When it comes to the allocation of bourbon, the majority of it is distributed to chain liquor stores, leaving independent shops with limited access to coveted bottles. This distribution system is largely based on the volume of sales, creating a carrot-and-stick approach for retailers. In this answer, I will delve into the various factors that determine who gets allocated bourbon and the impact it has on different types of stores.
1. Chain Liquor Stores: Chain liquor stores typically receive the bulk of allocated bourbon due to their larger sales volumes. These stores have the advantage of being able to move a significant amount of product, making them attractive to bourbon distilleries and distributors. As a result, they have more opportunities to acquire limited edition or highly sought-after bottles. This is often a win-win situation for both the distilleries and the stores, as the high demand for allocated bourbon drives customers to these chain stores.
2. Independent Shops: In contrast, independent shops often struggle to secure allocated bourbon due to their lower sales volumes. These stores do not have the same level of foot traffic or customer base as chain stores, making it more difficult for them to sell a large quantity of bourbon. As a result, they may receive fewer allocations or have limited access to the most coveted bottles. This can be frustrating for both the store owners and bourbon enthusiasts who prefer to support smaller businesses.
3. Volume-based Allocation: The allocation system for bourbon often relies heavily on the volume of sales. Distilleries and distributors want to ensure that their products are reaching a wide audience and generating substantial revenue. Therefore, stores that consistently sell large quantities of bourbon are more likely to receive allocations. This creates a cycle where the bigger stores continue to dominate the market, leaving independent shops at a disadvantage.
4. Special Releases and Limited Editions: When it comes to special releases and limited editions, the allocation process becomes even more competitive. These highly sought-after bottles are in high demand, and distilleries often allocate them based on past sales performance. Chain stores, with their larger customer base, tend to have an advantage in securing these bottles. Independent shops may receive only a small allocation or miss out entirely, which can be frustrating for both retailers and customers.
5. Relationships and Networking: While sales volume is a crucial factor in determining allocations, the relationships and networking of store owners and managers also play a significant role. Building a strong rapport with distilleries, distributors, and brand ambassadors can increase the chances of receiving allocations. Attending industry events, participating in tastings, and actively engaging with the bourbon community can help independent shops establish connections that may lead to more allocations.
The allocation of bourbon is primarily based on sales volume, with chain liquor stores receiving the lion's share of allocations due to their higher sales numbers. Independent shops often face challenges in securing allocated bourbon, as their smaller sales volumes make it difficult to compete with larger retailers. While the allocation system may seem unfair to some, it is crucial to remember that distilleries and distributors aim to maximize sales and reach a wider customer base. Ultimately, the demand for allocated bourbon drives the distribution process, leaving independent shops with limited access to these highly sought-after bottles.