Relationship between bars and brands is ‘broken’

Relationships between spirits brands and bars in the UK are “broken” as bar owners increasingly seek hefty discounts in exchange for menu listings, according to the founder of Maverick Drinks.

The relationship between UK bars and spirits brands is “bullshit”, according to Michael Vachon, of Maverick Drinks

Michael Vachon, founder and brand development manager for craft spirits importer and distributor Maverick Drinks, recently hosted a seminar in London where he explained the relationship between UK bars and spirits brands needs to be “redefined”.

“I think the system that exists between bars and brands in the UK at the moment is broken, in fact I think it’s bullshit,” he said. “Bars want discounts, incentives, retros, buybacks and ‘your best price’, but all of this is requested in an under the table manner.

“Bars have been conditioned in this way. They think they will get something in exchange for listings and there’s increasingly less focus on the product itself.

“Larger brands can walk into bars and say ‘what do we need to do to become your signature Martini’. This has created an expectation on both parts. Shouldn’t great products be enough to drive everything else?”

While it is common across the UK bar scene for spirits brands to offer hefty discounts to bars in exchange for menu listings and house pouring rights, this practice is illegal in the US.

Vachon claims that the culture of bartering and deal making between drinks brands and bars is particularly restricting for independent distillers attempting to increase their presence in the on-trade.

He argues that since the production costs of craft distilleries are higher compared to those of larger firms, such companies cannot compete when it comes to offering bars discounts.

“It’s been tough competing against the bigger brands because our business models are completely different,” said Vachon. “Bigger groups can give bottles to bars for free and not even feel that, but our brands do.”

According to Vachon, Maverick Drinks has “only made one deal with a bar” since it launched in 2012, offering the venue one bottle in every 12, adding that this was a “exceptional situation” and that he has achieved more business since.

“All too often these deals are made under the table and are somewhat of a taboo subject, but we need to talk more openly about this in order to identify how we can build on this relationship,” said Vachon.

“Too many bars sell their menu listings, but there are different ways of generating capital.”