Local manufacturing & RTM strategy services
Local manufacturing and smart route to market strategies can be transformative in APAC, where taxes, logistics, and regulatory requirements often make imported spirits uncompetitive. Done well, local production and regional supply hubs can unlock value chain efficiencies that enable brands to reduce price, improve margins, and significantly increase A&P investment — all without compromising quality or positioning.
Leveraging our extensive network of manufacturers and distributors, we have led major transformation projects for global brand owners including Proximo (José Cuervo, Bushmills, Kraken) and Bacardi, helping them redesign their cost structures, supply models and in‑market execution capabilities.
Navigating APAC’s complex compliance and trade environment
​APAC is one of the most complex compliance regions in the world. Regulations and tariffs vary widely across markets; label and ingredient rules evolve quickly; and trade agreements, duty structures and cross‑border opportunities require constant mapping. Understanding these nuances is essential — and highly lucrative for brands that get it right.
Our expertise helps clients navigate:
• regulatory and label compliance,
• market‑specific production rules,
• duty structures and opportunities for optimisation,
• trade‑agreement advantages and supply‑chain routing,
• documentation and certification requirements,
• selecting and managing third‑party manufacturers.
Bacardi - local production unlocked massive growth in Indonesia
Bacardi engaged Drinks Solutions to conduct a full market review and route‑to‑market strategy for Indonesia. Our analysis identified a reputable local manufacturer capable of producing Bacardi Carta Blanca and Bacardi Spiced, and we led the entire process from feasibility assessment and contract negotiation through to onboarding and launch of the locally produced products.
Local manufacturing dramatically reduced COGs, allowing significant price reductions to trade while simultaneously expanding available A&P investment and improving profit per unit. The impact was immediate and substantial: volume grew from 7,000 cases to 60,000 cases in just three years, establishing a strong and sustainable commercial platform.
This growth transformed Bacardi’s position in Indonesia. The increase in volume funded the expansion of the local commercial team from 1 to 6 people, strengthening execution capability and delivering broader benefits across Bacardi’s wider imported portfolio.
Proximo – Creating a High‑Value Local Supply Hub in Indonesia
​Our remit for Proximo was a full review of South East Asia supply, assessing both import models and potential local‑production route‑to‑market options. The outcome of this work was the creation of a third‑party supply hub, which consolidated stocks in Singapore and managed the ongoing relationship with regional importers.
The new hub significantly reduced workload and overhead for Proximo’s lean regional team by taking full responsibility for forecasting, order taking, logistics, and compliance. It also reduced resupply times, helping prevent out‑of‑stocks, while consolidation through Singapore delivered more efficient logistics.
Importantly, this model created the commercial headroom to establish an in‑market representative office in Indonesia, greatly increasing capability and improving execution in a key growth market.
