The MHW Mark Podcast
Welcome to the MHW podcast, bringing you conversations with experts and leaders in the alcoholic beverage industry. Covering topics ranging from selling alcohol online, creating a new brand from scratch, and what you need to know when you start doing business internationally. Hosted by Jimmy Moreland and a rotating cast of cohosts from the folks at MHW.
The MHW Mark Podcast
Go-To-Market Strategies - with Melanie Gbowu
And we're back! Host Jimmy Moreland returns with MHW’s Brigid McCabe and Cassidy Poe to welcome returning guest Melanie Gbowu, Founder of The Victoria Gabriel Agency. The team discusses ideas and strategies for newer brands aiming to enter new markets, whether domestically or internationally. This episode is a great primer for brands who are looking to expand from their initial home market, and all the challenges and opportunities ahead.
Find out more about The Victoria Gabriel Agency: Website
Hear our previous episode with Melanie: Episode 15
More info about MHW at https://www.mhwltd.com/
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Welcome to the MHW Mark podcast, where we take deep dives into various aspects of the alcohol industry. My name is Jimmy Moreland. Mhw is a US and EU beverage alcohol importer, distributor and service provider, joining me once again to host welcoming back Bridget McCabe and Cassidy Poe. We've got the dream team back together.
Speaker 2:Finally, thanks, timmy. And we have a special marketing guest as well, who's also MHW marketing, so really getting the trio together.
Speaker 1:That's right. It's a full-on reunion here. We're really excited about today's episode. It's a good one. It's been a little bit. Folks may have missed us in their feeds, but it's been a busy time in the industry, a lot of things going on. Can you break down for us what's been going on? What's the news?
Speaker 2:Yeah, absolutely so. Specifically coming out of BrandArc, we have some pretty exciting launches yet, but when I do I will share. But one that we can share that has received a lot of media and just accolades within the industry is Stitzel Weller Distillery's debut of their rare 24-year-old bourbon. It's called Stitzel Reserve 24-Year Bourbon and that was basically orchestrated from concept to bottle by the Brandark team. So head of Brandark, ian Perez, and project coordinator and manager, michelle Johnson, so very excited about that. They only launched about 191 bottles. They're selling at 1,600 each, so you can only get it from the distillery and this is the first launch from the distillery in more than 30 years. So very, very special.
Speaker 2:And then, sort of on that tail, we had a presentation and an opportunity to judge alongside Women of the Vine and Spirits, diverse Powered Brands, rndc and many other great co-sponsors for the Barcom and Brooklyn Brand Accelerator Pitch Competition. So Ian Perez was a judge for that and of all the people and the brands that entered, the first place winner was actually an MHW client. It was Amaretto Adriatico. So very, very excited for them and they are winning a $51,000 prize package containing a lot of consulting. Mhw donated a credit towards our services, so really excited that we saw one of our clients kind of come ahead.
Speaker 1:Very cool.
Speaker 3:And beyond that at Barcom at Brooklyn. In general we had a really successful show. We had our first booth in history, I believe Bridget first time we ever exhibited at Barcom in Brooklyn, which is in our home market.
Speaker 3:So that was really exciting. We had a bunch of clients join us in our booth for different tasting time slots and it was a really awesome time it was. We're excited to do it again. We also had a client happy hour afterwards at a local bar in Brooklyn, so it was really nice to connect with a bunch of our clients and industry partners who showed up as well. So hopefully do it all again next year.
Speaker 1:And I highly recommend for listeners to keep up not only with not just MHW specific news but broader industry news, like the RNDC thing that everybody's talking about. Just follow MHW on LinkedIn. I'm not even in the industry technically and it's the best follow for just broad industry news to just have an idea of what's going on For sure. When can I expect to receive a promotional bottle of this Stitzel Reserve?
Speaker 2:I think Ian might still be waiting for it. We'll put you in line for it but it's funny, as soon as we announced it we had a lot of folks saying I got to plan my next trip to the distillery.
Speaker 1:Cool things happen with the BrandArc team. I know a few weeks ago that Ian, the head of BrandArc, along with Michelle Street, did a presentation like a seminar, and that's another thing that if you follow MHW on LinkedIn, you can sort of get the heads up on these things so that you can register and get these sort of interactive. It's like a podcast, but you can talk with the hosts.
