Are you about starting a wine distribution business? If YES, here is a complete sample wine distribution business plan template and feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a wine distribution business. We also took it further by analyzing and drafting a sample wine distribution business marketing plan template backed up by actionable guerrilla marketing ideas for wine distribution businesses. So let’s proceed to the business planning section.
Table of Content
- 1 Why Start a Wine Distribution Business?
- 2 Wine Distribution Business Plan – Executive Summary
- 3 Wine Distribution Business Plan – SWOT Analysis
- 4 Wine Distribution Business Plan – MARKET ANALYSIS
- 5 Wine Distribution Business Plan – SALES AND MARKETING STRATEGY
- 6 Wine Distribution Business Plan – Publicity and Advertising Strategy
- 7 Wine Distribution Business Plan – Sustainability and Expansion Strategy
Why Start a Wine Distribution Business?
A wine distribution business is one that can be started even by a novice because this business is unlike a conventional retail store. A wine distribution business is highly regulated and any entrepreneur starting this business is protected by the law as everyone you would deal with would need to have proper licensing and the right amount of finances.
The wine distribution business is one that is an all seasonal business and is also one that is recession proof. This business is one that is very lucrative because it doesn’t require employing too many hands. Another plus to starting this kind of business is that you get to know all the vintners in the area where you will be operating from.
Writing a business plan is another aspect of starting a business that cannot be overlooked. While writing a business plan might not be so easy, there are several options available from hiring a business plan writer to going online to get free templates that would aid you in writing the business plan. Below is a sample of a wine distribution business plan for you.
A Sample Wine Distribution Business Plan Template
- Business Overview
According to analysis, the wine industry has been experiencing tremendous growth. Women constitute about 56 percent of the wine drinking industry on the average; however Millennials women account for more than 66% of the wine drinking population.
The reason why women make 85 percent of all the customer purchase is due to the fact that they earn about 8.1 percent income higher than their male counterparts who earn about 5.8 percent. Another fact is that men prefer beer to wine.
Domestic wines have continued to dominate the market with an increase in volume sales and value, as Californian wine has a major share of the market value followed by Washington and Oregon wines which have all experienced a double digit growth.
Globally, Italy dominates with an 8.1 percent value share as well as a 6.3 percent volume sales in its wine industry whilst New Zealand has the greatest import which stands at 17.7 in value and 16.7 in volume.
While baby boomers are regarded as the base of this industry due to their frequency of drinking wine; however, Millennials have started taking a fair share of the market because while baby boomers who drink wine frequently account for 38 percent of the market, Millennials account for 40 percent of the market.
As at 2015, Millennials accounted for the largest volume of wine that was consumed with close to 160 million cases being purchased by this group. While baby boomers purchased the bulk of domestic wine, Millennials have continued to experiment allowing more imports of wine from other countries.
There are now few people who take wine exclusively as more wine drinkers now also purchase spirits, beer and even cider. Millennials in particular are cross drinkers, as only 4 percent take wine exclusively while about 40 percent drink all categories several times a year.
Within the United States of America, there are close to 75,000 companies that specialize in wine and other alcoholic beverage drinks distribution. These businesses generate more than $100 billion in revenue and provide jobs directly for more than a million Americans.
Wine Distribution Business Plan – Executive Summary
Dees Fine Wine Distributor Inc is a leading and standard wine distributorship company that will be located in Boston – New York and is seeking to raise the sum of $280,000 to enable us cater to all our various customers not only here in New York but all over the United States of America.
We have put various processes and plans in place to allow us compete favorably against our competitors by having exclusive agreements with several vintners, allowing us to be sole distributors for several quality wines in the Boston area of New York.
We have applied to the Federal Alcohol and Tobacco Tax and Trade Bureau, TTB for our alcohol distributor’s license and have submitted documentation as regards our incorporation and also our loan documents to show the regulated authorities where the finances are coming from. We have also gotten state distributor’s permit for the products we intend to distribute and the facility we intend to lease.
We intend to be primarily engaged in purchasing orders of wholesale wines so as to be able to sell to various retail stores in our target market. This means that about 80% of our revenue will be generated from the distribution of wines through our sales channels. In order to create additional sources of income, we will generate revenue from other services such as ancillary distribution fees as well as consultancy and advisory services to our various customers.
Our vision is to ensure that Dees Fine Wine Distribution Inc is the preferred wine distributorship store here in Boston for all our existing and potential customers in the next 5 years. We will ensure that we adhere to industry’s best practices through our offering of quality inventory as well as excellent customer service in order to compete favorably against our competitors.
