The world of alcohol distribution is undergoing a significant transformation. Slower category growth, shifting consumer demand, and the rise of DTC are forcing producers to rethink how they go to market—and that shift is creating new pressure for distributors.
At the same time, retail buyers expect more from their partners—faster ordering, clearer communication, and more flexible fulfillment. If you’re still relying on manual processes like phone calls, faxes, or paper catalogs, you’re at risk of losing ground. Legacy systems may have supported your growth so far, but they can’t meet the demands of today’s market.
The complex work of moving alcoholic beverages from suppliers to retailers still matters. But now, distributors also need digital tools that streamline operations, unlock visibility, and strengthen business relationships. That starts with choosing the right ecommerce platform.
If you currently operate as an alcohol wholesaler, this guide will show you how to modernize your distribution model, improve how you serve retail partners, and use digital platforms to stay competitive in a changing industry.
Key trends impacting alcohol distributors today
The market is shifting fast in the alcohol industry. Many alcohol distributors still rely on manual systems like phone calls, faxes, and paper catalogs to manage day-to-day operations. But buyer expectations have changed. According to Gartner, 83% of B2B buyers prefer to place and manage their own orders online. If you’re not offering that level of access, you’re already behind.
At the same time, demand patterns, category dynamics, and consumer preferences are all in flux. Slower growth, rising DTC channels, and changing product expectations are forcing distributors to adapt quickly. Those who can’t respond in real time risk losing business to faster, more flexible competitors.
The challenges are real. So is the opportunity. In the next section, we’ll break down the most pressing issues facing alcohol distributors today, and what it takes to overcome them.
Slow market growth is predicted for the coming years
The North American alcohol market is entering a period of slower growth. In 2023, the US spirits market declined by 2%, marking its first drop in nearly three decades. Looking ahead, growth is expected to remain modest, with both volume and value rising at a compound annual rate of just 1% through 2028.
In this environment, it becomes more important to focus on brands and products that outperform the broader market. That may mean prioritizing labels with stronger marketing, loyal customer bases, or innovative positioning. Digital platforms can help speed up product onboarding, track performance in real time, and adapt to category shifts with less friction.
The direct-to-consumer (DTC) market is growing
DTC now accounts for roughly one in every seven ecommerce dollars globally, and its share is expected to keep climbing. This shift is impacting the channels producers are choosing—and has ripple effects for distributors.
But there’s a real opportunity here to stay competitive with the right pivots and technology. Distributors can support producers with strong DTC models by providing warehousing, delivery, or compliance services. They can also play a role in helping emerging brands expand from DTC into wholesale. And as hybrid models gain traction, distributors that understand both sides of the channel will be better positioned to build long-term supplier relationships.
Gen Z is drinking less every year
Alcohol consumption habits are changing, especially among younger consumers. In 2024, 61% of Gen Z said they plan to drink less alcohol, up from 40% in 2023. That shift is already influencing product development, brand strategy, and distribution priorities.
To adjust, some businesses are diversifying into low- or no-alcohol options, or leaning into categories that resonate with health-conscious consumers. Others are focusing on segments with more stable demand from older demographics. Either way, the ability to pivot quickly and track what’s selling is becoming more valuable across the supply chain.
Many consumers are seeking premium experiences
Even as some consumers cut back on volume, demand for premium and luxury alcohol is on the rise. By 2030, millennials and Gen Z are expected to account for the majority of global luxury spending—including in spirits and wine.
This shift toward quality over quantity is reshaping what consumers buy and what retailers want to stock. Higher-margin, premium brands often carry stronger identities, better pricing power, and growing DTC presences. For distributors, these brands can help protect revenue and margin in a slower-growth market.
Wine clubs and subscriptions are growing more popular
By 2033, the global wine club market is projected to grow at a 20.7% compound annual rate, reaching an estimated $3.9 billion. As more consumers explore direct purchasing and curated experiences, brands are finding success with club models and recurring subscription offers.
This trend presents an opportunity for distributors to work more closely with wineries and beverage brands that are building scalable, repeat-purchase models. Supporting fulfillment, logistics, or even inventory planning for these programs could create new value in the wholesale relationship.