Speaker 2:Absolutely. We actually have one coming up soon here I guess August, so I don't know how you consider how soon that is, but August 4, we're going to be partnering our compliance director, cheryl Tittle, with Ian from BrandArc to discuss how creative and compliance come together. So two departments that you ordinarily wouldn't see come together and that's really sort of the blood of what MHW is. It's, you know, brandarc being able to develop these great packaging and label designs, but ensuring that they are compliant and that you can get certificate of label approval both federally and by state. So we are a very unique company where you know they say never the twain shall meet and we say always the twain shall meet. So getting those two experts together to talk about how brands can compliantly make tweaks or changes to their labeling packaging point of sale, depending on the state. So you don't want to miss that. Stay tuned on LinkedIn.
Speaker 1:That is very interesting because our discussion today with our guest does kind of touch a little bit on those kinds of issues, those sort of the tensions that might arise if your ducks are not all in a row. And it's a really good discussion. Bridget, can you tell us a little bit more about our guest, who is a familiar face in some ways, but she's got a really cool background.
Speaker 2:Yes, she does so. Melanie Gabot is one of the unique industry folks who's worked across various sectors of the industry, so not only as marketing director for service importer and distributor MHW, but also as consultant for spirits brands such as Spirit Hive Hotel, chocolat Cream LaCourse, funk Harbor Rum, edelheiss Wines and Drunken Fruit, chocolat Cream Liqueurs, funk Harbor Rum, edelheiss Wines and Drunken Fruit, and also recently as Interim Business Development Director for Wine and Spirits Wholesalers, access Live Conference and the Sales Consultant for the Beverage Alcohol Retailer Conference. So really, because of her complex experience across all of the different trade marketing aspects, we recommend her to brands who need an extra hand to really shepherd them through entry into the US three-tier system, choose their markets, choose their pricing and prepare for starting with an importer and distributor. Today we've asked her to combine some of this knowledge and expertise from all sides to give brands really practical and drilled down tips on how to be poised and ready for market.
Speaker 1:And I think that expertise really does shine through in this discussion. So, without further ado, let's jump into it. All right, today's guest is the founder of the Victoria Gabriel Agency, a boutique firm providing go-to-market and trade marketing consulting services to the beverage alcohol industry. Welcome back to the show, melanie Gabbeau.
Speaker 4:Thank you, jimmy, and the MHW team Glad to be back.
Speaker 1:It's so good to have you back. It's not very frequent that we have returning guests, but we like you so much that we had to have you back Now. For folks who haven't listened all the way back, I invite you to do so. It's episode 15. But for folks who don't have time maybe they're commuting right now, they're driving, can you give us a little background on your agency, on yourself, just refresh us.
Speaker 4:Sure, so I'm Melanie Gabot.
Speaker 4:I've been in the industry for over 19 years.
Speaker 4:I actually started my career with MHW for those of you who don't know and had the privilege of working with John Bodette, marianne Pisani and Scott Saul, and I started right out of college working in the administrative part of the business operations, logistics and learning a lot about the core back office services and then transitioned and built out the marketing department focused on trade activation, and business development department focused on trade activation and business development. Right before COVID, about 2018, I started an agency which is a boutique advisory agency focused on go-to-market strategies and marketing consultancy for beverage alcohol suppliers. I work with everything in terms of educating suppliers on importing operations, distributor marketing, brand strategy, connecting them to my network in terms of helping them grow and scale their business. I work with mid-size and startup companies, especially on market entry opportunities, collaboration, sponsorship, trade activations. That's typically my sweet spot. I really enjoy the industry and connecting with brands and suppliers and understanding products that they're looking to bring to the market, but also helping them simplify the nuances of the industry as well.
Speaker 3:So today's episode we kind of want to focus on the go-to-market part of your services. I know this is going to be really helpful for our brands who are listening to get a sneak peek into the advice that you would typically give to your clients. So can you start by telling us at what stage should a brand bring in a consultant like you during their go-to-market planning and what exactly do you do to help them?
