How to price back from the shelf
A price-back tells you whether a brand can hit the price point the market expects. Start with the consumer price and take each deduction in order.
Ex VAT → × (1 − outlet margin) → × (1 − wholesaler margin) → − retro → − duty → − logistics
Example: a £14.00 50ml serve is £11.67 ex VAT, or £163.33 for a 70cl bottle (14 serves). At 80% GP the bar pays £32.67. At a 15% margin the wholesaler pays £27.77. Take off a £2.00 retro and a 25% distributor margin, then £9.52 duty and £1.25 of logistics, and the brand is left with £8.56 ex-cellar. That's why the price point matters so much: the brand keeps about 4% of what the drinker pays.