Market Entry & Distribution: Lessons from Bar Convent Berlin 2024
Learnings from my RoundTable Discussion at Bar Convent Berlin 2024 with Park Street University
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Dear Bottom-up Drinks Builder,
Today I'm sharing key insights from our recent RoundTable Discussion at Bar Convent Berlin 2024, where I joined industry experts Soren Hansen and Michael Vachon to break down the essentials of conquering the EU market. Moderated by Emily Pennington, our Park Street University session dove deep into distribution strategies, brand building, and market entry approaches.
While we covered extensive ground during our discussion, I want to focus on the crucial learnings that emerged about market entry and distribution strategy. The industry loves talking about rapid expansion and impressive market presence numbers, but the reality of building sustainable distribution is quite different.
00:00 Introduction and Session Overview
00:53 Meet the Panelists
01:36 Understanding Distribution Models
08:09 Challenges in Pricing Across Markets
12:26 Current Market Trends and Assessments
20:05 Strategies for Entering New Markets
23:34 Understanding the Wholesaler's Role
24:17 Importance of Market Research
24:44 Delivering Value to Distributors
25:35 Challenges in Expanding Markets
27:46 Effective Market Entry Strategies
31:02 Timeline for Market Penetration
33:29 Leveraging Digital Tools for Market Expansion
37:26 Event Activation Best Practices
45:01 Direct-to-Consumer Models
46:18 Key Takeaways for Distribution Relationships
The Distribution Ecosystem
First, let's understand the players we discussed at the roundtable:
Importers handle international logistics, customs clearance, and cross-border compliance. They're your gateway to new markets, but their focus is on efficient movement of goods, not brand building.
Distributors focus on brand building, account relationships, and market development. They're your boots on the ground, but their effectiveness depends on your support and guidance.
Wholesalers operate in specific regions, maintaining relationships with local accounts and managing inventory flow. Their strength lies in their local network and operational efficiency.
The Market Entry Myth
Our panel discussion revealed how many brands rush to claim presence in multiple markets, but here's an uncomfortable truth: being present doesn't mean being successful. Real market entry requires:
Clear market selection criteria based on real opportunities, not just apparent market size. Look for markets where your brand story and occasion fit naturally.
Deep understanding of local drinking occasions and consumption patterns. Each market has its unique rhythms and preferences that affect how your brand will be received.
Proper groundwork including competitor analysis, pricing strategy, and channel mapping. Success comes from preparation, not just presence.
Patient development of key accounts and brand advocates who will champion your product. Quick wins rarely translate to sustainable growth.
The One Bottle, One Case, One Pallet Reality
During the roundtable, we agreed that success starts small. Before thinking about pallets:
That first bottle needs to move from the cellar to the back bar, get into the POS system, and become known to all staff. This is where real brand building begins.
Converting to case orders means proving your brand can sell consistently and provide value to the venue. It's about building reliable rotation, not just initial placement.
Building sustainable demand requires consistent support, education, and relationship building. This creates the foundation for larger volume orders.
Market Development That Works
Our panel emphasized that successful market development isn't mysterious. It requires:
Physical presence in the market, whether through your own team or trusted partners who truly understand your brand. Someone needs to be having real conversations with real customers.
Pricing strategy that maintains value while accounting for local taxes and market conditions. Your price needs to make sense at every step of the distribution chain.
Focus on sell-out metrics and reorder patterns rather than just initial placements. What matters is sustainable demand, not just distribution points.
Strategic event planning that supports existing accounts rather than chasing new ones. Every activity should reinforce your current presence.
Common Mistakes
The roundtable highlighted these crucial pitfalls:
Over-expansion before proving the model in your core market. Success at home gives you the playbook and credibility for international growth. Without this foundation, you're building on sand.
Expecting distributors to do all the brand building work without proper support and guidance. They need your expertise, materials, and active participation to succeed with your brand.
Premature retail entry without establishing strong on-trade presence. The on-trade builds your brand story and creates pull; rushing to retail often leads to price erosion and brand dilution.
Spreading resources too thin across too many markets or channels. Better to be strong in a few places than weak everywhere. Focus creates momentum.
Current Market Realities
Our discussion revealed current challenges and opportunities:
Traditional markets like the UK are facing changed consumption patterns and cost-of-living pressures. This requires adaptable strategies and patience.
Large brands are increasing promotional pressure, making it harder for smaller brands to maintain margins. Your unique story and occasion fit become even more crucial.
Success timelines have lengthened - expect 6-18 months minimum to gain real traction in a market. Quick wins are usually mirages.
The Bottom Line
The key message from our BCB roundtable was clear: success in distribution isn't about how many markets you're in - it's about how well you're performing in each one. Focus on winning your home market first. Consolidate before expanding. Listen for weak signals of demand before entering new markets.
Modern distribution success requires:
- Understanding and respecting the ecosystem
- Patient, methodical market development
- Focus on sustainable demand creation
- Strong foundations before expansion
- Real presence and support in each marketI hope this mini-guide will help you develop the small, consistent habits you need to build your brand from the ground up.
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