86: Distribution Decoded: What Every Beverage Brand Needs to Know - Business of Drinks
Business of Drinks
Pros and Cons of the Three-Tier System
Scott and Emmett discuss benefits like market access and tax efficiency and drawbacks like complexity and cost.
In this special collaboration episode, Business of Drinks teams up with Park Street Insider host Emmett Strack to tackle one of the biggest questions in the drinks industry: How does distribution actually work — and where is it headed?
From the end of Prohibition to today’s fractured and consolidated landscape, co-hosts Erica Duecy and Scott Rosenbaum join Emmett to break down what every drinks entrepreneur needs to know about navigating the middle tier — and what the next decade might look like for beverage alcohol, non-alcohol, and THC brands alike.
Together, we explore the systems, players, and shifting power dynamics that shape whether brands scale or stall — and share the most useful lessons for anyone working to grow a drinks business today.
We discuss:
🔶 How the three-tier system came to be — and why it’s still here
Why the U.S. created this complex system after Prohibition, how it keeps alcohol markets regulated, and why it’s both a safeguard and a hurdle for modern brands.
🔶 The four major distribution models and how they differFrom national wholesalers like Southern Glazer’s and RNDC, to specialty importers, beer DSD networks such as Reyes, and control states — plus how brands can work effectively within each.
🔶 How new categories are changing the rules
Hemp-THC and adult non-alcohol brands are writing their own distribution playbooks — blending natural-food DSDs, direct shipping, and e-commerce to stay nimble.
🔶 Inside the RNDC California exitWhat happened when RNDC left the country’s biggest market, how it disrupted more than 200 brands, and what it revealed about consolidation and fragility in Tier 2.
🔶 Why more spirits and RTD brands are joining beer networksFrom Sazerac to Tito’s, brands are moving to beer distributors for better cold-chain coverage, convenience-store access, and faster retail velocity.
🔶 What distributors actually want from brands in 2025They’re looking for brands with pull — not promises. That means showing velocity, market understanding, readiness, and real partnership.
🔶 How to future-proof your route-to-market strategyThe next decade will be defined by omnichannel distribution: mixing regional and specialty wholesalers, self-distribution, and selective DTC to stay closer to the consumer.
Listen now on both Business of Drinks and Park Street Insider — and get ready to rethink your route to market.
Don’t miss our next episode, dropping on Oct. 22.
For the latest updates, follow us:
Business of Drinks:
Erica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.
Scott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor.
Caroline Lamb, contributor: Caroline is a producer and on-air contributor at Business of Drinks and a key account sales and marketing specialist at AHD Vintners, a Michigan-based importer and distributor.
SPONSOR: SWIG Partners is exclusively offering $100 off their supplier-distributor matchmaking fee when you mention the Business of Drinks podcast, or inquire via this link: https://www.swigpartners.com/businessofdrinks
If you enjoyed today’s conversation, follow Business of Drinks wherever you’re listening, and don’t forget to rate and review us. Your support helps us reach new listeners passionate about the drinks industry. Thank you!
The AI-powered Podcast Player
