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Us drinks market import options for suppliers looking to enter the american wine and spirit market.
 

Us drinks market import options for suppliers looking to enter the american wine and spirit market.

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Overview of options for wine and spirit exporters to find an import solution for their products in the U.S.

Overview of options for wine and spirit exporters to find an import solution for their products in the U.S.

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    Us drinks market import options for suppliers looking to enter the american wine and spirit market. Us drinks market import options for suppliers looking to enter the american wine and spirit market. Presentation Transcript

    • U.S. Drinks Market: Options for Suppliers toEnter the American Wine and Spirits Market ©2012 Brand Action Team LLC
    • Hope is Not a Strategy ©2012 Brand Action Team LLC
    • Model Has ChangedFrom To Suppliers Distributors Consumers Courtesy of Nora Favelukes, QW Wine Experts ©2012 Brand Action Team LLC
    • Three Tier System Producer Wholesaler(Wineries, Brewers, Distil Retailer Consumer leries, Importers) (Distributor) 4 ©2012 Brand Action Team LLC
    • What Importers Want• The right “CHEMISTRY”• Fills an identified void in portfolio – Brands with existing US volume they can grow – New brands they feel their expertise can develop and grow – Brands that have a unique positioning• Enhances image, value and profitability (Synergy with importer’s mission)• Strengthens importer’s position within the trade• Supplier understands the U.S. Three-Tier system• Financially sound, budget to invest and support the brand. ©2012 Brand Action Team LLC
    • Presenting Your Brand to Importers• Company description/history• Product description – varietals, style, ranges, proposed US retail price by line/sku, and price structures• Brand point of difference/value proposition for consumer; why THIS importer should be interested in you.• Marketing materials as background• A defined target audience• Production Info• Past history of importers, distribution agreements, list of distributors/brokers of products and volumes by state• Price structure for U.S.• Marketing support budget• Samples ©2012 Brand Action Team LLC
    • Read the Book ©2012 Brand Action Team LLC
    • Your Options 4. Specialist 1. Large 2. Specialist 3. Regional or Company that National National Multi-State both Imports Importer Importer Importer and Distributes5. Set Up Your 6. Nat’l 7. Large 8. Chain Own Import Licensing, Impo Distributor that Retailer Company rt and Services also Imports Exclusive Brand 9. Direct Import 10. Wine Club/ thru Control E-Comm/ State Flash Site ©2012 Brand Action Team LLC
    • 1. Large/National Importer ©2012 Brand Action Team LLC
    • 1. Large/National Importer Pros ConsExisting national distribution network Small brands get lost in portfolio.Clout with distributors, your brand Agency brand gets lower priority thanbenefits from their portfolio strength owned brands.Large sales force Importer controls pricing, marginsOn staff marketing department, existing ad Internal competition for companyand PR agencies resourcesParticipate in their sponsored events: Importer determines marketing strategy,portfolio tastings that attract more and creative, promo, POS…fits your productmore important trade, press than you into their portfoliocould reach on your own.Existing business with chain accounts Set up to work with bigger suppliers, focus on big volume brands“National” price ©2012 Brand Action Team LLC
    • 2. SpecialistNational Importer ©2012 Brand Action Team LLC
    • 2. Specialist National Importer Pros ConsExisting national distribution network Smaller brands less important to distributors.Participate in their sponsored events: Importer controls pricing, margins, brandportfolio tastings that attract more and priority, creative look and feel, fits yourmore important trade, press than you product into their portfoliocould reach on your own.Category expertise Specialization may mean limited appealOn staff marketing personnel Limited in house marketing and sales resourcesExisting business with chain accounts Sales management presence in multiple states limited. ©2012 Brand Action Team LLC
    • 3. Specialist,Regional or Multi- State Importer ©2012 Brand Action Team LLC
    • 3. Specialist, Regional or Multi-State Importer Pros ConsSmaller, more focused and nimble Limited geographic reachGet more attention/not lost in the portfolio Limited capital, credit, payment history may be a problem.Specialize in specific area (country of origin, Smaller/limited resources, limited capitalindigenous varietals, price) availability, often no marketing staff, small sales staff, hire out PR on project basis.The smaller you are, the smaller the importer Tend to be with smaller, specialty distributors soshould be don’t get wide off and on premise distribution.If you only make 50,000 btls, you don’t need Limited interest in investing in the brand, likely thatnational distribution, you need strength in a limited the majority ofset of markets. marketing has to come from brand owner. If you have multiple importers, will need multiple labels …implications on inventory, compliance ©2012 Brand Action Team LLC
    • 4. Specialist Company thatboth Imports and Distributes ©2012 Brand Action Team LLC
