What are the red flags to watch for when vetting drinks distributors, and which ones should we approach carefully?

Members have identified several concrete warning signs when evaluating distributor partnerships:

- **CLF Distribution** — useful for whole foods and convenience retail, but members report they are slow to generate sales, expensive to work with, and typically stock only slower-moving ROS (rest of store) locations unless you have a clear health angle. Several members flagged that they demand large upfront marketing invoices before opening orders, which is a major red flag. - **Upfront marketing invoices** — This is the most frequently cited warning. Members have been burned repeatedly by distributors demanding significant payment for marketing activities before orders materialize. The consensus is never to pay large sums upfront; these rarely pay back and indicate misaligned incentives. - **Imbalanced cash flow** — If you're spending significantly more money with a distributor than they're spending on your product (in marketing, placement, or promotion), that's a sign of an unfavorable arrangement. - **Slow or selective placement** — Distributors who stock only slow-moving shelf space or who heavily gate placements behind health claims or angles may not be worth the effort, depending on your product category.

Members recommend scrutinizing contract terms carefully and being wary of any distributor asking for upfront cash commitments that aren't clearly tied to guaranteed sales or placement.