Value Chain / P&L
In today’s issue, I’ll share my 3-step process to improve your approach to creating your value chain. I don't have a silver bullet for the perfect one but I can give you some guidance on what you should consider when creating one. By adopting this process, you’ll
The Bottom-up Drinks Newsletter
The drinks industry is a relationship business. We know it, we live it and that’s why it attracts so many new entrants every day. At the same time, we all know that it is also one of the issues in our industry. The informality of our business makes us
The Bottom-up Drinks Newsletter
99% of drinks brands I see, start in the market thinking they should follow what big players are doing. They spend their limited resources on sponsorships and fancy events with no link to where they’re sold. Big budgets go to digital campaigns with alleged influencers and drinks awards. If
Distribution & Channels
Wanna know what drives drinks sales? No, it's not brand love It's margins. There's a reason why they are called "links" in a value chain. They are connected to one another and they don't survive alone. If one link gets too fat, it breaks the next one. A healthy chain
Value Chain / P&L
Wanna save your drinks brand's P&L? Start by changing your idea about what it means to manage it! Here's how👇🏻: ❌ Don't look for someone who will manage your brand like a financial exercise. ✅ Look for someone who "manages mix" and improves your P&L by pulling the right levers.
Insights
There are 2 approaches. Pick one: Imagine you run a pizzeria: - You can hire the best pizzaiolo in town and rely 100% on him. - You can hire the one with the best system to drive scale. As an Italian living 16 years abroad, I'm always asked that question:
Commercial strategies
When the foot in the door may turn into something bigger. 🤔You're probably worrying about: * are they trying it? * will they order again? * how many bottles or cases? * should I pass by to check in? * will another brand take my spot? 🤫 They're probably figuring out: * if the bottle should have
Value Chain / P&L
The 3 things successful drinks brands have in common? They share: * they share value * they share insights * they share knowledge With their distributors, customers and consumers. They realized the only way to succeed is to build an ecosystem of trustworthy relationships. Don’t keep it all to yourself. Don’t
Value Chain / P&L
Everyone hates dusty bottles in stock. 🥃 💭 🍺 💤. No matter where you are in the drinks value chain. Don't push it to the next link. Think twice before ordering it: 👇🏻 We've all been there, done that. 1. We think we can sell it, so we order it. 2. Then it gets stuck
Value Chain / P&L
Do you hide discounts into marketing spend? You are just postponing the problem. All roads lead to Net Margin. Yes, your Net revenues will look better. Yes, your Gross margin will look healthier. But it doesn't matter if you spend money from the left or the right pockets. The moment
Value Chain / P&L
You have got 2 options. Pick one: 1. Look for someone who pretends to " manage P&L " like a financial exercise. 2. Look for someone who "manages mix" and saves your P&L by pulling the right levers. Don't put buzzwords in Job Descriptions. Don't look for buzzwords on job
Value Chain / P&L
You need to protect your bottom line. My 6 steps process for you: a) Understand what is your Gross Margin for your brand / SKU b) Divide it by the HL (beer) or Case (Spirits) you sell c) That's your GM/HL or GM/Case. Learn it by heart d) For
Value Chain / P&L
You have 2 options. Pick one: 1. Look for someone who pretends to " manage P&L " like a financial exercise. 2. Look for someone who "manages mix" and saves your P&L by pulling the right levers. Don't put buzzwords in Job Descriptions. Don't look for buzzwords on job applications.
Value Chain / P&L
You don't need to get all of it at once. Start with the top lines: Don’t forget excise. Don’t forget discounts. Discounts are a key lever: * Treat it well. * Document them properly. * Remember to consider ALL of them when you calculate your net sales. Gross Sales is what
Value Chain / P&L
You don’t have P&L experience. You can’t have that role. Stop bullying people to whom you don’t give them a chance. One of the biggest frictions between marketing and sales is exactly this one. P&L management is seen as the holy grail but people should
Value Chain / P&L
Wanna grow your drinks brand sustainably? There are 2 ways to manage your P&L: * make it bleed * feed it Too often I see P&L being overlooked in building brands. With no money coming in, brands close shop. There’s no silver bullet here but the closest thing to