KRS Posted October 16, 2018 Share Posted October 16, 2018 Is anyone working with a distributor who only fills orders based on the distillery's contact with retailers? The distillery doesn't place the order with the distributor, but lets the distributor know exactly what the retailer wants. The distributor contacts the retailer to confirm the order and asks for a purchase order. The distributor does not have sales people and does not solicit sales for the distillery. The distillery delivers the product to the distribution warehouse, and is responsible for setting up the delivery to the retailer by a third party from the warehouse. The distributor pays the delivery service. The distributor receives payment for their invoice to the retailer, pays the distillery from the money received from the retailer, having factored in the cost of delivery. The distributor payment is static per case, but varies because of delivery charges. This appears to meet all 3-tier requirements, but I have been told that the California ABC has issues with this. Does anyone see any flaws in this arrangement? It seems like a legal opportunity for micro-distilleries to have a better chance to succeed, given the small volume of production. The idea that small distilleries could possibly dictate terms to retailers, and interfere with their ability to do business with other manufacturers, is ludicrous. Link to comment Share on other sites More sharing options...
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