Getting into Supermarkets: The Poisoned Chalice

Getting a supermarket listing sounds like the dream. Massive volume, nationwide exposure, your beer in every household in the country. The reality is rather different.

Supermarkets squeeze suppliers relentlessly on price. They demand volumes that can stretch a small brewery to breaking point. They impose listing fees, promotional contributions, and retrospective discounts. They can delist you at short notice if your beer doesn't sell fast enough or if they find a cheaper alternative. And they pay on their terms, not yours — which can mean waiting 60, 90, or even 120 days for your money while you've already paid for the ingredients, packaging, and production.

A supermarket contract can look like growth on paper while actually destroying your cash flow and margins in practice. Many small breweries that have landed supermarket deals describe it as the worst business decision they ever made.