Future-proof your operations with the right ecommerce platform
Ecommerce platforms like Shopify offer the tools alcohol distributors need to stay competitive in a shifting market. With the right digital infrastructure, you can reduce operational overhead, improve order accuracy, gain better visibility into product performance, and strengthen relationships with retail buyers. Even better, these platforms don’t require heavy upfront investment or complex technical work to get started. Here are some of the key benefits you gain with the right ecommerce partnership:
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Better customer experiences for B2B buyers
According to data from Sana Commerce, 86% of B2B buyers say they would switch suppliers for a better online experience. Today’s retail buyers expect more than static catalogs or email orders. A modern ecommerce platform gives them a secure, self-service portal where they can view their personalized pricing, place and track orders, access invoices, and manage their accounts—on their schedule, not yours. -
Streamlined operations
Managing orders across multiple retail locations is complex, especially when manual systems are involved. A centralized digital platform helps consolidate order intake, inventory tracking, and customer communication. By replacing manual order processes with automated workflows, distributors can improve accuracy, reduce delays, and save hours of administrative work each week. -
Easier pricing and promotion management
Distributors often work with layered pricing, volume discounts, and state-specific promotions. The right ecommerce system simplifies how you manage these variables. You can use a single, unified admin to set custom price lists by customer segment, automate promotional campaigns, and ensure compliance with price-posting requirements. -
Seamless integration
Disconnected systems lead to manual updates, data errors, and delays. Modern ecommerce platforms integrate directly with your CRM, warehouse management, and accounting tools. This ensures that key data—like inventory levels, order status, and customer terms—stays accurate across every system, helping you avoid costly mistakes and improve operational visibility. -
Data-driven insights
With a unified platform, distributors get real-time visibility into order trends, SKU performance, and customer behavior. Built-in analytics help you spot which products are moving, which accounts are slowing, and where to adjust your assortment or pricing. These insights help you make faster, more informed decisions across sales, operations, and supplier relationships.
Key considerations for alcohol distributors going digital
Modernizing your tech stack starts with choosing an ecommerce platform that understands the complexity of alcohol distribution. From compliance to customer experience, your platform should support the unique regulatory and operational demands of the industry.
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Compliance and regulations
Alcohol is one of the most heavily regulated industries in commerce. Federal, state, and local laws can all impact how and where you sell. Your ecommerce platform should support tools and integrations that simplify and automate compliance—from tax calculation and navigating shipping restrictions to displaying only licensed products in each approved region. Look for a provider with ecosystem partners experienced in alcohol logistics and regulation. -
Licensing and permits
If you’re expanding into new regions or enabling DTC, confirm whether additional licenses or permits are required in your operating states. Regulatory needs vary by product type, sales model, and geography, so your platform should make it easy to apply the right rules across SKUs and customer types. -
Age verification
If your business plans to support DTC sales alongside wholesale, you’ll need functionality that enables age verification at checkout, where required. Look for platforms that offer integrated or app-based solutions to keep this process seamless and compliant without disrupting the customer experience. -
Territorial restrictions
Many alcohol licenses include clear limitations on where you can sell or ship certain products. Your ecommerce system should support tools or integrations that let you apply regional sales and shipping restrictions based on your license, helping you stay compliant without slowing down operations. -
Marketing and brand guidelines
Even with B2B customers, your digital storefront and marketing efforts must follow alcohol advertising laws. That includes age-gated access where required, proper brand representation, and compliance with promotional restrictions. Your ecommerce tools should make it easy to manage this content while still delivering a modern, on-brand experience for retail buyers.
How Shopify powers modern liquor distribution
Shopify offers a robust suite of features and an adaptable architecture that can help modern liquor distributors improve efficiency, expand capabilities, and reduce complexity. Here’s how the platform supports B2B alcohol distribution:
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Automated, faster order management
Shopify is built to handle high volumes of transactions without slowdowns or crashes. This reliability makes Shopify ideal for distributors managing large, multilocation B2B orders. With centralized tools for tracking, fulfillment, and customer service, order workflows become faster, more accurate, and easier to manage at scale. -
Easier pricing and promotions management
Distributors often work with layered pricing models, volume discounts, and territory-specific promotions. Shopify makes it easier to implement and maintain these pricing structures using built-in tools or third-party apps. -
A smooth, modern online ordering experience
Shopify supports dedicated B2B storefronts, giving retail partners a personalized portal where they can browse products, place orders, manage accounts, and track shipments. Not only do they deliver a better, more consistent buyer experience, they improve order accuracy and streamline your operations. -
Tight integrations with existing systems
Shopify’s APIs enable straightforward integration with your current CRM, warehouse management (WMS), and ERP systems. This keeps data consistent across inventory, pricing, and customer records while reducing the need for manual updates. You can use the platform to standardize your back end and gain cross-channel flexibility, which is especially useful if you are considering DTC channels. -
Access to customer data and critical insights
Shopify’s analytics and reporting tools give distributors real-time visibility into product performance, customer behavior, and order trends. These insights help inform smarter inventory decisions, targeted promotions, and improved territory planning. -
Enterprise capabilities without the overhead
Compared to traditional ecommerce solutions, Shopify offers a more cost-effective approach to digital transformation. With different licensing models and lower implementation complexity, it provides enterprise-grade capabilities without enterprise-level overhead. -
Rapid scalability and true flexibility
As your distribution business grows, Shopify scales with you. Our modular architecture, ecosystem of apps, and global infrastructure allow you to adapt quickly—whether you’re expanding into new markets, launching new product lines, or supporting additional sales channels.
