AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A drinks depot buys soft drinks, malt, water and beer by the crate or pack from a manufacturer's distributor and resells to shops, bars and households, earning a small margin on high volume. In our labelled example, opening a modest depot takes about ₦5.4 million, including stock and the crates and empties you must hold, and margins run to a few hundred naira per crate.
How the drinks supply chain works
Large beverage makers usually do not sell directly to every small shop. They appoint distributors, who buy in truckloads and supply depots, wholesalers and big outlets in a territory. A depot sits between the distributor and the retailer: it buys in smaller quantities, breaks bulk and sells crates, packs and sometimes single bottles to bars, kiosks, event planners and households.
Becoming a main distributor is a different level of business. When Guinness Nigeria advertised for distributors (with a 30 March 2020 deadline), it asked for a formal application stating locations of interest, a company profile, the certificate of incorporation, tax clearance and a statement of financial net worth, plus evidence of a strong financial standing, distribution experience, route knowledge and compliance with beverage distribution laws. Most depot owners start one step down, as sub-distributors buying from an appointed distributor, and work up.
Terms to agree with your distributor
- Price list and how often it changes. Ask for it in writing and note the date.
- Payment terms. New depots usually pay before delivery; credit comes later, if at all.
- Minimum order. Some distributors only deliver above a set number of crates.
- Crate and bottle deposits. What you pay for returnable glass and crates, and what you get back.
- Breakages and short supply. Who bears the loss if bottles arrive broken or the count is short.
- Volume incentives. Whether any rebate or bonus applies, and the exact target to earn it.
Crates and empties: the capital people forget
Many beers, malts and some soft drinks come in returnable glass bottles. To receive a full crate you usually return an empty crate with its bottles or pay a deposit. That means a depot must hold a pool of empties as well as stock, and that pool is money tied up. Customers who take full crates and do not return the empties are effectively taking your deposit.
Good empties management includes:
- Counting empties in and out every day, by brand.
- Charging customers a deposit when they take crates away, and refunding it when they return them.
- Separating broken bottles and damaged crates so you do not return short.
- Matching your empties count to the distributor's at every delivery.
Capital needed (example figures)
Example only. Your figures depend on the brands, the size of the space and your city.
| Item (example) | Amount |
|---|---|
| Opening stock | ₦3,000,000 |
| Empties and crate deposits | ₦600,000 |
| Space with storage, one year | ₦1,200,000 |
| Chest freezer for chilled sales | ₦450,000 |
| Hand truck and pallets | ₦150,000 |
| CAC business name (₦1,000 + ₦20,000) | ₦21,000 |
| Total | ₦5,421,000 |
CAC fees are from the Commission's schedule published on 29 May 2025. A delivery tricycle or van adds substantially to the figure but widens the customers you can serve.
Margins and a month in the depot (example)
Drinks margins are thin, so volume decides everything. Example only: a crate bought at ₦9,600 and sold to retailers at ₦10,200 earns ₦600, a markup of 6.25 percent. Selling 1,500 crates a month gives ₦900,000 of gross profit.
| Monthly cost (example) | Amount |
|---|---|
| Rent set-aside | ₦100,000 |
| Two loaders | ₦120,000 |
| Transport and fuel | ₦150,000 |
| Power for freezer | ₦40,000 |
| Breakages allowance | ₦30,000 |
| Total costs | ₦440,000 |
That leaves ₦460,000 before paying yourself. If sales fall to 800 crates, gross profit drops to ₦480,000 and only ₦40,000 is left, which shows how quickly a slow month erodes a depot. Chilled single bottles sold to walk-in customers usually earn more per unit than crates, which is why many depots keep a freezer running.
Choosing location and customers
A depot does best where many small buyers are close by: streets with several kiosks and bars, markets, estates with event centres, and roads with easy truck access for the distributor's deliveries. Before signing for a space, count the drink sellers within walking distance and ask a few where they buy today and what they wish their supplier did better: earlier opening, delivery to the door, or keeping chilled stock. Event planners, caterers and churches that buy in bulk for occasions are worth courting too, though they often want credit, which you should limit until you know them.
What to check first
- Which distributors serve your area, and their written terms.
- Whether your street and local government allow a depot and what levies apply; ask the local government office.
- Storage that keeps stock out of sun and rain, with space for empties.
- Whether you need a separate permit to sell alcohol for consumption on site; this varies by state, so ask your state authority.
For more on keeping customers returning, see getting repeat customers for a small business.
Where Pryme fits
A depot handles many payments a day. A Pryme Business Account with virtual accounts can help match transfers to customers, and records support any later conversation with a distributor about credit terms. See also POS terminal vs bank transfer.
Questions people ask
How do I become a sub-distributor of drinks in Nigeria?
Approach the appointed distributor for the brand in your area, ask for their written price list, minimum order, payment terms and crate deposit rules, and start buying in their minimum quantities. Main distributorship from the manufacturer usually requires an incorporated company and evidence of financial standing.
How much does it cost to start a drinks depot?
In our labelled example, about ₦5.4 million including opening stock, empties, a year's space, a freezer and CAC registration. Brand mix and location change the figure a lot.
What is the profit on a crate of drinks?
Margins are thin. In our example a crate bought at ₦9,600 and sold at ₦10,200 earns ₦600. Check current distributor prices; they change often.
What are empties in the drinks business?
Empties are returnable bottles and crates. You return them, or pay a deposit, to get full crates, so a depot must hold a stock of empties as well as drinks.
Sources
- Marketing Edge: Guinness Nigeria hunts for product distributors (2020) · accessed Oct 2026
- CAC New Schedule of Fees (29 May 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.