Incoterms for Beverage Buyers: FOB, CIF, EXW and DDP Explained

1. Why the Incoterm you choose changes the final price

When you buy beverages by full pallet, the Incoterm is not an administrative detail — it determines who pays for transport, who carries the insurance, and at exactly which point in the journey risk transfers from us to you. We work with four Incoterms, each suited to a different type of buyer.

2. FOB, CIF, EXW and DDP explained without the jargon

• EXW (Ex Works): You collect the goods from our warehouse and arrange transport yourself. The most cost-effective option if you already work with your own freight forwarder.
• FOB (Free On Board): We deliver the goods loaded at the origin port; ocean freight and international insurance are your responsibility from that point on.
• CIF (Cost, Insurance and Freight): We include ocean freight and insurance through to the destination port you specify — the most common choice among clients importing with us for the first time.
• DDP (Delivered Duty Paid): We deliver to your warehouse with duties and taxes already cleared. The lowest-effort option for you, and the one we recommend if you don't have your own customs agent.

3. How to choose the right Incoterm

If you already work with a trusted freight forwarder, EXW or FOB give you more control over transport cost. If this is your first beverage import or you don't have your own customs infrastructure, CIF or DDP reduce operational risk. In every case, the minimum order is 1 full pallet, and origin documentation (EUR.1) and transit documentation (T1) are handled in-house by our team regardless of the Incoterm you choose. For more detail on how we optimize each shipment, see our pallet logistics and supply chain guide.