The wine industry, like any other, demands meticulous attention when it comes to the structuring of business agreements, an underlying fact that becomes increasingly apparent in the realm of distribution arrangements. As directly-to-consumer (DTC) sales avenues such as tasting rooms, clubs, and websites tend to have limited reach, the success of most wine brands typically leans heavily on access to general on- and off-premise markets. And such access, more often than not, requires the engagement of a distributor.
This brings to the fore the importance of not only finding the right distributor but also negotiating an agreement that upholds the best interests of the wine business. The stakes rest largely on the fundamental health and viability of the brand, underscoring the necessity of a well-crafted distributor agreement.
This was the key takeaway in a recent publication on JD Supra by Farella Braun + Martel LLP, wherein ten key considerations emerged for optimal wine distribution agreements. These considerations provide a crucial blueprint for wine brands seeking to strike the right balance between extending market reach and maintaining control over their product’s presentation and perception in the market.
The article’s original version was published in Wine Business Monthly’s September 2023 edition, illustrating once again that while wine can be a matter of personal taste, the business of wine is unequivocally a matter of systematic planning, strategic partnerships, and sound legal considerations.