How to Become A Wine Distributor In South Africa

Wine distributors should have a strong palate and be able to distinguish subtle flavors that are present in the wines they sample. A wine distributor purchases stock from a wine wholesaler or from vineyards and distributes the product to restaurants, liquor stores, wine shops and other outlets.

Who do wine distributors sell to?

After the repeal of Prohibition, roughly 30 states adopted a three-tier system in which the supplier is required to work with an independent, licensed distributor, who takes title of the wine and then sells it to wine shops, grocery stores, restaurants and airlines. These are often referred to as “open states.”

What does it take to become a wine distributor?

The process of setting up a wholesale distribution company is similar to applying for any alcohol license. The process starts with a free federal application, followed by state and local applications that require fees and approval. Distributors must warehouse sufficient inventory to fulfill orders in a timely manner.

How do wine distributors work?

The distributors will commit to producers and importers to take their wine and sell it to restaurants and retailers in their served areas. This means skilled sales people with deep wine knowledge and the willingness to provide samples and tasting as part of the sales process.

Below is How to Become A Wine Distributor In South Africa

Get the Required Education

Wine distribution does not require any specific educational requirements, but that doesn’t mean that you shouldn’t be knowledgeable about the basic information about wine. For example, you must know about the various brands of wine, their ingredients, color and taste etc. Furthermore, you can at least get admission in wine tasting classes held by the various colleges and community centers in order to polish your palate skills.

2Understand Logistics

A proper know-how of logistics is one among the utmost requirements to become a wine distributor. Right knowledge of logistics will be helpful for you in seeking out wine to buy and researching the market to sell the wine.

Therefore, make sure that you understand the mediums through which these products travel. Moreover, a thorough understanding of how to discuss fair prices, ensuring on time delivery and keeping up a proper stock is all significant logistical elements you handle if you become a wine distributor.

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3Polish your Communication Skills

Strong communication skills are a major requirement to become a successful wine distributor. Use your communication skills properly to convince the manufacturer or wholesalers to consider you as their distributor. Additionally, you have to use them to plead your case in front of various businesses that you

4Conduct a Market Research

A thorough understanding of the market is very important in becoming a wine distributor. Conduct a local survey in order to find about the types of wines in demand and the wine consumption in various areas.

Finely designed questioners will be helpful in this regard. Secondly, find out about the number of wine consuming organizations like restaurants, hotels, bars, pubs, liquor stores, wine shops and other outlets etc.

5Find Location

Keeping the target market in mind, find a right location to start your business as a wine distributor. You will have to use the location to store the wine bottles until handing over to the various businesses or customers. Simply contact the well-known real estate agents of the specific area and find about the available spaces and their rent charges. Try to make a lease deal on a lease base as it is profitable as compared to rent.

6Apply for Business License

Now apply for a business license /permit with the concerned Government Agency for your organization, submitting an application. You will be asked to meet some requirements in return to prove yourself capable of becoming a wine distributor. Meet the conditions before deadline and submit them on time and pay the required amount.

7Contact the Manufacturers or Wholesalers

Now you have the required skills, market knowledge and license in hand, find suppliers, wholesalers or manufacturers of wine. Checking with the several manufacturers is a better idea.

Consider them and select the one with good image in the market, fine quality wine and a strong customer base. Sign a contract with the manufacturer to formally start the business, representing them as their wine distributor.

8Join a trade association – you like

Once you start your business as a wine distributor, it is better to join the trade association or chamber of commerce to promote your business. Becoming its member will provide you with an opportunity to be present at network events and various business gatherings that will assist you in your growth and success. You can get wine contacts within the alcohol industry of your area, establishing strong relationships with wine producers and retailers.

Do you need a license to sell wine in South Africa?

As they have not manufactured the wine themselves they require a registration as a distributor under the national Liquor Act to sell wine to licence holders such as restaurants, liquor stores, pubs, clubs etc.

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 a wine rep in South Africa?

Minimum Requirements:

Matric/Grade 12, a relevant tertiary qualification will be advantageous.

At least 2 years relevant experience in FMCG.

Experience in the Liquor industry will be advantageous.

Computer literate on an advanced level.

Must have a valid driver’s license without endorsements as well have own vehicle.

How do I get a license to sell alcohol 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.

Do you need a liquor license to sell alcohol online South Africa?

If you intend to sell alcohol through a home delivery service, via mail order or online, you must hold a valid liquor licence.

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

about four to five months

It takes on average about four to five months to get a liquor license so you don’t want to put in a position where you can’t trade.

How much money do you need to start a liquor store in South Africa?

The cost of starting a new Liquor City store varies according to size and location. The average store costs between R1. 7 million to R2 million. There are fewer costs incurred if converting from an existing store.

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.