Speaker 4:Sure, you know it's very important to have a team of advisors or consultants from earlier on. I think before you get into any industry or if you are looking to, you know, further grow a business, you take on advice from people who have done it before, and so I always recommend starting on. If you're starting the project, bring on people from earlier on. It will help mitigate a lot of mistakes. It will help you untangle things that you might have done, that you aren't sure on how to move forward with. A lot of what the consultant does is educating right, and a part of it, I like to say, is that I put together a crash course and a study guide for clients to be able to consistently either have access to my guidance or the network and to find solutions and workarounds. You know I focus on a lot of housekeeping items when I'm dealing with clients, which I think people tend to bypass, I look at whether or not they're domestic or imported, because that can impact how they go to market what they need to do. The biggest thing for me is always just being a fellow alumni of MHW's back office setup. Do you have all of the things that you need in place so that you can execute and sell into the market and sell into the market, and I focus a lot on making sure that they have the right process in place, because as you scale you can't kind of revert and look to build that up. So back office is a huge plus that I really dive into. I make sure that they have the right legal counsel as well, because you need to understand your contracts with the distributors and any arrangements that you have. I do focus a lot on sales management connections because you need to be connected to people in the markets that you're looking at selling into. It's not just, oh, I have these relationships, but you need someone who has dealt with retailers, distributors, that talk their language and that can help you make inroads there.
Speaker 4:I focus a lot on price modeling and auditing because that's a big. That can also potentially be a big hurdle for brands because they're not capturing a lot of the expenses or earmarking certain things and giving them enough cushion. And we have so many options in terms of selling self-distribution, which is wonderful. Then there's selling to the traditional wholesaler and then there's DTC and you kind of have to understand all of the nuances, pricing changes, taxes etc. And how that's going to affect your price going forward. I look at a lot of placement opportunities going to affect your price going forward. I look at a lot of placement opportunities. Everything with us in the industry is like liquid to lips and how to get that with the best ROI. And what do you need to do when you're showing up at a trade show or a consumer event and have the best?
Speaker 2:impact. That's incredible, melanie. I honestly you're such a secret weapon for so many of our brands because there is that strategic part which you counsel them through. But then, to your point, a lot of it is like the tactical paperwork of like, okay, what do I need ready, how is my licensing structure going to work and to be able to work with you and expedite a lot of that where they can have it ready, I think is so important. So that's really exciting. And I just wanted to ask you, because you know you work with a lot of international brands, how do you explain the complex US three-tier system, sort of what's your fundamentals that you put out for them? And then what are the steps that you recommend a brand follow to ensure they're fully prepared to engage with an importer or exporter?
Speaker 4:So, in terms of explaining a complex three-tier system to brands, whether it's international or even domestic clients, I try to make things very simple.
Speaker 4:I tell them it's like dealing with the IRS, especially for those who are familiar with the US government.
Speaker 4:Or if you're international, you have a set of rules that you have to deal with when dealing with your government, and so it's federal and state.
Speaker 4:And then there's miscellaneous, because there are nuances within certain counties, within certain states, and so I explain that from the federal side, you have to do certain compliance, but then, once you get into the state that you're looking at entering, they have a certain set of rules and we have to balance that, and having someone who has the expertise, such as MHW, is very pivotal and important to you know moving forward. And then I say you know each state, it's its own country. I mean this is probably has been on repeat for some time, but it's like dealing with over 50 different agencies, and how are you able to boil that down if you don't have the consultants or the companies in place to help you navigate some of those issues? So for me it's very simple we just keep it federal and state and we have to get the advice of MHW and our compliance staff to understand what we can and cannot do in the market.
Speaker 3:I feel like the next step, obviously after you explain the three-tier system to your clients, would be to help them decipher which distribution model they should go with, what markets they should be in strategy beyond that. So, from that point on, how do you go about helping them figure out those three things?
Speaker 4:A lot of that is determined by budget. I think there are a lot of things to consider whether it's a service model, the market and strategy is what budget do you really have allocated for it? Because you can have the wishlist of wanting to be in certain markets, but you might not have the pocket to substantiate it. And so I definitely make them understand that there's a magnitude of working in certain markets and do you have the necessary resources to be able to be successful there? Because otherwise the industry is going to eat you alive. And so, for me, mhw's distribution model has always been a game changer for many brands. It definitely allows them the ability to sell direct, which I think is invaluable to suppliers, because coming into the market I mean no distributor is going to take a brand with zero case sales I mean you either have to have a really good proposition. I mean no distributor is going to take a brand with zero case sales I mean you either have to have a really good proposition, I mean and there have been a few cases, but that's an anomaly at this point so being able to sell directly into the retail markets that MHW has relationships with, I think is invaluable. Markets are determined by a few things. Obviously, budget I mentioned, but then I look at top and secondary markets for the category. Is there some white space that we can capture? Who's actually the target audience? Does the brand cater to a certain demographic? So we have to look at all those things in order to make a decision in terms of where we're going to penetrate.
