Australia’s First Families of Wine to launch in USA May 2015

Leading family wineries tour to showcase Australian wine heritage and modern diversity.

AFFW_LogoFounded in 2009, Australia’s First Families of Wine (AFFW) came together to work collectively to raise the profile and provenance of quality Australian wine, at home and around the world, through fine wine and heritage tastings, consumer and trade education and industry leadership.

The group consists of twelve of Australia’s prominent family wineries — Brown Brothers (1885), Campbells (1870), d’Arenberg (1912) , De Bortoli Wines (1928), Henschke (1868), Howard Park (1986), Jim Barry Wines (1959), McWilliam’s Wines (1877), Tahbilk (1860), Taylors (1969), Tyrrell’s Wines (1858) and Yalumba (1849).

Recently AFFW announced the appointment of Robert Hill-Smith from Yalumba as their new chairman. Hill-Smith assumes the chair from Mitchell Taylor of Taylors Wines and is the fourth chairman of the initiative. “Internationally, our mission is to educate, share and celebrate Australia’s fine wine heritage, quality, and diversity with wine enthusiasts around the world and encourage demand for Australian fine wines. Collectively we represent 16 wine regions, 4 states, 48 generations of winemakers and over 1,200 years of experience,” stated Hill-Smith.

Angela Slade, Regional Director Wine Australia North America enthuses, “Australia’s First Families of Wine is a showcase for the multi-generational story of Australian wine, from early days in the 1800s, through to the modern wine story from the 1950s, to the regional and stylistic evolution of today.” Slade continues, “This US launch, led by Robert Hill-Smith, represents both wine heritage and a look at Australia’s long-term sustainability well into the future.”

NORTH AMERICA TOUR – MAY 2015:
The tour, coordinated by Wine Australia, will include 13 events over 14 days in 5 cities across the USA and Canada. US launch events are planned for San Francisco (May 18) and New York (May 20) before heading to Canada for Montreal (May 21-22) Toronto (May 25-26) and Vancouver (May 28-30).

FAMILY MEMBERS ON TOUR 2015:
Robert Hill-Smith (Yalumba), Ross Brown (Brown Brothers) , Colin Campbell (Campbell’s), Chester Osborn (d’Arenberg), Darren DeBortoli (De Bortoli), Stephen & Prue Henschke (Henschke), Jeff Burch (Howard Park), Peter Barry (Jim Barry Wines), Scott McWilliam (McWilliam’s), Alister Purbrick (Tahbilk), Justin Taylor (Taylors/Wakefield), and Bruce Tyrrell (Tyrrell’s).

FOR TRADE: Speed Dating Trade Event 

Please join AFFW for a fast-paced tasting event to introduce Australia’s First Families of Wine.  11 multi-generational wine families have teamed up to showcase Australia’s rich wine heritage, celebrated wine stories and modern diversity.  In a speed-dating format, and against the clock, 11 winery hosts will each have just 5 minutes to introduce their winery, family and special wine to the group before the bell rings for rotation.  Following the hour long speed dating experience, guests will have the opportunity to mingle with their winery hosts for a walk-around tasting featuring additional wines from each winery.

May 18th, 2015 from 2.30pm – 5.00pm at the Press Club, San Francisco. REGISTER YOUR INTEREST HERE: http://affwunlocked.com.au/usa/san-francisco/

May 20th, 2015 from 2.30pm – 5.00pm at The Press Lounge – New York. REGISTER YOUR INTEREST HERE: http://affwunlocked.com.au/usa/new-york/

FOR MORE INFORMATION:

Donna White
Donna White Communications 203 558 4262 donna@donnawhitepr.com

Angela Slade,Wine Australia Regional Director, North America, angela.slade@wineaustralia.com

ABOUT AUSTRALIA’S FIRST FAMILIES OF WINE:
Please visit: http://affwunlocked.com.au/ and www.affw.com.au
Join the conversation: Twitter @AFFWine and Facebook https://www.facebook.com/AFFW1

• Australia’s First Families of Wine (AFFW) initiative was launched in August 2009 at the Sydney Opera House
• AFFW launched in the UK in 2010, Canada in 2011, China in 2013 and runs an Australian program ‘Unlocked’
• The AFFW charter is to engage consumers, retailers, restaurateurs and industry colleagues around the globe to understand the quality of Australian wine, appreciate its character, and the personalities behind the brands
• Strict criteria to establish AFFW include being family controlled, having multiple generations involved in the business, ability to offer a tasting of 20+ vintages of their iconic wine, owner of established 50+ year old vineyard, best environmental practices throughout their businesses, and active involvement in the Australian wine industry bodies and organizations.
• Reference: Heart & Soul Australia’s First Families of Wine by Graeme Lofts with forward by James Halliday

 

What U.S. Wine Importers are Looking For

We are pleased to announce that Deborah M. Gray will be speaking at Australia Trade Tasting on ‘What U.S. Importers are Looking For & How To Keep Them Interested.’

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Deborah M. Gray, an Australian native and entrepreneur, founded her U.S. wine importing company, The Australian Wine Connection, in 1992 at a time when women wine business owners were scarce and knowledge of Australian wine was almost nonexistent in the U.S. Her first imports consisted of her family’s brand, The Cowra Estate, and a collection of small, family-owned vineyard brands. Deborah ultimately achieved broad national distribution with a diverse portfolio of iconic, highly rated Australian wines before selling her company in 2007.

