Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are the current bonded warehouse pricing trends and service issues in the UK, and which alternatives are members using?
Members are reporting significant price increases across UK bonded warehouses coupled with stretched service levels. **LCB** has raised landing charges from 50p to 75p per case and storage from 6p to 7.5p per week; they're also experiencing capacity constraints with 3-day landing times and 7-day rework turnarounds, plus strict policies on late deliveries. Current pricing varies slightly by operator—**Horseguards Gin** reports goods-in at 67p and storage at 7.25p per case of 6. Members note the sector is experiencing high demand across the board, driving prices up while service levels decline. Alternatives members are exploring: - **FuturePro Logistics** — used successfully at Seedlip and still in use there; contact Mark@futureprologistics.com, +44 7766 114 897 - **EHD** — praised as not expensive, quick for landing, and offering decent delivery rates Members' general sense is that capacity is tight across all warehousing operators. Those considering alternatives should factor in both pricing and service responsiveness when evaluating providers.
Which bonded warehouses do UK spirits producers recommend for storage, and how do their rates and services compare?
Members use a small number of established bonded warehouse providers for spirits storage in the UK. The two most commonly mentioned are **LCB** (lcb.co.uk) and **EHD**. Several members note that **LCB** rates have increased significantly in recent years, so it's worth comparing options. For logistics and admin support around bonded warehouse management, members highly recommend **Duppy Sharing**, which handles production logistics, warehouse coordination, and back-office administration for multiple Kindred brands. They are praised for five years of reliable service, problem-solving, and customer support for both large and small brands. **Note:** The discussion provides limited detail on specific rates, service levels, or direct comparison data between providers. Members advise getting current quotes directly, as pricing has been volatile.
What does it mean for a supplier to be registered as a bonded supplier when importing to Australia, and who is responsible for the registration?
When importing to Australia, bonded warehouse registration is typically the responsibility of the **importing/receiving party**, not the exporting supplier. The importer—whether a distributor, retailer, or their logistics partner—should be the entity with the bonded warehouse licence and responsible for any associated paperwork. **Key points from community experience:** - The receiving importer needs to have a bonded warehouse; they should handle the necessary paperwork themselves - If you're exporting on standard incoterms (e.g. FOB), the responsibility sits with the importer on the Australian side - If a major retailer like Coles is requesting that goods be "bonded," this may indicate they lack bonded warehouse capacity themselves—but members noted this "doesn't sound right" and warrants clarification - Confirm with your importer exactly what incoterms you've agreed, as this determines who bears responsibility for customs and bonded-warehouse arrangements **Caveat:** This guidance is based on standard export practice; if a customer is making unusual requests, verify directly with your Australian customs broker or importer rather than assuming standard responsibility allocation.
What are the most cost-effective bonded warehouse options for spirits storage, and which operators will handle small quantities?
Members recommend **Law Distribution** as the cheapest all-round bonded warehouse option they've found—several have used them for 5+ years. They will handle small quantities including quarter pallets, making them more flexible than larger providers like LCB, though some found LCB more suitable if flexibility on order size is the priority. Specific recommendations: - **Law Distribution** — consistently cited as cheapest option; handles small quantities and quarter-pallet orders; proven track record across multiple members over 5+ years - **Andy Roy at BW Logistics** (aroy@bwalogistics.com, Kent-based) — recommended as a good alternative operator; experience with small and fractional pallet shipments Members also noted that **LCB**, whilst more expensive, offers greater flexibility on minimum order quantities if cost is less of a concern than convenience. For general business insurance covering alcohol, members suggested exploring **FSB's services** (Federation of Small Businesses), noting an annual subscription is worthwhile.
What banks should a UK drinks business use, particularly for international transfers and bonded warehouse compatibility?