Speaker 4:In terms of strategy, again, it's always been liquid to lips. We look at referrals, connections and utilizing our networks. I'm very big on brokers and sales reps who are specific to markets that have key relationships because they can help make inroads, and sometimes it can be a hit or miss. But if you work strategically and you don't have these lofty KPIs and you're very strategic in terms of the type of accounts that you want to get into and not just a numbers game in terms of getting into 50 accounts, but you can't manage those relationships. Starting off with the 25, making sure you have the reorders and growing from there makes it easy. Plans are great in the industry but, as we know, things change in the blink of an eye and I think brands just have to learn to be very nimble and be able to pivot, and so I like to have structure, but I also like to say you got to be able to be flexible and work past some of these things and move quickly, adapting to whatever the circumstances are at the beginning.
Speaker 2:I kind of want to dig into what you were saying about traditional versus like a self-pitched distribution such as MHW.
Speaker 2:What we're hearing, especially with some of the news like RNDC closing in California, and just the model that traditional distributors are working towards, is actually a lot more similar to the order fulfillment model of MHW. So now brands really need to have that investment model to be able to have sales managers in market to work and ride along with the distributors and really to help them through incentives, through education, regularly getting in front of them. So are you seeing that there's almost like a blurring of the lines happening there? And then even just in terms of like marketing dollars to put against it, now the distributors are asking for an annual marketing plan or a quarterly marketing plan and budget from brands. So the investment level isn't just that margin anymore, Now it's. You know they need to be providing some digital marketing or some sampling out of home, whatever it might look like for this specific brand, you know. Has that shifted how you're working with brands in any way in terms of your recommendations?
Speaker 4:You know, I think the relationship with the distributor has kind of always been the same in the sense that you, the supplier, really have to put in the work. They're there to give you access, but you have to drive your direction and where you want to go and you have to put in the work. And I think you know suppliers get caught up that they're going to be with this large distributor and that's going to be the end all to it and they could sit back and just, you know, enjoy the ride. When that's not the case, I think distributors are just doubling down now on what has been the unknown, you know, in terms of working with them, meaning like you have to have your sales reps. Perhaps you're going to get ride alongs, but the market right now, I think, is just there are a lot of uncertainties, the movement is limited, everyone is cautious, sales are low and a lot of brands are just trying to hang on and also fundraise. I think honestly I don't see brand distributors taking on new brands right now and if they are doing it, it's either favor or relationship based, like we'll put it on our shelves, but you guys got to do all the work and I mean that has been the case in most instances when you're working with the distributors, but I think everyone has pulled back.
Speaker 4:It's really we're in unprecedented times right now, for a number of reasons. More now than ever, I think brands need to show that they have momentum, that they can scale and that they're out there outworking. It's like the survival of the fittest, you know, I know, with the consolidation that happened in California, I mean, you're seeing other distributors having to step in and help out, you know, and take over. So that's causing a strain to the system, right, there's a loss of large brands, you know, from one distributor to the next. So it's a huge industry shakeup right now. I mean, we saw beer distributors getting into the industry, but I think it's something worth keeping your eye on, because they do have access to a lot of accounts and I don't think how can I say this Distributors used to have, like, different accounts, right? Your wine sales rep versus your spirit sales rep versus your beer sales rep. All of that has been blurred, so it's definitely a game changer in terms of consolidation.
Speaker 2:Now you have Reyes with Tito's and I mean it's just the count goes up every week as shaking up like who's merchandising what. It's such a good point. It almost reminds me a little bit of like when UK went through Brexit and all of a sudden you couldn't work with your EU distributors anymore to distribute in, like London and the surrounding areas. You had to work with a UK-based distributor, but there were only you know there was a limited number of them to go around. So all these thousands of brands that were being distributed in the UK all of a sudden were, like you know, fishes just trying to get in and into the different UK distributors.
Speaker 2:And it was honestly, at the end of the day, a decision for the brands like how much investment level do we have in this market? And you know, because the distributors will pick you up if you're really really focused on that market and they see that you're investing that money in it. So it's for California and some of the other markets. I agree with you completely. We're seeing that where it's like you can find a home if you really work and you put in the investment level. But now brands are really like focusing on quarterly plans versus annual and everything has had to pivot so quickly and people are having a tougher time really planning for the future. So I agree with you completely. It's just about kind of reevaluating where you're at and making sure you have that investment level as a brand.
