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 are the impacts of Diageo's new wholesale policy requiring 30 designated wholesalers and £2m purchase thresholds for direct supply?
Diageo has implemented restrictive new wholesale rules that significantly reshape how independent retailers and smaller operators can access their products. The policy cuts direct supply access to only 30 approved wholesalers and requires cash-and-carry (C&C) customers to reach £2m in annual purchases (invoice value excluding VAT) to qualify for direct supply. **Key impacts:** - **Around 40 retailers lose direct access** — approximately 40 smaller wholesalers previously supplied directly by Diageo now must purchase Diageo products indirectly, often from their competitors, creating a significant market disruption and widespread upset in the trade. - **High purchase threshold barriers** — The £2m purchase requirement effectively excludes smaller independent retailers and venues from direct supply, forcing them into indirect channels. - **Concentration of power** — The policy limits distribution to only 30 designated wholesalers, reducing competition and potentially increasing margins across the supply chain. **Market observations:** Members noted this creates "a lot of upset in the trade" and flagged potential consequences: some traders are positioning themselves to exploit the disruption, and there's speculation that UK stock availability changes could create arbitrage opportunities at international borders. However, members also recognised potential opportunities emerging from the wholesale space upheaval for new entrants and alternative routes to market. **Note:** The community discussion did not provide a detailed list of the 40 affected wholesalers or the 30 approved ones.
How should we price in response to rising input costs, and what increases are other UK drinks brands implementing?
Members are actively passing cost increases to both trade and D2C channels to protect margins ahead of potential exits. This is viewed as necessary despite concerns about losing accounts. **Observed pricing moves:** - Ex-cellar increases of **3–5%** across multiple SKUs are common among smaller brands - Major producers (e.g. Molson Coors with Estrella) have implemented increases closer to **10%** - One member implemented their first increase in 4 years; another in 2 years - Some brands (e.g. Lucky Saint) have *reduced* prices, signalling different strategic positioning **Community consensus:** - Protecting margins is critical if you want a viable exit - Trade accounts expect increases and understand the cost environment (fuel, energy, ingredients all up) - Small brands needn't worry about losing hard-fought accounts over reasonable increases—customers know increases are coming industry-wide - **First increases after multi-year holds are more defensible** than frequent small hikes **Caveat:** One member flagged concern about bargaining power as a smaller brand, but the group consensus was that this worry is usually unfounded in the current cost environment.
What are the requirements and process for getting listed with major national wholesalers like Matthew Clark?
Getting listed with national wholesalers, particularly **Matthew Clark**, has a high bar and requires significant groundwork before approaching them. **Matthew Clark listing requirements:** - **Minimum threshold**: You need to have already won business with a large national group (50+ venues minimum) before approaching them for a listing. - **Per-depot listing fees**: Expect to pay approximately £500 per depot per SKU, though this is somewhat negotiable. These fees can be prohibitive depending on how geographically spread your won business is. - **Timeline**: Minimum 6 weeks to set up once approved. - **Fifi Liddar** is the buyer to contact, typically accessed through your distributor rather than directly. - **Key requirement**: You must demonstrate you have already won the business before they'll list you—winning a tender alone is not sufficient. **Alternative route via Master of Malt:** - **Master of Malt (MoM)** operates as an "Extended Range" fulfillment partner for Matthew Clark with a much lower bar to entry. - This route is significantly quicker than direct MC listing and can help you reach MC-dependent venues. - **Note**: MoM is currently reducing their range and being more selective; some operators dislike purchasing through the extended range. - Some product categories face stock rotation issues—if your RoS (rate of sale) is weak, MoM may ask you to reapply later. **Market reality:** - Many retailers and chains will *only* purchase through Matthew Clark and won't buy direct from suppliers, even if you approach them independently. - Direct supply to a few MC venues can be a stepping stone to eventual listing, depending on regional setup (MC operates as a blend with Tennents in some areas). - Members report the process is "a bit of a mare" and the bar remains high even with regional connections.
Which 3PL and fulfillment providers should we use for D2C and trade distribution?
Members evaluating 3PL providers are actively tendering and comparing options. The main providers in consideration are: - **FuturePro** — members currently using this provider note that aspects of service are good, but prices are reported as very high - **Diamond** — on members' tender lists - **Hutch** — a newer option being considered; members seeking feedback on experiences - **Fodabox** — current provider for some, but members report the service "isn't rocking our world" Members are actively running formal tenders to compare options and seeking peer feedback on experiences with these providers. The key tension appears to be balancing service quality against cost, with FuturePro delivering good service at premium pricing. No detailed performance data was shared in the discussion about the other providers.