The Three Tier Distribution System Has Been In Place Since Prohibition.
A recent joint announcement from two very interesting alcohol distribution disruption companies, Republic National Distributing Co (RNDC), and Liberation Distribution (LibDib) that they have formed a strategic alliance and will be working together is a potentially big deal.
For starters, RNDC is the second largest alchohol distributor in the US, with operations in 22 markets and a storied history dating back to before Prohibition.
LibDib is the first technology company (of likely several to come) to offer a 3-tier compliant distribution model that provides an option for the growing number of makers (suppliers/manufacturers) that are entering the market. They describe themselves as: “A wholesale distributor of alcoholic beverages enabled through a web and mobile platform.”
From their website:
Can we do distribution differently?
At LibDib, we like to question the norm. Can we use technology to evolve alcohol distribution to the benefit of all businesses? Can we provide a compliant distribution platform for ALL craft Makers? Is there a way to use data to match resellers with the latest and best craft spirits, wines and beers available?
The answer is yes.
LibDib’s platform makes selling, searching and purchasing easy, convenient and three-tier-ready for both Makers and businesses that purchase alcohol for resale.LibDib
The two companies are working closely together to rapidly integrate technologies and complete the expansion into new markets. Via the LibDib platform, licensed Makers from around the world will soon have access to markets via RNDC’s advanced logistics network. RNDC and LibDib will share data and technologies to provide both customers and suppliers with market access, modern selling tools, and the most unique and diverse portfolio in the country.
Booze Business did a fantastic interview of executives at each company that you should read.
Republic National Distributing Company (RNDC), one of the nation’s largest wine and spirits wholesalers, and Liberation Distribution™ (LibDib™), the first technology company to offer a three-tier compliant distribution model for all Makers, today announced plans to form a strategic partnership. As a part of the agreement, LibDib Makers will soon be able to tap into RNDC’s advanced logistics to deliver craft products to buyers in all available markets. In return, RNDC will have access to LibDib’s technology and data collection, enabling the company to further expand their value and services.
“Technology is evolving this industry at an incredible pace, and innovation is the key to the future of wholesale alcohol sales and distribution,” said Tom Cole, CEO of RNDC. “As part of our commitment to providing consistent value and service to all our stakeholders, the combined force of RNDC and LibDib will offer new, fully three-tier compliant solutions at both ends of the distribution process.”
This is hopefully the start of some really positive improvements in the antiquated 3-tier distribution system.