What are the key challenges and costs involved in exporting drinks to the United States?

US market entry involves significant hidden costs beyond standard wholesale margins, particularly through deductible charges that major retail channels impose.

**Key cost challenges:** - **Deductibles and slotting fees** — Major US retail channels deduct as much as 65% of invoices through slotting fees, promotional chargebacks, and other deductibles. Distributors may not receive full payment on invoices due to these recoupments. - **Specialized recovery services** — Some expensive consultants exist solely to fight these deductible charges on behalf of brands and recover funds, taking a cut of what they recoup. (This mirrors services available in the UK, where companies specialise in reclaiming overcharged supermarket promotion fees.)

**Contract canning in the US:** - Members strongly advise steering clear of US contract canning unless you have significant capital reserves. The costs are prohibitively high for most early-stage brands.

**Overall sentiment:** The US market is described as "a messed up market" with structural costs that make entry challenging without substantial backing.