In California and Washington State, TWE said it is implementing a direct sales and distribution model to manage customer engagement and planning, merchandising, supply chain, invoicing and other back office activities for its largest key retail partners (national and regional).
To service the remainder of the market, including the on-premise channel, and independent and small chain retailers, TWE has appointed new full-service distributor partners, Classic Wines of California and Vehrs Distributing, in California and Washington, respectively.
In Florida, TWE is implementing a new hybrid distribution model where the Company will directly manage relationships with its largest key retail partners (national and regional), collaborating with newly appointed distributor partner, Breakthru Beverage Group, to manage sales execution for these customers. Breakthru Beverage Group will operate a full-service distribution model for the remainder of the market, including the on-premise channel, and independent and small chain retailers.
In a number of other states, TWE has appointed new full-service distributor partners. These include Breakthru Beverage Group in Illinois, Colorado, South Carolina and Minnesota, Johnson Brothers in Indiana, Hawaii, Iowa, West Virginia, North Dakota and South Dakota, Vehrs Distributing in Oregon and Specialty Imports in Alaska.
Once fully embedded, these changes are expected to be margin enhancing for the Americas, underpinned by a more efficient and lower cost value chain, particularly in states where TWE will operate a direct or hybrid sales and distribution model.