Speaker 4:And that's so important right now. The investment piece. I mean you hear all the brands fundraising, fundraising, fundraising, because it's going to take a lot more effort, now more than anything, to continue to survive, and it's only the brands that are well-funded that we'll see. After all, the dust has settled. To be honest with you, yeah, absolutely.
Speaker 2:Are there any other criteria that you're seeing in terms of how distributors are evaluating new brands? Over the past couple years, you know?
Speaker 4:it's just uncertain for me in terms of what distributors are looking for. If you're too trendy, you're not going to sustain right. And so the long haul has always been authentic story. You know, everyone's very health conscious right now about what they're putting into their body. Everyone's very health conscious right now about what they're putting into their body and I mean, I think those things are always attractive. I do see an uptick with interest in some of the celebrity brands that can help continually get in front of an audience, because it's always about viewership, about consumers and being in front of them. And how do you do that? About consumers and being in front of them, and how do you do that? But again, it's hard to say to be honest with you as to what's really on the distributor's mind other than keeping the lights on, and where are those opportunities and with what brands.
Speaker 2:I think, some emerging categories that I've seen and I would love to hear your thoughts on this Mel, we have clients like 420 Cask Spiced Rum and we have Lucky Stash Tequila that have been performing really, really well. I think hemp seed hemp seed oil-based and mature sterilized hemp stalks and infusions in spirits is something that we've seen a lot of distributors like looking out for and taking on. And actually, right as we record this listener, you guys will have a couple days delay here, but the hemp beverage conference is actually going on right now in Atlanta and so there's a lot of media right now around this and curious to hear your thoughts. You know it's funny because I think about you know, when I was in college and I would come home and my mom would be using hemp's body lotion and I'm like you're such a pothead mom, you know. But it's like hemp is not really cannabis. It has, you know, 0% to 0.3% THC in it, so it's not going to get you high.
Speaker 2:So really like what people don't know a lot with the hemp seed and the hemp seed oils is it's really nutty, it's high in antioxidants, has a lot of like omega-3s, omega-6s in it, so it actually imparts like a really cool taste, but then it gives the brand the opportunity to kind of like lean into what Gen Z is really shopping for right now and sort of these more like alternative ingredients that have been big in skincare and food for a while, that are sort of like now entering into BevAlc. And on the non-alc side we're seeing that too, because we're getting a ton of non-alc requests for, you know, we're seeing things like ashwagandha and elderberry and all these other sort of interesting ingredients. I'm curious do you think this is something trendy that you mentioned, you know might just have its day for the next, like year or two, or do you see this having long-term momentum?
Speaker 4:I think the health component is here to stay, just because of what we all experienced during COVID. I think that put a lot of everyone's perspective differently in terms of valuing life, how quick it can change in the blink of an eye, and the things that you can control are the things that you need to focus on. So I do think that there's a lot of education that still needs to take place in the CBD world because of stereotypes as to Woodstock and you know even other cultures such as just like being a pothead, but there are medicinal purposes. I just think the industry clashed in the beginning about it. Obviously, the beverage alcohol industry has opened up to it and realized that it's not going anywhere. It has been here and it's re-emerging in a way that is accepting to the public now. So education is huge here but, like with anything, I'm always cautious. Everything in moderation, right. Too much of anything is never a good thing.
Speaker 4:I do see the infusion of CBD hemp et cetera in the market and I was really surprised with the attendance last year of how the hemp pavilion at Access Live with WSWA had grown significantly I think it doubled in terms of the size that was offered from the year before and even going around speaking to some of the suppliers, there was a mix you would think, okay, cbd. It would be a lot of younger founders that were starting, but I had also seen some older people who had been in the industry, who were entering the industry and had brands, and I was, you know, very intrigued by that. And I did speak with a couple of founders that were older and it was surprising as to like, you know, I had asked like how did you get into this industry? And basically it was drinking doesn't sit the same with us meaning that, you know, I don't want a hangover or I'm allergic to certain things. As you get older, you know, your body changes. And there was one woman in particular that talked about, you know, wanting to still drink and have a vice, but something that takes the edge off without getting you too woozy or inebriated, and she said you know, it was just an opportunity for me to create something in my life that fits my lifestyle now. And it really struck with me because it's like I'm experiencing that now, with my parents aging and they're not drinking the same way that they used to drink before, for whatever reason.
