Yesterday, we shared some of the
topline results from the annual Tamarron survey. Today, we'll bring you a
deeper dive into the survey.
With Tamarron, sometimes it's
easy to get lost in what the survey says about suppliers each year and
gloss over the data accumulated on distributors.
For example: Did you know that
the average volume reported by distributors has nearly doubled since
2003? Back then, the average volume in participants' houses sat around
2.38 million cases. Now that figure stands around 5.51 million cases.
It's a similar story when it
comes to revenue too. In 2003, less than a quarter of distributors
reported annual revenue over $50 million. Now, more than half of the
respondents (55%) said their annual revenue exceeds $50 million.
Of course, the makeup of
distributors' houses have changed dramatically as well.
In 2005, the average number of
suppliers in a wholesaler's warehouse was 13. Now, it's 44. The average
number of brands has increased nearly five times over the same frame,
from 63 to 310. And the average number of SKUs has grown more than
five-fold over the past 13 years: rising from 268 in 2005 to 1,378 in the
2018 survey. This rapid growth of suppliers, brands, and SKUs "does
not appear to be slowing down" either, according to Tamarron.
That said, it's no wonder that
130 of the 206 distributors that participated in this year's survey
labeled "SKU proliferation/complexity" as one of the top three
challenges facing the beer industry.
The other two?
"Revenue/margin/cost pressure" and "three-tier challenges
(i.e. Amazon, tasting rooms, direct shipping)" with 21% and 20% of
the participants saying so, respectively.
Even though distributors say
they have voiced these concerns to their supplier partners the
"majority of comments [from distributor participants] indicated
Suppliers are not doing anything and/or adding to the complexity/issues
that distributors are experiencing," per survey.
On a separate but related note -
"the majority of respondents indicated that all suppliers need to do
more to address the emerging beer industry trends," such as:
Improving beer category health
E-commerce as a new channel for
And emerging sales &
marketing technology investment
However, the respondents did
credit Constellation as the supplier that "is doing the most to
improve beer category health." And A-B & MillerCoors as the two
suppliers "doing the most to address E-commerce and Emerging
Harry, Jenn, and Jordan