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NBWA Associate Member Cardata discusses in their Associate Member Viewpoint the importance of vehicle allowance data in beverage distribution and manufacturing, plus fleet & reimbursement analysis.

By Torben Robertson, Senior Manager, Cardata

Torben Robertson is a mobility strategy expert, helping companies whose people drive for work. His articles on fleet and reimbursement have appeared in Fleet Management Weekly, NAFA, For Construction Pros, MedTech Intelligence, and on Cardata’s blog.

Beer distributors have long relied on specialized trucks and vans to maintain temperature control and manage large deliveries. Yet a growing number of distributors are reevaluating whether every driver truly needs a company-provided vehicle. Shifting some or all roles to personal-vehicle reimbursement can free up capital, reduce administrative burdens, and improve flexibility, all while sustaining regulatory compliance.

Below, we examine current data from beer, wine and spirits distribution, highlighting how a balanced approach to fleet and reimbursement can cut costs and meet operational requirements.

Understanding the Alcohol Distribution Mobility Landscape

A recent analysis of thousands of drivers in beer, wine and spirits — most working for distributors — revealed distinct driving patterns and reimbursement preferences:

• Monthly Mileage: ~1,026 miles
• Reimbursement Usage: ~55% use Fixed and Variable Rate (FAVR) programs, while ~45% use Tax-Free Car Allowance (TFCA) programs
• Monthly Reimbursement: $541.69 on average, driven by a $0.11 per-mile rate (CPM) and a $450.36 monthly fixed component

This data suggests that many beverage distributor employees drive shorter routes, possibly visiting local bars, restaurants and retailer on a frequent but more compact schedule. Consequently, a substantial portion of these drivers — nearly half — favor simpler tax-free allowances (TFCA) over more elaborate reimbursement structures like FAVR.

Why Reimbursement May Be Ideal for Non-Delivery Roles

As the data shows, nearly 45% of drivers in alcoholic beverage distribution rely on TFCA, and more than half use FAVR. Although these numbers differ from broader F&B averages, they illustrate that many distributors have found personal-vehicle reimbursement effective for roles involving merchandizing, sales, territory management and more. Key benefits include:

1. Cost Efficiency: Organizations pay only for business usage (mileage and fixed reimbursements). The average business use on reimbursement programs is 71.4% of vehicle expenses. Over time, this model can reduce overall capital outlays on vehicle acquisition, fuel, and maintenance.
2. Tax Advantages: Both FAVR and TFCA are tax-free when they meet IRS guidelines, benefiting both employers and employees.

For beer distributors with territory managers or sales teams visiting a variety of venues, personal vehicles can handle day-to-day tasks at lower total cost, eliminating the burden of maintaining a large fleet for roles that simply don’t require specialized trucks.

Designing an Intelligent Vehicle Program

1. Segment Your Workforce

• Specialized Fleet Roles: Identify who truly needs cargo or refrigerated vehicles. These might include drivers transporting full pallets, kegs, or sensitive product lines.
• Reimbursement Roles: Salespeople, merchandisers, or supervisory staff often carry smaller loads, if any. Many can move seamlessly to reimbursement programs without compromising efficiency.

This segmentation helps avoid over-fleeting — buying or leasing more trucks than necessary — and minimizes the risk of forcing personal cars to handle loads they can’t accommodate.

2. Choose the Right Reimbursement Method

• TFCA (Tax-Free Car Allowance): Straightforward to administer, provides flat monthly and per-mile allowances under the IRS standard mileage rate. For distributors who want to pay data-driven, geographically sensitive rates, without any compliance requirements like FAVR, TFCA may strike the right balance of simplicity and fairness.
• FAVR (Fixed and Variable Rate): Combines a monthly fixed payment for predictable expenses (insurance, registration, depreciation) with a variable, per-mile rate for fluctuating costs (fuel, maintenance, tires). This structure allows companies to pay tax-free reimbursements even over the IRS standard rate, provided FAVR compliance measures are met.

3. Embrace Technology

• Mileage Tracking Apps: Automatic mileage logs reduce administrative hassle, ensure compliance, and can help drivers avoid guesswork in reporting distances.
• Vehicle Reimbursement Program Software: A comprehensive vehicle reimbursement solution offers technology and services for mileage tracking, program management, and streamlined reimbursements. Platforms ensure tax-compliant payments, reduces administrative burdens, and enhances driver compliance with insurance verification and safety monitoring.
• Fleet Management Software and Telematics: Even with fewer specialized vehicles, digital oversight of scheduling, maintenance, and route optimization keeps trucks efficient and compliant. For vehicles needing temperature monitoring, telematics provides real-time alerts if cooling systems deviate. It can also track driver behavior, a plus for insurance and safety initiatives.

Practical Compliance and Safety Steps

1. Insurance Checks: Ensure employees using personal vehicles carry adequate coverage. Commercial auto policies may need supplementation if drivers frequently transport products or brand assets. On FAVR programs, driver insurance must match the insurance dictated by the program, to prevent over-reimbursement in the eyes of the IRS.
2. Driver Record Monitoring (MVR): Regular or real-time checks help identify infractions (license suspensions, DUIs) quickly—essential for businesses distributing alcohol responsibly.
3. Regulatory Familiarity: Beer distributors must comply with both federal and state alcohol licensing laws; well-trained, documented vehicle programs help meet these regulations cost-effectively.

Conclusion

Beer and beverage distributors play a pivotal role in getting product from breweries to the consumer. While specialized fleets remain essential for large or temperature-sensitive deliveries, many roles in the alcoholic beverage segment are effectively served by personal-vehicle reimbursement. Data from thousands of drivers in beer, wine and spirits confirms that nearly half use Tax-Free Car Allowance, with the remainder on Fixed and Variable Rate programs — a notable departure from other F&B niches dominated by a single approach, FAVR.

In an era of tighter budgets, evolving regulations, and sustainability trends, rethinking a traditional fleet model can yield compelling savings without sacrificing reliability or brand standards. By carefully segmenting driver roles, selecting the right reimbursement method, and leveraging technology, beer wholesalers can strike the ideal balance—reducing overhead, supporting safety, and delivering the beverages that keep America’s bars, restaurants, and retailers well-stocked and satisfied.