Alcohol distribution has not changed since the inception of the three-tier system at the repeal of Prohibition in 1933. Today, a new path to distribution is available to beverage alcohol suppliers with the unveiling of Liberation DistributionTM (LibDibTM), the first alcohol distributor and technology company to offer a three-tier compliant web-based platform. With LibDib, any maker of specialty wine, craft spirits and micro brews can easily set up distribution.
“Distributor and producer consolidation has created a closed market where the little guys cannot get their product into distribution and accounts are being squeezed to purchase beer, wine and craft spirits from the very largest suppliers,” said LibDib Founder and CEO, Cheryl Durzy, a 20-year wine industry veteran. “While managing my family’s brand I became incredibly frustrated by the lack of options available today. All brands deserve a route to market and LibDib creates an opportunity where makers and buyers can work directly together. LibDib is distribution done differently and distribution that’s open to everyone, not just a select few.”
Makers can visit LibDib.com and input their products of choice into the system. After uploading licenses and basic information, the maker defines product selection, calculates the listed wholesale price and defines where to distribute. Transactions on the LibDib platform will go live in California on April 5, 2017, allowing restaurants, bars and retailers in the state to order from makers of any size and from any location, whether down the street or from across the globe. Anyone interested in the LibDib platform can create an account and sign up starting today. Due to price posting in New York, transactions will go live in the coming months.
The LibDib web-based platform automatically handles the invoicing, payment processing, collections and taxes, allowing both makers and retailers to do business in a more open, efficient and cost effective way. The company has been beta testing with a select group of makers and on and off premise accounts over the past few months.
“The alcohol distribution market hasn’t changed for more than eighty years and is ripe for innovation,” said LibDib CTO, Richard Brashears, a twenty-year technology industry veteran who specializes in defining and developing complex software. “Just as the hotel and transportation industries have evolved with two-sided web and mobile platforms, LibDib has used technology to change the distribution process and make it easier, more cost effective and more efficient than ever before.”
In addition to using technology to create a new system for distribution, LibDib is also implementing market friendly business practices such as:
- Charging a lower margin for makers with most transactions at 15 percent.
- Processing payments in 30 days or less and providing on-demand sales reports.
- Giving makers as much freedom from Franchise Laws as legally allowable, enabling them to leave at-will and at no cost.
- Giving restaurants, bars and retailers a large and varied selection of boutique products from which to choose.
- Enabling direct communication within the platform between makers and accounts.
- Creating a level playing field for everyone with no unfair incentives or price breaks.
- No aging inventory sitting at the wholesaler warehouses.
- Eliminating the middle man and any potential for a sales representative to strong-arm the sales process.
- Allowing RB&Rs to buy only what they want, when they want it. No minimums.
- Giving access to unique, local and limited availability wines, craft spirits and beers.
- Sales materials and POS are always up to date and accessible online.