Food and beverages industry in Tanzania is experiencing stiff competition, however despite of the existing competition yet companies are still using similar distribution models. Therefore this study aimed at studying the effect of marketing channel differentiation on organization performance a case of Sayona Drinks Limited. Specifically the study was guided, to identify types of distribution (marketing) channel strategies being used at Sayona Drinks Limited , to establish factors that have contributed to adoption of differentiated marketing channel strategies by Sayona Drinks limited , to determine sales volumes, market share and customers‟ satisfaction with the applied distribution channel strategies at in 2014-2018 period, to determine how the adoption of differentiation strategies by marketing channels have contributed to the distribution member performance. Also the study was guided by Economic Distribution Channel Theory. This study adopted descriptive design utilizing both qualitative and quantative approach. Data were collected in a sample size of 136 through questionnaires and interview. Also data were analyzed using SPSS. Finding of the study revealed that the Sayona Drinks limited distributes its products through independent wholesalers and retailers, also the study revealed that the channel members are combination of independent and interdependent intermediaries. It was found that Sayona Drinks Limited controls flow of goods and support services from manufactures to the end user through sales on marketing channel (use of intermediaries). The study concluded that sales revenue is used as the performance measure at Sayona Drinks Limited and the performance is realized through increased sales volume as a result of differentiation distribution strategy.