What are the impacts of Diageo's new wholesale policy requiring 30 designated wholesalers and £2m purchase thresholds for direct supply?

Diageo has implemented restrictive new wholesale rules that significantly reshape how independent retailers and smaller operators can access their products. The policy cuts direct supply access to only 30 approved wholesalers and requires cash-and-carry (C&C) customers to reach £2m in annual purchases (invoice value excluding VAT) to qualify for direct supply.

**Key impacts:**

- **Around 40 retailers lose direct access** — approximately 40 smaller wholesalers previously supplied directly by Diageo now must purchase Diageo products indirectly, often from their competitors, creating a significant market disruption and widespread upset in the trade.

- **High purchase threshold barriers** — The £2m purchase requirement effectively excludes smaller independent retailers and venues from direct supply, forcing them into indirect channels.

- **Concentration of power** — The policy limits distribution to only 30 designated wholesalers, reducing competition and potentially increasing margins across the supply chain.

**Market observations:**

Members noted this creates "a lot of upset in the trade" and flagged potential consequences: some traders are positioning themselves to exploit the disruption, and there's speculation that UK stock availability changes could create arbitrage opportunities at international borders. However, members also recognised potential opportunities emerging from the wholesale space upheaval for new entrants and alternative routes to market.

**Note:** The community discussion did not provide a detailed list of the 40 affected wholesalers or the 30 approved ones.