What this is and is not. These are model ranges: the planning assumptions behind Alculator’s category templates, compiled from public trade commentary and the arithmetic of the three-tier chain, and reviewed on the date above. They are not survey results and not proprietary data; no published, industry-wide survey of distributor or retail margins by category exists that we could cite, and we say so rather than imply one. The margin your distributor actually asks for is the number that matters. Use these to sanity-check a quote, not to replace one.
Supplier (Producer) Margins
Model range · gross margin on the supplier’s selling price (FOB)
| Beverage Type | Typical COGS % | Supplier Gross Margin |
|---|---|---|
| Craft Beer | 35 – 45% | 55 – 65% |
| Domestic / Import Beer | 25 – 35% | 65 – 75% |
| Wine (Value Tier) | 40 – 50% | 50 – 60% |
| Wine (Premium) | 25 – 35% | 65 – 75% |
| Spirits | 20 – 35% | 65 – 80% |
| RTD / Hard Seltzer | 30 – 40% | 60 – 70% |
| Non-Alcoholic | 35 – 50% | 50 – 65% |
Distributor Margins
Model range · margin on the distributor’s selling price (sell-in to retail)
| Beverage Type | Typical Distributor Margin | Equivalent Markup |
|---|---|---|
| Domestic / Import Beer | 25 – 28% | 33 – 39% |
| Craft Beer | 28 – 33% | 39 – 49% |
| Wine | 28 – 33% | 39 – 49% |
| Spirits | 20 – 25% | 25 – 33% |
| RTD / Hard Seltzer | 25 – 30% | 33 – 43% |
| Hemp / THC Beverages | 28 – 35% | 39 – 54% |
| Non-Alc / Functional | 28 – 35% | 39 – 54% |
Markup equivalents are arithmetic: markup = margin ÷ (1 − margin). The trade quotes margin, not markup; a distributor asking for “30 points” divides your landed cost by 0.70. The conversion is explained with examples in markup vs. margin.
Retailer Margins (Off-Premise)
Model range · margin on the shelf price, off-premise (grocery, liquor, convenience)
| Beverage Type | Typical Retail Margin | Equivalent Markup |
|---|---|---|
| Beer | 25 – 33% | 33 – 49% |
| Wine | 33 – 50% | 49 – 100% |
| Spirits | 25 – 35% | 33 – 54% |
| Non-Alcoholic | 35 – 50% | 54 – 100% |
On-premise (bars, restaurants) is a different model: a pour-cost target of roughly 20–30% of the pour price, which is a 70–80% margin on the menu price. Kegs are priced per keg at the distributor step and per pour at the account; see keg pricing.
Sources and what they do (and do not) support
- Federal excise tax rates — TTB, Tax and Fee Rates: the per-barrel, per-wine-gallon and per-proof-gallon rates and the Craft Beverage Modernization Act reduced tiers used in excise tax and beverage pricing. Verified October 2026.
- Control-state pricing — Pennsylvania moved from a fixed 30% markup to variable pricing in 2016 and added a $1-per-case bailment fee from January 2026 (reported by 6abc and the Philadelphia Inquirer). Control states set their own markups; do not apply the retail row above to them without checking the board’s own schedule. Background: control states vs. open states.
- Worked beer-margin example — Brewbound, Beer Business Finance: Breaking Down Beer Margins, walks a shelf price back through retailer, wholesaler and brewery margins; it is a worked example, not a survey, and we cite it for the method rather than the percentages.
- Hemp beverages — the federal 0.4 mg total-THC cap (P.L. 119-37; most provisions moved to December 11, 2026 by H.R. 6500) is summarised with sources in hemp beverage distribution. The hemp margin row reflects the category’s compliance cost and risk and should be re-checked after the deadline.
- Everything else is Alculator’s model assumption. If you have a public, citable figure that contradicts a row, send it and this page will be corrected and the change logged.
Cite this page
The tables are published under CC BY 4.0: quote them with the link and the review date. The same ranges drive the free calculator’s category templates, so a number you quote from here is a number you can reproduce there.