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 typical retail markups and margins for spirits and wine?
Retail margins vary significantly by retailer type and product category. Premium retailers target higher margins, while convenience stores work on smaller margins to drive faster turnover. **Key principles:** - Distinguish between markup and margin — retailers focus on margin (cost less selling price, divided by selling price), not markup - Margin varies by product value: premium spirits (e.g. Louis XIII) generate larger cash margins despite lower percentage margins; entry-level products (e.g. Remy Martin VSOP) often have higher percentage margins but smaller cash returns - Wine typically attracts higher percentage margins than spirits - Rate of Sale inversely affects margin — faster-moving products command lower margins **Typical ranges:** - Spirits: Around 30% margin as a rough benchmark - Wine: Higher percentage margins than spirits **Tools to calculate margins:** - **thinkMargin** — a dedicated app with handy calculators for margin, cost, and price - Custom integrations with **Xero** and **Zoho Books** are available if you need bespoke solutions **Note:** The exact margin your retailer will accept depends on their business model, the cash margin they'll make per unit, and how quickly your product is expected to sell.
How can UK wine sellers navigate Greek customs requirements when shipping to commercial restaurants without excise licenses?
Greek customs can block wine shipments to commercial establishments (restaurants, etc.) if the receiving business lacks an excise license or warehouse facility, even if they hold valid RORI and VAT numbers. This appears to be a stricter enforcement than in previous years. **Practical steps members recommend:** - **Engage a dedicated customs agent** — Members strongly advise appointing a Greek customs broker or agent familiar with Greek customs systems; they may have workarounds or know how to navigate the excise requirement. - **Source a Greek importer contact** — Having a Greek-based importer or distributor partner with proper excise credentials can facilitate clearance. Ask within the Kindred network for introductions; several members have Greek contacts willing to help. - **Contact Olivier Ward** — Named as a potential go-to contact who may be able to help solve this issue directly. **Key caveat:** Shipping wine direct from a French vineyard to Greek restaurants without proper licensing structures is proving harder than direct UK shipments were in previous years, suggesting Greek customs enforcement has tightened. The excise license / warehouse requirement appears to be a real blocker that may require either the restaurant clients to obtain an excise number, or routing the shipment through a licensed Greek distributor or importer.