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HMRC internal manual

Holding and Movements Alcohol Strategy - Supply Chains

Overview: Should I expect each business in the supply chain to make a profit?

Whatever the source of alcoholic product, a company genuinely in business will attempt to maximise their profit through buying/producing at the lowest possible price, and selling at a price that, whilst being competitive, provides an acceptable profit to the business. Generally speaking, larger companies have the advantage of being able to:

  • produce more efficiently and cheaply than smaller businesses;
  • have more bargaining power when negotiating prices with suppliers or customers. This includes being able to negotiate larger discounts than smaller businesses.