LibDib Develops Virtual Distribution Model

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Industry members have often predicted the US market will see an
increase in the number of small distributors that will ?ll in the gaps
created by the consolidation of the nation’s largest wholesalers.
Liberation Distribution (LibDib), a new web-based alcohol
distribution platform, plans to be the ?rst virtual distributor to
work with those gap suppliers who may not want, or be able to, go
through the traditional wholesaler network.

“I do consider this a bit of a disruption because anybody who wants
distribution can ?nally have it,” says Cheryl Durzy, LibDib founder
and ceo.

Although the majority of each transaction is done online, LibDib
does have a traditional distributor license in each market where it
operates thus far. Here’s how it works: suppliers, or “makers” as
LibDib calls them, create a pro?le on the website including basic
info and licenses. Then they de?ne product selection, calculate the
listed wholesale price and de?ne where to distribute. Once a
veri?ed retailer makes an order (no minimum required), via the
LibDib website, LibDib handles the invoicing, payment processing,
collections and taxes. Then delivery is facilitated through either
common carrier (Fedex, UPS) or a third party logistics company.

“A [large] wholesaler doesn’t want to bring in something that has
only 20-50 cases available. They want hundreds of cases where
they’re going to make some money, ” Cheryl tells WSD. “And they
have true costs – they have warehouses, they have salespeople and
truck drivers, so it makes sense with their business models why
they do it that way. I don’t have any of those things.”

LibDib, which takes 15% of every sale, will not require exclusivity
agreements with suppliers to use the platform, nor will it lock them
into using it for a certain length of time. Cheryl says it could even be
used as an incubator. “Take a small brand, put it out there and grow
it a little bit. Then if you need to, take it to another wholesaler. My
business model supports that.”

LibDib will go live in California next month and soon thereafter in
New York.



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