How to Become A Liquor Distributor In South Africa

As a liquor distributor, you will be purchasing the products from manufacturers and selling the alcoholic beverages to merchants and other wholesalers. Your potential customers may include other liquor distributors, retail businesses and exporters

How do liquor distributors work?

In a three-tier distribution system, the producer makes the alcohol, sells it to distributors, and the distributors deliver and sell the alcohol to retailers (i.e. bars, restaurants, liquor stores). Then, the consumer buys it from the retailer.

Why do bars have to buy from distributors?

Where Do Bars Get Their Alcohol? Bar owners, bar managers, and beverage directors get their alcohol from a beverage distributor or wholesaler. That’s because the wholesale price is much cheaper than the retail price. This helps lower a bar’s liquor cost and increase a bar’s profit margin.

Can 8% alcohol get you drunk?

8% beers have 8% alcohol by volume and 5% have 5% alcohol by volume ie. The more alcohol you consume , the more alcohol you consume , the more drunk you get! This is the only single reason behind getting more drunk having 8% beer than 5% beer!

Do You Need a Liquor License to Sell Premixed Drinks to Bars?

Wholesale Distribution

Because the sale of alcohol is tightly regulated in all states, most manufacturers of premixed drinks will need to obtain a liquor wholesaler license before they can sell their drinks to a bar. In some states, this license to sell mixed drinks may be known as a distributor’s license.

Self-Distribution

Most states require any business that creates alcoholic beverages such as premixed drinks to obtain an alcohol manufacturer’s license. State laws vary significantly on the amount a licensed alcoholic manufacturer may distribute its goods to locations with on-site and retail licenses.

Below is How to Become A Liquor Distributor In South Africa

Ample Warehouse Space

Acquire a warehouse location. All distribution companies must have warehouse space to store the products. You may choose to lease a storage space or purchase a warehouse building. Also, some states may require you to already have a warehouse to store the beverages before you apply for any required liquor licenses or permits.

Apply for State Licensing

Apply for a license to wholesale liquor with your state department of taxation. Each state has its own laws regarding the distribution of liquor within state borders. In most states, you must obtain a special permit to store and transport alcoholic beverages within the state.

Employer Identification Number

Apply for a Federal Employer Identification Number (EIN) with the IRS using Form SS-4. Most businesses with employees, including corporations and partnerships, must register for an Employer Identification Number. This nine-digit number is used to identify your business when you file and pay your business taxes.

Alcohol Sales Permit

Apply for a permit with the Alcohol and Tobacco Tax and Trade Bureau (TTB) to operate a business as an alcohol wholesaler. TTB grants permits to companies desiring to operate alcohol and tobacco businesses above the retail level. These beverage and alcohol businesses are governed by the Federal Alcohol Administration Act (FAA Act) and the Internal Revenue Code (IRC).

How much does a liquor distribution license cost in South Africa?

How much does a new liquor licence cost? This is perhaps the most common question that gets posed to us at Leon Slotow Attorneys as we are the leaders in Liquor Licence Applications in South Africa. The simple answer to this question is: between R15 000 and R25 000.

How do I become an alcohol distributor in South Africa?

Premises. You need a premises before you can even apply for a Liquor License.

SARS clearance. Apply for your Tax clearance certificate at SARS.

Liquor License. Contact a reputable Liquor License Consultant to give you a quote clearly confirming all cost.

Start planning your shop. Decide on your target market.

Budget.

Is owning a liquor store profitable in South Africa?

South African liquor stores have the highest turnover in the country, a new report by retail software platform Vend found. The Retail Benchmarks Report for independently operated stores found that South African liquor stores have an average monthly revenue of R506,251, followed by shoe stores with R325,015.

How do liquor distributors work in South Africa ?

In a three-tier distribution system, the producer makes the alcohol, sells it to distributors, and the distributors deliver and sell the alcohol to retailers (i.e. bars, restaurants, liquor stores). Then, the consumer buys it from the retailer.

Why do bars have to buy from distributors in South Africa ?

Where Do Bars Get Their Alcohol? Bar owners, bar managers, and beverage directors get their alcohol from a beverage distributor or wholesaler. That’s because the wholesale price is much cheaper than the retail price. This helps lower a bar’s liquor cost and increase a bar’s profit margin.

How long does it take to get a liquor Licence in South Africa?

between 4 and 6 months

The average turnaround time for an application once it’s at the Liquor Board is between 4 and 6 months from date of lodgment, although it can be as short as 2 months or as long as 12 months (ICO objections).

How do I get a temporary liquor license in South Africa?

To apply for a Temporary Liquor Licence, please contact JANET@SLOTOW.CO.ZA at the very least TWO weeks before the day of the event. TEMPORARY LIQUOR LICENCES COST AROUND R5000.

Can you buy a liquor license from someone in South Africa ?

In all states, the sale of a liquor license is strictly controlled by the state agency authorized to issue and oversee liquor licenses. The agency will approve a sale of the license to a qualified buyer who agrees to use the license in accordance with its restrictions for a restaurant.