Real-world momentum: alcohol brands scaling with Shopify
Shopify is already powering success across the alcohol industry. From global spirits giants to fast-growing startups, companies are using the platform to launch faster, streamline operations, and meet rising customer expectations—across both DTC and wholesale environments.
Wine Insiders migrated to Shopify Plus to support their national DTC operations, simplifying everything from product bundling to subscription management. The team deployed Shopify apps to build a robust subscription and retention strategy, enabling personalized email, SMS, customer surveys, and post-purchase campaigns with extensive automation. Customers immediately saw a faster, more intuitive experience, including real-time alcohol tax calculations at checkout. Additions like Shop Pay and personalized wine clubs helped increase conversion rates, average order values, and long-term customer value.
Haus, a low-alcohol aperitif brand, used Shopify to launch a national membership program and quickly scale fulfillment across the US They offered flexible product bundles and streamlined shipping, and grew more than 500% during the pandemic by meeting a rising demand for cleaner, lower-ABV spirits.
Diageo, the company behind global brands like Johnnie Walker, Guinness, and Tanqueray, uses Shopify in more than 30 markets to power their digital storefronts. With over 200 brands across nearly 180 countries, Diageo needed scalable, multibrand experiences tailored to distinct audiences. Working with both Shopify and DEPT, they built customer-centric, end-to-end ecommerce stores that reflected local market preferences and delivered real business results.
Other alcohol businesses including Guinness Storehouse, Bottle Buzz, and Whisky and Whiskey also rely on Shopify to run premium storefronts, manage inventory, and engage customers across channels.
These examples show how alcohol brands are already leveraging Shopify to modernize, personalize, and grow. For distributors, the opportunity is clear: the same platform that powers growth for leading producers can also future-proof B2B operations—from order management and pricing control to system integration and real-time analytics.
Take your wholesale business into the future with Shopify
Modernizing your wholesale business isn’t about abandoning what works. It’s about enhancing your strengths with better tools. The alcohol industry is evolving: consumer behavior, buyer expectations, and producer strategies are all changing, creating both headwinds and opportunities. Distributors who stay locked in legacy systems will struggle to keep up. Those who invest in the right digital infrastructure will survive—and even thrive—in the markets of tomorrow.
Platforms like Shopify offer a practical, scalable way to transform how liquor distributors operate. From smarter order management to real-time pricing and deeper customer insights, the right tools are available today. You can transform your operations in weeks, all without big upfront investments or extensive technical resources.
By choosing a platform built to handle regulatory complexity, integrate operations, and support long-term retailer relationships, your business becomes future-proof: more efficient, more flexible, and ready to pivot when new opportunities arise. Shopify can provide the foundation that keeps you ahead, no matter how the market shifts.
Explore how Shopify supports regulated industries, or connect with platform experts to see what’s possible for your distribution business.
Liquor distribution FAQ
How do alcohol distributors make money?
Distributors earn revenue by purchasing alcoholic beverages from producers and selling them to retailers at a markup. Profit comes from the spread between wholesale pricing and negotiated resale prices, as well as from value-added services like logistics, merchandising, or compliance management.
How much do alcohol distributors charge?
Distribution fees can vary widely depending on market, product category, and services provided. On average, distributors take a 15%–30% margin on the products they move, though high-volume or national accounts may negotiate tighter spreads.
How do you become a licensed distributor?
Licensing requirements vary by state and local jurisdiction. Generally, you’ll need to apply through your state’s alcohol regulatory agency, meet specific business and location criteria, and comply with federal alcohol regulations. Many states also require bonded warehouses and background checks.
What percentage do distributors take?
Most alcohol distributors operate on a 15%–30% gross margin, but exact percentages depend on category, brand, and region. Premium or niche products often carry higher margins, while commodity spirits and beer may be lower due to competitive pricing.
Who is the largest alcohol distributor in the US?
Southern Glazer’s Wine & Spirits is the largest alcohol distributor in the United States. The company operates in 44 states and the District of Columbia, representing hundreds of leading wine and spirits brands across a national logistics network.