Banking for drinks businesses requires careful selection as no single provider excels across all needs. Members recommend having multiple bank accounts with different providers to spread risk and access specialised services. **Banks to avoid:** - **Barclays** — Multiple members reported serious problems, including poor handling of overdrafts and corporate relationships. Several described experiences as "horrible" and recommended avoiding "like the plague." **Recommended providers:** - **Virgin Money** — Praised for excellent in-branch service and quick, easy international transfers. - **Standard Chartered** — Recommended for international business operations. - **Starling** — Listed as a viable option, though members note it has both pros and cons like other providers. **Key considerations:** - **Bonded warehouse compatibility** — Members flagged that opening a bonded facility can create banking issues, so confirm your chosen bank can support bonded warehouse operations before committing. - **Multiple accounts strategy** — Members advise holding accounts with at least two providers: one optimised for international transfers and currency exchanges, and others with FSC protection as backup. This approach mitigates single-provider risk and ensures access to specialist services. - **No perfect solution** — Members acknowledged banking feels like "searching for the holy grail but [it] doesn't exist," with various providers having different merits depending on your specific needs. When selecting a bank, prioritise those with proven international transfer capability and confirm bonded warehouse compatibility upfront.
What bonded third-party logistics providers do members recommend for retail distribution of drinks?
Members recommend several bonded warehouse and logistics providers for handling retail pallets and distribution to major retailers and wholesalers. The key consideration is pricing structure—avoid providers who charge purely on a per-case basis without acknowledging pallet economics. **Recommended providers:** - **LAW Distribution** — recommended as the cheapest overall with very good service. Contact Stan Moyser at Stan.Moyser@lawdistribution.co.uk - **Chichester Bond / MSX** — mentioned as a solid second choice for service quality - **Belvedere (BWA Logistics Ltd)** — located in Kent, www.belvederewarehousing.com **Caveat:** Members specifically warned against **LCB** because they charge purely on a per-case basis without acknowledging pallet economics (e.g., 372 cases per pallet), making their pricing model poor value for retail-scale distribution.
Can a UK spirits brand use a distributor to hold inventory under bond (WOWGR)?
No — the owner of the goods must hold the WOWGR themselves; a distributor cannot hold bonded stock on a brand's behalf. If you need blending and canning services with bonded warehouse capability, members recommend approaching this as part of a service package rather than as a standalone distributor arrangement. **Bottled and Canned** offer blending and canning services that include bonded warehouse access as part of their integrated cost — contact them to get a detailed breakdown of what's included in their pricing.
Should early-stage brands finance duty upfront or use regular warehousing to save costs?
Members strongly advise against financing duty in advance when starting out. This ties up cash that early-stage brands need for operational priorities, and is effectively paying tax ahead of schedule—most accountants would discourage it. For bonded warehousing, members recommend: - **Law Distribution** — based in St Helms, praised for strong value and reliability. Multiple members have been with them for 5–6 years since starting up. Contact Stan Moyser via LinkedIn, described as "a great fountain of knowledge." - **Tortuga** — offers an all-in-one model handling storage under bond, order management, deliveries, and invoicing for a relatively low monthly cost, if you prefer integrated fulfillment. The consensus is that bonded storage is the right choice for new brands, but avoid the temptation to pay duty early.
Which bonded warehouses offer EDI system integration for imported goods?
Members have identified a small number of bonded warehouse providers with EDI capabilities, though the landscape appears limited. **Bezzie** is used by members for bottle fulfilment and B2C operations and is noted as paperless with EDI systems integrated. **LCB** also offers EDI, though one member reported significant capacity constraints—they had only 29 licences when that member used them and promised expansion to 120 within 4 months, which did not materialise (reaching only 35). That member also experienced poor distribution (ROS of 6–8 cans per store per SKU per week) and terminated early due to a "ridiculous marketing contract", so they do not recommend returning soon. Bezwie appears to be the more positively regarded option among those discussed. Higher ROS was noted in train stations and airports. Members should approach LCB with caution on capacity and contract terms.
How should VAT be calculated when excise duty on alcohol released from bonded warehouse exceeds 20% of the total value?
VAT on goods released from bonded warehouse is charged on the cost price plus duty, not on the selling price or final wholesale price. **However, when duty represents more than 20% of the total value, you must alert HMRC to the discrepancy**, otherwise they will initiate a review process—which members report is tedious and time-consuming. The calculation itself should be: cost price + duty = VATable base, then VAT at 20% on that sum. Failure to notify HMRC when duty exceeds the standard 20% threshold can trigger compliance reviews.