In today’s challenging economy, with all the difficulties UK hospitality is facing, it can feel like the drinks industry is being shaped more and more by our sector’s biggest players; the big boys of global industry with deep, deep pockets and reach. But let’s get it straight: the environment we’re currently in gives them a competitive edge. It helps them to win shelf space and bar listings – and that’s intimidating. I imagine if you’re a challenger brand or reasonably new to the market, you’re frustrated by the status quo.
The truth is, there is no level playing field. Listing fees have become prohibitive for independent brands. The big boys can chase the listings for lower margins, throw money at menu placements, and secure back-bar space with ease. Independents, on the other hand, have to play to their strengths. You’re never going to win if you go toe to toe on the commercials, but that’s not to say you can’t win a loyal following; build a stellar brand; and nip at their heels by doing more with less. Here’s – with my experience as a distributor – exactly how to do that.
Stay agile
The biggest competitive edge you have as an independent, is your agility. Unlike the conglomerates with layers of approvals, you don’t need six months of bureaucracy to deliver an activation, react to something topical, or jump on a trend. And whilst this might feel like a small win – it’s hugely important in appealing to modern consumers.
Venues shining in today’s hospitality landscape are leaning into experience. They’re curating something unique; whether it’s a theme, or a different way to eat and drink. Regardless they’re shaking things up, seeking points of difference, and recreating themselves regularly to deliver something fresh for customers. The point is – they want flexibility to introduce new brands, and they want those brands to contribute and be part of it. As an independent, you should keep on top of trends, know what venues are doing, and put forward a compelling reason why you’re a perfect fit. You might find the margins you can offer to the venue are even better too. Active participation and creativity will win you favour!
The same goes for emerging generations of consumers – whose purchasing power continues to increase as they age. Yes, we’re talking Gen Z. Despite the headlines about younger drinkers “not drinking” (which is only partially true) the reality is more nuanced. Gen Z are drinking selectively and with intention. They’re purpose-led and they are significantly more willing to explore and buy into independent brands that feel fresh. They’re also cynics who prioritise brand values – 81% of Gen Z consumers reported changing buying behaviours based on a brand’s reputation or actions.
This makes it extra important that you understand your story, values and what you stand for. React to topical moments; reinforce your brand by creating small campaigns that make it clear what you stand for; whether it’s socially, or environmentally. And always be honest – questionable practices might just ostracise the next generation of consumers from your product.
The proverbial slow and steady
A blockbuster moment can be hard to finance as an independent. The global campaigns costing hundreds of thousands, delivered by the biggest names in spirits, might seem hard to compete with. But from a trade perspective, most bars aren’t looking for another monolithic brand with a heavy-handed national campaign. They’re looking for quality liquid that can help them deliver an experience. Something interesting. Something with a margin. Something that makes sense for their customers.
These smaller, more targeted gains can also build a more devoted audience. For us, that’s meant focusing on targeted, collaborative activations. A multi-brand partnership with Humbug at Waterloo Vaults alongside Red Bank, Giffard, Glendalough and Chairman’s Reserve; hero cocktails with Simmons across November and December featuring East London and Chairman’s Reserve; and an East London takeover with Equal Parts. None were big-budget moments, just relevant, well-placed activity designed to work for the venue and build momentum for the brands.
Menu mentions, social tags, bartender advocacy, awards and – importantly – education, are all tactics at your disposal. Drinkers have never been more interested in what they’re consuming; the origin, the method, the story, the right way to serve it. Training bartenders, offering education sessions, creating shareable recipes with mixologists – these build advocacy at a level that money can’t buy.
What you’re seeing in the above may seem like small actions; but momentum matters and, with a little patience, it can be game changing.
Where distribution fits
After product quality, distribution is another key to success. Independents often ask: where do we position ourselves? How do we get seen?
If you’re not yet represented by a distributor (and I waxed lyrical about how to get that representation in a previous article) there are other options available to you. Direct-to-consumer channels are a powerful tool when done right – a great example being elderflower liqueurs over 2025’s festive period. A spirit that was suspiciously lacking on supermarket shelves given the effervescent popularity of the Hugo Spritz, bottles on digital shops were selling out. It seems that some supermarkets missed the moment! We saw triple-digit-growth for some of our partner brands – and that was thanks to D2C.
Direct-to-consumer channels are still one of the most powerful tools available. Not only does e-commerce tend to be ahead of traditional retail, but when something takes off, the effect is immediate. Another bonus is that it also gives you great data; data you can then present to distributors when you’re building your case to join a portfolio.
To sum up – as an independent it’s about choosing your battles, staying nimble, and being culturally relevant. Pouring your effort into activations, campaigns, and advocacy that feel true to your brand. Yes, these actions may feel small individually, but make no mistake – that’s what will help you to compete. Who knows… the end result might just be becoming one of the global players that you once had to innovative to beat.
Nick Gillett is MD of premium spirit specialist Mangrove UK.