Question

In: Economics

explained the Distribution Channels in the Beverage Industry.

explained the Distribution Channels in the Beverage Industry.

Solutions

Expert Solution

In beverage industry the following distribution channels are working:


Direct store delivery: Beverage companies directly delivers products to retail stores. By delivering large quantity of products directly to the retailers, beverage companies are more visible in the market. Beverage companies prefer direct delivery to retailers as there are some fragile products which needs extra care, so to prevent damage in transit they prefer to sell it directly to the retailer.


Customer warehouse: The customer warehouse is another distribution channel that costs less to the companies. The beverage companies delivers less fragile and perishable goods at the customer warehouse which can be sold out later.


Third-party distributor channel: Beverage companies supply their products to restaurants and business organizations through third party distributors. These third party distributors collect orders from the customers and supplies them from the company.


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