What are the key risks to watch for when working with wholesale distributors, and how should we protect ourselves from unethical practices like false trial arrangements, stock-on-return pressure, and promotional disputes?

Distributors using aggressive tactics often employ several patterns worth protecting against. Members have experienced repeated issues: false claims of 'trial' arrangements not documented in the Joint Business Plan (JBP), retroactive demands for stock-on-return (SOR) after extended trading periods, dismissive communication that disregards relationship handovers, and promotional settlement disputes.

**Key protection tactics:**

- **Document everything in writing.** Ensure all terms—including whether an arrangement is a trial, permanent, or SOR—are explicitly stated in the JBP and signed contracts. Verbal agreements or informal meetings with previous employees carry no weight if the distributor later contradicts them.

- **Scrutinise promotional mechanics.** Members have found distributors claiming inability to track which venues redeemed promotional offers (e.g., "buy 3 get a tray" deals). Refuse to fund unverified promos. One member and their co-brand partner demanded proof of venue redemption before settling costs; when the distributor couldn't provide it, they withdrew support.

- **Monitor for grey-market diversion.** If you supply a distributor at one price but hear reports of your stock appearing in other regions at lower prices, it's a red flag for unauthorized resale. Northern distributors may be offered stock at discounts that don't match your official supply terms.

- **Escalate patronizing behavior professionally.** Members report receiving dismissive, condescending communication from senior buyer contacts who ignore relationship transitions or override your proposals. Document these interactions and consider escalating to their management, framing it as a reputation and partnership concern rather than a complaint.

- **Share intelligence quietly.** A collective awareness of problematic buyer behaviour can inform decisions (e.g., "Do not supply"), but frame any feedback conservatively and avoid naming specific individuals unless formally addressing concerns.

- **Expect recurring pressure.** Some distributors demand monthly promotions with minimum thresholds (e.g., 3+1 or better every month) and treat brochure fees as significant profit centres. Be prepared to decline unsustainable demands.

**Caveats:** The group discussed reputational risk and legal exposure carefully—a shared internal watchlist could theoretically invite legal challenge, so any communication about problematic distributors should remain factual and internal to the collective. Direct confrontation of bullying behaviour can sometimes be effective (calling out poor conduct professionally), but several members reported that aggressive distributors "already know they have that reputation and don't give a shit," suggesting escalation or termination of the relationship may be the only viable option.