Port and the 3-tier system

[Roy Hersh]

Are agents/importers a necessary cog in the wheel?

Knowing the majority of Port importers in this country and their solid ethics, I understand the positive aspects of what they do for consumers and it is considerable.

But the question must be asked, does their presence cost consumers more than necessary, or are is the service they provide, one that is worth every penny?


In full disclosure: some importer are friends or acquaitences and some provide samples for TN's that are used in the FTLOP newsletter.

[Glenn E.]

Personally I think the extra tier is the distributor level. If I controlled the system I would combine the importer and distributor levels and keep the retailer level as it is, though I'd also make it easier for consumers to buy directly from the new importer/distributor level if they wanted to.

[Tom Archer]

Whilst cutting out the middle man is always a laudable strategy, when possible; the bigger irritation for me is the willingness of the shippers to tolerate distributors who don't make enough effort, or are too greedy.

Whilst I'm tempted to name names, I'll resist for the moment..

- One well known company has a sole UK distributor, who in turn has appointed a sole (and obscure) retailer - result: no trade prices available for retailers, and virtually nothing sold in the UK..

- One very well known UK agent lists only a minority of its client's products, and tends to ignore emails enquiring about the other products..

- One well known producer has an active UK agent who appears to command such a high margin that his client's products are amongst the most expensive in the UK, a price that is not supported in the secondary market..

- Another group of companies has effectively exited the UK market, either because their agents are too greedy, or the parent company's price expectations are wholly unrealistic - whatever, virtually no VP gets sold, and little besides, despite them having some of the best known brands from the past (in the UK)

In other fields, an agent is given a target for sales, and can expect to be sacked if he doesn't deliver..

..the shippers should expect more!

Tom

[Moses Botbol]

I don’t like how it cuts out the individual to go direct to the importer. The 3-tier may be effective in the large distribution sense, but let the consumer get their booze how they see fit! Free markets are the best model (at least for the consumer). MA does have some of the lowest liquor prices in the world and we have a 3-tier system, so go figure.

[Roy Hersh]

Tom,

No wonder the UK has slipped out of the Top 5 importers of Port in the world.

We have similar issues here. There are big names in the Port trade where it is next to impossible to find their juice here, even with a cash-rich importer behind them. In the case I am alluding to, wines from other countries are focused on when selling to distributors and this specific Port brand is all but ignored. Very sad to see. I am talking about a company that has been around for well over a century!