What should you do if a distributor or co-packer suddenly shuts down or goes out of business?

This is a real risk in the drinks industry. Members who experienced unexpected closures (such as the Brittains Beverage situation) report it can be a major disruption to recover inventory.

**What happened in practice:** - Members caught in the Brittains closure faced an "absolute nightmare" trying to recover liquid, boxes, capsules and other materials held at the facility - Recovery required "determination" and direct effort to retrieve goods; it was not straightforward or automatic - Some suppliers may have a significant proportion of bulk inventory stored at a single facility, creating concentration risk

**Preventative steps members suggest:** - Before committing inventory or materials to a distributor or co-packer, understand their operational footprint and consolidation risks (e.g. whether they operate multiple sites that might be rationalised) - Consider requesting vetting help from the DBT (Drinks Business Trust), which maintains an accredited buyer list as a baseline check - Build relationships directly with your co-packer/distributor contacts so you have a personal channel to escalate if warning signs emerge

**Caveats:** - Even with warning, recovery of goods is time-consuming and resource-intensive; there is no automatic process - Bulk inventory held at a single location (especially if it's a consolidation play) puts you at higher risk - No foolproof protection exists—the best approach is due diligence upfront and maintaining alternative supply chain routes where possible.