National alignment: How US wine and spirits brands can get the most out of their wholesaler

More US wine and spirits brands are choosing a bold go-to-market strategy: national alignment. Enabled by consolidation, fueled by competition between the largest wholesalers, and pushed even further by suppliers aggressively negotiating for and prioritizing favorable contracts, large suppliers are agreeing to work exclusively with one large distributor across that distributor’s entire footprint.

Signing a national agreement is rarely the optimal decision for smaller brands, but for big brands, whether to align with a large wholesaler and how to maximize the benefits of that partnership are the most important go-to-market decisions they face. Unfortunately, the secrecy and sensitivity surrounding this topic means there are almost no resources to help suppliers navigate this critical issue. To fill this gap, we are writing a three-part series on national agreements.

Thus far, we have spoken to more than a dozen distributors, retailers, consultants, and suppliers to sort through the complicated strategic questions surrounding national agreements and offer best practices for brands confronting this high-stakes component of their go-to-market strategy.

In this, part one, we explore four potential benefits and opportunities for brands seeking national alignment:

Simplifying operations. Extracting large financial concessions and contractually guaranteed purchase minimums. Getting an outsize share of wholesaler resources and attention. Aligning with a market-leading distributor poised for future success.

More importantly, we explore how suppliers can extract the most value from the resources distributors are offering in exchange for a national agreement. In our next report, we will explore the uncertainty and downside risks that make so many suppliers wary of alignment.