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Getting a Cut of the Alcohol Revenue at Music Festivals.

Andy Robertson

Alcohol sales and music festivals have always been closely connected and the amounts of money spent by the big corporate alcohol brands each year on music festival sponsorship amounts to about $1.5 billion. Getting an alcohol brand to sponsor a music festival is a key requirement for festival organisers and always forms part of their overall sales revenue strategy but are there other ways to benefit from alcohol sales. 

There are numerous ways that music festival organisers can benefit financially from alcohol sales on their festival site and it really depends on the size of the event and types and number of vendors and sponsors it attracts. 

Big Brand Corporate Sponsors. 
Signing up a corporate alcohol brand is not easy unless the music festival is large and well established however, even smaller and up and coming festivals can often get a slice of this lucrative pie. No deal is the same and the alcohol brands can be quite demanding. They will often require dedicated branding opportunities both on-site and in any related online media in addition to having a sizeable well located pitch space along with numerous guest tickets. Some corporate sponsors may offer a cut of the sales revenue but not always. Festival organisers need to offer a customised package deal to potential sponsors that is attractive to bring in the best deals. 

Most vendor applications for pitches at music festivals are from food and beverage sellers with some perhaps offering only bar services. For these vendors organisers have more control over any potential deals that can be done and it's not unusual to negotiate a cut of the alcohol sales revenue over and above an agreed amount. This gives the vendor a fair chance at generating a good profit and if sales are high enough will mean that revenue can be shared with the organisers.

Festival Organiser Bars. 
Some festival organisers make arrangements for their own dedicated bar services and there are a number of companies that can supply the full pop-up bar service. Each supplier will have their own terms and conditions on the proportion of alcohol sales revenue that can be shared with the organisers. Of all the options this is probably has the most potential to earn additional revenue from alcohol sales. Festival organisers can choose the size and location of their own bar and the percentage cut is probably going to provide the highest revenue potential.

Whichever option music festival organisers go for there is potential to earn additional revenue from on-site alcohol sales although forecasting any numbers with accuracy may be difficult without any historical data. Most festival organisers will probably go for a combination of these options and each will require some astute negotiation to obtain the best deals and generate the highest profit potential.

For festival organisers planning their events using a software management platform like Festival Pro gives them all the functionality they need manage every aspect of their event logistics including sponsor and vendor management. The guys who are responsible for this software have been in the front line of event management for many years and the features are built from that experience and are performance artists themselves. The Festival Pro platform is easy to use and has comprehensive features with specific modules for managing artists, contractors, venues/stages, vendors, volunteers, sponsors, guestlists, ticketing, cashless payments and contactless ordering. 

Photo by ELEVATE from Pexels

Andy Robertson
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