A Practical Guide for Emerging and Established Spirit Brands
How spirits actually move, and how smart brands move with them.
Launching a spirits brand in the U.S. isn’t romantic. It’s regulated, relationship-driven, and full of rules written by people who never poured a drink in their life. But that’s not a bad thing. It’s the terrain. And if you learn how it really works, it can be navigated.
Whether you’re a new brand still tightening the bolts or a seasoned distillery looking to sharpen its edge, one truth stays constant: understanding how liquor moves in this country matters just as much as what’s in the bottle.
This guide isn’t theory. It’s the working knowledge—how the system is built, where the leverage points are, and how brands that last actually operate.
The Three-Tier System: The Road You’re On
Every spirits brand in the U.S. plays the same game, whether they like it or not. Alcohol moves through a legally mandated three-tier system designed to regulate production, distribution, and sales.
Producers. Distilleries, wineries, breweries, and importers make the product and register it with the TTB. Labels, ABV, ingredients, SKUs—everything has to be clean, documented, and approved before a single bottle moves.
Distributors, Distributors are the middle layer. They warehouse, sell, and deliver. Their power varies wildly by state, but everywhere they control access. Understanding what motivates them—and what doesn’t—is critical.
Retailers. Bars, restaurants, and stores are where the story meets the customer. They decide what makes the back bar, the shelf, or the cocktail list.
This system isn’t going anywhere. Brands that respect it, learn it, and work within it scale faster than those who fight it.
Control States vs. Open States: Two Different Games
Market expansion in the U.S. gets complicated fast, mostly because not all states play by the same rules.
Control States. Seventeen states keep a hand on distribution or retail. Selection is tighter. Pricing is regulated. Listings take time. But there’s stability here—less chaos, fewer pricing swings, and clearer expectations once you’re in.
Open States. Private retailers run the show. Access points are everywhere, and so is competition. Pricing flexibility increases, but distributor partnerships matter more than ever.
Knowing which game you’re playing shapes everything—launch timing, pricing strategy, and where to spend your energy.
Pricing: More Than Math
Pricing isn’t just arithmetic. It’s positioning.
Your price tells buyers where you belong, how you see yourself, and who you’re for. There’s no universal answer—only strategies that fit your reality.
Premium Capture. Protect margin. Especially early. If your product and story justify a premium, make sure every bottle pulls its weight.
Market Entry. Lower entry price, faster traction. Build distribution, prove velocity, then adjust upward once demand is real.
Early Adopter. Launch high. Let early adopters lead. Adjust as awareness grows and competition arrives.
Price Siganling. $39.99 works for a reason. Bundles, kits, limited add-ons—small signals that help a bottle stand out without gutting margin.
Scale Value. Volume play. Thin margins, wide reach. Works best when operations are tight and scale is dependable.
Premium spirits have shown a lot of pricing resilience. People still pay for craftsmanship, age, and provenance. But pricing isn’t set-and-forget. Markets shift. Competitors move. Revisit it often.
Margins, Markups, and Reality
If you don’t understand the math, someone else will—usually at your expense.
Example: If it costs $20 to make a bottle and you want a 40% margin, retail needs to land around $33.33. Small tweaks here scale into big wins—or painful losses.
Typical benchmarks:
Supplier margins: 50%+
Bars: 75–85%
Retail: 25–50%, depending on state and format
Know these numbers cold. They’re leverage.
How Sales Actually Happen
Selling spirits isn’t about pounding pavement. It’s about earning trust.
A strong sales process usually looks like this:
Prospecting – Find the right accounts, not just any accounts.
Connecting – Show you understand their world before talking about yours.
Qualifying – Make sure there’s real alignment.
Showing Value – Explain how your brand helps them.
Handling Objections – Listen. Adjust. Be human.
Closing – Bring pricing, materials, and distribution together cleanly.
Maintaining – Stay present. Especially when it’s quiet.
Great brands don’t sell cases. They solve problems—slow nights, tired menus, low check averages, unreliable SKUs. Training, menu support, promotions, data—these are currencies. Become a partner, not a pitch.
Surviving the Slow Months
Dry January happens. So do summers, slumps, and surprises.
The best defense is diversification—accounts, regions, channels. When one slows, another carries the load. Brands that plan for cycles don’t panic when they arrive.
Growth Beyond the Street
Distribution alone doesn’t build modern brands.
E-commerce. Online sales continue to open doors, especially for emerging brands. DTC builds data, story, and demand that carries into physical markets later.
Trade Shows. Few places offer such dense access to buyers, distributors, and partners. Done right, they compress years of outreach into days—and provide invaluable feedback.
Awards & Competitions. Credible recognition isn’t just a medal. It’s leverage. Strong scores help open distributor conversations, support pricing, and build buyer confidence—especially in crowded categories.
Used intentionally, awards become:
Sales tools
Marketing assets
Competitive differentiators
Internal quality benchmarks
They don’t replace hard work—but they make it easier to start conversations.
Let Data Do Some of the Heavy Lifting
Instinct matters. Data keeps you honest.
Smart brands track:
Where sales actually come from
Which accounts drive volume
What promotions work
How pricing performs
How consumers behave
Data turns guessing into decision-making. Brands that use it consistently outperform those that don’t.
The Bottom Line
Winning in the U.S. spirits industry takes more than a good story or a beautiful bottle. It takes understanding the system, respecting the economics, and showing up as a reliable partner.
Quality earns attention. Strategy keeps it. The brands that commit to both last.