Location is very important to us because it is one of the ways we intend to achieve our vision and objectives. Being in a strategic location will allow us to have the growth in sales that we intend to use in achieving our desired goals and objectives. New York is a thriving place for any entrepreneur and Boston has all the qualities we need that will allow us achieve our goals and objectives.
Building a solid business structure is very important to us and as such we are prepared to go the extra mile in ensuring that we get competent and professional employees who not only understand the industry but the business as well so as to ensure that we are able to achieve all our desired goals and objectives.
We are going to ensure that our employees work in an environment that is conducive and mentally stimulating. We are also going to ensure that we pay our employees the best salaries and have better welfare packages than what similar start-ups are offering their employees here in Boston – New York.
Our owner and Chief Executive Officer, Mr. Derrick Hans is a consummate entrepreneur with several years of experience. He has worked in this industry for years and has a great relationship with several vintners in the region. Mr. Derrick’s MBA from the University of Oxford is a pointer to the fact that he has the managerial abilities to drive this company achieve its goals and objectives.
- Our Products and Services
Dees Fine Wine Distributor Inc is a business that intends to deal primarily in the distribution of alcoholic and non alcoholic wines to our various customers from our permanent location here in Boston – New York.
However, because we intend to create multiple sources of income, we will add more services such as distribution fees and consultancy services in addition to our core service. Our intention of adding these other services to our wine distribution business is to make as much profits as we can under our ambition and according to the regulated laws of the United States of America.
Therefore the products and services we intend to offer are;
- Distributorship and sale of wholesale wines to retailers
- Sale of vintage wines
- Ancillary distribution fees
- Consultancy and advisory services
Our Vision Statement
Our vision is to ensure that Dees Fine Wine Distribution Inc is the preferred wine distributorship store here in Boston for all our existing and potential customers in the next 5 years. We will ensure that we adhere to industry’s best practices through our offering of quality inventory as well as excellent customer service.
- Our Mission Statement
In order for us to achieve our vision, we will ensure that we locate our store in an area that is very strategic here in Boston. We will also ensure that we have a digitized customer database as well as inventory system so as to optimize the relationships with our suppliers. We also intend to build the best business structure for our business.
- Our Business Structure
Building the best business structure is very important to us and to the growth and success of our wine distribution business. We are therefore prepared to go the extra mile in ensuring that we get the best hands that understand the industry to work at our company and make it thrive to the extent that we desire.
Our management team consists of very experienced personnel that have a deep understanding of the industry and know how best to take our company to where we intend it to be. The management team also understands our corporate goals and policies and therefore know how best to ensure that the lower end staff not only understand these policies but that it is effectively implemented as well.
Because we intend to run other services in addition to our core service, we will be hiring more employees than necessary so that they can effectively handle the responsibilities that the new tasks would bring. Therefore the business structure that we intend to build at Dees Fine Wine Distributor inc is;
- Chief Executive Officer
- Human Resources and Administrative Manager
- Facilities Manager
- Marketing and Sales Team
- Logistics Manager
- Customer Service Executive
- Truck Drivers
- Security Guard
Roles and Responsibilities
Chief Executive Officer
- Creates the policies that would provide the needed direction for the business and ensures that it is effectively implemented.
- Meets and negotiates with high level clients in order to provide more distribution channels for the company.
- Drafts the overall budget for the company and ensures that the management team effectively implements it.
Human Resources and Administrative Manager
- Sources for and recruits competent and professional employees on behalf of the company.
- Ensures that new staff receive orientation and are properly attuned to the culture of the company.
- Ensures the smooth functioning of administrative tasks in the company.
- Responsible for ensuring that the facility remains up to standard at all times.
- Carries out physical inspection of the facility and ensures that repairs are carried out when necessary.
- Ensures that the wines are stored under the best condition.
- Prepares the financial statement, reports and budgets on behalf of the organization.
- Conducts financial analysis, forecasting and feasibility studies on behalf of the management so that they can arrive at an accurate decision.
- Administers payroll and other financial transactions for the organization.
Marketing and Sales Team
- Researches and conducts market survey in order to determine new target markets for the organization.
- Develops and executes new marketing strategies that will bring in new clients for the firm.
- Conducts direct marketing and ensures that it results in increased sales and growth of the company.
- Handles all the logistics on behalf of the organization.
- Ensures that transportation is handled smoothly for the company.
- In charge of monitoring all the incoming and outgoing inventory on behalf of the organization.
Customer Service Executive
- Responsible for taking orders, answering requests and any other interaction with customers on behalf of the organization.
- Attends promptly to customer’s complaints and ensures that they are promptly resolved.
- Keeps an accurate and updated customer database on behalf of the organization.
