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 payment and returns terms should be negotiated with major retail distributors like Venus, and what leverage points exist?
Members report that major retail distributors typically insist on sale-or-return (SOR) terms and are inflexible—one member was told flatly that if they didn't accept Venus's SOR terms, the distributor simply wouldn't list them. Several members have accepted SOR with Venus and other major groups, though one warned that during market shocks (e.g. Covid), distributors may return stock and invoice unexpectedly. **Negotiation tactics:** - **Assess your leverage**: If you're supplying a high-profile flagship account or have significant volume, push back harder on SOR—distributors are more flexible with larger partners - **Propose partial payment structures**: Suggest a 50/50 split or graduated payment terms based on projected initial depot sales volume, rather than pure SOR - **Add shelf-life clauses**: Insert a condition that the distributor cannot return stock with less than X months remaining shelf life—this limits their ability to return aged inventory - **Understand the buyer mentality**: Distributors like Venus operate transactionally and "aren't in the business of making friends." Smaller operators buying to specific POs are less risky than large SOR commitments - **Accept SOR pragmatically**: If the distributor won't budge and the opportunity is valuable, SOR may be the cost of entry, though members note payment eventually arrives **Caveats**: SOR exposes you to return risk and timing uncertainty, especially during market downturns. Terms vary by distributor; smaller accounts may be safer bets than major chains.
What payment terms and listing fees do major UK drinks distributors like Matthew Clark offer?
Based on member experience with Matthew Clark, the typical payment terms are **60 days**. Members report that distributors also charge **a fairly chunky listing fee**, though the exact amount was not specified in the discussion. This appears to be standard across their accounts with the distributor. Key point: Members did not provide extensive detail on A&P (Advertising & Promotion) spend allocations or terms beyond payment windows in the available discussion.