Buying Beer: Distributor Options And Availability

Beer is a common product offered by liquor wholesale suppliers. Bars, pubs, and restaurants typically purchase beer from a local beverage distributor or a brewery. Buying wholesale is much cheaper than buying at retail price, which helps to increase a bar's profit margin. Distributors are required to have both federal and state licenses to sell beer.

Can you buy beer from a distributor?

Buying beer wholesale

If you're looking to buy beer wholesale, there are a few options available to you. The first is to contact a local beverage distributor or wholesaler directly. This can be done by phone or by reaching out online. You can also try searching for liquor distributors in your area or asking other bar owners. Distributors and wholesalers will offer cheaper prices than retail, which can help increase your profit margin.

The second option is to use a bar and beverage ordering platform, where orders are placed directly with distributors through subscription-based software. This can help streamline the ordering process and provide valuable insights such as delivery dates and order creation dates.

When choosing a wholesale supplier, there are several factors to consider beyond price. These include the range of products offered, delivery options, and technological innovations. It is also worth noting that most wholesale liquor suppliers also offer other products such as wine, soft drinks, glassware, and bar equipment.

If you are looking to buy beer in bulk, Sam's Club offers a range of domestic, imported, and craft beers at competitive prices. They also provide the convenience of ordering online and picking up your order at a nearby location.

Additionally, when buying wholesale, it is important to be mindful of storage conditions. Beer and wine should be protected from heat and light and stored in a cool, dark place, such as a basement or cabinet.

Distributors' licensing requirements

To operate a beer distribution company legally, you need permits at both the federal and state levels. Beer distributors without the necessary legal paperwork could face fines and other criminal punishments.

Federal Requirements

To operate as a beer distributor, you must obtain a "Basic Permit" from the U.S. Tax and Trade Bureau. This is a legal requirement under the Federal Alcohol Administration Act. To apply, fill out the "Application for Basic Permit" form on the U.S. Tax and Trade Bureau website. Include your business name, Employer Identification Number (EIN), your personal contact information, and most recent residences. Under the "Business To Be Conducted at Premises Address" section, check the "Distilled Spirits Plant" box and the "Processing" box.

State Requirements

The specific state permits required to operate a beer distribution business vary from state to state. For example, in Texas, the Texas Alcohol and Beverage Commission regulates distributors and issues permits, whereas in California, the Department of Alcoholic Beverage Control (ABC) issues various types of licenses for the distribution and sale of alcoholic beverages.

To find out the specific requirements for your state, contact your state's Attorney General's Office or Secretary of State's Office. Additionally, your county clerk can provide information about zoning laws and special proximity laws regarding the location of beer distribution businesses in relation to places like churches and schools.

Additional Considerations

• Doing Business As (DBA) Certificate: Reserve the name of your beer distribution company by obtaining a DBA certificate from your state. The registration process and fee may vary depending on your state.
• Employer Identification Number (EIN): Obtain an EIN from the Internal Revenue Service to issue W-2 forms to your employees and for tax purposes.
• Leasing: Sign a lease for a commercial property zoned for beer distribution and partner with a trucking company to transport your beer to retail customers.

How to find a beer distributor

In the US, distribution is an important component in the operation and success of a craft brewery. Beer distributors are primarily a delivery and warehousing mechanism, and it is usually left to the brewer to market the product. Distributors are often referred to as a "house", and each market will usually contain two to three major brand houses. These include distributors for Anheuser-Busch, Miller, and/or Coors. These major brand houses are the largest and most dominant beer distributors, with a very high level of service and an extensive network of contacts.

There are also miscellaneous brand houses that carry many products other than the big three, such as regional breweries, popular imports, and non-alcoholic drinks. They usually have a high level of service and can be a good option for small brewers. Small specialty distributors are also present in some markets, specialising in handcrafted, authentic beers, usually imports, and domestic craft. These small distributors are enthusiastic and knowledgeable about beer, but they may be understaffed and only service the “A” account base.

Liquor/wine distributors are another option for small brewers. They cover a much broader territory, often statewide, while beer distributors tend to focus on metropolitan areas. They have good product knowledge and are skilled at hand-selling, but their main focus is on high-margin wine and spirits. Due to franchise laws, it is important to choose a distributor that suits your long-term needs, as it can be difficult to terminate a brewery/distributor agreement.

When looking for a beer distributor, it is important to spend time in the marketplace and obtain price sheets from wholesalers to understand which distributors carry the various brands. Talk to retailers to gain insight into their preferred distributors, and ask questions about call frequency, draft service, product knowledge, and enthusiasm of the salespeople. It is also beneficial to present your products to potential distributors and have a convincing proposal, including pricing, shipping costs, advertising, and promotion plans.

Buying beer online

When buying beer online, you can choose from a variety of package sizes, including single bottles, cans, or multipacks. Some websites specialise in craft beer, offering unique and limited-edition brews, while others provide a more comprehensive selection, including beer, wine, and spirits. You can also find beer clubs or subscription services that deliver a curated selection of beers to your doorstep regularly. These services can be an excellent way to discover new beers and expand your palate.

To purchase beer online, simply visit the website of your chosen retailer and browse their selection. Add the beers you want to your cart, and proceed to checkout. Most websites will require you to create an account or log in before completing your purchase. You will also need to provide a delivery address and choose a delivery slot that suits you. Some websites may offer same-day or express delivery for an additional fee.

It is important to note that there may be age restrictions when buying beer online, and you may be required to show proof of age upon delivery. Additionally, some states or regions may have specific regulations regarding the online purchase and delivery of alcohol, so be sure to check the legal requirements in your area.

Overall, buying beer online offers convenience, variety, and the opportunity to discover new beers from the comfort of your own home. So, whether you're stocking up for a party or simply enjoying a quiet night in, consider the option of online beer delivery.

Saving money when buying beer

Track your spending

Before you can start saving, it's important to understand how much you are currently spending on beer. Keep a record of your beer purchases over a month to get an accurate picture of your spending. This will help you set a realistic budget and identify areas where you can cut back.

Buy in bulk

If you have the storage space, buying beer in bulk can often result in significant savings. Look for deals on multipacks or cases, and only buy in bulk if you know you will consume the beer before it goes bad. This strategy is especially useful for special occasions or events where you need to supply a large quantity of beer.

Shop around for the best prices

Don't just settle for the first price you see. Compare prices at different stores, both online and offline, to find the best deals. Signing up for newsletters or following beer retailers on social media can also keep you updated on the latest sales and promotions.

Brew your own beer

Homebrewing can be a fun and cost-effective way to save money on beer. While it requires an initial investment in equipment and ingredients, the long-term savings can be significant. You can find many online resources and communities dedicated to homebrewing, offering advice and recipes to get you started.

Forage or grow your own ingredients

If you're feeling adventurous, you can take homebrewing a step further by foraging or growing your own ingredients. Hops, brewing herbs, and supplementary grains can often be sourced from your local area or even grown in your garden. Not only will this save you money, but it also adds a unique and satisfying twist to your homemade beer.

Cut back on drinking

Finally, the most effective way to save money on beer is to simply drink less. Reducing your alcohol consumption can have numerous health and financial benefits. If you're looking to cut back, try setting a budget, alternating alcoholic drinks with non-alcoholic ones, or choosing cheaper alternatives.

Frequently asked questions