- Ensures that customers’ orders arrive at the accurate destination.
- Obeys all traffic rules and regulations.
- Keeps a logbook of distances travelled.
- Ensures that the premises is kept clean at all times.
- Ensures that cleaning supplies are always in stock.
- Carries out any other duties as determined by the management.
- Patrols the premises and ensures its security at all times.
- Monitors incoming and outgoing inventory and keeps record.
- Remains updated as regards relevant security tips on behalf of the organization.
Wine Distribution Business Plan – SWOT Analysis
Due to the fact that we intend to run a standard business, we have engaged the services of a reputable business consultant here in Boston – New York City to look through our business concept and help us determine if we would succeed at the wine distribution business we intend to start. The aim of having a consultant look through our business concept is to know if we have what it takes to compete favorably against our competitors here in Boston.
Due to our request, the business consultant used attributes such as strengths, weaknesses, opportunities and threats to determine how likely we were to succeed in the wine distribution business especially when exposed to several factors. Below therefore, is a preview of the SWOT analysis that was conducted on behalf of Dees Fine Wine Distributor Inc;
There are several strengths that we have to our advantage. We are located in Boston – New York which is a very strategic place for us as it is not only conspicuous but also easily accessed by our various customers. We have an excellent customer culture that has been infused into our corporate philosophy and this is because we place a high value on our customers.
We have an exclusive distributorship deal with several vintners here in New York which has led us to be the sole distributors of several new wines, thereby allowing us to not only gain a huge share of the market but also penetrate the market as well.
We understand how important it is for us to build a solid business structure and so we would endeavor to employ only competent and professional staff to handle all the important tasks an responsibilities that would be assigned to them. Also, our Chief Executive Officer, Mr. Derrick Hans has the necessary experience to ensure that we fully attain our goals and objectives.
The fact that we are a relatively new business means that it would be hard for us to compete with already established wine distributor businesses in terms of staff strength and finances.
Since we are relatively new, there are a whole lot of market opportunities that are open to us as a business and we intend to use every one of them to our advantage. We will also conduct researches on new target markets so as to get a large share of them.
Every business faces threats every now and then; how they handle these threats determine if they are serious about their business or not. Therefore, the threats that we are likely to face when starting our wine distribution business include; strict government policies, downturn of the economy and the arrival of a competitor to the same location, offering same services such as ours. We however have laid down structures and strategies to combat any threat we are likely to face as a company.
Wine Distribution Business Plan – MARKET ANALYSIS
- Market Trends
Even though the wine business is one that is recession-proof, the sluggish economy has seen less people starting businesses and this affects those in our target market as well, which has in a way affected the growth of the wine distribution sector. According to economists, the sluggish economic growth will continue for a period of time before the market recovers and have a better impact on this sector of the economy.
There are nearly 75,000 companies that engage in the sale and distribution of wine to the general public within the United States of America. These businesses not only generate revenue of more than $100 billion, they have also provided jobs for more than 1 million Americans.
The last five years has seen annual payrolls exceed $20 billion a year and as there is no legislation or stringent government regulations against this sector, it has contributed to the continued growth of this industry. Also, the Boston area is one that is very beneficial to the growth of the business as the target market that is around and within Boston is huge.
- Our Target Market
There exist a wide range of wine consuming customers and so our target market cannot in truth be limited to just a group of people or business but everyone. We have therefore conducted a market research that will allow us effectively map out our target market so that we can create marketing strategies that will be effective when created.
Also, the market research we intend to conduct will allow us to better understand our target market, what we expect from them and what they in return would be expecting from us. We therefore are in business to distribute and retail our alcoholic and non-alcoholic wines to the following groups of people;
- Other wine retailers
- Corporate Executives
- Event Planners
- Every other person who resides in our target market
Our Competitive Advantage
Our aim of starting Dees Fine Wine Distributor’s Inc is to build a business that will last for a very long time. Our intention is to ensure that we are the preferred wine distributorship store here in Boston for all our existing and potential customers in the next 5 years. To achieve this, we have laid down strategies that will allow us to compete favorably against our competitors here in the industry.
Our location here in Boston – New York City is centralized and this offers us a competitive advantage by allowing our customers to have easy access to our location, which then translates to growth in sales.
We have digitized our inventory and customer database which now makes it easier for us to know when stock levels are dropping and also enables us keep in touch with our various customers. This has not only seen our growth increased but has improved our relationship with our customers, as it allows us to provide excellent customer care.
Our management team is one that comes with vast experience. They do not only bring their experience to the table but also their expertise as well. Having aligned and identified with our corporate goals and objectives, our management staff has remained committed to ensuring that our business rises from the position of an unknown start-up to one that will gain national prominence.
