pricing?

[ZUN BRAIN BOOSTING ENERGY]

How many cases are typically on pallet for PET 12 oz bottle? Anyone know?

How many pallets on a typical truckload?

[tandricus thomas]

about 60 cases per pallet.

[Stu Levitan]

!2 oz. PET is 96 cases per pallet. Check my profile. I sold 12 oz. PET Naya for 10 years at 96 cases per pallet. 21 Pallets per truck. Dependent upon the weight of your plastic and product it could be 20 pallets or 22. Depends on the total truck weight.

Stu

[ZUN BRAIN BOOSTING ENERGY]

thank you both...

Typically, do most distributors buy by the truckload or pallet? assuming that company selling has solid product.

From co-packer to fulfillment house to distributor to retail? is that the correct chain? What if my product lands a chain of c-stores before I have distributors?

[Stu Levitan]

During start-up most distributors will buy by the pallet, however, your co-packer is most likely to produce and ship by the truckload to some re-distribution point (you called it a fulfillment house;not quite the same thing but close enough). If you land a chain of c-stores the chain will tell you which distributor they would like you to use. Dependent upon the size of the chain and who else the distributor might service, it is very possible to ship a truckload. This is getting to be a tough category. I hope you have a significant point of difference.

[Jorge Olson]

Brian,

This is an excellent question. Most people overlook the distribution model.

The correct distribution model is from co-packet to your warehouse and from your warehouse to the distributor or directly to the wholesaler if you have a warehouse program.

As for you question about pallets or truckloads… There are 3 basic tiers of distributors. Tier 1, Tier 2, and Tier 3.

Tier 1 distributors, like a Coke, Pepsi, Miller, Bud, and other large distributors only buy truckloads. They sign a territory protection contract and you are in business.

What’s the catch? You need enough money to support a large distributor in a large city or even a state. This can include hiring employees for that territory to help them open accounts.

Tier 2 and 3 distributors including wholesalers, re-distributors and other smaller distributors buy pallets only. Even if they offer to buy a truckload from you be very careful and check their credit. If they don’t have AAA credit sell them on cash terms. I’ve chased for money much too often.


Thanks,


Jorge Olson

Beverage Industry and Incubation

[ZUN BRAIN BOOSTING ENERGY]

Great, Thanks. Thanks for that tip too. If C-stores want my product, can I use that to land Tier 1 Distr assuming Funds are in place? Or would I want to approach the distributors first?

[Jorge Olson]

You got it!

This is what distributors are looking for. For you to open C-stores and other accounts. If you have them, they will take your product. It's free money for them!

Get the C-Stores first!

Thanks,


Jorge

[ZUN BRAIN BOOSTING ENERGY]

Thanks Again. Talk with you soon. By the way, thanks for all the advice and free conference calls.

[A.J .DE GUTIS, PRESIDENT, L.E.C. LABS, Div. of The Atlantic Beverage Group, USA]

Brian...to launch a new product it takes approx. one million dollars....be perpared to have very deep pockets, especially when it comes to c-stores..they will want a lot of "free product" ...my advise to you is to locate a host company that is already in the marketplace and perhaps is looking for a product such as you might have..they will guide you in the right direction...good luck....A.J.D.

[ZUN BRAIN BOOSTING ENERGY]

Thanks. Thats what I estimated too. thanks for all the input.

lastly...How many pallets are successful new brands on tier 1 distribution expected to sell 1st year? what is a good benchmark?...successful defined as staying in business with a healthy growth rate... and everyone re-ordering...

[John McClung]

96 cases per pallet is right! I sell OGO - Oxygen Water 12 bottles to a case, 96 cases on a pallet.

[Noel Nava]

One thing to remember is that your Sugar Free products will be lighter than your regular product. You should be able to maximize your freight and lower your shipping cost per case when shipping the Sugar Free products.