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Logistics & Export4 discussions

What are the typical costs, operating procedures, and working capital implications of using Tortuga for logistics and distribution?

Tortuga is a logistics and distribution operator (part of Mangrove Brands, owned by GBH) that handles order processing, invoicing, credit control, and logistics for drinks brands. They operate their own WOWGR and AWRS independently. **How it works:** - **Charges a monthly fee with no margin taken** — you break even once you've sold enough cases to cover the fee; beyond that is profit. - **Relatively cost-effective** — roughly half the cost of employing internal operations staff to manage orders, logistics, and invoicing (saves 2–3 job roles). - **Pre-established retail & wholesale accounts** — they have open accounts with most major wholesalers and retailers, reducing barriers to getting new products listed and saving time on account setup. - **Shared delivery costs** — brands benefit from consolidated logistics with other Tortuga clients. - **Services include**: order processing, invoicing, credit control, reporting, storage, and logistics to major RTM (ready-to-market) and grocery accounts. **Key caveats:** - **Not a sales or account management service** — Tortuga handles logistics only; they do no sales, account management, forecasting, or ordering guidance. - **Significant working capital hit** — stock is given on consignment, and you don't get paid until 45 days after Tortuga gets paid by the retailer/wholesaler. This can become a serious constraint as you scale. - **Cannot invoice factor** — because invoices and POs are issued to Tortuga or Mangrove (not to you), you cannot use invoice financing to fund growth, meaning you must self-fund the working capital gap. - **Limited capacity** — they have a queue and can only take on a limited number of brands. - **Pricing can be high** — some members found their pricing "punchy" compared to existing arrangements, and pricing should be evaluated against your current setup and scale. Members report good experiences over many years, with the service working well particularly for multi-brand operations (e.g., 5 brands, 15 SKUs across Tortuga). Best suited for businesses with sufficient working capital to absorb the consignment model, rather than those needing active sales support or account management.

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