The subject of this paper is the role and importance of distribution channels. The aim of the paper is to analyze the role of distribution and the distribution system and to determine the influence of distribution on the overall business of the company. Distribution implies the efficient transfer of services or goods from the place of production to the consumer with minimal costs and an appropriate level of customer satisfaction. Distribution channels are channels through which products are transferred from producer to consumer, and they can be direct (no intermediaries) and indirect (with wholesale and retail companies as some possible intermediaries). The paper analyzes the distribution channels of the company Mlija d.o.o., with focus of the distribution of Palaciego salami as the company's best-selling product. The company Mlija d.o.o. is a wholesale company that distributes products from manufacturers to retail companies in the distribution channel. The paper also carried out qualitative research in the form of interviews with the aim of obtaining feedback from sellers and customers about Palaciego salami in selected branches of the company Tommy d.o.o. in Split and company Studenac d.o.o. in Omis.