    • 4. Specialist Company that both Imports and Distributes Pros ConsMore motivated to work with you because Relatively limited sales forcethey control two levels of marginFocus on major markets/cities, not Limited geographic reachoutlying areas.Specialize/known for something: country Different importers in different statesof origin, wine style require separate labels…inventory management issues Smaller/limited resources, often no marketing staff, small sales staff, hire out PR as projects.May take lower margins at each tier Not sustainable price structure if move tobecause keep both. traditional importer/distributor relationship Marketing has to come from brand owner. ©2012 Brand Action Team LLC
    • 5. Set Up Your Own Import Company ©2012 Brand Action Team LLC
    • 5. Set Up Your Own Import Company Pros Cons100% of attention to your brand. Bear the complete cost of everything, can’t amortize anything, need volume to make it work.Have complete control of everything: Need people with lots of skills: marketingmarketing, sales, pricing, distribution, sales, import logistics, warehousing, whichmargin, focus, message. can take your eye of what you should be doing…promoting and selling.Works better for spirits than wine. Not your expertiseKeep Importer Margin ©2012 Brand Action Team LLC
    • 6. NationalLicensing, Import and Related Services ©2012 Brand Action Team LLC
    • 6. National Licensing, Import and Related Services Pros ConsVery efficient at what they do Do not do marketing.Cost savings in logistics, freight You will need either a rep in country orconsolidation, etc. you’ll have to hire someone who can do the things belowOnly pay for services you need Need to do everything else yourself: marketing, sales planning, distributor management, marketing, inventory, pricing etc.“Incubator” distribution services in NY, NJ,CAHandle cash flow, invoicing, billbacks and Need to find/set up distribution network.other price modifications and distributordeals.Quicker market entry ©2012 Brand Action Team LLC
    • 7. LargeDistributor that also Imports ©2012 Brand Action Team LLC
    • 7. Large Distributor that also Imports Pros ConsBuilt-in distribution network, integration Distributor is focused on satisfying needs of big internationals like Diageo, Bacardi, Pernod. You will never be a priority.Existing sales force Not in the brand building businessEfficiencies and margins of having Can’t/don’t work with multi-state chainscombined functions of importer and on or off premise if have operationsdistributor outside their markets.May get more attention here than with a Difficult to get distributors in states wherelarge national importer. this distributor does not operate. Dist’s are not interested in helping competitive distributors make moneyPrimary business is distribution and sales Not their primary business ©2012 Brand Action Team LLC
    • 8. Chain, Retailer Exclusive Brand73 stores, 11 states Anakena 500 stores, 19 states ©2012 Brand Action Team LLC
    • 8. Chain, Retailer Exclusive Brand Pros Cons“Shadow” distributor works on very low Extra margin does not usually accrue tomargin, so retailer has more room to price supplieraggressivelyEstablish distribution in multiple states Limited to selling through only that retailerquickly or retailer groupMinimal marketing costs (Don’t need to Limited opportunity to grow brand outsidefund distributor incentives, consumer dedicated distribution, no on premiseawareness programs) business.Immediate volume with first order Business limited to the states in which the retailer operates. In Total Wine example, no opportunity for sales in NY or IL. ©2012 Brand Action Team LLC
    • 9. Direct Importthru Control State ©2012 Brand Action Team LLC
    • 9. Direct Import thru Control State Pros ConsGetting “traction” in one state can get the Only works in one stateinterest, credibility with other importoptions.An experienced broker with relationships Broker generally only knows that onein that specific state can facilitate. state. Not a scalable strategy. ©2012 Brand Action Team LLC
    • 10. Wine Club/E- comm/ Flash SiteWine Clubs E-Commerce Sites Flash Sites ©2012 Brand Action Team LLC
    • 10. Wine Club/ Ecomm/ Flash Sites Pros ConsAn option…to at least get a beachhead. Limited reach to only their customer baseLow support costs for supplier. Retailer No real brand building for the long term.assumes burden of marketing, securingcustomers.Can represent good volume via a simple Every sale involves a DTC shipping cost tosales, shipping, inventory, labeling process retailer, meaning a lower margin toto a single customer. supplier.E-commerce allows you sell in states even E-commerce represents limited volumewhere you don’t have a distributor. potential…now. Off premise solution only ©2012 Brand Action Team LLC
    • 11. Other ideas• Enter competitions to get U.S.-based ratings and reviews. Some will work with brands that do not have a current importer. (Great way to legally import samples)• Use Wine Enthusiast Importer Connection program (Jay Spaleta, jspaleta@wineenthusiast.com)• US trade shows for wines and spirits: – WSWA/US Drinks Conference/US Beverage Alcohol Forum, Nightclub and Bar Show, Manhattan Cocktail Classic, NY Bar and Wine Show, Tales of the Cocktail• Data on U.S. market, brands, volumes, share, trends: Beverage Information Group Handbooks for Wine, Liquor, Beer, On-premise (www.bevinfogroup.com)• ImporterConnect ™ service to help find U.S. importers ©2012 Brand Action Team LLC
    • US CompetitionsDo not need a US importer to enter Need a US importer to enter Ultimate Beverage Challenge Beverage Testing Institute MicroLiquor Awards NY International Spirit Awards Indie Spirits Competition San Francisco International Wine Comp. Spirits International Prestige Award (SIP) ©2012 Brand Action Team LLC
    • ContactSteve RayeManaging PartnerBrand Action Team1 Darling Dr.Avon, CT 06001860-676-7900sraye@comcast.netwww.TheBrandActionTeam.comwww.BATChat.net (blog) ©2012 Brand Action Team LLC