Date post: | 30-Mar-2015 |
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Yulia Dorofeeva, Martina Valkovicova, Levi Wood
Agenda
The Company
Product
Shipping
Import procedure
Tariffs and taxes
Volumes and distribution
Customers
Competitors
Marketing and promotion
Summary and conclusions
Questions
The Company
history dates back to 1867 distilling company producer of wide range of popular
spirits spirits ranked among the best on
Slovak market traditional recipes
Product
Zbojnícka slivovica - 52 % distilled spirit traditional method made of juicy plums and
crystal-clear Tatra water
Shipping
Shipped as a pre-packaged and sealed product
Standard shipping box - 12 bottles per box - 60 boxes per pallet
Based on Movement by NVOCC from Slovakia to Canada
Total Cost – approx $ 1010 USD
Import Procedure
1. Obtain Import Permit
2. Pass Inspection from CFIA and
CBSA
3. Determine Appropriate Tariffs
4. Ship Product
5. Further Inspection
6. Distribution/sale
Tariffs and TaxesHS Code : 220890.92 Fruit Brandy
- Beverages, Spirits, and Vinegar
Covered by the Canada – European Union Trade Agreement - Wine and Spirits Agreement (2003) - Potential Free Trade Agreements in the Future
MFN status applies as does Consolidated Tariff policy
Federal Tariff – 24.5 c/ Litre spirit alcohol
Excise Tax – $11.69/ L pure alcohol
GST – 5%
Tariffs regulations
Based on a Single 700 ml BottleEuro CAD
Original Cost 8.19 1.47667 12.09Shipping 0.99 1.47667 1.47Warehousing Fee 0.14 1.47667 0.21Insurance 0.25 1.47667 0.37Canadian Tariff Duties 0.12 1.47667 0.17Gst @5% 0.41 1.47667 0.61Federal Excise Tax 2.21 3.27
Total Cost 12.31 1.47667 18.18
BCLS Markup 9.93 1.47667 14.66inc pst
Cost + Markup 22.24 1.47667 32.85
Profit 4.06 6.00
Total Selling Price 26.31 38.85
Profit Margin 32.99%
Exchange Rate Risk
Customers
According to the statistics, there are
about 2, 5 mln of people at the age of
20-65 in BC.
About 50% of them consume alcohol
spirits
People of Eastern European Origins -
219 325
Consumption
Increase from 8.18 litres per capita in
2002 to 8.53 litres in 2005 and 9.2
litres in 2009.Dollars Litres
Domestic spirits
15 867 000 426 101
Import spirits 9 877 000 314 827
Competitors
Three levels of competition:
- world-known brands of spirits
(whiskey, vodka)
- national drinks (rakia, schnapps etc)
- different types of spirits from plums
Volumes and distribution
Distribution places:
- BC liquor stores
- Bars, clubs, restaurants
Marketing
Marketing research
Promotion tools:
- Sample testing
- Point of purchase advertising/samples
- Social media (meetup.com) promotion
Summary & conclusions
Great opportunity!