On-trade & off-trade distribution: definitions

Field Sales

Beverage brands generally recruit brand ambassadors. Most often, they are product experts tasked with training and supporting professionals in selling and using their products.
For prospecting and commercial follow-up, Horeca sales representatives take over.

Sales development is entrusted to field sales reps, generally called area managers. They are in charge of a sales portfolio consisting of different points of sale or store banners.

Most Effective Sales Software

To develop their sales with professionals, manufacturers generally use a SFA designed for Horeca.

To boost their sales in large-scale retail, brands equip themselves with CRMs specific to supermarkets.

Pricing

Retail establishments often apply higher prices for beverages to cover the costs of operating a physical venue and paying staff.

Off-trade retailers, despite having lower overhead costs, may also charge higher prices for individual bottles or cans as they must compensate with a sufficient profit margin on each sale.
Supermarkets generally offer the best rates, due to unparalleled volume purchasing capabilities.

Assortment

Products are chosen for their consistency with the vibe and positioning of the venue, the purchasing power of the target clientele, and storage capacity.
It is not uncommon for brands to develop specific products or special packaging for Horeca. These iconic venues love premium or special products, and consumers are willing to pay more for an experience they cannot get at home.

Generally larger, the assortment of specialized trade (liquor stores, wine shops) is defined by its width and depth. Hundreds of beer, wine, and spirit references can be offered.
In supermarkets, it depends on the type of store and is generally defined by the brand banner (read more).

User Experience

Establishments seek to create a consumption experience by focusing on the venue, human contact, and atmosphere.

Supermarkets focus on exhaustively satisfying needs and facilitating the buyer's journey.
Wine sellers also work on the buying experience, notably through advice and guidance.

Marketing Targeting

Restaurants, cafes, and other clubs or nightclubs focus on well-identified, often younger, customer segments.

Wine shops target an older clientele, or product connoisseurs.
Supermarkets attempt to cover all the needs of all consumer categories present in their catchment areas.

Out-of-Store Advertising

In France, the Evin Law regulates advertising for alcoholic beverages, which must be essentially informative.
There are no special provisions for non-alcoholic drinks, except for health warnings such as "For your health, avoid eating food that is too fatty, too sweet, or too salty," which apply to the entire food industry.

In-Store Advertising

POS advertising is essential to boost consumption in Horeca establishments. Their layout can be governed by the distribution contract, or negotiated on a case-by-case basis between the supplier and the establishment. A distributor may also act as an intermediary between these two parties.

POS advertising is also present on supermarket shelves. It encourages testing or taking advantage of special operations, whereas shopper information signage is placed by the retailer to guide the shopping path.

Logistics

Independent retail outlets must cope with the storage space they have available. Fresh products force optimized deliveries to avoid waste related to expiration dates and unsold goods.
For non-perishable products, or those with long shelf lives, volume purchasing is strategic to enjoy discounts, but poses a risk of unsold stock and can prevent taking advantage of promotional offers due to overstocking.
Between the supplier and the consumption point, there is often a distributor who will hold inventory and distribute according to needs.

Distributors often use purchasing offices to order in bulk, and logistics hubs then manage deliveries to local supermarkets.