How much does it cost to launch a spirits brand in a new market?

Why finding a distributor and shipping the first order is only part of the investment.

For spirits brands looking to expand internationally, one of the first questions is often how much it will cost to enter a new market.

It’s a fair question, although not an easy one to answer. Launching a whisky brand in the United States is quite different from introducing a gin in the Netherlands or a rum in Japan. The costs depend on the market, the category, the brand’s positioning and how ambitious the launch needs to be.

What we do know is that entering a market involves more than appointing a distributor and shipping a few pallets. There are preparations to make, materials to develop and activities to support. And while not every launch needs a substantial marketing budget, we firmly believe that every market entry requires some investment.

The question is where to spend it, and when.

Getting ready to enter a market

Before anything else, it’s important to understand the market you’re entering. How is the category performing? Who are the main competitors? Where would your brand sit in terms of pricing? And which channels offer the best opportunities?

Then there’s the distributor search. Finding the right partner takes time, particularly in markets where the distribution landscape is fragmented or where the most attractive distributors already have full portfolios.

Once a partner has been identified, there are the practicalities of getting the product into the country. Depending on the market, these can include regulatory requirements, label adaptations, import duties, excise taxes, freight and local logistics.

These costs are relatively straightforward to identify, although they can vary significantly between countries.

What is often less clear is how much to invest in actually developing the brand once it arrives.

Availability, Visibility and Activation

When it comes to developing a spirits brand in a new market, we tend to work with a simple model: Availability, Visibility and Activation (AVA).

It’s not particularly complicated, but it helps determine where investment is needed and what should come first.

Availability: giving your distributor the tools to sell

The first priority is getting the brand into the right accounts.

That means making sure your distributor has everything needed to introduce the product properly. A good brand presentation, clear product information, samples, pricing, sales arguments and training materials are the basics.

It sounds obvious, but you’d be surprised how often brands enter a market without having these things properly organised.

A distributor’s sales team usually represents a broad portfolio. If they don’t understand what makes your brand interesting, or don’t have the materials to explain it to customers, selling it becomes considerably harder.

Depending on the brand and market, additional support might include trade tastings, sales-team training or joint visits to key accounts.

None of this needs to be particularly expensive, but it does need to be done well.

Visibility: making the most of your distribution

Once you’ve secured listings, the next challenge is making sure the brand is actually noticed.

A bottle sitting on the bottom shelf of a specialist retailer or somewhere behind the bar isn’t necessarily going to generate much interest.

Visibility can take many forms. In retail, it might be a display, shelf communication or a promotional feature. In the on-trade, it could be a cocktail-menu listing, back-bar positioning or branded glassware.

What works depends on the category and the type of outlet.

For a premium whisky, visibility in a respected specialist retailer may be more valuable than a large number of listings in less relevant stores. For a gin, a handful of influential cocktail bars might be a better starting point.

The important thing is that brands budget for these materials and opportunities from the beginning, rather than assuming that distribution alone will do the job.

Activation: building demand

The third element is Activation. This is where the focus shifts towards encouraging consumers to discover, try and buy the brand.

Tastings, events, bartender advocacy, PR, digital campaigns and collaborations can all play a role.

But this is also where we believe brands need to be a little more selective with their spending.

It’s tempting to organise a big launch event or invest heavily in marketing as soon as a distributor has been appointed. Sometimes that makes sense, particularly for established brands entering a strategically important market.

For many emerging brands, however, we’d rather see some initial traction first.

Are the first accounts reordering? Is the distributor managing to open new customers? Are consumers responding positively to the product?

If the answer is yes, there’s a much stronger case for increasing the investment.

That doesn’t mean doing nothing in terms of activation at the beginning. Tastings and smaller activities can be an important part of generating those first sales. But we’d generally prefer to build on something that’s already working rather than commit a large budget before knowing how the market responds.

So, how much should you budget?

Unfortunately, there’s no standard amount.

A focused launch with a specialist distributor in a relatively small market might require a modest investment in sales materials, samples, trade support and some basic visibility.

A broader launch across multiple regions or channels, with dedicated local representation and consumer marketing, will obviously cost considerably more.

The level of investment also depends on what your distributor brings to the table. Some have strong marketing teams and are willing to co-invest in brand development. Others expect the brand owner to provide most of the materials and marketing support.

It’s worth having that conversation early, preferably before signing an agreement.

Our view is that every new market needs a minimum budget for Availability and Visibility. Without the right tools and support, even a good distributor will struggle to give a new brand the attention it deserves.

Beyond that, we’d generally take a phased approach. Start with the right accounts, support the distributor, see where the brand gains traction and then increase investment in the activities that are delivering results.

Of course, there are exceptions. Some markets are highly competitive, and certain channels require a more substantial commitment from the outset. But spending more doesn’t automatically mean achieving more.

A well-executed launch in a limited number of accounts can be a better starting point than trying to establish a national presence immediately.

And don’t forget what happens after the launch

One final consideration is the cost of managing the market once the first shipment has arrived.

Distributors need attention. Sales teams change, priorities shift and even enthusiastic partners have plenty of other brands competing for their time.

Regular contact, market visits, joint business planning and continued support can make a real difference.

There’s also working capital to consider. Inventory, payment terms and ongoing marketing commitments can put pressure on cash flow, particularly when sales take longer to develop than expected.

It’s easy to focus on the cost of the initial launch, but a brand needs sufficient resources to support the market beyond those first few months.

After all, the first order is relatively easy to celebrate. It’s the repeat orders that tell you whether you’re building a business.

The Russell & Stellar perspective

We’ve seen brands enter new markets with very different budgets and achieve very different results.

Some manage to build a strong position with relatively limited resources, while others spend considerable amounts without gaining much momentum.

The difference isn’t always the size of the investment. More often, it’s how well that investment matches the market, the distributor and the stage of development.

At Russell & Stellar, we believe brands should enter a market properly prepared, with the materials and support needed to establish Availability and Visibility. From there, we’d generally prefer to see how the business develops before committing to larger Activation campaigns.

It’s a practical approach, and one that helps keep investment connected to actual market opportunities.

Because ultimately, the goal isn’t just to launch in another country. It’s to build a business worth investing in.

Frequently asked questions

How much does it cost to launch a spirits brand internationally?

There is no fixed amount. Costs depend on the country, category, distribution model and scale of the launch. Brands should consider market preparation, distributor development, regulatory requirements, logistics, sales materials, trade visibility, activation and ongoing commercial support.

What is the AVA model in spirits marketing?

AVA stands for Availability, Visibility and Activation. It describes three important elements of market development: getting the brand into the right accounts, making sure it is visible and creating activities that encourage consumers to discover and purchase it.

Does a distributor pay for marketing and launch activities?

That depends on the distributor and the commercial agreement. Some distributors contribute to marketing and activation, while others expect the brand owner to provide most of the support. Responsibilities and budgets should be discussed before entering the market.

Should spirits brands invest heavily in marketing when entering a new market?

Not necessarily. While some investment in Availability and Visibility is essential, larger marketing campaigns can often wait until the brand has established initial distribution and demonstrated traction. The right approach depends on the market and the brand’s ambitions.

Ready to explore your next market?

At Russell & Stellar, we help ambitious spirits brands identify the right markets, find suitable distribution partners and support their international development.

Curious what it would take to launch your brand in a new market? Let’s explore together.