Liquor Distribution Business

Choose below to read all the Basic Liquor Licence Information (A) you need to know OR More Liquor Licence Information (B) for a more in depth look about a Distribution liquor licence.

Before you scroll down, consider this -
Can you think of any liquor store which has closed permanently? No? This gives you some idea of the value, potential and permanency of a liquor store liquor licence. It’s worthwhile persevering to get a Distribution licence and to hold onto your Distribution licence once you have it.

A. BASIC INFORMATION ON A DISTRIBUTION LICENCE

• HOW TO APPLY (GET) A DISTRIBUTION LIQUOR LICENCE = LIQUOR LICENCE APPLICATION
• HOW TO RENEW (KEEP) A DISTRIBUTION LIQUOR LICENCE = YEARLY RENEWAL
• HOW TO BUY OR SELL A DISTRIBUTION LIQUOR LICENCE = LIQUOR LICENCE TRANSFER
• COST OF A DISTRIBUTION LIQUOR LICENCE
• DISTRIBUTION LIQUOR LICENCE TRADING HOURS 

HOW TO APPLY ("GET") FOR A DISTRIBUTION LICENCE = LIQUOR LICENCE APPLICATION

You must submit a comprehensive, written application to the National Liquor Board.  You will have to include information, zoning documents, photos and detailed plans of your proposed Distribution premises.   You need to show the licensing authorities what you have in mind. This means proving that there is a demand from the public for a liquor distribution business in South Africa. They can only visualize your liquor store if your application is professional, detailed and accurate. If not, your application will be postponed or refused. Read more on the Distribution licence application process below.

HOW TO RENEW ("KEEP") A DISTRIBUTION LICENCE = YEARLY RENEWAL

Once you have your Distribution licence, you need to do everything you can to keep it valid. You do this by renewing it every 12 months, with a formal application.  Please go to the “Licence Renewal Section” for all the information you’ll need to ensure your licence remains valid and keeps on generating a profit.

HOW TO BUY OR SELL A DISTRIBUTION LICENCE = LIQUOR LICENCE TRANSFER

Buying a Distribution licence allows you to use the existing liquor licence to continue to manufacture and sell or distribute liquor. You don’t have to apply for a new Distribution licence. You continue selling liquor without any interruption while the Distribution liquor licence is being transferred to you.

However, it is absolutely vital to safeguard your investment by checking that the licence documents are valid and up to date. Don't run the risk of being stopped by liquor authorities for trading with an invalid liquor licence. Do a licence compliance check - it's like having your dentist fix the small holes to avoid the root canal treatment! The most important items to check are :

• Agreement of Sale – The correct wording of the liquor licence clause is very important
• Licence documents – Is the original liquor licence, conditions and floor plan available?
• Licence renewal – Is the proof of payment of the yearly liquor licence renewal fee on file?
• Premises - Does the premises comply to liquor laws and regulation?

FREE Liquor licence compliance check :

• Has this been done? Are you sure all licensing documents are complete, available on file and up to date? Don’t take any chances or you may lose your investment.
• Upload any of these documents and we will do a compliance check - free of charge (Normal value = R3000).

ORDER Licence documents :

• You can order any licensing documents you want from us, such as a original licence replacement or floor plan.
• Place your order and we'll be in touch.

COST OF A DISTRIBUTION LICENCE

The cost structure of a Distribution licence is quite simple. It costs can be described as follows :

• Cost to Apply ("Get") a Distribution licence
  • Liquor Board Fees - You'll have to them the following fees :
    • Application Fee - to accept your application
    • Licence issuing fee - to issue your licence
  • Liquor licence consultant's fee
    
    
• Cost to Renew (“Keep”) a Distribution licence valid
  • Licence renewal fee - payable every 12 months,
  • Penalties / Fines - payable if you paid late or failed to enforce the licence conditions

DISTRIBUTION LIQUOR LICENCE TRADING HOURS

Distribution licence trading hours are valid for all 9 provinces.   

NB - A Distribution licence owner needs to know the liquor trading hours for a Distribution licence at all times. If not, chances are good to get fined or having to pay penalties or - even lose the business.

