Start A Wine Distribution Business - Business Ideas

Updated: September 16th, 2022
Start A Wine Distribution Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Are you a wine enthusiast with good knowledge of the wine industry, and do you love working with wineries? Combining your passion with sales and logistics skills can be an excellent opportunity to break into the exciting career of wine distribution.

A wine distributor purchases stock from vineyards and sells it to wholesalers and retailers at a profit. Your customers will be restaurants and liquor stores that sell wines.

To start the business, make relationships with the vendors within the winery industry. To run a successful wine distribution business, you might need to take a sommelier’s certification course, which gives you the expertise to improve your palate.

A wine distributor must also have excellent communication skills to make sales continually and stay in business.

Starting a wine distribution business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell wine, or selling wine online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$381B
starting costs
$30.1K
gross margin
30%
time to build
720 days

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$6,900

Employee & Freelancer Expenses

$151

$352

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$63

$700

Inventory Expenses

$350

$14,750

Vehicle Expenses

$2

$10,004

Training & Education Expenses

$0

$2,000

Website Costs

$13

$215

Food Business Expenses

$25

$500

Retail Business Expenses

$0

$950

Advertising & Marketing Costs

$75

$2,486

Successful Businesses

Business URL Rank

SevenFifty

sevenfifty.com

102,503

Liberation Distribution

libdib.com

276,251

CHW Store View

chwine.com

331,548

Winebow

winebow.com

437,843

Wine Institute

wineinstitute.org

857,005

The Wine Group

thewinegroup.com

907,956

Wine Warehouse

winewarehouse.com

928,241

The Wine Economist

wineeconomist.com

960,401

David Bowler Wine

bowlerwine.com

1,088,148

Wine and Spirits Distributors Importers in USA, China, UK, Japan, Germany

internationalbeveragenetwork.com

1,145,755

Wine & Spirits Daily

winespiritsdaily.com

1,321,644

Pros & Cons

Pros Description

Rewarding work

Starting a wine distribution business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a wine distribution business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Wine Distribution Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Unlimited income potential

With starting a wine distribution business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

Crowded Space

Competition is high when it comes to your wine distribution business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A wine distribution business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Low margins

The gross margins for your wine distribution business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the wine distribution business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Work can be inconsistent

As a wine distribution business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.