---
title: "How Can Beverage Manufacturers Strengthen Their Foodservice Channel?"
description: "The foodservice channel is crucial for beverage manufacturers as it allows consumers to taste products directly, increasing repeat purchases. To succeed, manufacturers should segment the market, target specific restaurant types, and engage in deep cooperation with restaurant owners."
author: "洋洋不会得意"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-03-03"
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# How Can Beverage Manufacturers Strengthen Their Foodservice Channel?

> The foodservice channel is crucial for beverage manufacturers as it allows consumers to taste products directly, increasing repeat purchases. To succeed, manufacturers should segment the market, target specific restaurant types, and engage in deep cooperation with restaurant owners.

**Click the image for details**
Anyone in the beverage industry knows that the foodservice channel is an essential and important channel for beverage manufacturers to expand. Because beverages in the foodservice channel are purchased and tasted directly by consumers, if consumers find the taste good, the likelihood of purchasing the product again increases significantly.
Therefore, the foodservice channel is recognized as the best place for consumers to get to know a brand and experience a product.
Since the foodservice channel is so important for beverage manufacturers, how can they strengthen and expand it?
**1: Market Segmentation, Choose Products Based on Local Conditions**
Generally, beverage companies divide the foodservice channel into four categories:
**Category A: Star-rated hotels and high-end clubs**
Consumers in this channel focus on health and quality, so products with premium packaging are suitable, along with high price and high profit margins. Beverage companies place products here to lead consumer habits and drive recognition among middle- and high-income groups.
**Category B: Restaurant-style and business hotels**
Consumers in this channel are mainly business and official consumers. Due to strict government restrictions on official consumption, this channel is no longer suitable for high-end products, but rather for mid-range products. This can help build brand image and increase sales.
**Category C: Food stalls and specialty restaurants**
Consumers in this channel are mainly family gatherings and friend gatherings, making it particularly suitable for small and medium-sized beverage products. Of course, popular products from major brands also fit this channel. Brands like JDB, Yinlu, Want Want Milk, and Six Walnuts place great importance on this channel.
**Category D: Fast food restaurants and food courts**
Consumers in this channel eat simply and quickly with limited spending power, making it suitable for canned and large bottled beverages. Products like cola, juice, and soy milk can focus on expanding this channel.
**2: Focused Investment, Hit the Snake at Its Head**
Although restrictions on official consumption have had a significant impact on the foodservice industry, it still cannot stop the rapid development of the industry. In 2015, hotpot had the fastest revenue growth, fast food had the highest average gross margin, and hotpot still had the highest average net margin.
Therefore, beverage companies should choose a specific segment of the foodservice industry based on their product characteristics and allocate personnel and expenses where they can create the most value.
In March 2016, the famous herbal tea brand Wanglaoji signed a strategic cooperation with Chongqing Hotpot Industry Group to fully enter Chongqing's foodservice industry;
In June 2016, Danone Mizone launched 330ml canned "XIQI" and 400ml "Foodie Pack" for the foodservice channel;
In the winter of 2016, Wahaha also entered the herbal tea competition, trying to get a share of the herbal tea market. I learned from the WeChat public account of Food Board that Wahaha's herbal tea product is **Shentangcao Herbal Tea**, with a specification of 1.5L and a price of 12 yuan. It is positioned as "relieving winter dryness," creating a herbal tea product that meets winter needs.
Beverage companies entering the foodservice industry should avoid spreading their efforts too thin, as this yields little effect. Instead of casting a wide net, it is better to focus on key areas, establish pilot markets in small regions, and then expand to other markets after successful promotion.
**3: Deep Cooperation, Win-Win Outcomes**
After placing products in foodservice outlets, beverage companies should not only focus on product sell-through but also cultivate brand loyalty in the foodservice channel and provide social scenarios.
Moreover, they should establish deep cooperation with restaurant owners. Beverage companies should provide abundant advertising materials support, such as table cards, meal cards, chopstick boxes, toothpick boxes, and restaurant signs, to enhance the storefront image of key customers while promoting the beverage brand.
In daily operations, companies can engage in cross-industry cooperation with foodservice outlets, conducting activities like free samples, lucky draws, and buy-one-get-one offers, and establish incentive mechanisms to motivate waitstaff to recommend your products to customers.
The foodservice market has huge capacity. Since "food" and "beverage" are combined, beverage companies should pay more attention to the foodservice channel.
**"Food is the first necessity of the people; those who win the foodservice channel win the world."** This phrase should be remembered by all beverage industry peers. I hope beverage companies do not ignore it and make the most of this opportunity.
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