How to Start a Beer Distributor

A beer distribution business can be very profitable, provided you have strong connections. Not everyone can obtain the license for beer distribution as it can be very expensive and often requires strong links with people. You should not go for a business because it is profitable and ask yourself why you really want to start that business. Starting a business only because it has a lot of potential does not guarantee that you will earn huge profits and in many cases people have gone bankrupt due to that.

Instead, you should evaluate yourself for the required skills and abilities and if you are certain that you have the temperament to run this business, only then you should start it. The primary responsibility of the beer distributor is to take the products from wholesale manufacturers and supply these to registered retailers, so they could enter the market. Nowadays, companies are putting more emphasis on job specialisation in order to improve the efficiency and cost effectiveness. Thus, the demand for beer distribution channels has increased considerably.

You cannot start your business over night but you have to apply for the license and fulfil the prerequisites and only then you will be granted permission by your state to start a beer distribution channel.


  • 1

    You must make a business plan for beer distribution that should cover your business strategies and techniques for at least five years. You must project the scope of your business and make a feasibility report that would include the capital cost, operating cost and overhead cost of your business and then the plans for earning profit to make sure your business does not incur losses. You should also include the cost of allowances and benefits you wish to give to your employees.

  • 2

    Obtain the application form from U.S Tax and Trade Bureau. This is the basic permit under the Federal Alcohol Administration Act which grants the license to an individual for distributing business. You will also be required to obtain Employee Identification Number (EIN) from Internal Revenue Service (IRS).

  • 3

    If you do not have the finances to cover the costs of business, you must apply for a business loan.

  • 4

    Join a training program for beer distribution to have a firm grip on every aspect of your business.

  • 5

    You should never miss the conferences held by you Association as these allow you to make contacts with other people in the industry.

  • 6

    Do not forget to make strong connections with other suppliers and customers in the industry.

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