For years, many beer and soft drink distributors have been forced to sign exclusivity contracts with manufacturers. There was no option: if you wanted to represent the brand in your area, you had to accept their conditions.
The problem is that, over time, these contracts have proven to be deeply unbalanced. While the distributor is tied hand and foot, the manufacturer retains the freedom to sell in the same area through supermarkets, cash & carry outlets, or restaurant chains. And not only that: in many cases, the manufacturer shifts financial risks to the distributor that do not belong to them.
Common examples
Fake exclusivity: the contract prohibits the distributor from working with other brands, but the manufacturer still sells in the area through parallel channels.
Forced below-cost sales: the distributor must apply discounts to certain clients and advance the money, waiting for the manufacturer to reimburse them later.
Unequal pricing: the distributor pays more for goods than what the manufacturer charges large chains directly.
Risk with large groups: the manufacturer forces the distributor to serve national chains without offering payment guarantees, meaning the distributor finances operations with long and uncertain payment terms.
All this turns exclusivity into a burden rather than an advantage. And although changing the contract overnight may not be realistic, there is a way forward: detect and record every abuse.
Checklist: What to Review and How to Record It
Definition of exclusivity
Check if your contract properly defines the area and sales channels. Record each case where the manufacturer sells in your area through alternative channels (supermarkets, chains, cash & carry).
Financial obligations
Identify if you are required to sell below cost or advance discounts. Keep invoices, credit notes, and refund dates to prove actual timelines.
Price differences
Compare your invoices with market prices in your area. Document cases where you pay more than what a large final client pays.
Risky receivables
If you are forced to serve national chains, record the actual payment terms. Document delays and their impact on your cash flow compared to what you have already paid the manufacturer.
Termination clauses and penalties
Check if penalties fall only on you. Note breaches by the other party that could help balance the situation in a future claim.
Why It’s Worth Doing
Even if nothing changes today, this documentation is your insurance. Tomorrow it may help you claim compensation if you can prove clear breaches, negotiate better terms at renewal, defend yourself legally if the relationship breaks down, or even free yourself from the contract if there is evidence of repeated abuses.
The key is not to resign yourself. A signed contract is not immovable if the other party breaches it or imposes abusive conditions. What makes the difference is having solid and well-organized evidence.