Importing wine directly has many advantages. Here is your handbook for importing successfully.

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You might be surprised to learn that importing wine directly from the producer is an easier and more efficient process than it seems. While going direct is rich with opportunity, it requires some practice. Please see this as a general handbook. This is not legal advice.

At its heart, the wine industry is a rewarding cycle of forging strong partnerships, visiting wine regions, negotiating prices, and selling those wines to customers. As the owner of the agency Sustaina Wines in Germany, I guide my clients through this very process, helping them turn the complexities of importing into business success.

Leveraging about 10 years of hands-on experience, I’ve created this “101 Guide to Importing Wine” to pull back the curtain on logistics and highlight advantages, mapping out the pros and cons within the supply chain. Please feel free to visit my Consultancy Website, Douglas Wine Consulting.

The Advantages of Direct Import

For the context of this handbook, we will reference “wines” with the proper term, Stock Keeping Unit (SKU). An SKU references a specific wine and allows businesses to track stock levels. A pallet (PAL) of wine usually consists of 480-630 bottles; the process of arranging them is called palletization. A truck usually consists of 25-28 PALs, depending on the weight. Ordering a full truck of wine is called a Full Truck Load (FTL).

You have probably heard the sayings “cut out the middleman” or “strong margins.” This is easily achievable if you import directly. My agency, Sustaina Wines in Germany, offers direct winery prices because our services are calculated into their annual marketing budget, providing a service to the client at no additional cost.

In a different scenario, a distributor who purchases and stores the stock may add their margin, where 15-30% is not unheard of. Despite a higher price, you can benefit from ordering smaller quantities, commonly with free delivery for 36 bottles or more.

However, the beauty of direct imports is that you can diversify your portfolio, support small companies, and build a more specific wine selection for your shop or restaurant. In addition, you receive the best conditions directly from the winery, as the distributor is removed from the supply chain.

It also offers chances to gain access to SKUs from the winery’s portfolio that may not (yet) be available in your country or to create private label projects, allowing you to stand out.

The Advantages:

• • Importing wines directly usually comes with the best financial conditions, allowing you to increase your margins.
  • It allows you to diversify your portfolio, from lesser-known SKUs to the creation of private labels.
  • It gives you control over your stock. You do not have to rely on a distributor, as you can schedule your annual pickups in advance.

The Drawbacks:

• • You need to order at least one pallet.
  • It may tie up more of your business’s cash.
  • Sometimes prepayment is required.

Planning the Year Ahead

Placing an order is done via a “Purchase Order,” also known as a PO. The PO is then assigned an order number, e.g., PO7750, where 7750 is your reference. When communicating with the winery, referencing the PO number makes life easier, especially when you have placed multiple orders.

If you are not planning a one-shot (single order), it makes sense to plan your volumes ahead. Think about your mid-term plan, possible required volumes, and events planned throughout the year. By providing the agency or supplier with a non-binding idea (called a Forecast), they can produce and ensure that sufficient wines are in stock when you need them.

When you forecast successfully, it also provides you with a further opportunity in negotiations: volume discounts. Some wineries may provide better prices if certain volumes are met. Yet, this may come with a binding contract, ensuring that the targets are hit.

A less popular, but acceptable, variation is the “kickback” model. This is a more complex variation on negotiations and should deserve its own blog post. Basically, you negotiate a cash payout for the sold volumes at the end of the year. The seller, in return, promotes the winery and provides special marketing conditions, such as placing it on their landing page, featuring the winery in newsletters, or displaying it prominently at the Point of Sale (POS). This model is more common in large, international companies.

Apart from a cash discount, some grant “natural discounts,” which may be 2% of the volume in free bottles. For the producer, this has a lower cost but allows the seller to increase their margin. In return, producers usually want to see wine tastings happening or their brand being actively promoted.

