The Startup CPG Podcast #230 - From Self-Distribution to Full-Service Distributor: Scaling Ops with Smidge Beverage and Cin7
In this episode of the Startup CPG Podcast, host Daniel Scharff sits down with Adam O'Connor, founder of Smidge Beverage—a lightly boozy 2.5% ABV vodka soda—and Josh Fischer, VP of Product at Cin7, to explore how early-stage founders can build scalable operations systems that support growth without breaking as they scale.
Adam shares his journey launching Smidge Beverage, a premium low-alcohol vodka soda brand in Arizona, starting with self-distribution before transitioning to third-party distributors. With a finance and supply chain background, Adam knew from day one that having proper systems in place—particularly inventory management—would be critical to scaling efficiently. He implemented Cin7 pre-revenue, recognizing that without an end-to-end system to track inventory, lot codes, expiration dates, and invoicing, operations would quickly become unsustainable as the business grew.
Throughout the conversation, Adam discusses the realities of self-distribution in the alcohol industry (navigating three-tier systems, building retailer relationships, delivering and merchandising products himself), why he chose to invest in inventory management before his first production run, and how systems like Cin7 allowed him to focus on growing the business rather than manually tracking ingredients and managing spreadsheets. Josh provides the Cin7 perspective on what founders need to know about inventory management, why the transition from "brand builder" to "operations economist" typically happens around the 12-month mark, and how proper systems enable better inventory forecasting, sales channel expansion, and warehouse efficiency.
Whether you're launching a CPG brand, scaling self-distribution, or wondering when to implement proper back-office systems, this conversation offers honest lessons on why getting infrastructure right early matters, how to avoid common pitfalls when implementing inventory management software, and why founders who prioritize operations alongside brand-building are better positioned for sustainable growth.
Listen in as they discuss:
- Adam's journey: finance background in wine and spirits, launching Smidge Beverage (2.35% ABV vodka soda)
- Implementing Cin7 inventory management pre-revenue: why systems matter from day one
- Self-distribution realities: navigating three-tier alcohol systems and building retailer relationships
- When to transition from self-distribution to third-party distributors
- The three stages of CPG growth: inventory forecasting, sales expansion, operations efficiency
- Why founders shift from "brand builder" to "operations economist" around 12 months
- Setting up SKUs, lot codes, expiration tracking, and integrations (QuickBooks, Shopify, EDI)
- Tips for implementation: focused onboarding, outsource accounting, learn systematically
- Key CPG tech stack: inventory management, accounting, Shopify/EDI
Episode Links:
Cin7:
Get 50% off your first 3 months: https://bit.ly/458bcCY
- Linkedin: https://www.linkedin.com/company/cin7/
- Instagram: https://www.instagram.com/cin7online/?hl=en
- Josh Fischer - VP of Product, Cin7 LinkedIn: https://www.linkedin.com/in/joshcfischer/
Smidge Beverage:
- Website: https://www.smidgebeverage.com/
- LinkedIn: https://www.linkedin.com/company/smidge-beverage/
- Instagram: https://www.instagram.com/smidgebeverage/?hl=en
- Adam O'Connor - Founder, Smidge Beverage LinkedIn: https://www.linkedin.com/in/adamoconnor-8519201b7/
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Show Links:
- Transcripts of each episode are available on the Transistor platform that hosts our podcast here (click on the episode and toggle to “Transcript” at the top)
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- Questions or comments about the episode? Email Daniel at podcast@startupcpg.com
- Episode music by Super Fantastics