Business of Drinks

86: Distribution Decoded: What Every Beverage Brand Needs to Know - Business of Drinks

Oct 15, 2025
Emmett Strack, a drinks industry commentator and host of the Park Street Insider podcast, joins the discussion on the intricacies of beverage distribution. They delve into the origins of the three-tier system and its ongoing relevance, while exploring four major distribution models and their unique roles. Emmett also highlights how hemp-THC and adult non-alc brands are redefining distribution rules. The conversation touches on consolidation trends, why brands are shifting to beer distributors, and practical growth strategies for navigating the ever-changing market.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Why The Three-Tier System Exists

  • The U.S. created the three-tier system after Prohibition to separate production, distribution, and retail and prevent tied-house abuses.
  • This structure centralizes regulation, tax collection, and public-health safeguards while fragmenting market access for suppliers.
INSIGHT

Four Distinct Middle-Tier Routes

  • The middle tier includes national full-line wholesalers, specialty importers, beer DSDs, and control-state wholesalers with distinct strengths and reach.
  • Each distributor type offers different access, cold-chain capability, and retailer relationships that shape a brand's route to market.
INSIGHT

New Categories Write Their Own Rules

  • Hemp-THC and adult non-alcoholic drinks bypass federal alcohol rules and use a patchwork of beer, natural-food, and self-distribution channels.
  • These categories build flexible, e-commerce-first playbooks because legal treatment and retailer access vary state-by-state.
Get the Snipd Podcast app to discover more snips from this episode
Get the app