2. Steve Raye
President of Bevology, Inc.
Marketing consulting company helping export
brands enter and grow in the U.S. market.
Steve Raye
Bevology Inc.
401 Park Ave. So, 10th
Floor
New York, NY 10016
+1-860-833-6272
Steve@BevologyInc.com
www.BevologyInc.com
Blog: OH-pinions
3. Simple Formula to Estimate Retail Shelf Price
3.5 times Ex-Cellar Price
or
2 x Distributor Laid-In Cost
NB: this is a rough estimate
Retail Shelf Price =
4. Formula is a Simplified Model and
Point of Reference Only
Factors that are incorporated into this formula
Marketing support from winery and importer (usually
5% each). Can be via direct contribution or % of
sales for wine dinners, in-store tasting events, PR etc.
Samples allow 2% for net total, (usually funded half
from winery/supplier and matched from distributor).
For new products sample budget may be higher/more
the first year.
5. Simplified Formula for U.S. Wine Price
Structure
Georgia 1.51$ 3.59$
Hawaii 1.38$ 3.28$
Idaho 0.45$ 1.07$
Illinois 1.39$ 3.30$
Indiana 0.47$ 1.12$
Iowa 1.75$ 4.16$
Kansas 0.30$ 0.71$
Kentucky 3.18$ 7.56$
Louisiana 0.11$ 0.26$
Maine 0.60$ 1.43$
Maryland 1.35$ 3.21$
Massachusetts 0.55$ 1.31$
Michigan 0.51$ 1.21$
Minnesota 1.17$ 2.78$
Mississippi -$ -$
Missouri 0.42$ 1.00$
Montana 1.06$ 2.52$
Nebraska 0.95$ 2.26$
Nevada 0.70$ 1.66$
New Hampshire -$ -$
New Jersey 0.88$ 2.08$
New Mexico 1.70$ 4.04$
New York 0.30$ 0.71$
North Carolina 1.00$ 2.38$
North Dakota 1.06$ 2.52$
Ohio 0.32$ 0.76$
6. Variable Charges Including Freight, Duty
Warehouse
Est. Ocean Freight $ 3.00
Est. Marine Insurance $ 0.20
Ad Valorum & Harbor Tax $ 0.34
Duty $ 0.62
Warehouse Charges $ 1.50
Total 5.66$
7. State Excise Tax Rates
State
State Excise
Tax $/gallon
State Excise Tax
$/9L case
State Excise
Tax $/gallon
State Excise
Tax $/9L case
State Excise Tax
$/9L case
Alabama 1.70$ 4.04$ Missouri 0.42$ 1.00$
Alaska 2.50$ 5.94$ Montana 1.06$ 2.52$
Arizona 0.84$ 2.00$ Nebraska 0.95$ 2.26$
Arkansas 1.42$ 3.38$ Nevada 0.70$ 1.66$
California 0.20$ 0.48$ New Hampshire -$ -$
Colorado 0.32$ 0.76$ New Jersey 0.88$ 2.08$
Connecticut 0.72$ 1.71$ New Mexico 1.70$ 4.04$
Delaware 0.97$ 2.31$ New York 0.30$ 0.71$
Dist. of Columbia 1.61$ 3.83$ North Carolina 1.00$ 2.38$
Florida 2.25$ 5.35$ North Dakota 1.06$ 2.52$
Georgia 1.51$ 3.59$ Ohio 0.32$ 0.76$
Hawaii 1.38$ 3.28$ Oklahoma 0.72$ 1.71$
Idaho 0.45$ 1.07$ Oregon 0.67$ 1.59$
Illinois 1.39$ 3.30$ Pennsylvania -$ -$
Indiana 0.47$ 1.12$ Rhode Island 1.40$ 3.33$
Iowa 1.75$ 4.16$ South Carolina 1.08$ 2.57$
Kansas 0.30$ 0.71$ South Dakota 1.27$ 3.02$
Kentucky 3.18$ 7.56$ Tennessee 1.27$ 3.02$
Louisiana 0.11$ 0.26$ Texas 0.20$ 0.49$
Maine 0.60$ 1.43$ Utah -$ -$
Maryland 1.35$ 3.21$ Vermont 0.55$ 1.31$
Massachusetts 0.55$ 1.31$ Virginia 1.51$ 7.19$
Michigan 0.51$ 1.21$ Washington 0.87$ 2.07$
Minnesota 1.17$ 2.78$ West Virginia 1.00$ 2.38$
Mississippi -$ -$ Wisconsin 0.25$ 0.59$
Wyoming -$ -$
8. Terms and Terminology
Distributor = Wholesaler: they are synonyms
FOB: Technically means Free on Board/Freight on
Board
In practice simply means the price that is being
charged…from supplier to importer or from importer to
distributor. Ownership and liability changes from seller
to buyer at this point.
Get a specific and firm agreement for what it includes in
your deal
Laid-In Cost: the fully loaded cost to distributor
before markup and before state taxes.
Wholesale Price: The frontline (undiscounted) price
9. Terms and Terminology
FET: Federal Excise Tax
Duty: a tax on imported products separate from FET
State Excise Tax: Tax on alcohol component of the
product, definitions may vary by state.
Discounts: DA (Depletion Allowance), SPA (Special
Purchase Allowance), FSA (Floor Stock
Adjustment), RIPS (Retailer Incentive program),
MIPS (Management Incentive Program)
10. Contact
Steve Raye
Bevology Inc.
401 Park Ave. So, 10th
Floor
New York, NY 10016
+1-212-613-2713 (office)
+1-860-833-6272 (cell)
Steve@BevologyInc.com
www.Bevologyinc.com
Blog: OH-pinions