What is the optimal split between direct sales and distributor relationships for on-trade and off-trade channels?
Members' actual practices vary significantly by channel. On-trade (bars, restaurants) and off-trade (retail, online) require different approaches:
**Channel Split by Type:** - **On-trade:** Mostly via wholesalers/distributors, with limited direct sales - **Off-trade:** Mostly direct, with some distributor relationships
**Overall Trade Sales Distribution:** A poll of the community showed the most common approach is mostly via distributors with some direct (23 votes), followed by mostly direct with some via distributors (9 votes). Some members operate all direct (5 votes) or all via distributors (7 votes). Early-stage businesses like Wednesday's Domaine operate at roughly 50/50 between direct and distributor volume.
**Key Insight:** The on-trade/off-trade split is the critical distinction—on-trade typically requires distributor relationships for scale and access, while off-trade allows for more direct customer relationships and margin retention.
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