Speaker 4:But I think brands that are adapting to people's lifestyle. Now, that's not trendy. I mean, there are certain brands that are going to hop on the trend of making the drink, but those that really have an understanding as to why they're creating it, those are the brands that actually will stand the test of time. So I'm for it. I also think there is a medicinal purpose, too, that a lot of people need to. You know, continue to educate and investigate as to why it's needed in our industry, and the only way we're going to grow as an industry is if we continue with the innovation. You know, things can't stay the same, otherwise we're going to remain stagnant. So I see a huge potential and upside with CBDA, it's just going to take some time to get everybody on board.
Speaker 1:You've mentioned a few times being a I quote MHW alumni. Can you talk a little bit about the relationship with your clients, Like typically do they come to you as already being an MHW client, or do you bring them to MHW, Like how does that work and what services do you sort of still lean on MHW to provide in those situations?
Speaker 4:I would say it's a 50-50 split between getting referrals from MHW and helping the supplier understand how to best utilize all of the services and what they need to do from a customer service standpoint. And then clients that I'm approached by directly. I would offer up MHW as an option. I have the responsibility to talk about all options in market but I am close with MHW because I'm familiar with the process, the people and it's something that I definitely have helped build. So there is some partialness to it, but it has to make sense for the client at the end of the day from a budget standpoint, from a locality standpoint where they're based if they want to meet with people and a pricing standpoint, as I mentioned. So it's important that I know that this client has a service provider at hand, just because compliance, logistics and accounting are probably the base to the business. That that needs to be ironed out from the get-go. We have to make sure that if we're promising people that they can get product or we're looking to sell that we know that we can do it because it's either registered or price posted. We know what we can do in the market. Do we have the right solicitor, permits and licenses. It will be delivered, because MHW, you know, can help with the logistics of either getting it from the domestic distillery or winery or importing it into the country correctly, with the right paperwork in place, that the collections of the funds are going to be handled, because we need to be able to repeat this and if you don't have the money in the bank account to do that, it's problematic. So I definitely lean on MHW for all of the services that they offer, because it is something that will help the brand be able to focus on what they need to focus on, which is the sales and marketing aspect of it.
Speaker 4:Whether I'm doing a trade show, it's important to understand. Does MHW have the licenses to ship into the state to help with finding a clearing wholesaler? Most importantly, some of the insurances that are required that a brand might not have on their own. Mhw kicks in with that. So it allows the brand really to focus on market readiness and, for me, the execution part. And MHW helps us be prepared and I lean on them completely for a lot of advisory and up-to-date market things that are happening that I might not be aware of, because they do get. They're at the front line of this. I mean, they're involved in so much in terms of the industry from all of the regulatory standpoints of, you know, discus and Knobby and NABCA, so they get a lot of information that they disseminate to the clients, whereas, you know, we probably wouldn't get it as quickly if we weren't with them. So it's a much needed service that I rely and utilize a lot of the different departments to help out.
Speaker 3:Mel, you've kind of alluded to this a little bit. I know that for new brands that are kind of at square one don't really have much of a plan for who they're going to work with as an importer or distributor, and that is like the most important decision, or one of the most important decisions that they have to make. So how do you advise those brands that are having some indecision, deciding between two different options for them, like how do you help them determine which one will be the best fit for them?
Speaker 4:I always tell my suppliers you have to go with your gut feeling, understanding that working with a distributor is almost like dating. You have to go with your gut feeling, understanding that working with a distributor is almost like dating. So you have to do your best to put forth and be honest and realistic with what you're going to do. They have to like you just as much as you're going to like them. There's no point in working with someone that you have to force them to take on the product and then just be left out in the water to kind of survive. And, at the end of the day, you have to have advocates and allies within this distributorship, because there are multiple products that are like yours. But you have to make sure that they're just as passionate about what you're bringing to the market and that they're going to support you. For me, it's really.
Speaker 4:I think brands look at a number of things the portfolio size of the distributor, how many sales reps do they have? What type of accounts do they cover? Are they giving you a target account list? Are they giving you you know valid information? Or are they, you know, giving you, you know valid information? Or are they, you know, just kind of like hands off, and a lot of it is really having multiple conversations going on site, meeting them, talking to some of the accounts that they service and even accounts that may not be on the distributor's radar, seeing how open that the distributor is to working with some of the smaller restaurants.