The Costs of Import

When calculating from the Ex Works price (see below for more information), more costs are added. They can be broken down into:

• • Base price for the SKU
  • Direct shipping costs
  • Diesel surcharge
  • Insurance and other small side costs
  • Excise Tax (may apply)
  • Packaging Recycling Fees
  • Internal handling fees for order processing

Then you add:

• 1. Margin
  2. VAT
  3. = Final Sales Price

STARTING THE NEGOTIATION: INCOTERMS

With these strategies in mind, the Incoterms (International Commercial Terms) are the foundation of any serious negotiation. There is a broad variety of abbreviations, but only a few are truly relevant to the wine industry.

• • Ex Works (EXW): The most common term and industry standard for wines sold inside the European Union (EU). You, the buyer, are responsible for everything from the moment the wine leaves the winery’s cellar. This gives you maximum control over logistics and costs but also carries the most responsibility. It’s often the cheapest way to purchase the wine itself.
  • FOB (Free On Board): This is a common and balanced option, often used for shipping wines to a different continent. The winery is responsible for getting the wine to a specific port or logistics hub in their country. From that point on, you take over responsibility for shipping, insurance, and customs.
  • Delivered Duty Paid (DDP): In Germany, this is also known as “frei Haus.” This is the most hassle-free option but is rarely used in international trade. The winery handles everything – shipping, insurance, and customs clearance – delivering the wine straight to your door. All costs are included in the price per bottle. While convenient, it may not be the most cost-effective.

Optimising Cash Flow and Payment Strategies

At the end of the day, the winery needs to earn money. We all want to earn money. This is why we trade wines in the first place. Conditions are always negotiable, and wineries sometimes prefer to provide discounts if certain conditions are met.

• • Prepayment: Many wineries, especially smaller ones, will ask for payment upfront, particularly on the first order. There are many stories of buyers running off with the wines. If you’re prepaying, it is perfectly acceptable to ask for a discount. A 5% discount is a common and reasonable request for paying in full before shipment.
  • Standard Payment Terms (30/60/90 Days): As your relationship with a winery develops, you can often negotiate payment terms of 30, 60, or even 90 days. The major advantage here is improved cash flow. You have the opportunity to sell a portion, or even all, of the wine before the invoice is due, significantly reducing your financial risk.
  • Credit Insurance and Escrow Services: To mitigate the risk of non-payment for the winery and to enable longer payment terms for you, credit insurance or escrow companies can be used. These companies vet the buyer (you) and insure the payment to the producer, providing security for both parties.
  • Since wine is exported, VAT and duties are not paid. These conditions are called “net prices” or “export prices.” If a winery mentions “net-net,” this refers to the best possible price, and no further discount or marketing opportunity can be met. The ball is now in your court.

Smart Logistics

Unless you plan on driving a truck yourself, you need a freight forwarder. While there is a range of freight forwarders, companies like Hillebrand Gori and Neptun Freight Services stand out as specialists in handling wine.

Usually, trucks are not heated or refrigerated. Especially in the cold winters and hot summers, try to arrange pickup when temperatures are wine-friendly. If it’s too hot, the wines may “cook”; if it’s too cold, the bottles may freeze. Wine-specialist logistics companies are good at handling these situations—they are not shipping socks, paper clips, and sunglasses, which are not affected as much as wine—ensuring that your shipment arrives in peak condition.

For smaller orders, shipping an entire pallet can be cost-prohibitive. This is where “piggybacking” or “groupage” comes in. Many wineries, especially those in close proximity to others, are open to combining shipments.

Essentially, a lead winery will consolidate several smaller orders from neighboring producers onto a single pallet. This is a fantastic way to access wines from small-scale producers without committing to a large volume from each. Sometimes the wineries know each other and coordinate drop-offs via WhatsApp.

To piggyback, please ask the winery upfront if this is an option. It’s a common practice in regions with a high density of wineries, but it’s less feasible if the producers are in different wine regions due to logistical complexities. And not all producers are fond of the idea.

Logistical Failures

Even with the best planning, logistical failures can occur. A shipment might be delayed by unforeseen events, a pallet could be lost in transit, or bottles can arrive broken or damaged by extreme temperatures.

This is where your choice of partners becomes critical. In the event of damage or loss, the first step is to document everything with photos and immediately notify both the winery and your freight forwarder. The shipping insurance, governed by the Incoterms of your agreement (like EXW or FOB), will determine liability and the claims process.

