Knowledge Base

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.

Regulation & Compliance13 discussions

What licensing do I need to sell alcohol direct-to-consumer through third-party platforms like Amazon?

The licensing requirement depends on where your fulfilment happens. If you're selling D2C through third-party platforms like **Amazon**, you typically need a premises licence because the platform treats it as selling directly to the public. However, members have found workarounds: - **Using a bonded warehouse's premises licence** — Several members use a third-party bonded warehouse for fulfilment and leverage their existing premises licence rather than obtaining their own. This is the most common approach. - **Operating from your own licensed premises** — Some members set up D2C fulfilment from a licensed premise they own (which can have a different trading name from your brand). - **Selling from your own website** — Members report that D2C sales via your own website do not require a premise licence, only third-party platform sales. **Important caveat**: Amazon in particular has been strict about this requirement. Members who initially faced rejection were told to persist with appeals, providing all correct information and requesting escalation to a supervisor—it reportedly took 9–10 messages for some to get approval. Keep emphasising that fulfilment is from a licensed premises (either your own or a bonded warehouse's), and you should eventually get through.

#direct-to-consumer#licensing#amazon#premises-licence
Regulation & Compliance13 discussions

What alcohol licenses are required to sell online direct-to-consumer and B2B in the UK?

You need multiple licenses depending on your sales channel: **B2B sales:** Members confirm you must register with **AWRS (Alcohol Wholesaler Registration Scheme)** via the HMRC website (https://www.gov.uk/guidance/the-alcohol-wholesaler-registration-scheme-awrs). This is the legal requirement for wholesaling alcohol to other businesses. **D2C online sales:** You can sell online without additional restrictions, but the goods must ship from a licensed premises. This can be your own premises or a third-party fulfilment house that holds an alcohol license. **Required premises and personal licenses:** For any D2C operation, you need: - An **off-licence for your premises** (the physical location from which alcohol is shipped) - A **personal licence for the Designated Premises Supervisor (DPS)**—the individual responsible for the premises Members emphasize that the structure is: AWRS registration for B2B wholesale eligibility, plus premises and personal licensing for the actual location where stock is held and shipped. If using a third-party fulfilment house, that house must already hold the necessary alcohol premises license.

#alcohol licensing#compliance#direct-to-consumer#b2b
Route to Market5 discussions

What are the best logistics and fulfilment options for getting products onto fast-delivery platforms like Getir, Zapp, and Weezy?

Members are actively listing on multiple quick-commerce platforms with varying success. Direct placement on **Getir** is generating strong volume for at least one member. **Zapp** and **Weezy** are also available, though some members note these platforms may source through traditional wholesalers like **Matthew Clark** rather than direct relationships, making volume harder to track. Members recommend treating these as complementary channels rather than relying on a single platform. **Key options members are using:** - **Getir** — direct listing generating "amazing volume" according to members - **Zapp** — available but may route through **Matthew Clark** - **Weezy** — similar to Zapp; wholesaler-mediated ordering - **Gorillas** and **Crisp** — European alternatives (members have experience in the Netherlands) **Next steps:** Members with experience across all major platforms suggest scheduling group calls to discuss detailed routes to market and specific placement strategies. Canned products appear to be the format gaining traction on these platforms.

#quick-commerce#distribution#fast-delivery#direct-to-consumer
Logistics & Export4 discussions

What are the legal requirements for shipping alcohol to personal addresses in the United States?

Direct shipment of alcohol to personal addresses in the US is heavily restricted and requires compliance with federal and state regulations. **Key regulatory requirements:** - A registered/licensed importer on the US end is required—you cannot ship directly to a consumer address - The shipment must have label approval or a COLA (Certificate of Label Approval) waiver - Some states prohibit direct-to-consumer alcohol shipment entirely; even major retailers like Whisky Exchange do not ship to a dozen or so US states **Practical alternatives members have used:** - Purchasing through established retailers (e.g., Whisky Exchange) who handle the legal compliance, though this limits geographic reach within the US - One member mentioned labelling shipments as "olive oil" as a workaround, though this is not a legal or recommended approach - Working with a licensed US importer who can receive stock and handle distribution legally **Caveats:** The regulations are complex and vary by state. Members emphasised that direct consumer shipment "is not allowed AFAIK" without proper licensing and approval. If attempting one-off shipments, using an established retailer is the safest option, despite geographic limitations.

#us-export#alcohol-regulations#direct-to-consumer#logistics
Route to Market4 discussions

What are the real outcomes from supplying subscription box clubs like Craft Gin Club—does it drive repeat customer sales or is it just a one-off volume play?