Speaker 4:There's so many things that brands have to consider when looking at a distributor, because at the end of the day, it's almost like signing this contract that can't be reversed and it's always at the benefit of the distributor, never at the brand, and there's a lot of decision-making that goes into it. But I do think it's relationship-based too, right. So it's how comfortable are you with working with this team and what do they have in their portfolio that potentially is a competitor, and are you helping them fill a white space? And so there's a lot of decisions to be made, but it's really a gut feeling and who's offering you the best terms?
Speaker 3:I love that analogy you made about how it's like dating. That was such a good point, as you both really have to be able to communicate and like each other equally. That makes a lot of sense, so I think that was great advice.
Speaker 2:And in the state of Georgia it's a marriage. Yeah.
Speaker 1:I'm picturing people swiping right on distributors.
Speaker 4:Yeah, no, and that's true. It almost could be like a Tinder or Bumble, like is there a match? There probably should be an app for that. Right, are you a fit for this distributor, or is the distributor a fit for you so?
Speaker 3:it's a good point too, cause I feel like I mean all distributors probably experienced this, but we have people that approach us all the time trying to move to MHW from a different distributor, so the dating doesn't always work out. You go through different stages of your brand's lifecycle and different things will work for you at different times too, so that's another thing to consider. Different things will work for you at different times too, so that's another thing to consider. Moving forward from that in terms of when a brand needs to pitch a distributor, kind of put their best foot forward, show what they're all about. What are the most important elements of a compelling brand story from a distributor's perspective?
Speaker 4:I think right now, distributors are really focused on a few key elements. I think founder stories are always great. You know there's brands and I'll drop a few names, not clients of mine but Sorrel is a hibiscus liqueur that Jackie Summers founded and his story is amazing just in terms of what he did to come into the market and get his own distilling license and make sure that he could create this recipe based upon the recipe that he was looking to create. And you know he basically started his brand because he was looking for something that had great healing properties. And the hibiscus plant, or known as sorrel, is a drink that in the Caribbean the families would make and it's a very unique process to it. And Jackie has done a great job. He's been in the market for well over 20 years, but he was a cancer survivor and I think with that it resonates with a lot of people. And you also have things that I think are visually, aesthetically pleasing to the eye. I'll use one of MHW's companies, humano. I think that's a part of a compelling brand story or pitch. What is it? What does the product look like? What does it offer? You know, in addition to the clean ingredients and the method of manufacturing and how it's produced.
Speaker 4:Another key element I think that's pivotal in brand story and pitch is the impact. There's a brand called Enalama Tequila. It's women-owned farmers that are used and there's a give back to that story and I think that resonates with consumers and distributors as well. And then you know I'm always for the health component, the Better For you brand. This is an MHW client too, spirited Hive.
Speaker 4:Actually it started with MHW but they invested in apiaries and the whole focus with Spirited Hive was to have honey as the sweetener instead of using sugars and dyes etc. So it was more natural and it's better for you. And then they expanded into Strive, which is an energy drink, now soda concept made with honey. So I think all these things in terms of founder stories, what the product looks like, how does it sit on the shelf, you know obviously the ingredients, the impact and the health component all add to is a good pitch for distributors to want to take on the brand. Besides, what's in it for them, right, like, what are you bringing to the table to make their job easier to sell this?
Speaker 2:I love Sorel by the way and I know every Caribbean family makes it a little bit differently and Sorel is delicious. So let's talk timeline and funding. I think this was something you touched on a little bit before and we've talked investment, investment, investment being critical, especially no matter what distributor really you go with. So what do you tell brands who are new to the US market for how to plan for their first three to five years in market?
Speaker 4:I mean, everything revolves around, you know, building awareness, establishing the route to market strategy. The first year it's sell, get in the market, get the feedback. You have to make the adjustments. You got to focus on certain KPIs like reorder rates, but you have to tailor it and not be everywhere, be specific in terms of the consumer that you're going after and you have to drown them in the noise of your product and be where they are.
Speaker 4:The brands, I tell them the first year is really all education. Year two and three, you got to sell some more. You have to expand into additional markets. Growth is a must, but everything really revolves around the budget and funding. What can they do?
