Working For Beer Distributors: What You Need To Know

Beer distributors are responsible for getting beer from breweries to retailers, bars, and restaurants. Distributors are required to have both federal and state licenses, and there are thousands of independent distribution facilities across the United States. These facilities provide jobs for tens of thousands of people in their local communities. Jobs at beer distributors include corporate officers, department managers, accountants, warehouse employees, merchandisers, salespeople, and drivers.

Getting Licensed: You need federal and state permits to legally distribute beer

To work for a beer distributor, you need to obtain the correct licenses and permits. Beer distributors are responsible for moving bottles, cases, cans, and kegs from brewers and importers to inventory at stores, bars, and restaurants. Distributors must obtain proper licensure from both federal and state governments.

Federal Licensing

Firstly, you will need to obtain an Employee Identification Number (EIN) from the Internal Revenue Service. This number is necessary for issuing W-2 forms to your employees at the end of the fiscal year, and your employees will need it to file their taxes. The EIN registration is free and can be obtained on the IRS website.

Secondly, you must fill out the "Application for Basic Permit" form on the U.S. Tax and Trade Bureau website. This permit is legally required by the Federal Alcohol Administration Act to operate as a beer distributor. The form requires your business name, EIN, personal contact information, and most recent residences. You must also check the “Distilled Spirits Plant” and “Processing” boxes under the "Business To Be Conducted at Premises Address" section.

State Licensing

Each state has its own set of rules and requirements for beer distribution, so it is important to familiarize yourself with the specific regulations of your state. Contact your state's Attorney General's Office or Secretary of State's Office for detailed information.

In most states, you will need to apply for a Doing Business As (DBA) certificate to reserve your company name. This can typically be done through the Secretary of State's Office, and the fee is usually between $20 and $50.

Additionally, you will need to obtain the necessary state permits to operate a beer distribution business. These permits can cost anywhere from a few hundred to a few thousand dollars and may take a few weeks to process. Your state may have a specific department that regulates beer distributor licensing, such as the Texas Alcohol and Beverage Commission.

Before signing a lease for a commercial property, ensure that it is zoned for beer distribution and complies with any state laws regarding proximity to places like churches and schools.

Compliance and Regulations

It is crucial to prioritize compliance with federal and state regulations to avoid penalties and other consequences. Failure to obtain the necessary licenses and permits can result in fines and criminal punishments. Delayed licensing can hinder your business growth, and non-compliance with labeling requirements can lead to costly delays and resubmission processes.

To summarize, obtaining the correct licenses and permits is a critical step in establishing a beer distribution business. By following the outlined steps and staying informed about federal and state regulations, you can ensure a smooth entry into the beer distribution industry.

Operations Management: Executives oversee day-to-day operations, including purchasing, warehousing, and delivery

Operations management is a critical function in the beer distribution industry, ensuring the smooth day-to-day running of the business. Executives in this field oversee a range of operations, including purchasing, warehousing, and delivery. They are responsible for the strategic direction and efficient management of the company's operations, ensuring that beer is efficiently distributed to retailers and consumers.

Purchasing is a key aspect of operations management in beer distribution. Executives are tasked with establishing and managing relationships with breweries to source beer for distribution. This involves negotiating distribution contracts, securing commitments on efforts and promotions, and ensuring a steady supply of beer. Building strong relationships with breweries, especially craft breweries, is vital to gain access to unique and in-demand products and establish a competitive edge.

Warehousing is another critical component of operations management. Executives are responsible for purchasing and maintaining warehousing facilities and equipment. This includes managing inventory levels, ensuring proper storage conditions, and overseeing the receipt and dispatch of beer from the warehouse. They also supervise warehouse employees, who are responsible for filling orders, using forklifts and pallet jacks to move beer, and loading beer onto delivery trucks.

Delivery operations are essential to the timely and efficient distribution of beer to retailers and restaurants. Executives oversee the coordination of delivery operations, including routing and scheduling. They work closely with trucking companies or manage a fleet of company-owned trucks to ensure beer is delivered on time and in full to customers.

Additionally, operations executives play a crucial role in establishing company procedures, setting business goals, and negotiating deals with breweries and large clients. They work closely with other departments, such as sales and accounting, to ensure the smooth functioning of the business.

To excel in operations management in the beer distribution industry, executives must possess strong leadership, strategic thinking, and problem-solving skills. They need to stay updated with industry trends, regulations, and market dynamics to make informed decisions and adapt their strategies accordingly.

Accounting: Accountants handle payroll, taxes, invoices, and audits

Accounting is a crucial function in the beer distribution industry, with accountants playing a key role in ensuring smooth operations. They are responsible for handling payroll, taxes, invoices, and audits, which are essential for maintaining compliance and financial health.

For payroll, accountants process the payroll checks for employees, ensuring they receive their wages in a timely and accurate manner. This involves calculating wages based on hours worked, applicable taxes, and any deductions or benefits. Accountants also handle taxes for the business, including federal and state taxes. They ensure compliance with tax regulations, make payments to tax authorities, and may also explore tax reduction strategies to optimize the business's financial performance.