Finally, we intend to ensure that all our employees are well taken care of, and that their welfare packages remain among the best within categories such as ours not only here in Boston – New York but all over the United States of America. This will make them more committed and willing to ensure that we are able to attain our business goals and objectives.
Wine Distribution Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Dees Fine Wine Distributor Inc is a wine distribution business that has been established with the sole intention of maximizing profit in the industry, and for this reason we intend to do all we can to achieve our corporate sales goals and objectives.
We therefore intend to generate income by engaging in the following services;
- Distributorship and sale of wholesale wines to retailers
- Sale of vintage wines
- Ancillary distribution fees
- Consultancy and advisory services
Wine is consumed by everyone regardless of religion, race and tribe. While the kind of wine consumed might not be the same, there will always be a demand for wines, which makes it a recession proof business.
Our strategic location here in Boston – New York has us well positioned to take on the available market. We are also optimistic of not only meeting our target revenue but exceeding it and generating enough revenue within 6 months of operation that will allow us grow our business.
We however carried out a critical examination of this industry in order not only to analyze our chances in the wine distribution industry but to come up with an accurate sales forecast. Our sales projections are therefore based on information and data that were gathered from similar start-ups such as ours here in Boston – New York City.
Below therefore are the sales projection for Dees Fine Wine Distributor Inc that is not only based on the location of our business but on several other factors as well.
- First Fiscal Year-: $500,000
- Second Fiscal Year-: $950,000
- Third Fiscal Year-: $1,900,000
N.B: The above sales projections were conducted based on certain factors such as our location not changing during the defined period, no arrival of any competitor and a continued growth of the economy to allow us have a quick turnover. Should there be a change in any of the assumptions; it will greatly affect our projected sales by causing an increase or decrease in figures.
- Marketing Strategy and Sales Strategy
Marketing is very important as this is the aspect that allows major revenue to be generated for an organization. Due to the importance of marketing, we ensured that the location we got for our wine distribution business is one that will effectively aid all our marketing efforts and allow us penetrate the available market so that we can position our business to become amongst the industry leaders.
Because of this, we conducted a market research and feasibility studies where we obtained detailed information on how best to structure our business in such a way as to attract customers and also gain a huge share of the market in such a way as to allow us effectively compete against other leading wine distributors not only here in Boston – New York but all over the United States of America.
We have engaged the services of a reputable marketing consultant who resides here in Boston but has national knowledge about our kind of industry to help us develop marketing strategies in order to achieve our goals of winning a large percentage of the available market here in Boston – New York as well as throughout the United States of America.
We will also empower our marketing executives in order for them to develop marketing strategies that will further enhance the corporate goals of our company. Our marketing executives will also be able to use online means to ensure that they attract clients to our wine distribution business.
In essence, we intend to adopt the following sales and marketing approach in order to sell our variety of wines at Dees Fine Wine Distributor Inc;
- Introduce our wine distribution business by sending an introductory letters with brochures to restaurants, hotels, and other stakeholders here in Boston – New York and in other cities of the United States of America.
- Throw a large party to announce the launch of our company and to capture the attention of our target market.
- Advertise our wine distribution business in local and national newspapers, magazines, on radio and on television stations.
- Ensure that our business is listed in Yellow Pages and Wine Guides and on radio and television stations.
- Engage in direct marketing to attract customers to our wine distribution business.
- Use our online website as well as social media platforms like Facebook, Twitter and Linkedin to promote our wine distribution business.
Wine Distribution Business Plan – Publicity and Advertising Strategy
Having the right publicity for one’s business is very vital and so we have ensured that we will roll out effective publicity strategies that would be a great boost to our business and also project the image of our business positively. This is why publicity and advertising is regarded as one with dual purpose where not only awareness is created but revenue is generated as well.
We intend to seek the services of a reputable brand consultant who is knowledgeable in the industry that will help roll out effective publicity strategies that will not only create awareness within our target market but also ensure that we stand out and be able to compete against our competitors.
Therefore, the publicity and advertising strategies we will deploy for Dees Fine Wine Distributor Inc are;
- Engage in several relevant community programs in order to increase awareness about our business.
- Place adverts in local and national newspapers and magazines as well as on radio and television stations not only here in Boston but all over the United States of America.
- Ensure that we position our bill boards in strategic places all over Boston and around New York in order to create awareness about our business.
- Distribute handbills and fliers in target areas.
- Use social media platforms like Facebook, Instagram and Twitter to actively promote our wine distribution business.
- Ensure that our staff members wear customized clothing and that our delivery truck is also well branded.
