Bringing New Brands to Wholesale Distribution: A Deep Dive (2024)

Table of Contents

1. Introduction
2. The Inception of Retail Distribution Management
3. Working with Alcohol Brands
4. Expanding to Soft Drink and Dairy Sectors
5. Bridging the Gap Between Large Supermarkets and Convenience Stores
6. Creating a Hybrid Distribution Plan
7. Ensuring High Margins for Retailers
8. Case Study: Feedback Loop with Fed Retailers
9. The Broader Implications of RDM’s Approach
10. Conclusion
11. FAQ

Introduction

Ever wondered why many promising food and drink brands often fail to make a significant impact in the wholesale market? The culprit often lies in the misconception of treating wholesale and convenience sectors as an afterthought. Enter Retail Distribution Management (RDM), a consultancy aiming to bridge this gap and bring innovative brands to the forefront of wholesale distribution. Founded by Shane Nimmo, who boasts an impressive background with entities like Halewood Wines & Spirits and Biotiful Gut Health, RDM promises an average of 30% margins for retailers. But how exactly does RDM accomplish this? That's the crux of our exploration today.

The Inception of Retail Distribution Management

Shane Nimmo, with his wealth of experience in large and small-scale supply chains, saw a recurring issue: good brands often overlook wholesale and convenience channels. This oversight results in missed opportunities and unsold stock gathering dust on shelves. RDM was established with the mission to re-educate brands about the potential of these distribution channels.

Working with Alcohol Brands

Currently, RDM collaborates with four main alcohol brands: Mahiki Rum, Wrexham Lager, and Panther Milk, directing their distribution into wholesale and convenience stores. The aim is to ensure these products do not just sit idly but actively engage customers and generate profits for retailers.

Expanding to Soft Drink and Dairy Sectors

While alcohol brands are a significant part of RDM’s portfolio, the consultancy is also looking to expand its reach. Discussions are ongoing with soft drink and dairy suppliers to add diversity and greater value to their roster. This expansion is about more than just variety—it's a strategic move to capture different segments of the market.

Bridging the Gap Between Large Supermarkets and Convenience Stores

One of the key insights driving RDM is the disconnect between large supermarkets and the UK's 40,000 convenience stores. While many suppliers aim to get their products into leading retailers like Tesco, Sainsbury’s, and Waitrose, they often overlook the expansive reach and potential of smaller convenience outlets. RDM's focus is on educating brands about the vibrant opportunities within these smaller retail environments that can yield significant returns.

Creating a Hybrid Distribution Plan

A unique aspect of RDM’s strategy is developing a hybrid distribution plan involving both wholesalers and retailers. This dual approach ensures that products not only reach the shelves but also attract consumer interest. Through close collaboration with key retail figures, RDM gathers valuable feedback to fine-tune product designs and marketing strategies, ensuring higher consumer retention and repeat purchases.

Ensuring High Margins for Retailers

One of RDM's standout promises is delivering an average of 30% margins for retailers. This is achieved by carefully selecting and nurturing brands that have high potential and ensuring their sustained success in a competitive market. If a product can perform well in 50 stores, RDM believes it can be scaled to thrive in 5,000 stores, echoing their ambitious yet practical vision.

Case Study: Feedback Loop with Fed Retailers

A practical example of RDM’s method is their recent engagement with 20 influential retailers from the Federation of Wholesaler Distributors (Fed). In this setting, retailers provided in-depth feedback on the design and viability of specific products. This iterative feedback loop helps in refining products to better meet market demands before a full-scale rollout, highlighting RDM’s commitment to meticulous planning and execution.

The Broader Implications of RDM’s Approach

RDM’s innovative strategies not only benefit retailers and wholesalers but also have significant implications for the broader market. By ensuring that good brands do not slip through the cracks, RDM is helping to foster a more diverse and competitive retail landscape. This, in turn, benefits consumers who gain access to a wider variety of quality products.

Conclusion

Retail Distribution Management’s visionary approach addresses a critical gap in the wholesale and convenience distribution market. By re-educating brands, leveraging retailer feedback, and promising robust margins, RDM is crafting a new narrative in the retail distribution sector. Their strategy ensures that not only do products find their way onto shelves, but they also meet consumer needs and drive profitable sales. As RDM continues to expand into new product categories and refine their hybrid distribution plans, they stand to significantly impact the future of retail distribution.

FAQ

Q1: What is the main goal of Retail Distribution Management (RDM)?A1: RDM aims to bridge the gap between brand suppliers and wholesale/convenience channels by ensuring products do not just sit on shelves but actively engage customers and generate profits.

Q2: How does RDM ensure products are successful in retail stores?A2: RDM employs a hybrid distribution plan involving both wholesalers and retailers, gathers retailer feedback, and ensures products are fine-tuned to meet market demands.

Q3: What kinds of products does RDM currently handle?A3: RDM is currently working with several alcohol brands and is in discussions to add soft drinks and dairy products to its portfolio.

Q4: How does RDM help brands understand the wholesale and convenience market?A4: RDM educates brands on the potential of these channels and the importance of not treating them as secondary to large supermarkets, thereby unlocking significant distribution opportunities.

Q5: What margins does RDM promise to retailers?A5: RDM promises to deliver an average of 30% margins for retailers on the products they distribute into wholesale channels.