Invoicing is another critical function. Accountants create and manage invoices for customers, detailing the products or services provided and the associated costs. They also collect payments from customers, ensuring timely payment to maintain cash flow. Additionally, accountants perform audits, which involve examining the company's financial records to ensure accuracy, detect any discrepancies, and identify areas for improvement in financial management.

The accounting process in the beer distribution industry has some unique aspects. For instance, the chart of accounts may differ, with raw materials inventory and finished goods categorized differently. There may also be specific considerations for stale or unused beer, which can impact expenses and the cost of goods sold. Additionally, the industry often involves working with distributors, which can affect pricing, profit allocation, and financial reporting.

To excel in accounting for a beer distributor, it is beneficial to have a strong understanding of the industry, including its unique financial challenges and opportunities. This includes knowledge of excise taxes, distribution channels, and the cost structure of the business. Online courses and resources are available to help professionals enhance their financial management skills specific to the beer distribution industry.

Sales: Salespeople pitch and negotiate with clients, while sales managers train and supervise

Sales roles in beer distribution are essential to the business, as they directly interact with clients and generate revenue. Salespeople need to be confident and passionate about the products they are pitching to clients. They should be able to communicate the vision and benefits of the beer brand they are selling. It is also important to build a good relationship with the distributor, as they are the middlemen between the producer and the retailer. Distributors want to work with people who are enthusiastic about selling their product and are committed to being there to help at any time.

When pitching to a distributor, it is important to have a solid understanding of what they are looking for. Distributors want to be assured that your product will sell, so it is beneficial to have intent from retailers or other accounts that would be interested in selling your product. Having a standard price for your products is also a good strategy, as it makes it easier for the distributor and the retailer. It is also beneficial to have a branded case, as it shows organisation and makes it easier for the distributor to identify your product in a warehouse.

Salespeople in the beer distribution industry need to have strong communication and presentation skills. They should be able to create and nurture relationships with buyers and increase sales within their assigned territory. They may also be required to conduct beer tastings and dinners, as well as other promotions. Sales roles in this industry often involve travel within a specific region.

Sales managers are responsible for training and supervising the sales team. They set sales goals and ensure that the team has the necessary knowledge and skills to achieve those goals. Sales managers also work with other departments, such as marketing, to align the sales strategy with the overall business objectives. They may be required to prepare and submit reports on key sales metrics and work with the sales team to develop and execute a strategic sales plan.

Driving: Commercial licenses are required for drivers, who deliver beer and handle paperwork

Driving is a crucial aspect of the beer distribution industry, with drivers playing a key role in transporting beer from breweries and importers to retail stores, bars, and restaurants. To ensure safe and legal operations, commercial licenses are required for drivers handling these deliveries. Here's an overview of the requirements, responsibilities, and procedures related to driving and delivering beer:

Commercial Licenses for Drivers:

To operate a commercial vehicle, such as a beer truck, individuals are typically required to possess a commercial driver's license (CDL). This license ensures that drivers have the necessary skills and knowledge to safely navigate and deliver beer. The specific type of CDL required may vary depending on the size and weight of the vehicle, so it's important to check the requirements in your state. Obtaining a CDL usually involves passing both a written exam and a skills test, demonstrating proficiency in driving and adhering to safety protocols.

Handling Paperwork:

Drivers are also responsible for handling important paperwork during deliveries. They deliver invoices and other relevant documents to customers, ensuring a transparent and well-documented transaction. Staying organized and maintaining accurate records are essential aspects of this role. Additionally, drivers may be required to complete logs or reports related to their deliveries, including details such as mileage, delivery locations, and the quantity of beer delivered.

Adhering to Safety Protocols:

Safety is a top priority for beer distributors, and drivers are expected to maintain a clean driving record. This includes adhering to speed limits, following traffic rules, and avoiding reckless driving behaviours. Distributors also emphasize the importance of securing loads properly to prevent damage or shifting during transport. Regular vehicle maintenance, such as checking tire pressure and ensuring the truck is in good working condition, is also part of the driver's responsibility.

Understanding Delivery Procedures:

Beer delivery drivers work closely with both the distribution company and the customers. They coordinate with the warehouse staff during the loading and unloading process, ensuring that the correct number and variety of beer products are loaded onto the truck. Upon delivery, drivers may assist in unloading the merchandise and work with merchandisers to stock shelves and build displays. Excellent customer service skills are beneficial in this role, as drivers often interact directly with store managers or restaurant owners.

Compliance with Alcohol Regulations:

As beer distribution is highly regulated, drivers must comply with federal and state laws governing the sale and distribution of alcohol. This includes understanding age restrictions and ensuring that deliveries are only made to authorized retailers with the appropriate licenses. Drivers play a vital role in preventing underage access to alcohol and maintaining the integrity of the distribution chain.

In summary, drivers are essential to the smooth operation of beer distribution, and obtaining the necessary commercial licenses is just the first step. Safe driving practices, attention to detail in handling paperwork, and compliance with alcohol regulations are all critical components of a successful career in beer delivery.

Frequently asked questions