Blog

NBWA Associate Member VXP discusses in their Associate Member Viewpoint how to make NA a key part of your revenue stream

By Bud Dunn, President, Volume X Profit Technologies (VXP)

As consumer tastes shift and traditional beers struggle to find their footing, many beer distributors are looking to non-alcoholic (NA) products as a path forward. But this shift isn’t just about adding SKUs—it’s about rethinking merchandising strategy, internal culture and how we reward reps.

Forward-thinking reps are transforming their cooler doors — and how distributors can reframe loyalty, creativity and compensation to unlock real growth from NA brands.

Merchandising That Pays Back—Every Month

Take Sam, a sales rep in New York. He walked into a busy deli with low beer sales but strong foot traffic and a high-turnover NA set dominated by major soda brands. Historically, these sets weren’t worth the rep’s time—until Sam approached the space with a volume and profit mindset.

By reworking two cooler doors in just one visit, Sam reorganized the shelves to feature high-margin NA items. He didn’t just jam new products into tight quarters—he consolidated over-shelved beer items to free up valuable real estate. The result: a well-merchandised cooler designed for velocity and profitability. And because he aligned that merchandising with his compensation program, Sam will see that hour of work pay back every single month.

 

Breaking the “Beer Rep” Mentality

For many sales reps—and their managers — NA still lives on the periphery. There’s often a mental roadblock: major soda brands “own” the space. But as Sam’s example shows, that perception is often outdated. There’s real flex space in these coolers — if reps ask the right questions and show creativity in execution.

But creativity doesn’t happen in a vacuum. It needs tools, support and most importantly — compensation that matches the effort. Many distributors are testing what we call “shadow commissions”: small per-case incentives added onto NA brands or wine and spirits to drive attention. But we’re seeing those fail for one simple reason: they’re just not enough money to matter.

The work required to merchandise NA — especially single-serve energy drinks, waters or juices — is real. Reps often spend 20+ extra minutes per stop stocking, ordering and organizing these SKUs. If they’re getting 10 cents a case in exchange for that time, it won’t stick. But when aligned correctly, this effort becomes a long-term income stream.

“NA shouldn’t be extra work—it should be extra money.”
— Mike Hall, Director of Customer Success, VXP

Aligning Compensation with Company Goals

Distributors who get it right are aligning NA profits with their gross profit-based comp systems. Reps don’t just get rewarded for cases—they’re rewarded for profit per CE and for creating long-term sales lift. They understand their effort-to-return ratio, and they’re incentivized to build brands the right way.

This also reduces the need for siloed NA reps or special “cleanup” teams. Instead, every rep in the market becomes a total beverage rep, empowered to grow the entire portfolio—beer, NA, and everything in between.

Rethinking Loyalty in the NA Game

One big takeaway: NA loyalty is not beer loyalty.

In the three-tier system, supplier-distributor relationships are often built on decades of mutual trust. That’s not always the case with NA brands. Many of them are looking for an eventual exit. Distributors must be prepared to build and grow these brands — but also protect their own profitability when brands move on.

That’s why one emerging trend caught our eye: a major supplier’s recent NA partnership with an energy drink includes a contractually guaranteed 5x gross profit buyout if a distributor is terminated. This is a major shift from typical 1x or 2x termination clauses. Whether the strategy is a response to distributor feedback on previous NA contracts — or a sign of smarter financial engineering — it represents a new approach to economic alignment between supplier and distributor.

It also signals that loyalty may increasingly be tied to economic structure, not just relationship history.

Culture Change Is Key

Culture doesn’t change with a memo. It takes operational clarity, aligned incentives and leadership buy-in. That’s why the most successful wholesalers are rethinking their approach across the board.

The NA game is complex, fast-moving and often high-effort. But with the right approach — focused on profitability, creativity and aligned incentives — distributors can make it a real engine of growth.

Reworking the cooler isn’t just a one-hour project. It’s a mindset shift. And like Sam showed us, it pays off — month after month.

About the Author

Bud Dunn is the President of Volume X Profit Tech (VXP). He is passionate about the intersection of data, strategy, and motivation. With a focus on creating driven sales teams, Bud brings decades of experience in the beverage industry, starting with his family-owned wholesaler, Atlas Sales in Battle Creek, MI. At VXP, he works closely with beer distributors to design smarter sales incentives, reduce inefficiencies, and unlock highly profitable growth. Bud is a seasoned speaker at global and national industry events, including NBWA, the Next Generation Conference, Beer Business Daily Summit, and supplier summits around the world.

📩 Contact: bud@vxptech.com

Want to Learn More?

If you’re looking to dive deeper into how cooler resets, compensation strategies, and NA category planning are transforming distributor operations, check out Tapped in Sales Episode 56: Rewriting the NA Playbook: Coolers, Culture, and Creativity. In this episode, Bud, Mikey, and Ross break down the tactics, challenges, and mindset shifts required to win in today’s evolving beverage space. You’ll hear the full story behind Sam’s reset, the economics of NA incentives, and why distributors must rethink traditional loyalty and ROI models.

🎧 Listen to Tapped In Sales Episode 56 wherever you get your podcasts.