Waste Disposal – A Forgotten Negotiation Tool

In the EU, the waste disposal system, also known as “Green Dot”, requires producers or importers to pay a fee for the recycling of packaging waste (bottles, cartons, labels, corks, etc.). This can be a clever point of negotiation.

If a winery is firm on its bottle price, you can ask if they will cover the waste disposal fees. These fees are typically around €0.06 per wine bottle and €0.10 per sparkling wine bottle. It’s a small concession for the winery but a direct cost saving for you.

Taxes and Customs (Germany)

If you’re importing into Germany, you have to play by the rules of the customs (Zoll). In the beginning, it may be frustrating, but it’s not complicated once you know what’s what.

• • Excise Number (Verbrauchsteuernummer): You need this number from the customs. It identifies you as a legitimate consignee for goods with excise tax, like wine. No number, no import. If you are importing irregularly, you can also apply for a one-time Excise Number at the customs office. Or the forwarder can take care of this.
  • Product Registration: You need to be mindful of specific product categories. Sparkling wine (Schaumwein), fortified wines (aufgespritete Weine), and so-called intermediate products like Port or Sherry (Zwischenerzeugnisse) all have their own tax rules.

When Tax Becomes Duty

• • Sparkling Wine Tax (Schaumweinsteuer): Germany is the largest consumer of sparkling wine, so of course, it’s taxed. It was originally introduced in 1902 by Kaiser Wilhelm II to finance the navy and build the Kaiser-Wilhelm-Kanal, today known as the Nord-Ostsee-Kanal, connecting the North Sea and the Baltic Sea. The tax is €136 per hectoliter, which works out to €1.02 for every 0.75L bottle you import.
  • Intermediate Product Tax (Zwischenerzeugnissteuer): This applies to fortified wines and varies by alcohol level. Currently, the rate is €102.00/HL for products up to 15% ABV, translating to €0.76 per 0.75L bottle. If above 15% ABV, it increases to €152.00/HL, or €1.14 per 0.75L bottle.
  • Spirits Tax (Alkoholsteuer): If you plan to import spirits, be aware of the high alcohol tax. The standard rate is €1,303/HL of pure alcohol. A 0.7L bottle with 40% alcohol is taxed at €3.65.

Every alcohol shipment must be declared in the EMCS (Excise Movement and Control System). When the wine arrives at your warehouse, you must immediately close out the transaction in the system and pay the duties.

Labeling and Traceability

Compliance in labeling is a key consideration. Usually, the winery uses its EU-compliant labels, which today often include a QR code. However, EU and German laws mandate strict labeling requirements to protect consumers.

Crucially, for wines from outside the EU, the label must include the name and address of the importer, making you legally traceable.

Furthermore, if you are importing and marketing a wine as organic, you must ensure the bottle carries the official EU organic leaf logo and the correct certification code of the producer.

Just as important are the lot numbers printed on the bottle or capsule. In the rare but serious event of a product recall—due to contamination or other defects—the lot number (LOT) allows you to identify and isolate the specific batch, protecting both your customers and your business. Sometimes the LOT is provided on the PO, allowing for seamless identification.

Common Abbreviations

Since we have used a lot of uncommon terms, here is an exhaustive list of the most common abbreviations in the wine business:

• • PO: Purchase Order
  • SKU: Stock Keeping Unit / specific wine
  • PAL: Pallet
  • FTL: Full Truck Load
  • EXW: Ex Works
  • DDP: Delivered Duty Paid
  • FOB: Free On Board
  • EMCS: Excise Movement and Control System
  • LOT: Lot Number
  • POS: Point of Sale
  • HL: Hectolitre or 100 Liters

Importing wine is straightforward, and service providers can cover all handling and logistics, allowing you to focus on negotiating with the producer and selling their wine. It is fair to assume shipping and logistics costs of €1.00 – €1.50 per bottle from Spain, Italy, or France when headed to Germany, prior to adding tax.

Please feel free to reach out to my Consulting Services or my Agency, Sustaina Wines, if you are interested in learning more about our services and wines.

Please see this as a general handbook. This is not legal advice.

Peter Douglas