Drinks - General

HOW PUBS CAN SAVE MONEY ON OVERSEAS BEER AND SPIRIT ORDERS

Importing beer and spirits can slash costs and boost your menu. But it can also blow your budget if you miss a few key steps. This guide walks pub owners through practical ways to save thousands on overseas orders — from currency strategies to shipping tricks, customs smarts and negotiation tactics. No jargon. Just steps you can use this week.

Why Pubs Import (and Where the Costs Hide)

Many venues import to:

  • Offer signature beers and small-batch spirits that stand out
  • Bring in seasonal products local suppliers don’t stock
  • Buy in bulk when the overseas price still beats local margins

Hidden costs often show up as:

  • Poor FX rates and transfer fees
  • High freight and storage
  • Unexpected customs duties and delays
  • Minimum order quantities (MOQs) that create excess stock

Quick Wins That Save Big (Do These Now)

  • Compare landed cost per carton, not just unit price. Include sea/air freight, insurance, duties and handling.
  • Use a specialist foreign-exchange provider to get better transfer rates and lower fees. Try OFX for transfers and rate tools.
  • Consolidate orders with other pubs or monthly buys to hit better freight rates.
  • Ask for EXW and FOB quotes so you can compare who handles what.
  • Use a customs broker to avoid delay fees that add up fast.

Step-by-Step: How to Cut Your Landed Cost

  1. Calculate your true landed cost
    1. Landed cost = Product cost + freight + insurance + customs duty + GST on import + broker/handling fees.
    1. Divide total by cartons to get unit landed cost.
  2. Choose the right shipping method
    1. Sea for low-cost, non-urgent stock.
    1. Air for launches or low volumes where time beats price.
  3. Lock a good FX rate before payment
    1. Small rate moves can cost hundreds on big orders. Use a bank or a specialist FX firm to fix a rate or set a forward contract.
  4. Consolidate and split
    1. Combine multiple orders or suppliers into one container.
    1. Share container space with other local venues or importers.
  5. Use bonded storage when it helps
    1. Store goods in bond to delay GST/duty until sale or local distribution.
  6. Get product classified early
    1. Correct HS codes avoid reclassification and surprise duties.
  7. Negotiate MOQs and payment terms
    1. Ask for smaller trial batches, better payment windows or staged shipments.

Shipping and Logistics Hacks That Actually Work

  • Use a freight forwarder that specialises in alcoholic beverages. They know packaging, pallet rules and labelling.
  • Schedule shipments to avoid peak-season surcharges (late-year holiday surcharges matter).
  • Consolidate LCL (less-than-container) shipments for small buys — cheaper than multiple air shipments.
  • Ask for door-to-door vs port-to-port quotes and compare the extras.
  • Insure for all-risk and check who handles claims if damage happens.
  • Price check quotes with platforms like Freightos to benchmark rates and transit times.

Customs, Duty and Paperwork Made Simple

  • Confirm the right HS code for each product before it ships.
  • Register your ABN and required import licences early.
  • Use a licensed customs broker to prevent costly mistakes.
  • Make sure labelling meets Australian standards to avoid rework.
  • Keep invoices and packing lists clear — simple paperwork = faster clearance.

Need a reminder why local survey data matters? Get involved with the PubTIC Victoria-wide pub survey to help shape rules and supports for venues.

Smart Negotiation with Overseas Suppliers

  • Ask for tiered pricing based on yearly volume. Suppliers often budge once they see repeat business.
  • Push for shared freight or split costs on first shipments.
  • Request mixed pallet options so you can trial multiple SKUs without full MOQs.
  • Use Incoterms to make sure everyone’s clear on who pays for what at each stage.
  • Offer references or local introductions to reduce supplier risk for them.

Simple Formulas and an Example

Landed cost formula:

Landed cost = Product price + Freight + Insurance + Duty + GST on import + Broker fees

Unit cost = Landed cost ÷ Number of cartons

Example (easy numbers):

  • Product price: $5,000 AUD
  • Freight + insurance: $800
  • Duty: $300
  • GST on import: $650
  • Broker & handling: $250

Total landed: $7,000

If 200 cartons, unit landed = $35/carton

Compare that to the local price per carton and you’ll see clear savings. Use this checklist each time you quote a new supplier.

Tools and Tech That Save Time and Money

  • Use spreadsheet templates to compare landed cost across suppliers.
  • Track shipments with the freight provider app so you avoid demurrage.
  • Manage invoices and expenses with tools like Xero, and use FX providers to reduce bank fees.
  • Keep a master file of supplier contacts, HS codes and past landed-costs for quicker future quoting.
  • For smarter packaging and handling, look at crate options that cut loading costs.

A Simple Action Plan for This Week

  • Pick one planned product to import and run the landed cost formula.
  • Get three quotes: supplier price, sea freight and customs broker.
  • Compare FX offers and lock a rate if it’s favourable.
  • Ask supplier for a smaller trial MOQ or split container option.
  • Schedule delivery to avoid peak surcharges and confirm storage on arrival.

Do those five things and you’ll spot where thousands are leaking out.

Final Checklist Before You Press “Pay”

  • Landed cost reviewed and compared
  • FX rate locked or plan in place
  • Freight method and timing confirmed
  • HS codes and customs broker ready
  • Label compliance checked
  • Storage/retail plan on arrival

Saving thousands comes down to process, not luck. Follow the steps in this guide, use the tools and partners that specialise in imports, and keep tighter control over currency and logistics. You’ll keep more margin, open up better drink choices and protect your cashflow.