Your First Export Drinks Order?

For many drinks brands, the first export drinks order enquiry is an exciting milestone and rightly so.

You’ve spent years building your brand in the UK and then, one day, a contact from Japan, Singapore, Canada or another overseas market gets in touch and wants to place an order. It’s tempting to just say “Yes!” and start celebrating.

However, before you commit, take a pause.

Ultimately, your first export drinks order is about so much more than just shipping a few cases overseas. It’s the beginning of building an international business, and the decisions that you make now will inform every export order that follows.

Recently, I spoke with the founder of a growing UK drinks business who had received an enquiry from Japan. Like many founders, they had experience selling successfully in the UK but were new to exporting. Together, we worked through the initial questions that every drinks producer should ask before accepting their first international order.

Here is a checklist of things to think about.

1. Understand exactly who you’re selling to

The first question is about your prospective customer.

Are they:

• An importer?
• A wholesaler?
• A retailer?
• A distributor?
• A combination of several?

Understanding their business model helps to determine how they’ll sell your products and what support they’ll expect and need from you.

Don’t be afraid to ask clarifying questions to such as:

• Do you already import other drink brands, from the UK or elsewhere?
• Which sales channels will you use for my product, e.g., on- or off-trade?
• How frequently do you expect to order?
• What are your growth plans for your business and my brand?

The more you understand, the easier it becomes to build a long-term relationship rather than simply fulfil a one-off order.

2. Make sure that your business is export-ready

Many businesses receive export enquiries before they’ve actually decided that they even want to become exporters. Those are two very different things.

Exporting isn’t just about another sales channel. It requires complete commitment across the whole business, including:

• Production
• Finance
• Logistics
• Customer service
• Marketing
• Compliance

If export is going to become a part of your growth strategy, then treat it as a strategic decision rather than simply reacting to an ad-hoc enquiry and plan for your success well in advance by building and embedding an export culture in your

3. Check whether your product complies with local regulations

Every market has its own rules.

Alcohol labelling requirements vary significantly from country to country. For example, Japan requires specific information to appear in Japanese, alongside various import requirements.

Before you quote a price or agree delivery dates, find out:

• Local labelling requirements
• Product registration requirements
• Documentation needed by customs
• Any market-specific compliance rules

You want to be clear as to whether you can comply with local requirements before committing yourself to fulfilling the order.

4. Decide which Incoterm works for your business

One of the biggest decisions you’ll make in exporting is selecting the right Incoterm.

An Incoterm defines who is responsible for:

• Transport
• Insurance
• Customs clearance
• Risk
• Costs

Many first-time exporters assume they need to manage everything but they don’t.

At one end of the Incoterm scale is EXW (Ex Works), where the buyer collects the goods and is responsible for everything from that point.

At the other is DDP (Delivered Duty Paid), where the seller takes responsibility all the way to the buyer’s premises.

For many drinks brands, the best solution sits somewhere in the middle.

Choosing the right Incoterm for your business depends on:

• Your experience and confidence in exporting
• Your logistics capability
• Your freight relationships
• Your customer’s capabilities

Choosing carefully can protect both your profit margin and ultimately your sanity.

5. Build a relationship with a specialist freight forwarder

A good freight forwarder quickly becomes one of your most valuable partners in international trade.

They can help with:

• Export documentation
• Customs procedures
• Shipping options such as the need for temperature-controlled containers.
• Consolidated freight
• Regulatory requirements

If your first order is relatively small, then consolidation may be the most cost-effective option.

Instead of shipping an expensive partially filled container on its own, your goods may travel alongside other UK exports heading to the same destination, significantly reducing freight costs.

6. Don’t forget the paperwork

International trade relies on documentation. You will also need an EORI number as well as specific paperwork if you sell an alcoholic product under bond.

Depending on the destination, you may need:

• Commercial invoice
• Packing list
• Certificate of Origin
• Export declarations
• Proof of export
• Additional market-specific documentation

Your importer should also be able to advise exactly what they require before shipment, which you can factor into your pricing because .

Getting the paperwork right first time saves delays, unexpected costs and customs problems.

7. Think carefully about how you’ll get paid

A sale isn’t really a sale until the money reaches your bank account. Think about how you are actually going to get paid for an order sold overseas.

For new overseas customers, it’s sensible to reduce your financial risk as much as possible.

Common payment options include:

• Pro forma payment (payment before shipment)
• Letter of Credit
• Agreed credit terms often backed up with credit insurance.

Many exporters begin with payment upfront and then gradually offer more flexible terms once a relationship and trust have been built.

Protecting your cash flow is ultimately as important as winning the order and is key to your business success as the level of your export business increases.

8. Price for export properly

Export pricing isn’t just your UK wholesale price plus freight.

You also need to factor in:

• Freight costs
• Insurance
• Customs costs
• Foreign currency costs
• Documentation costs
• Distributor margin
• Retail margin

Your export pricing should support a profitable supply chain for everyone involved to be worthwhile committing resources to it.

9. Learn from your first shipment

Your first export order is unlikely to be perfect. That’s completely normal. Treat it as your learning shipment.

Document every stage of the process by creating standard operating procedures (SOPs) that serve as a blueprint for future shipments.

Record:

• Which documents were needed for the market
• Who completed each task
• Timelines involved eg shipments to the Far East can take at least four weeks
• Costs (especially the hidden ones)
• Challenges
• Reflect and note improvements to be made the next time

Every shipment becomes easier when your processes are documented.

10. Think beyond the first order

Receiving one enquiry often raises a bigger question:

“If we’re right for this market, where else could we sell?”

That’s where exports become a proactive strategy rather than a reactive tactic.

Instead of waiting for enquiries to come in, you can start to identify the markets that best fit your:

• Brand positioning
• Product range
• Price point
• Target consumer
• Distribution model

A clear structured export strategy allows you to grow your business internationally with intention and confidence rather than relying on chance and maximises the chances of success.

Following a clear thought process when you receive your first export drinks order can ensure that you take the first step to a successful and profitable business expansion in overseas markets.