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.
How should you structure wholesale, retail, bar, and ecommerce pricing when selling through multiple channels?
The key principle is to avoid channel conflict by keeping pricing aligned across wholesalers and retailers, then building your model backwards from RRP. Many large UK wholesalers (Matthew Clark, LWC, Carlsberg, Molson Coors) don't supply retailers, so don't assume a traditional retail-first model. **Pricing structure for spirits (example: £40 RRP):** - £40 RRP / 1.2 = £33.33 exc VAT (your net sell-out price) - Apply 25% retail/wholesaler margin: £33.33 × (1 – 0.25) = £25 Wholesale Selling Price (WSP) - Subtract duty (c.£9 for a 70cl spirit at 40% ABV) = £16 net WSP - Typical gross margin target: 65%, which yields ~£5.60 COGS **Key caveats and variations:** - Gross margins vary by channel: 45% for retailers/wholesalers down to 10% in some cases - **Exclusive distributors** typically require 20–30% gross margin on net sales (can be higher or lower depending on volumes) - Wine, RTD, and beer margins differ significantly from spirits - **Direct-to-bar pricing:** Set this at the wholesaler sell-out price (£33.33 in the example above) to avoid undercutting wholesale customers. Some members set it between wholesale and ecommerce prices. - **Independent retailers:** Price at the same level as direct-to-bars (the wholesaler sell-out price), as they typically order smaller quantities - **One unified price across wholesalers and retailers** is strongly recommended, especially when companies operate multiple channels or face buyouts (Matthew Clark/Booker/Tesco scenarios). Members warned that having different pricing models for different channels creates exposure during consolidation and can be "a world of pain." You can always add retroactive incentives or volume discounts without changing base pricing. **Important warning:** Major acquisitions in distribution (e.g., Bargain Booze buying MCW, Tesco buying Booker) have historically created significant problems for brands with inconsistent pricing across channels.
What books and educational resources do members recommend for growing a drinks brand?
Members recommend a curated reading list across several categories that have proven useful for brand building. **How Brands Grow by Byron Sharp** is frequently cited as the strategic bible for understanding brand growth. For foundational startup thinking, **The Lean Startup** and **The Founders Dilemmas** are recommended. **Brand Mysticism** is also suggested as valuable reading. Members also recommend books across related disciplines: **Biographies & Inspiration:** - **The Widow Clicquot** - **Shoe Dog** - **The 50th Law** **Marketing & Branding:** - **22 Immutable Laws of Marketing** by Al Ries - **Influence** by Robert Cialdini - **The Brand Gap** by Marty Neumier **Productivity:** - **It Doesn't Have to Be Crazy at Work** by Jason Fried - **Essentialism** by Greg McKeown - **Getting Things Done** by David Allen **Finance:** - **How Finance Works** by Mihir Desai - **Romancing the Balance Sheet** by Anil Lamba **Negotiation:** - **Never Split the Difference** by Chris Voss **Business Challenges:** - **The Hard Things About Hard Things** Beyond books, members also recommend engaging a specialist copywriter with drinks industry knowledge to craft effective brand messaging.
How should drinks brands approach sustainability as a strategic business consideration?
Sustainability is increasingly table-stakes rather than a competitive advantage in the drinks industry. Members report it's now a baseline customer expectation rather than a selling point, and most established brands have made it central to their business strategy. Key approaches members are taking: - **Integrate into core strategy** — Make sustainability central to future decision-making and new product development (NPD) from the outset, not as an afterthought. - **Avoid greenwash** — Members emphasize it must be genuinely important (personally and professionally) rather than superficial messaging; authenticity matters. - **Treat as table-stakes** — The consensus is "everyone is doing it these days," meaning sustainability is now an expectation rather than a differentiation tactic. Caveats: The community discussion suggests this is a live, evolving conversation. Members are actively discussing how to implement sustainability meaningfully rather than how to use it as a marketing angle, indicating the landscape is still maturing.
Who provides IP evaluation expertise for spirits and drinks brands, and what are the typical costs and availability of assessments?
Members recommend contacting **Stratagem IP** for IP evaluation services in the drinks sector. The firm offers free initial assessments, though the full service is described as expensive. Contact Abigail Woolhouse at abigail.woolhouse@stratagemipm.co.uk to enquire about availability and scope.
Should I contract distillation with a co-packer or build in-house production capacity?
The choice between co-packing and in-house distillation depends on your priorities around cost, brand story, and market focus. **Cost and efficiency**: Co-packing is typically significantly cheaper than in-house production. Members report paying around **£5 per bottle** for contracted distillation, making it the more cost-effective route if your primary goal is scaling sales and marketing. **Origin and storytelling**: In-house or local production adds meaningful value if your brand narrative depends on provenance. Members noted that **origin stories are a genuine sales driver**—particularly if you can claim local/regional production. This justifies the higher in-house costs and can differentiate you in a crowded market. **Testing and iteration**: In-house production (or local co-packing) can be a low-commitment way to test new products and validate demand before committing to larger production runs or national distribution. **Market positioning**: Members cautioned against letting legislation changes alone drive the decision. The choice should reflect your actual market strategy—e.g., whether you're targeting local markets with strong origin narratives or pursuing national distribution where cost efficiency matters more. **Caveats**: Recent market shifts (e.g., gin market saturation, consumer preference for rum) suggest the category itself matters as much as the production method. Focus on market demand and your brand story first; the production model should support that, not drive it.
Which consultants offer drinks development, on-trade serve strategy, and photography support?
Members recommend **Luke Pearson of Pear & Sons** for integrated drinks development, on-trade serve strategy, and photography support for shoots. He previously worked as Northern Brand Ambassador at Seedlip for 3 years before transitioning to full-time consultancy. Members have commissioned him for cocktail development work and report he is "genuinely excellent & reasonably priced." Website: https://www.pearandsons.com/