Do you want to become a UNB distribution partner and be a stakeholders in the exciting and lucrative traditional beer distribution business?
UNB wants to expand its business to achieve its true potential. The resulting growth in sales volume will be handled by licensed distributors. In addition, within three years UNB will phase out its Route Sales Men (RSM) and handover existing business to distributors, where viable. UNB believes that distributors, who are independent entrepreneurs, are well placed to increase sales. These appropriately selected distributors have a more effective distribution channel and local knowledge and are therefore able to provide better customer service and be responsive to market needs.
Key to achieving the growth in sales is having strong and successful distributors. Successful distributors are pivotal to increasing sales and providing good service to retailers. UNB thus wants to engage in a growth orientated relationship with distributors which will be mutually beneficial.
The number of distributors UNB can accommodate will be determined over time and will be dependent on business requirements and sales volumes, as well as the market potential determined by the retail market scope. As UNB sees its distributors as making a market related income with a sustainable return on their investment, there will be no room for unviable distributors.
Whilst this philosophy of having strong and successful distributors is based on operational requirements UNB is aware that assisting and growing distributors enhances its commitment to Corporate Social Responsibility.
UNB expects its distributors to be committed to servicing its retailers and to provide a reliable, consistent service. Distributors will be measured on how successfully they achieve this. Distributors will be given assistance to achieve excellent service but non-performing distributors will be withdrawn.
UNB will provide an enabling environment and the framework to support distributors to grow successful businesses. Tailor-made development plans will be drawn up, within the UNB philosophy to assist in the success of the distributor.
This philosophy is based on the principles of sustainability, commercial viability, empowerment and productivity.
UNB will continue to work with all existing distributors regardless of their size provided that sales targets and service level requirements are met.
New distributors will need to meet the following criteria to be considered as distributors:
- Have business expertise to manage a small business
- Sufficient administrative skills to manage stock and complete necessary documentation
- The ability, drive and interpersonal skills to deliver high performance service
- Proficient in English and the local vernacular
- Knowledge of UNB and its products
- Agree to comply with UNB’s requirements for tracking and measuring sales and sales growth
- Roadworthy and reliable vehicle/s so that service levels are maintained
- Must meet all legal requirements
- Have good financial standing and able to infuse capital when needed.
All distributors will be expected to sign a contract which presides over the relationship between UNB and the distributor.
It is expected that the distributor will at all times ensure that he, his employees and third party agents will conduct themselves in a legally compliant manner. While all laws, legislation and contracts are included here, particular reference must be made to the Liquor License Act and the regulations that pertain to the particular province in which the distributor operates.
Whilst UNB recognizes the environment in which it operates, it is committed to assisting its customers in achieving legal compliance to the Liquor Act.
Key to ensuring that UNB and the distributor have a growth orientated relationship is the ongoing management of the distributor’s performance.
Each distributor, after consultation and with consideration to market conditions, will be given a sales target which must be achieved. In addition distributors will be measured on the level of service that they provide.
Distributors must give consistent service to the retailer, which includes delivering the right products to the retailer at a fair price.
Regular performance reviews will take place between the distributor and the UNB Territory Sales Manager. The review will focus on
- achievement of sales targets as measured by the SR4
- excellent customer service as reflected on the SR4 and client surveys
Should the review identify that there are performance deficiencies, the distributor will be assisted in achieving his required targets. Action plans and corrective actions will be agreed, documented and reviewed. Distributors that consistently do not achieve the required performance standards will be replaced.
These can include:
- Market gap identification
UNB will share information showing the scope of market potential with distributors. UNB’s efforts at developing these markets should be supported by the distributor. Distributors will be assisted and encouraged to take advantage of these gaps.
- Market development
UNB will actively do market development in areas showing potential. New retailers found will be handed to the distributor operating within that area.
- Stable Retailer Base
By virtue of our sales control feedback system distributors will be assisted in developing stable relationships with named retailers. This will result in the distributor operating efficiently and so make more profit.
- Performance feedback
Regular feedback on performance will allow the distributor to see any gaps in performance or to recognize those areas that need attention. The distributor will be measured on:
- planned vs actual sales
- planned vs actual retailers
- planned vs actual service performance
- Sales control compliance
UNB will provide guidance on the process to acquire new and maintain current licenses required by government for alcohol distribution purposes.
- Training and Development
Distributors and their staff will receive sales training on how to sell more to existing retailers, how to find new retailers and how to sell to new retailers. In addition distributors will be educated on how to sustain and improve service to retailers and how to use the information that they receive from the SR4 to enhance their business.