Speaker 4:If you can only be in three or four markets the first three years, then that's what you have to do and not look to compete and be in 10 markets and not be successful.
Speaker 4:I think it hasn't changed in terms of what you need to do for the first three to five years. But you have to understand that you're not turning a profit right, and so the brands who are going to survive understand that and can stomach that. The brands that don't, you know you have people or companies that are coming in thinking that they're going to turn a profit in year two or three and it's just, it's not feasible. So the first few years it's really learning, growing, getting the feedback, making some of those changes, looking to scale and understand who your consumer is and where are they and how can you get in front of them to gain that loyalty. And how can you get in front of them to gain that loyalty by year four and five? You have to take a hard look at the numbers. Are you close to making a profit? Are you hitting your KPIs according to the plans that you had and, if not, is there a readjustment or tweak that needs to be done?
Speaker 3:You've already kind of started touching on this, but I want to expand even more on your marketing services that you offer once brands are already in market. So the next steps here, especially for I mean MHW clients, are in control of their own sales and marketing destiny. So can you walk us through some of your marketing services for once? The brands are already in market.
Speaker 4:Yeah, so if a brand is in market, it really depends on what is the need. Most of the needs sometimes really lends to operational support, understanding some of the market entry opportunities, whether it's trade activation, consumer events. What can we do from a PR standpoint? Who can we connect to? What are some collaborations that can take place, identifying key accounts. I have a set of retailers in New York that I work with to help introduce brands, which is something that has been really effective for a few of my clients. So it really depends on what their need is. A lot of it is, you know, trade support, marketing materials. What can we do from a PR standpoint? What are some of the events, consumer events, and you know, what are some things that we need to clean up on.
Speaker 4:Looking at pricing, looking at some of the markets that we were in, I think a lot of brands don't focus on control states, which at times can be a missed opportunity, especially in the beginning.
Speaker 4:So it's a case by case basis with any brand. I mean I've done everything from helping someone open a micro distillery to the design of the distillery, to the design of packaging, additional enhancements to their portfolio, working with them to secure, further grow the brand, all of which I love, and I think the best part of my experience and expertise is that I provide out of the trade organizations in our industry, so that helped open up a lot of resources in terms of access to distributors and retailers, of which you know. Those are great relationships to continue to have and build on. So I'd like to say I look at the brand, we sit down, we have like a natural conversation of what are their wants, what are their needs, who do they need access to, what are some things that we can do to elevate some of their marketing campaigns or their target audience, and we really work together to figure it out. Or who do we need to connect to in order to make that happen? I like connecting the dots a lot.
Speaker 1:And now it's time for our fun final question, which we have already asked, melanie, last time we asked what your favorite adult beverage or cocktail is, and your answer was the French 75. Has that answer changed?
Speaker 4:It has. I think right now, because we're in summer, I love a lemon drop, a vodka lemon drop Ooh.
Speaker 2:Ooh, that sounds pretty good right now.
Speaker 1:Yes, that's my go-to Do you do any kind of twist on the recipe, or do you just order it and take it as it comes?
Speaker 4:You know it's pretty simple and there's probably some laugh to this, but Grand Lux makes the best lemon drop. Okay, grand Lux makes the best luggage Okay, even though you know it's not like one of the artisanal or crafty bars, but that's a go-to.
Speaker 2:I love it. That sounds delicious right about now.
Speaker 1:Well, we want to thank Melanie Gabot so much for stopping by with us again. We look forward to having you back a third time. Listeners can check out the Victoria Gabriel Agency at victoriagabrielagencycom. We will leave a link to that in the show notes for easy reference there. Melanie, thanks so much for stopping by.
Speaker 4:Thank you so much, appreciate it.
Speaker 1:And thank you listeners for joining us on the MHW Mark podcast, and thanks again to Bridget McCabe and Cassidy Poe for joining me in hosting.
Speaker 2:Thanks, jimmy. Happy to be here with Cassidy. We haven't gotten a chance to do many podcasts together, so this is great that was a fun one.
Speaker 3:Thanks, Jimmy.
Speaker 1:This podcast is produced by me, Jimmy Moreland, with booking and planning support by Cassidy Poe and Bridget McCabe. It's presented by MHW. Find out more at mhwltdcom or connect with MHW on LinkedIn. Lend us a hand by subscribing, rating and reviewing this podcast wherever you listen. We'll be back in your feed in two weeks. We'll see you then, Cheers.