Written by Dominique Huff
Gaining footing in the marketplace is tough for any business. But when your marketplace is within spirits, tobacco, beer, and wine, which are heavily regulated by the government, you can find yourself quickly overwhelmed. And don’t forget that established brands are not too keen on welcoming newcomers to the market. Red Oaks Distribution was founded by Pamela Renae Myles and her husband, Regi Myles, to solve a problem. As vodka and cigar brand owners, they wanted to do more than just talk and complain. They wanted to take action and open doors for others.
Regi recently sat down with Game Changers to discuss the industry's complexities. “We are creating diversity and inclusion in this market. We created Red Oaks out of necessity and survival,” he said. “We were with another distributor that was creating opportunities for us to fail. We had to start to distribute our products.” The Myles were not the only ones experiencing hardships in trying to gain dignity, respect, and support for their brands. No one is asking for a handout but rather an equal opportunity and fair chance. “We are definitely not alone in this, and it goes beyond black brands to other minorities, including women,” he said.
The portfolio for Red Oaks Distribution is very diverse, with noted brands such as Myles Select Ultra Premium Vodka, Drizzle Liqueur and RTD, Rayon XO Cognac, Jerome Renae Premium Cigars, Tipsy Lady Cocktails and NFT Energy Drinks with additional brands coming soon. Myles says the firm takes diversity seriously and guides all decision-making processes. “The larger brands use minority faces for marketing, but the ownership does not look like the marketing or consumers,” he noted. For the NFT Energy Drink, they employ six different NFT campaigns with designs to touch many markets at once. As with any business, brands must recognize that they must build demand for their product, invest in themselves, and become educated and empowered in the industry.
“You have to remember that you are competing with inventory real estate in crowded stores, bars, and restaurants. The product has to sell itself, so that means brands must do marketing and create that buzz that will entice someone to want to put it in their outlet,” he said. Businesses want to make money, and your brand must help them do that.”
Also, a brand needs a distributor; one cannot simply approach a firm on their own to get placement. Distributors know the laws, ordinances, and requirements, have relationships as Myles outlined, and ensure no wasted time or effort. If a brand is not completely ready, they have outsourced firms they refer to to get them ready for distribution.
“All markets are different, and that takes homework when it comes to pricing,” he said. “Several things are regulated, such as the labeling used by the brand and bottles in terms of shipping, which can add to the cost, along with the taxes and pricing regulations. A price cannot be the same in all markets, and you must make sure that your business model can stay profitable at all times.”
Myles urges research and homework before starting a brand, especially regarding marketing and promotions. Even with the complexities, Myles wants to see more minorities get involved in the business. “We need ownership representation that resembles the consumers of the brands,” he concluded.
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