Contact Us if you want to know the liquor trading hours for your Distribution licence. Even better – subscribe to our free newsletter and you’ll be updated on import liquor licensing matters.

B. WANT TO KNOW MORE ABOUT LIQUOR DISTRIBUTION BUSINESSES?

• WHY IS A LIQUOR LICENCE IMPORTANT FOR A LIQUOR DISTRIBUTION BUSINESSES?
• WHAT CAN YOU DO WITH A DISTRIBUTION LIQUOR LICENCE?
• DIFFERENT KINDS OF LIQUOR DISTRIBUTION BUSINESSES
• TARGET MARKET
• INCOME GENERATOR
• RUNNING COST OF A DISTRIBUTION LICENCE
• COST OF BUYING OR SELLING A DISTRIBUTION LIQUOR LICENCE
• LICENCE COMPLIANCE AUDIT – A MUST

WHY IS A LIQUOR LICENCE IMPORTANT FOR LIQUOR DISTRIBUTION BUSINESSES

It’s obvious, isn’t it? No liquor licence = no Liquor Distribution business! That’s why a liquor licence is the main and most important asset of a Liquor Distribution business. 

WHAT CAN YOU DO WITH A DISTRIBUTION LICENCE?

You can do the following : 

• sell all kinds of liquor to the holders of liquor licences only, 
• in all 9 provinces in South Africa, as well as to
• export liquor.   

DIFFERENT KINDS OF LIQUOR DISTRIBUTION BUSINESSES

Liquor Distribution businesses can be found in all sizes and locations. The basic options are the following :

Ownership

• Group Distribution licence. You buy into a franchise group, which will usually be an existing chain of liquor stores, such as Blue Bottle Liquors.  The main advantages are that you get -
  • a proven, successful business model and
  • better prices due to the buying power of the franchise group.
• Independently owned Distribution licence. You are your own boss and have the power to decide how you would like to manage every aspect of your business.

Location

• Stand alone – your Distribution licence is contained in it's own or rented property, not connected to other shops.
• Drive-through – your client stops in his/her car, pays and receives the liquor ordered a window, just like any drive-through fast food outlet.
• Shopping centre – the Distribution licence business shares parking, toilets, security and other services with a large mix of other businesses

LIQUOR DISTRIBUTION BUSINESS TARGET MARKET 

The target market of a Distribution Liquor licence really is any holder of a legal, retail liquor licence, for instance liquor stores, restaurants, etc. 

 A DISTRIBUTION LICENCE AS AN INCOME GENERATOR

A Distribution licence can be an excellent income generator, as it is versatile and allows you to sell liquor in a number of ways -

• in all parts of South Africa,
• deliver on order, as well as
• through an online e-commerce platform, and
• export liquor to the rest of the world.

To discuss additional options, don’t hesitate to Contact Us 

RUNNING COST OF A DISTRIBUTION LICENCE

A Distribution licence’s running cost is relatively inflexible and stable. Rent, staff salaries, insurance, advertising, security covers 90% of overheads. The great thing therefore is that overheads costs are very predictable with little or no unpleasant surprises, making planning extremely easy, as well as keeping to a budget.

COST OF BUYING OR SELLING A DISTRIBUTION LICENCE

Good news. There’s a Distribution licence to be found for everyone’s budget. The asking price is usually directly related to its –

• turnover (total value of all sales), and/or
• nett profit (what you take home)

Depending on your personal circumstances and budget, you may want to buy a Distribution licence or start a large Distribution licence. Contact Us – we’ll refer you to reputable business broker in your area.

LICENCE COMPLIANCE AUDIT – NON NEGOTIABLE

All licence holders – those with a licence or those thinking about applying for a liquor licence – must have a Licence Compliance Audit done. Why? Apart from being very convenient, it gives -

• a clear picture of the requirements to get a liquor licence and
• clear guidelines on how to keep a liquor licence valid.

More importantly – getting up to date licensing information is the best way of ensuring you won’t be fined or face legal action. Talk to us about checking if a licence is valid and compliant. You cannot afford not to! – customized for your business and premises.