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 we communicate duty rate increases to our trade customers?
Members recommend a straightforward, factual approach that avoids apologising and clearly attributes the increase to HMRC policy changes. **Messaging approach:** - **State HMRC changes clearly** — use language like "in line with the HMRC changes to current duty rates, please find enclosed updated pricing". This removes ambiguity and avoids an apologetic tone. - **Consider political framing** — some members have taken a firmer stance, opening with commentary on government policy (e.g. "Due to our governments incompetence..."), though this is more pointed than the neutral approach. **Timing tactics:** - **Set a clear last-order deadline at the current price** — Members recommend giving customers advance notice of when the price increase takes effect. One member specified "last delivery date at the current price will be 31st July" with a last-order date of 26th, giving customers roughly a week to decide whether to order ahead. - **Encourage advance ordering** — explicitly tell customers they're welcome to place orders before the increase kicks in, which can help smooth cash flow and shift volume forward. **Key takeaway:** Factual, HMRC-focused language cuts through, and a clear deadline with advance-ordering window gives customers agency and reduces pushback.
What is the optimal split between direct sales and distributor relationships for on-trade and off-trade channels?
Members' actual practices vary significantly by channel. On-trade (bars, restaurants) and off-trade (retail, online) require different approaches: **Channel Split by Type:** - **On-trade:** Mostly via wholesalers/distributors, with limited direct sales - **Off-trade:** Mostly direct, with some distributor relationships **Overall Trade Sales Distribution:** A poll of the community showed the most common approach is mostly via distributors with some direct (23 votes), followed by mostly direct with some via distributors (9 votes). Some members operate all direct (5 votes) or all via distributors (7 votes). Early-stage businesses like Wednesday's Domaine operate at roughly 50/50 between direct and distributor volume. **Key Insight:** The on-trade/off-trade split is the critical distinction—on-trade typically requires distributor relationships for scale and access, while off-trade allows for more direct customer relationships and margin retention.