02 Sep

B2B Program Regulated Consumer Goods (Tobacco-Alcohol)

Regulated Consumer Goods Loyalty Program Design

The regulated consumer goods industry isn’t just about producing world-class products. It’s about ensuring those products are stocked, displayed, and promoted in the right venues. All while navigating strict advertising and compliance rules.

Yet, many brands run one-size-fits-all incentive programs across their channel and then wonder why sell-in and sell-out numbers stay flat.

Here’s the reality:
A licensed on-premise bar, a small convenience store, and a duty-free retail operator do not have the same motivation. If you’re rewarding them the same way, you’re leaving volume and visibility on the table.

Let’s talk about designing a program that works for your real channel or auditing your current loyalty program to see why it’s not delivering.

The Tobacco, Alcohol and Related Regulated Products

To design a loyalty program that works in alcohol, tobacco, or other regulated sectors, you first need to understand the market’s unique, fast-changing dynamics.

Key factors influencing program success:

Strict marketing restrictions: Direct-to-consumer advertising is limited or banned. B2B loyalty programs become the main lever for influencing channel behavior.
Compliance-first execution: Every campaign, visual, and activation must meet legal standards — making field verification critical.
Closed-channel operations: Sales happen through licensed outlets, requiring tailored engagement by channel type.
Brand activation at point of consumption: In on-premise venues, brand experience is often more important than price promotions.
Multi-stakeholder complexity: Distributors, venue owners, venue staff, and internal teams all require different incentive models.

Once you understand these dynamics, the next step is to map your channel. That’s where the real design work begins.

Have You Really Mapped Your Channels in Tobacco?

Have you evaluated all of your channel types and identified where the first big wins will come from?

Or, if your primary goal is brand activation rather than volume, have you defined exactly how you’ll measure it from photo compliance to verified training completion?

The winning order is always:

Objective → Define the business goal
Behavior Design → Link actions to the goal
Loyalty Mechanics → Build the right reward system
Agreement → Get all stakeholders aligned
Technology → Enable seamless execution
Measurement → Track, learn, optimize

Whether you aim for sales growth or another outcome, a well-designed program will ultimately deliver more sales anyway.

Consider the sample channel structure below for tobacco, alcohol, or other regulated consumer goods industry and then let’s have a conversation about how to activate it if you’d like to.

Sample Channel Map in Tobacco, Alcohol and Other Regulated Consumer Goods

Channel Type	Examples	Role	Why It Matters for Loyalty
Distributors (Regional)	Efes regional distributors, BAT area distributors	Supply to HoReCa and retail	Volume & penetration targets are critical.
HoReCa (On-Premise)	Bars, pubs, restaurants, hotels	Provide brand visibility during service	Direct consumer touchpoint for brand activation.
Convenience / Small Retail	Licensed convenience stores, corner shops	Main packaged product sales points	Stocking & display compliance must meet regulations.
Retail Chains	Large supermarket chains (where allowed)	Volume sales focus	Some countries restrict or ban chain sales.
Events & Special Venues	Concerts, festivals, sports venues	High on-the-spot consumption volume	Strict compliance checks are needed.
Duty-Free / Travel Retail	Airports, border stores	High-margin sales, global reach	International regulations apply.

New to B2B loyalty? Here’s what exactly a channel is in B2B loyalty programs, the most important concept to master before designing your own program.

Internal Teams: Don’t Forget Your Own People

A B2B loyalty program isn’t just about the external channel. Internal alignment is equally critical. Especially in a regulated industry where you can not advertise properly.

If sales reps, trainers, and customer service teams aren’t working toward the same behaviors you’re incentivizing externally, your program will underperform.

Key Internal Teams to Engage:

Team	Role in Loyalty Success	Engagement Approach
Field Sales	Direct channel partners to targets; ensure menu/display compliance	Volume & activation compliance incentives
Channel Managers	Drive strategy for specific channel types	Penetration & ROI-based KPIs
Trade Marketing	Design compliant campaigns	Measured by activation quality
Training/Activation Teams	Train venue staff on brand & service	Completion-based incentives
Customer Service	Resolve partner issues quickly	Satisfaction & response-time rewards

Tip: Treat internal teams like a “channel” of their own, design their incentives to drive the same measurable outcomes.

Behavior Triggers: The Foundation of Loyalty Design

Before choosing rewards, define the exact behaviors that will lead to your business objectives.

Examples of Behavior Triggers:

Objective	Behavior Trigger	Verification Method
Increase menu presence	Venue lists brand on menu	Photo verification
Ensure campaign compliance	POS displays activation materials	Field photo + approval
Hit target SKU volume	Distributor or retail sells-in target volume	Sales data integration
Complete compliance training	Venue staff or field team finishes module	Platform completion data
Execute new product launch	All channel partners participate in launch	Sell-in & photo verification

Every trigger must be verifiable. This ensures rewards are tied to real impact, not just participation.

Reward Models: Matching Incentives to Behavior

Once behavior triggers are clear, the right reward model makes them stick.

Common Reward Models:

Model Type	Best For	Example
Points-Based Outcome/Target-based	Sustained, multi-behavior engagement	Earn points for volume + compliance to redeem in catalog
Target-Based Bonus	Quick sales or penetration wins	Quarterly bonus for hitting volume target
Instant Activation Reward	Event or launch participation	“Activate now, earn reward instantly”
Training Rewards	Driving compliance knowledge	Complete compliance module for a bonus
Gamification	Venue visibility contests	Photo verification for menu/branding

Mix and match models based on the complexity of your channel. One size never fits all.

Case Study: Efes Pilsen/AB InBev Loyalty Program

Challenge:

Efes Pilsen (part of AB InBev) needed to increase brand visibility, compliance, and volume across on-premise and off-premise channels — all within strict regulatory frameworks.

Approach:

Mapped channel structure across distributors, HoReCa, convenience, events, and travel retail.
Defined behavior triggers tied to both sales (volume, penetration) and compliance (display, training).
Used a dual-layer incentive approach — rewarding both the business entity (venue, distributor) and individual staff members.
Integrated real-time photo verification and sales data tracking to ensure rewards were linked to proven outcomes.
Designed activation calendars aligned with seasonal demand and major events.

Results:

+22% increase in verified menu placements in HoReCa venues.
+15% lift in volume in targeted SKUs.
90% compliance rate in campaign execution across participating outlets.
Stronger distributor relationships through shared activation ROI tracking.

Why It Worked

Because the program didn’t just incentivize sales — it aligned every stakeholder’s motivation, from the distributor to the bartender, and linked every reward to a measurable, compliant behavior.