Subscription box clubs offer exposure but limited repeat-purchase upside. Members who've worked with **Craft Gin Club** report a challenging dynamic: the club positions itself as handling everything post-selection, wanting minimal brand involvement after featuring your product. The business model itself works against repeat sales—subscribers expect something different each month, so featuring your bottle one month doesn't translate to customers buying it again the next. **Key findings from member experience:** - **One-off volume only.** The subscription model ensures each subscriber tries your product once; there's no built-in mechanism for repeat purchases from the same consumer. - **Tightening commercial terms.** Clubs have shifted from paying for stock to seeking free or near-free supply plus co-investment in marketing. Volumes have shrunk significantly from peak. - **Tiered deal structure (unconfirmed).** Members report the club may offer different terms depending on company size: small brands pay cost price, mid-size brands pay cost plus some free allocation, large brands are asked for all-free supply. Parameters aren't entirely clear. - **No direct revenue from consumers.** You don't receive money from end-user purchases; the club buys stock from you at their negotiated rate, and that's the transaction. - **Category saturation risk.** In gin especially, the liquids are increasingly similar, so subscriber loyalty to *your* brand post-feature is unlikely. **Bottom line:** Members suggest treating subscription club placement as a one-time distribution event and brand exposure play, not a customer acquisition or retention channel. Budget accordingly and manage expectations on volume.

#subscription#distribution#direct-to-consumer#retail
Regulation & Compliance3 discussions

What are the practical costs and methods for age verification on direct-to-consumer alcohol delivery?

Age verification for online alcohol delivery involves licensing requirements and verification costs that members find significant. **Licensing and regulatory requirements:** - An off-premises licence from your local council is required. The process includes paying for the licence itself plus an advertisement in the local paper. - Trading Standards and police may mandate age-verification measures as a condition of your licence. **Age-verification methods and costs:** - **Challenge 25 service via Parcelforce** — costs £8 per parcel (all-in, not on top of shipping). Members found this prohibitively expensive and questioned whether it's necessary. - **Website age tick box** — some members suggest a simple age declaration checkbox on your website may be sufficient, though this advice comes with the caveat that it's not legal guidance. - Members note that major alcohol sellers do not appear to use the £8 Challenge 25 service, suggesting alternatives exist. **Key considerations:** - If your licence conditions mandate age verification, you may have limited flexibility—one member noted their licence depends on compliance with their local authority's requirements. - Using a distribution company rather than direct delivery may be a cost alternative worth exploring. - Amazon has strict alcohol policies; if you plan to sell via Amazon, expect additional scrutiny and requirements. **Member sentiment:** The £8-per-parcel cost is widely viewed as uneconomical and potentially unnecessary, though compliance depends on your specific local licence conditions.

#age-verification#compliance#direct-to-consumer#logistics
Sustainability2 discussions

What are the best approaches for implementing reverse logistics to collect bottles and packaging back from consumers sustainably?

Reverse logistics for bottle collection is challenging but achievable through local, direct-to-consumer schemes. Members emphasise that reuse is significantly better than recycling for glass. **Practical approaches members are using:** - **Local bottle return schemes** — Several members are running local collection programmes with distributors and direct-to-consumer channels. One member reported collecting 60 bottles in a single day (their highest daily total), though typical weekly volumes are lower. These schemes operate on a smaller, hyperlocal basis rather than national scale. - **Direct relationships with smaller distributors** — Larger distributors typically won't engage in reverse logistics due to operational constraints, but smaller, more flexible distributors have proven willing to participate in return schemes. - **D2C (direct-to-consumer) collection** — Members are launching dedicated reverse logistics for direct sales channels, which offer more control over the collection process than traditional retail. **Key insight:** Members note that most mainstream distributors find forward logistics challenging enough and won't entertain reverse pickup. The feasible approach is building your own local schemes rather than relying on existing distribution networks. **Caveats:** This is early-stage work for most practitioners. The volumes are modest and consistency varies. Reuse-focused schemes require higher operational involvement than pure recycling but deliver substantially better environmental outcomes.

#reverse logistics#packaging#sustainability#direct-to-consumer
Route to Market2 discussions

How are wholesalers responding to major drinks brands moving to direct-to-customer and direct-to-venue sales?

Members see direct-to-consumer and direct-to-venue models as a structural threat to traditional wholesalers' core business. The consensus is that high-volume house-pour products (typically 80% of wholesaler revenue) are migrating directly to brands and large venue groups, leaving wholesalers to compete for lower-margin, specialist products. **The shift in play:** - Major brands like Diageo are now restricting wholesale distribution to only large operators (£2M+ minimum), cutting out mid-tier wholesalers entirely - Large venue operators (e.g., Stonegate) are increasingly buying direct from brand owners to capture margin, cutting out the middleman - Members note that both brands and venues are "desperate to cut and gain the extra margin" — the financial incentive is overwhelming **How some wholesalers are adapting:** - **Speciality Wines** (noted in members' accounts analysis) has pivoted to a premium-focused, high-margin strategy: they specialise in premium spirits with ~32% gross margins (versus low-margin volume plays), operate about 20% wholesale business, and generate significant revenue from direct-to-consumer channels like Whisky Exchange, particularly into overseas markets (USA). Members praise their knowledgeable staff, excellent service standards, and refusal to compete on volume - Contrast with traditional high-volume wholesalers (e.g., Matthew Clark) who rely on low-margin, mainstream brand ranges and volume to survive **The grim outlook for traditional wholesalers:** Members describe traditional wholesalers as "fucked" — losing 80% of revenue if major brands go direct means the "crumbs in the pie plate" (specialist, premium, and niche products) won't generate enough volume to sustain current operations. The strategy appears to be: either pivot upmarket to premium/specialist, or disappear.

#wholesalers#direct-to-consumer#distribution#margin-pressure