How are wholesalers responding to major drinks brands moving to direct-to-customer and direct-to-venue sales?

Members see direct-to-consumer and direct-to-venue models as a structural threat to traditional wholesalers' core business. The consensus is that high-volume house-pour products (typically 80% of wholesaler revenue) are migrating directly to brands and large venue groups, leaving wholesalers to compete for lower-margin, specialist products.

**The shift in play:** - Major brands like Diageo are now restricting wholesale distribution to only large operators (£2M+ minimum), cutting out mid-tier wholesalers entirely - Large venue operators (e.g., Stonegate) are increasingly buying direct from brand owners to capture margin, cutting out the middleman - Members note that both brands and venues are "desperate to cut and gain the extra margin" — the financial incentive is overwhelming

**How some wholesalers are adapting:** - **Speciality Wines** (noted in members' accounts analysis) has pivoted to a premium-focused, high-margin strategy: they specialise in premium spirits with ~32% gross margins (versus low-margin volume plays), operate about 20% wholesale business, and generate significant revenue from direct-to-consumer channels like Whisky Exchange, particularly into overseas markets (USA). Members praise their knowledgeable staff, excellent service standards, and refusal to compete on volume - Contrast with traditional high-volume wholesalers (e.g., Matthew Clark) who rely on low-margin, mainstream brand ranges and volume to survive

**The grim outlook for traditional wholesalers:** Members describe traditional wholesalers as "fucked" — losing 80% of revenue if major brands go direct means the "crumbs in the pie plate" (specialist, premium, and niche products) won't generate enough volume to sustain current operations. The strategy appears to be: either pivot upmarket to premium/specialist, or disappear.