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 & Compliance10 discussions

What is the B Corp certification process for drinks brands, particularly regarding articles of association changes and revenue reporting for resubmission?

B Corp certification in the community has a dedicated sub-group. Several members have recently completed the process. **Articles of association changes:** Multiple members have completed this step; connect via the dedicated B Corp member group for detailed guidance on requirements. **Revenue reporting for resubmission:** When resubmitting to B Corp, you may encounter a system limitation that only allows submission of a single revenue figure (rather than separate gross and net), with certification points calculated as a percentage of that number. - **Gross revenue (including duty) is the standard submission.** Members who have completed resubmissions report that B Corp expects gross revenue including duty, not ex-duty net revenue. This aligns with industry standard practice for drinks brands. - **Both gross and net should be tracked internally**, even if only one can be submitted to the system. Members track both figures for their own compliance and donation calculations. - **For points-based metrics (e.g. charity donations as % of revenue):** Members calculate these against gross revenue including duty, which is what they submit to B Corp. Members recommend connecting with the private B Corp founder group (link available from community moderators) for real-time support, as several founders are actively navigating resubmissions and can offer current guidance on system quirks and B Corp's latest expectations.

#b-corp#certification#reporting#compliance
Regulation & Compliance7 discussions

What is the APPA registration process, how long does it take, and what are the reporting and warehousing requirements?

APPA registration is currently backlogged, with members reporting 2+ week delays on ID issuance. Once registered, the process itself is straightforward. **Registration and timeline:** - Expect delays; members have waited 2+ weeks for their APPA ID after application - APPA staff are reportedly "snowed under" working through the backlog **Reporting requirements:** - Members can continue submitting **W1 and W5 forms** while awaiting APPA approval - Once your APPA number is active, you can file **nil returns** instead of W1 and W5 forms - Members have successfully submitted nil returns; the process is described as "easy and straightforward" **Warehousing considerations:** - **Do not close your TF (Trade and Excise) license or warehouse yet** — several members flagged that APPA numbers do not yet work with EMCS (Excise Movement and Control System) - You will likely still need your existing warehousing and TF license to use EMCS, even after obtaining your APPA number - If you've asked the NRU (National Receipts Unit) to close your warehouse, follow up to reverse the request or delay closure until EMCS compatibility is clarified **Caveats:** The integration between APPA and EMCS is still in flux; do not assume you can decommission legacy systems immediately upon APPA approval.

#appa#excise#compliance#reporting
General2 discussions

How should RTD volume be calculated and reported as case equivalents when the ABV differs significantly from standard spirits?

RTD reporting requires a conversion methodology to compare volumes against standard spirit case equivalents. Members use two practical approaches: - **Diageo's 10x volume method** — treats RTD volume as 1/10th of a standard case equivalent by ABV ratio (90L of RTD ≈ 1 × 9L case equivalent), based on the logic that spirits are ~40% ABV and RTDs are approximately 1/10th of that. - **Spirit content method** — calculate the actual spirit volume required to produce the RTD batch, then use that as the case equivalent. For example, a 20L KeyKeg of spritz requiring 5L of base spirit would be reported as 5L case equivalent. Members note this is "probably not the 'right' way" by industry standard but works logically for internal tracking and is easy to apply consistently.

#rtd#reporting#case-equivalents#methodology
Regulation & Compliance2 discussions

How should we account for different pack formats (cans vs bottles) when reporting sales in 9-litre case equivalents?

Members report that the industry standard for converting multiple pack formats to a single reporting unit is the **divide-by-10 method**, used by major players like Diageo. This means 90L of product (whether RTD, beer, spirits, or cans) = one 9-litre case equivalent (also called "EU" or "Equivalent Units"). So a 250ml can would be counted as 0.25L in your calculation, then divided by 10 to get the case-equivalent contribution. This approach normalises across different volumes and formats on a single standardised metric for reporting purposes.

#reporting#accounting#sales metrics#case equivalents