For most emerging brands, route-to-market decisions come down to two well-worn paths: go full DSD distribution and build deep in-region coverage, or partner with warehouse distributors and accept lower-touch support in exchange for wider reach.
But in 2025, those binary choices are starting to break down.
The truth is, most $10M–$100M brands live in the middle—too complex for passive models but not yet built for national DSD distribution infrastructure. That’s forcing founders, sales leaders, and operations executives to rethink what “RTM” actually means at this stage—and how to build a model that adapts with them instead of boxing them in.
This blog unpacks why traditional routes-to-market aren’t working for mid-stage brands, what hybrid models look like in practice, and how to structure your talent, tools, and partnerships for a more resilient go-to-market system.
The DSD Myth: Why Distribution Isn’t a Cure-All
DSD distribution has long been seen as the gold standard for beverage and perishable brands. The appeal is obvious: weekly store visits, built-in merchandising, dedicated account managers, and better shelf control.
But that visibility comes at a price—and for many brands, the ROI just doesn’t hold up.
The margin cut is steep. Access to reps is inconsistent. And unless you’re one of the top-performing SKUs in a given warehouse, you’re unlikely to see the kind of high-touch support that DSD promises in theory.
For brands under $25M, especially those launching in niche or premium categories, DSD distribution often creates more friction than momentum. You’re forced to grow into a cost structure that doesn’t match your current volume, and your brand ends up over-distributed and under-supported.
On the flip side, warehouse distributors offer broader coverage but almost zero follow-through. They’ll get your product into the store, but they won’t check that it’s selling—or even stocked.
This is where most mid-stage brands get stuck: they’ve outgrown the scrappy self-distribution model but aren’t yet positioned to compete for share-of-wallet within a big distributor’s portfolio. That’s where a hybrid route-to-market strategy comes in.
What a Hybrid RTM Model Actually Looks Like
A hybrid RTM model combines elements of DSD, warehouse, and self-managed retail execution to match your brand’s footprint, velocity, and growth goals. It’s modular by design—and built to evolve as your needs change.
Here’s how it often plays out for $10M–$100M brands:
• Metro DSD: You partner with smaller, regional DSD providers in high-density urban areas where velocity can justify the added cost. These markets are usually home to your most engaged retailers, and higher store counts allow you to amortize the DSD margin over stronger volume.
• Warehouse Distribution for Long Tail: In less dense markets or for chains with national warehouse systems, you stick with lower-touch warehouse distributors. But you supplement those accounts with field support (more on that shortly) to make sure product doesn’t sit idle.
• Internal Retail Execution Teams: Whether full-time, part-time, or shared, you deploy your own reps to cover priority stores. These reps can troubleshoot display compliance, manage backstock, educate store staff, and feed insights back to HQ. Think of this as the connective tissue between routes.
• Direct Relationships with Strategic Retailers: In some cases, especially in natural and specialty, you may go direct or work through unified platforms like Pod Foods or Mable. These retailers expect brands to play a bigger role in logistics and promotion—but the tradeoff is stronger in-store control and data access.
This model isn’t just a patchwork—it’s a portfolio. Each route exists for a reason, and together they help you optimize for cost, coverage, and control in different regions.
The Role of Technology in Scaling Smarter
A hybrid strategy isn’t viable without the right infrastructure. As brands diversify their distribution stack, they need tools to bring everything together—so nothing gets lost in the gaps.
That starts with field reporting platforms that can standardize data across routes. Whether you’re using a full CRM like Repsly or something lighter like BrandKeep, your goal should be real-time, store-level visibility. Reps need to capture photos, note issues, and log actions in a way that ties directly to sales outcomes.
It also means upgrading your demand planning and inventory forecasting systems. If you’re routing pallets to three different types of distributors, you need to understand where product is moving, where it’s stalled, and how to adjust allocations accordingly.
For brands in the $10M–$50M range, it’s often the first time these functions move out of spreadsheets and into structured systems. And while the learning curve can be steep, getting visibility now prevents far more expensive missteps later—especially when you start chasing national retail opportunities.
Why Retailer Relationships Still Matter More Than Logistics
No matter which distribution route you use, retailers will judge you on one thing: whether your product sells.
That’s why the best mid-stage brands don’t stop at “getting on the shelf.” They invest in building store-level relationships—with managers, department heads, and buyers. These brands support displays. They run demos. And they fix backroom stock issues before they become lost sales.
Route-to-market is not just about how your product moves through warehouses—it’s about how your brand shows up in stores.
This is where your retail team comes in. Even if you don’t have a full-time field staff, you need some version of boots-on-the-ground support to drive velocity. That could mean shared reps, contractors, or a lightweight in-house team. What matters is consistency and accountability.
Because no route-to-market strategy works if the store execution is broken.
Milestones That Signal It’s Time to Shift Strategy
So how do you know when it’s time to rethink your RTM?
Here are three common inflection points:
At $10M: You’re likely working with warehouse distributors or going direct. Field support is patchy, and coverage gaps are starting to show. This is the time to test outsourced retail execution and begin tracking store-level data to identify high-potential regions for deeper investment.
At $25M: Your retail footprint is growing, and your internal ops team is likely overwhelmed. At this stage, you need to formalize your field program, explore regional DSD in key cities, and implement real systems for demand planning and distributor management. You should also evaluate whether existing partners are still fit for scale.
At $50M+: You’re being approached by national retailers and facing pressure to scale quickly. This is when route-to-market mistakes become expensive. It’s time to evaluate broader DSD contracts, consolidate execution tools, and potentially bring on VP-level leadership across sales and ops.
Each stage brings new complexity—but also new leverage. The earlier you build flexibility into your RTM model, the easier it is to adapt at each growth phase.
Rethinking Talent Around Route-to-Market
One of the most overlooked aspects of route-to-market planning is talent.
If your RTM model is evolving, your hiring strategy needs to evolve with it.
For example, brands that were built on direct or natural channels often find themselves lacking the sales infrastructure to manage larger DSD relationships or regional distributor negotiations. Others might have great marketing chops but no field execution experience on the team.
At this stage, fractional or interim leadership can play a big role. Whether it’s a VP of Sales to evaluate regional partners or a field execution lead to build internal systems, having targeted support can prevent months of trial and error.
Likewise, building a nimble, hybrid field team—part W2, part 1099, part shared—gives you flexibility without committing to a bloated payroll.
As your route-to-market strategy grows more complex, the people managing it need to be just as sophisticated.
Conclusion
There’s no one-size-fits-all route-to-market anymore. And for brands sitting in that $10M–$100M range, the smartest path forward usually isn’t choosing between DSD distribution or warehouse—it’s building a hybrid strategy that meets your footprint where it is and scales with where you’re going.
At Ace Talent Curators, we help brands at this stage find the sales, ops, and execution talent needed to build smarter distribution systems—without burning runway on the wrong hires or outdated playbooks.
If you’re mapping your next phase of growth and need a clear-eyed perspective on your RTM model, reach out here. We’re happy to help you pressure test what’s working—and what’s not.
