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 margins do drinks distributors typically expect, and which distributors offer competitive rates?
Distributor margin expectations in the drinks industry typically range from 23–30%, with 23% appearing increasingly common. **Cotswold Fayre** and **Jumpstart** have both quoted 23% to members; one distributor quoted 30%. Members report that margin percentage alone isn't the deciding factor—distributor efficiency, responsiveness, and ease of working relationship matter significantly. Members who accepted 23% margins from **Cotswold Fayre** and worked with them from January onwards reported they were "much better to deal with and more efficient than others that have asked for more," making them "worth a punt." **Jumpstart** has also been described as "quite good" to work with. The consensus is to negotiate and compare not just on margin percentage but on operational support and reliability.
What margins do wholesalers and food service distributors typically expect, and how do these vary by product type and channel?
Distributor and wholesaler margins vary significantly by channel and product positioning: **By channel:** - **Wholesalers** typically expect 10–25% depending on product type - **Off-trade** (bottle shops, retail) expect 25–40% - **Premium/super-premium products** sold by the bottle can command higher wholesaler margins, sometimes up to 30%, especially when distributed through specialist merchants like **Amathus**, **Venus**, **Ellis**, and **Hammonds** **Gross profit implications for brands:** - Without a distributor: 50–60% gross profit target - With a distributor: 40–50% gross profit target **Key dynamics members highlighted:** - Wholesalers and RTM teams are typically targeted on average gross profit across their entire book, not individual SKUs—so they'll accept lower margins on some products if the overall basket margin hits target - **On-trade (pubs)**: margins can vary within a single order (e.g., a mixer might carry higher margin while the spirit carries lower), as long as the overall blend works. This can be a useful negotiating angle when pitching new listings - For large contracted business, pricing is negotiated on total GP and multi-year supply agreements, not on a per-unit basis - **Brakes** (and similar major food service distributors): members asked about their specific margin expectations but no concrete answer was provided in this discussion **Caveats:** Members noted that premium/super-premium exceptions exist where margins depend heavily on what you "can get away with." Fighting over per-case margins on commodities (e.g., 25p per case of mixer = £0.01 per serve) is common but often not economically worthwhile.
What happened to consumer prices, distributor margins and sales volumes when alcohol tax was removed, and what should we expect if it's reinstated?
When tax was removed previously, **most retailers did not pass savings on to consumers** — prices stayed the same rather than dropping. This suggests that if tax is reinstated, increases will likely be **passed directly to end customers rather than absorbed by distributors**. Members expect distributor margins to remain relatively stable, with the tax burden flowing through to the till price. The actual impact on sales rates remains unclear from available data; members noted this is largely anecdotal consumer observation rather than industry-wide analysis. One member indicated they had a contact with potential insight into the mechanics, though no detailed findings were shared in the discussion.