Gerald and Robert Powers are looking to pass the entrepreneurial torch to another generation of family beverage distributors. The two co-presidents oversee Powers Distributing, a Michigan-based family operation that sells and distributes over 135 high-image beverages, including some of the finest domestic, import, and craft brews.

Driving the company's growth is a commitment to creating value-added services for suppliers and retailers. Value-added activities include merchandising at the account level, creating special promotions, and handling product rotation and distribution. In addition, knowledgeable salespeople at Powers Distributing use DVD presentations to inform their clients about individual products. The sales efforts are paying off: Powers has the highest distribution in its region for Heineken Premium Light, one of its newly offered brands.

Yet keeping up with national trends can be a challenge for regional distributors. Anheuser-Busch recently signed exclusive distribution agreements with both Hansen Natural Corporation and the Goose Island Beer Co.—big brands with high volume sales. The top brewer also has entered the craft beer market, offering up Beach Bum Blonde Ale and Jack's Pumpkin Spiced Ale. Such product developments put pressure on smaller, regional firms.

Other threats exist on the transport and logistics side of the business. Since adopting a "born-on-date" freshness code in the mid-'90s, Anheuser-Busch has raised the stakes on rapid delivery—even inventing the idea of "same-day" delivery. Its commitment to freshness is touted through brewer-sponsored "Freshness Days," special promotional events where distributors transport fresh-brewed Bud to national retailers for consumption within 24 hours. The same-day idea has raised consumers' expectations for freshness and put the heat on small businesses like Powers.

Despite national pressures, Powers Distributing appears poised for continued growth. And for Gerald and Robert Powers, sales and marketing excellence is the key to overcoming competitive challenges.