Cheryl Durzy, knows the pain small producers are feeling first-hand from her years of experience managing wholesales for her family’s 80,000 case winery, Clos La Chance, and it inspired her to create Lib Dib.

“A year and half ago I was trying to get a wholesaler for a new brand that we were doing,” Durzy relates, “Nobody would take it.

For example, there are roughly 300,000 distributors in the United States that produce a combined $3.2 trillion in annual revenue.

Despite this large number of participants, the fragmented and competitive nature of the industry allows for plenty of profitable new entrants.

Since then he's researched and written newspaper and magazine stories on city government, court cases, business, real estate and finance, the uses of new technologies and film history.

Sherman has worked for more than a decade as a newspaper reporter, and his magazine articles have been published in "Newsweek," "Air & Space," "Backpacker" and "Boys' Life." Sherman is also the author of three film reference books, with a fourth currently under way.I contacted every single wholesaler in New York, and nobody would take it, but with Lib Dib any winery that wants distribution in states that we cover can have it.A 200 case Oregon winery can have distribution in New York, and they can set it up within an hour.” For now, Lib Dib is only licensed as a distributor in California and New York, but the plan is to expand and cover all 50 states.The United States divides the alcohol industry into three tiers: suppliers, distributors and retailers.With a few exceptions, brewers and wine makers can't sell directly to retailers and must use distributors, also called wholesalers, to get their products to market.Alcohol distribution laws governing New York and California mostly allow for shipping directly between the producer and the retailer, but spirits entering California are subject to an at-rest law requiring them to be shipped to Lib Dib’s licensed warehouse and then be shipped from there to the retailer by the distributor.“We started in those two states because we’d be able to prove both models, the warehouse model plus the direct shipping model,” Durzy explains, “and the two states represent 25% of consumption.” For orders placed through their platform Lib Dib takes care of all the legal obligations in terms of taxes and reporting, as well as invoicing and collections, while the producer handles shipping and the sales and marketing of their brands.The TTB will also want bank records or loan documents that show the source of funds you're using to start your business.Take out a state distributor's or wholesaler's How is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors.To create this article, 16 people, some anonymous, worked to edit and improve it over time.


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