COVID-19
The Wholesaler’s Guide to Navigating Business in a Pandemic
Reopening Accounts
VERNO’S BEER BRIEF | MAY 2020
As certain states and markets around the country begin to reopen, wholesalers will be faced with new, unique sets of managerial and operational challenges. This special edition of Verno’s Beer Brief addresses several considerations for wholesalers with regards to preparing their accounts and internal operations prior to reopening, dealing with the changes once the reopening has begun, as well as managing suppliers during the reopening phase.
COVID-19: Phase II
VERNO’S BEER BRIEF | APRIL 2020
Every day that goes by clients and subscribers are contacting us to share new practices for dealing with the business impacts of the COVID-19 pandemic. In this special edition of Verno’s Beer Brief, we address numerous new practices from wholesalers around the country. Most, if not all, should be discussed for possible application in your company.
Adjusting to COVID-19
VERNO’S BEER BRIEF | MARCH 2020
As the reality of the COVID-19 situation continues to develop, it is evident that day-to-day life as well as the beverage distribution business as we know it will start to look very different in the coming days, weeks and months.
We have been in constant contact with wholesalers all across the country, each beginning to face the immediate and long-term challenges that the virus presents on the market, the workforce, and the business. As the impact of the virus and the restrictions on accounts and personnel continue to expand, every wholesaler will have to adjust.
COVID-19 and The Future for Beer Wholesalers
We believe wholesalers will experience three distinct phases of the COVID-19 impact, each with their own sets of challenges and opportunities:
The 3 Phases
PHASE 1 – IMMEDIATE ADJUSTMENT PERIOD
EST. TIME FRAME:
March – April 2020
IMPACTS TO BEVERAGE MARKETS:
- On premise decrease
- Accounts close or limit service to take-out only
- Off premise increase
- Especially in grocery & large format accounts
IMPACTS TO WHOLESALERS:
- Employee adjustments
- Route adjustments
- Inventory ordering adjustments
- Discontinuing of certain activities
- Ex. special events, draft, etc.
PHASE 2 – INTERIM PERIOD
EST. TIME FRAME:
Several Months (until virus restrictions are lifted)
IMPACTS TO BEVERAGE MARKETS:
- Temporary market adjustments have settled in
- Know which accounts will be open / closed / limited
- Know how off premise accounts will be impacted
IMPACTS TO WHOLESALERS:
- Employee reassignment / adjustments have been made
- New temporary routes are in place
- Certain functions / activities are suspended or significantly adjusted
- Start working on special projects with excess capacity (if any)
PHASE 3 – NEW NORMAL PERIOD
EST. TIME FRAME:
Post virus restrictions
IMPACTS TO BEVERAGE MARKETS:
- Market will begin to get back to the way it was, but never fully be the same
- On premise accounts will be reopen (many accounts will stay closed)
- Off premise volumes will normalize from current spikes
- Consumers will have less discretionary income
IMPACTS TO WHOLESALERS:
- Wholesaler will adjust back to full-service capacity
- Increase staffing
- Start doing functions that were stopped (special events, draft line cleaning, etc.)
Relevant Beer Briefs
If you are a subscriber of Verno’s Beer Brief, you have access to all 130+ back issues we’ve published. Here are some issues that address topics we mentioned throughout the Special Edition Beer Brief on COVID-19.
Services Management
- Minimizing off day deliveries (2020)
- Delivery minimums (2018)
- Managing Merch Frequency (2016)
- Routing project checklist (2015)
- Delivery route cost reduction (2015)
- Service policy strategy (2013)
Sales Management
- Protecting Tel-sell draft (2018)
- Sales go-to-market self-test (2016)
- Super-Merch Sales Models (2014)
- Drug & discount store strategies (2014)
Employee Management
- Length of workday (2018)
- Employee feedback (2018)
- Employee surveys (2016)
- 4-day work weeks (2015)
Brand & Supplier Management
- Success with less from suppliers (2020)
- SKU rationalization (2019)
- Policies for managing suppliers (2017)
- Managing craft ROI (2015)
- Total sign shop cost (2014)
General Management
- Things to stop doing (2019)
- Managing out-of-code (2019)
- Developing strategy (2017)
- Managing resets (2016)
- Cycle counting & inventory control (2013)
- Managing costs (2013)
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