The 3-Step Distribution Melodrama

Wine in the U.S. will eventually follow the same market maturation process as most other industries. Consolidation is happening everywhere. The protection of the legislated 3-step distribution model cannot last forever. The business logistics model has an inherent cost and marketing advantage… Small independent wineries will have to embrace the consumer direct model and the internet, and/or do the hard work of building a local/regional presence to prosper. Look at where the craft breweries are going with their marketing model… Controlling your destiny by finding your own customer base should become the answer. Small business failure is unfortunate, but real-world. It will do no good to rail at the unfairness of change. Business owner’s need to move forward. The market rewards those who engage their customers and offer perceived value. The creativity to provide industry leadership will be recognized and rewarded in the end.

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