Subject:                                     Things you may have missed in latest Tamarron





July 16, 2018


Things You May Have Missed in Latest Tamarron 



Dear Client:


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 beer

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 Technology Investment."


Until tomorrow,


Harry, Jenn, and Jordan