Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What flexibility exists for spirits bottle sizes in EU markets like France, Spain, and Italy—can craft brands use 750ml instead of the standard 700ml?
EU spirits regulations technically mandate 700ml as the standard size, but enforcement varies significantly by country and market position. **Smaller and niche craft brands often operate with 750ml bottles in practice**, particularly through distribution into Germany and other EU markets, as regulators tend to overlook non-major producers. However, this is informal tolerance rather than official flexibility—having to maintain two bottle sizes (700ml and 750ml) remains a significant operational burden for craft brands. Members noted this is an ongoing frustration for the sector, especially compared to recent US TTB flexibility on alternative spirits sizes. There is currently no formal EU or UK framework allowing size variation, though pressure for change is building within the craft spirits community.
How can UK craft spirits producers advocate for tax relief similar to the craft brewer relief scheme?
Members acknowledge that craft spirits producers have been pushing for reduced duty rates aligned with the craft brewer relief model, but note that large spirits companies have successfully lobbied against such measures so far. **Current situation:** - **WSTA and BDA** have been campaigning on this issue for years but progress has been blocked by lobbying from major spirits producers - The US has a precedent: distilled spirits qualify for a reduced rate of $2.70 per proof gallon for the first 100,000 proof gallons produced domestically or imported annually (compared to $13.34 per proof gallon thereafter) - A sliding-scale model similar to craft brewer relief is seen as potentially beneficial to the UK sector **Recommended action:** - **Write to your MP** directly asking them to support craft spirits tax relief—members describe this as "not much, but it's something" **Caveat:** Members express frustration that despite years of campaigning, the lobbying power of large spirits companies has successfully prevented similar relief from being implemented in the UK, suggesting this remains a longer-term advocacy challenge rather than an immediate opportunity.
What is the minimum acceptable margin for craft premium brands when negotiating with larger distributors?
Before agreeing to lower margins with a distributor, members advise asking what concrete value you're receiving in return. The key principle is not to focus purely on the margin percentage in isolation, but to understand the full return on that concession. **Key negotiation tactics:** - **Tie margin reductions to A&P budget** — If the distributor is asking for a tighter margin, ensure they're converting that saving into advertising and promotional support on their end. This transforms the cost into marketing spend that drives volume. - **Understand the true trade-off** — Ask the distributor explicitly what they're offering in exchange: expanded listing, dedicated sales support, marketing commitment, faster payment terms, or volume guarantees. Without this clarity, a lower margin may simply mean lower profit with no corresponding benefit. - **Be cautious about switching costs** — Members warned that moving distributor comes with significant risk and typically takes 6+ months to see any performance change. Before accepting margin pressure from your current distributor, verify that switching wouldn't be worse. "Often the grass is greener on the other side of the fence when the reality is there isn't a magic wand to wave." **Bottom line:** There is no universal "acceptable minimum" margin—it depends entirely on what the distributor is delivering in return. Negotiate for value, not just price.