Routes to Market in the UK

Making a great spirit is only half the battle. The far harder task is getting it into people’s hands in a way that is sustainable, profitable, and capable of scaling when the time comes. Your route to market isn’t just a logistical decision - it shapes your cash flow, your brand positioning, the types of customers you attract, and the day-to-day reality of running your business.

Pick the wrong route, and you might end up chasing low-margin sales, exhausting your resources on accounts you can’t support, or locking yourself into contracts that stifle growth. Pick well, and your sales effort feels targeted, efficient, and rewarding. This chapter is about understanding each main channel in the UK, its strengths and weaknesses, and how to decide which one is right for you.

The Three Main Channels

1. On-Trade (Bars, Pubs, Restaurants)

The on-trade is where your product meets the consumer in a social setting, often crafted into a cocktail or served by a knowledgeable bartender. It’s a place where stories can be told, where staff can champion your brand, and where customers can taste your product without the commitment of buying a bottle.

Ignoring the on-trade can mean missing out on credibility and word-of-mouth marketing, especially in premium categories. But getting it wrong - for example, placing your product in venues that don’t understand or care about it - can mean wasted stock, unpaid invoices, and zero impact.

Handled well, the on-trade can turn bartenders into brand ambassadors and build a loyal following that follows your spirit into retail or online.

Typical pros and cons:

• Pros: Builds awareness and credibility; direct influence over serves; can create local or category buzz.
• Cons: Low volumes per venue; high staff turnover requires constant re-education; slow payment terms are common.

2. Off-Trade (Retail, Supermarkets, Bottle Shops)

The off-trade is the battleground for volume sales. This is where your bottle competes for attention on crowded shelves against household names. It’s high visibility but also high risk - shelf space is finite, and big brands defend theirs aggressively.

If you jump into off-trade too early, you can burn through cash supporting listings with promotions and discounts, only to be delisted when sales velocity doesn’t meet expectations. The best outcomes come when you’re ready to back up the listing with strong marketing, reliable supply, and pricing that works for both you and the retailer.

Get it right, and your bottle becomes a repeat purchase item for thousands of customers, with the volume to drive real revenue growth.

Typical pros and cons:

• Pros: Potential for higher volumes; mass visibility; opportunity for repeat purchases.
• Cons: Fierce competition; tight margins; promotional demands.

3. Direct-to-Consumer (D2C)

D2C lets you skip the gatekeepers and build a direct relationship with your customers. You keep more margin, control the brand experience from first click to unboxing, and own your customer data. But it’s also a high-effort, high-skill channel - especially in spirits, where fulfilment is tricky, breakages are costly, and digital marketing eats budgets quickly.

Underestimating the cost of acquiring customers online is a common pitfall. Without a clear strategy for repeat purchases or subscription models, D2C can become an expensive hobby rather than a profit centre. Done well, though, it gives you a loyal fan base who buy direct, spread the word, and feed you valuable feedback.

Typical pros and cons:

• Pros: Highest gross margins; total brand control; customer insight.
• Cons: High marketing costs; complex fulfilment; legal restrictions for shipping alcohol.

Hybrid Strategies

No single route is perfect, and many successful brands use a staged hybrid approach. The trap is to try everything at once and end up doing nothing well. A measured progression - for example, starting in premium on-trade venues to build brand credibility, then using D2C for early cash flow, before selectively entering off-trade once demand is proven - allows you to grow without overstretching.

Rushing into all three channels without the resources to support them is one of the most common reasons for early burnout in startup spirits brands.

Choosing Your First Channel

This decision should be strategic, not opportunistic. The channel you choose should align with your production capacity, cash flow tolerance, and brand positioning.

Choosing the wrong first channel can drain resources and lock you into commitments that are hard to exit. Choosing wisely means you can service your accounts properly, grow at a sustainable pace, and preserve your ability to pivot later.

The Distributor Question

Distributors can unlock access to accounts that would take you years to reach on your own. They handle logistics, credit control, and often have the ear of key buyers. But this access comes at a cost - typically 20–35% of your sale price - and doesn’t guarantee they’ll actively sell your product unless you give them a reason to.

Going without a distributor means you keep the margin but you also become your own sales, delivery, and accounts receivable team. This can work well in a tight geographic area, but it caps your growth unless you invest in a sales team.

Case Notes

A gin startup launched in both on-trade and off-trade at once, believing that casting a wide net would create momentum. In reality, they couldn’t service either channel properly. Deliveries were late, follow-up visits didn’t happen, and sales stalled. Within six months, both key listings were lost. Lesson: focus beats overreach every time.

Action Toolkit

• Identify your most viable first channel based on your resources, positioning, and target customer behaviour.
• Research five target accounts in that channel in depth - know their buying process, expectations, and customer base.
• Develop a post-listing support plan before you make your first pitch - this is where many brands fail.