---
title: "Four Key Points for Beverage Sales in the Foodservice Channel"
description: "The foodservice channel, including hotels, restaurants, and bars, is crucial for beverage brands. This article outlines four key strategies: selecting the right distributors, incentivizing initial orders, motivating staff with rewards, and engaging consumers to drive repeat purchases."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2014-06-13"
language: "en"
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# Four Key Points for Beverage Sales in the Foodservice Channel

> The foodservice channel, including hotels, restaurants, and bars, is crucial for beverage brands. This article outlines four key strategies: selecting the right distributors, incentivizing initial orders, motivating staff with rewards, and engaging consumers to drive repeat purchases.

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“He who wins the foodservice channel wins the world.” The foodservice channel, represented by large hotels, Western restaurants, Chinese restaurants, diners, hotpot restaurants, barbecue stalls, bars, and pubs, has always been a “fortress” that beverage brands compete for. Especially in recent years, with the rise of consumer health awareness and the introduction of measures such as strict penalties for drunk driving, foodservice beverages have shown a steady upward trend.

With the development of the tertiary industry and changes in people's consumption venues, the foodservice channel is bound to become a “high ground” for beverage companies to build brand image, promote new products, and create market sales. However, as more companies enter, foodservice beverages have also fallen into vicious competition. How can beverage companies successfully occupy the foodservice channel? Based on years of practical experience, the author summarizes four key points to drive market sales, which are shared with readers here.

**Ride the Wave to Grasp Distribution**

As we all know, for a new product to successfully launch, the first step is to complete the channel member layout through distributor recruitment. When beverage companies start recruiting distributors for the foodservice channel, they should choose different distribution and delivery partners based on their product positioning. Ultra-high-end products should prioritize clients who distribute high-end dry red wine and imported spirits as distribution partners. Mid-to-high-end products should choose clients who distribute strong local baijiu. Low-end products should choose clients who distribute beer. Leverage their existing foodservice networks to quickly start the market and distribute products.

Wanglaoji, whose product sales are currently booming, was only sold in Dongguan, Shenzhen, and southern Zhejiang before 2003, with sales of only 180 million yuan in 2002. Starting in 2003, Wanglaoji segmented its sales channels, using “fear of getting heaty” as a selling point, and quickly developed a team of distributors specifically for the foodservice channel to start the foodservice market. This led to an unstoppable rise, making it “China's No. 1 can.”

**Use Purchase Incentives to Get into Stores**

To start the foodservice channel, you must complete the distribution and store entry actions. So, how can beverage brands complete the foodservice channel distribution and store entry? First, for star-rated hotels and A/B-class hotels, negotiate the lowest entry fee to achieve product placement. Second, for mid-to-high-end foodservice hotels, implement tiered purchase incentive policies to achieve product placement. Third, for small and medium-sized foodservice outlets, use small incentives such as “buy one case of beverages, get a bag of laundry detergent” to achieve store entry.

During my earlier service at Taishan Beer, to quickly start the foodservice channel, I once planned a large-scale store entry incentive program with the theme: “Bull Bull Bull, first order 39,000, win a 7-day Hong Kong-Macau tour! Fa Fa Fa, first order 28,000, a Lenovo computer sent to your home!” After the store entry incentive activity ended, not only did we achieve store entry in 279 foodservice hotels, but we also achieved product sales of over 5 million yuan. It was truly killing two birds with one stone.

**Use Cap Rewards to Motivate Staff**

Product distribution and store entry are only the first steps of product sales. After entering the store, the key is to promote product sales through staff recommendations. So, how to motivate staff to actively promote your product? First, provide warehouse withdrawal commissions to motivate warehouse managers. Large foodservice hotels have dedicated warehouse keepers; you can give them a certain commission based on the number of cases shipped to prevent them from holding back your product. Second, use display incentives to motivate the bar counter. The size of the bar counter display area directly affects product sales; give gifts or commissions to bar counter staff to ensure your product is placed in the best position with the largest display space. Third, use cash cap rewards to motivate waitstaff. Pay attention to and win over waitstaff in private rooms and the main dining hall; they play a “final kick” role in product sales in the foodservice channel.

Huiyuan Juice started through the foodservice channel. Its 750ml 100% juice, specially for the foodservice channel, has always adopted a “cash for bottle caps” promotion strategy. Hotel waitstaff can exchange each bottle cap they recommend for 3 to 5 yuan in cash. “Under heavy reward, there must be brave men.” Driven by the cash cap policy, Huiyuan Juice became China's No. 1 juice brand! According to AC Nielsen data, Huiyuan's market share in the 100% juice segment is as high as 52%, holding a monopoly position in the market.

**Use Consumer Interaction to Drive Repeat Purchases**

“Repeat purchases depend on interaction.” With the abundance and surplus of goods, the shortage economy era where “manufacturers produce what merchants sell, and consumers buy” is gone forever. So, how should consumer interactive promotions be carried out in the foodservice channel?

First, free samples, tastings, and product distribution. Initially, Coca-Cola's Minute Maid Pulpy Orange had poor repeat purchases, and even large amounts of aged stock appeared at the terminal. To quickly handle aged stock, Coca-Cola Qingdao Branch adopted interactive promotions such as distribution and free tastings in small and medium-sized foodservice outlets, university cafeterias, and unit canteens. This turned a product that was about to be delisted due to poor repeat purchases into a hot seller by “clearing old stock.”

Second, brand image building. Wanglaoji continuously stimulates consumers' eyes by placing brand building materials such as store signs, menus, recipe books, notice boards, toothpick holders, and chopstick holders in the foodservice channel, tirelessly telling consumers “Fear of getting heaty? Drink Wanglaoji.” Third, methods such as “buy one get one free,” “consumption lucky draws,” and “prize quizzes” can help consumers further understand and experience the product, thereby building brand loyalty and taste preference.

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