Our Pricing Strategy
When it comes to setting the price for our wines, there will be no need for any detailed strategy as the price depends on the kind of wine, the waybill expenses in getting the wine as well as how valuable the wine is. We also do not intend to set a price that will be in conflict with what our major competitors are offering as we do not intend starting a price war.
However, in order to attract as much clients as we want and increase visibility for our business, we will for the first three months offer a price discount on several of the wines we intend to distribute. A detailed look at this plan we intend to carry out shows that even though our revenues are going to dip during this period, they will not result in any loss for our company.
- Payment Options
Having the right payment options is very important to us and so at Dees Fine Wine Distributor Inc, we have come up with different payment options that will suit all the preferences of our various clients. The payment options that we intend to make available to our various customers are;
- Payment by bank draft
- Payment via Point of Sale (POS) Machine
- Payment via check
- Payment via Credit Cards
- Payment via online portal payment
It should be noted that we deliberately chose the above payment options because it is not only convenient for our customers but for our business as well. This means that we would have little or no hitches when using this payment platform.
- Start–Up Expenditure (Budget)
Starting a wine distribution business is not really capital intensive except if you intend to run the business on a very large scale. The bulk of the capital for this kind of business is used to get the necessary stock for the business, purchase the trucks for delivery, lease a facility as well as pay the salaries of employees and utility bills at least for a period of three months.
Below are the key areas that we intend to spend our start-up capital;
- Total fee for registering our wine distribution business in the United States of America – $750
- Obtaining of licenses and permits as well as accounting and customer database and other legal expenses – $2,250
- Cost of hiring a business consultant – $3,000
- Insurance coverage (general liability, workers compensation, stock liability) – $3,000
- Marketing promotion expenses for the grand opening of Dees Fine Wine Distributor Inc as well as for general promotional expenses – $5,000
- Operational cost for the first 3 months (payment of employee salaries and utility bills) – $90,000
- Cost of start-up inventory – $50,000
- Storage hardware (racks, and shelves) – $5,000
- Other start-up expenses including stationery, phone and utility deposits – $2,000
- Cost of store equipment (cash register, ventilation, signage and security) – $7,000
- Cost of leasing a facility for a period of 5 years and carrying out renovations – $50,000
- Cost of purchasing delivery trucks – $50,000
- Cost of throwing a grand opening party – $5,000
- Cost of launching a website – $1,000
- Miscellaneous – $6,000
From the above analysis, it is apparent that we would need as estimate of $280,000 in order to run a standard wine distribution store that will eventually become successful here in Boston – New York City. We realize that this amount will cater to leasing of a facility, paying the salaries of employees and utility bills for a defined period (3 months), getting the stock needed for our business as well as purchasing delivery trucks.
Generating Funding/Startup Capital for Dees Fine Wine Distributors Business
Dees Fine Wine Distributor Inc is a business that is fully owned and run by Mr. Derrick Hans. Due to the nature and potential growth of the business, Mr. Derrick is not seeking for external investors for his business, which is why he has decided to limit the sources where he intends to source for capital.
The areas where Mr. Derrick Hans will generate revenue for his start-up capital are;
- Personal savings and sale of stock
- Apply for loan from the bank
N.B: We have been able to generate the sum of $100,000 from personal savings and sale of stock. The bank was approached for a loan of $180,000 to be repaid in 10 years at the rate of 7% interest rate per annum. All the necessary documents and papers have been signed and therefore the loan which has been approved is going to be credited to our business account before the end of the work week.
Wine Distribution Business Plan – Sustainability and Expansion Strategy
Having the right sustainability and expansion strategies will ensure that a business secures its future. There are several factors that can ensure that a business remains long in existence and these factors are the location of the business, the business structure and distribution channels as well as the continuous financial capability of the business.
The location of a wine distribution store is very important as it can ensure that a business succeeds or fails. This is why we are going the extra mile in ensuring that we secure a strategic location here in Boston that will not only allow easy access or is conspicuous for our various customers but one that is central as to allow for our growth in sales.
Ensuring that we secure the best distribution channels is very important for our business and we have several structures and plans in place to ensure that we have the right channels that will allow for our continuous financial growth and capability. If we are able to successfully put all these factors in place, it will help us build our business to the level we want as well as ensure that we attain our goals and objectives.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of Company Logo: Completed
- Graphic Designs and Printing of Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
- Purchase of trucks: Completed
Latest posts by Ajaero Tony Martins (see all)
- A Sample Music Venue Business Plan Template - February 2, 2020
- A Sample Indoor Shrimp Farming Business Plan Template - February 2, 2020
- How Long You Have to Buy Insurance After Buying a Used Car - January 29, 2020