Today, Deborah lives in Southern California where the emphasis in her company, Bluestone Wine Solutions, is on consulting and assisting others around the country with their importing needs and portfolios. Her second book, Wine Exporting to the U.S. – Strategies for Success, a comprehensive guide for the foreign wine supplier, will be published in 2015.

Come and Be Inspired by Deborah as she presents useful strategies and tips on “What U.S. Importers are Looking For & How To Keep Them Interested.”

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Don’t miss out on the remarkable content at Australia Trade Tasting this year. For More information on the great line-up of speakers at AuTT, please Click Here.

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How can you Sell your Wine, Beer, and Spirits in the USA? Here’s A Brief Overview of the 3-Tier System.

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Are you looking for a guide on what it means for your Australian brewery, winery, or distillery to do business in the three-tier sales system in the USA?

The three-tier system was put into place after the abolition of Prohibition to control and regulate the distribution of adult beverages in the USA.  Production, importation, packaging and marketing are all federally regulated. Once federally approved for sale within the USA, further compliance with state distribution laws is necessary for market-entry anywhere in the USA.

The following article examines industry terminology used by suppliers, importers, wholesale distributors and retailers and outlines the role of each tier in the three tier system.

Here are some frequently used terms & abbreviations and their meanings for breweries, wineries and distilleries ready to start contacting importers, distributors and retailers in the USA:

FOB Price– Freight on Board: Supplier’s price (per case). The amount producers will get paid per case for their products. When talking about distributing their brand in their state, suppliers need to be ready by saying, “Its $54 per case FOB (New Jersey) / $4.50 per bottle.” When talking to a potential importer who plans to import their product, the FOB would be quoted as $36 per case FOB (Sydney) / $3 per bottle. If a supplier is picking the international freight tab they can quote $40 FOB (New York Port) to the importer.

On-Premise Retail: Bars, Clubs, Tasting Rooms, Brew Pubs, etc.  Any retail location where beverages are sold for consumption on premise.

Off-Premise Retail: Liquor Store, Chain Store, Box Store, etc.  Any retail location where beverages are sold for consumption off premise.

Call Frequency – How often a distributor rep visits a retail account

Control State – A state where sales are controlled directly by state-run establishments

SRP – Suggested Retail Price: Suggested final offer price to consumers in on-premise and off-premise accounts calculated using assumed mark-up percentages, as determined by market research by the supplier.

PTC – Price to Consumer.

PTD – Price to Distributor.

Margin – Based on sale price, this is usually reported as a profit percentage.

Markup – Based on cost, this is usually reported as a profit percentage.

Dry Shelf:  Retailer shelf that is not refrigerated

DTC – Direct to Consumer:  Any sale of beverage directly from the producer to the consumer.  Typically, this is done by local producers through internet sales, tasting rooms, fan clubs, events, etc.

FET – Federal Exercise Tax

Hand-Selling: The act of promoting and selling your beverage face-to-face.

Programming: Tastings, bottle-necks, marketing campaigns, etc.  Any promotional material you can provide to help market your beverage.

DI – Days Inventory: How many more days of inventory left of a certain product at a distributor warehouse.

Incentives: Coupons, discounts, free cases, give-backs, etc.  Any programs given to help promote sales in the three-tier system.

BTG – By The Glass: Price for beverage, offered by the glass at on-premise accounts.

Frontline Price: Highest listed retail price

Street Price: Lowest listed retail price

Retail Price:  Price listed by retailers to consumers.

 

An Overview of the 3-Tier Sales and Distribution System.

 

Supplier Sales

In this sales tier, the supplier (winery, brewery, distillery, producer, or importer) sets the distributor’s FOB, which is the only price that the supplier has any direct control over.  Suppliers can influence the PTC through give-backs, discounts and promotions, but ultimately the price offered by distributors to retailers (wholesale price) and the PTC is in the hands of the distributor and retailer. Depending on the FOB paid, distributors have a good understanding of what SRP will be for retail accounts and will go-to-market accordingly.

Australian wineries, distilleries and breweries are required by federal law to enlist the services of a registered importer.  Once the product has cleared customs and is state side, the importer and supplier begin marketing the product to distributors.

Instead of soliciting distributors directly, Australian suppliers often engage an agent or consultant company to broker sales and provide marketing support to distributors.  Often, the firm will have importers and distributors that they work with to establish a solid market-entry strategy for new beverages.  These representatives must be fully licensed in the states you are planning on entering.

Even if you plan on selling ‘out-of-state,’ compliance with state laws is a must when working with state importers, brokers, distributors and retailers.   The costs and complexities of compliance vary considerably from state-to-state, so plan market-entry accordingly.

 

Distributor Sales

Once purchased, the distributor warehouses supply until further delivery to retail partners.  Freight, storage, and operating costs, as well as mark-up, will all be added to the wholesale price (note that some states have regulatory mark-up margins).

Even though the supplier does not have overall control of the price offered to retailers, often they are expected to provide incentive programs (tastings, promotional campaigns, etc.) in target markets to help build customer recognition, create a competitive offering and ultimately deplete stock at retail accounts. Both Distributors and consultancy firms will have reps working to help sales for your beverage, but you will need to provide incentive programs to really encourage them to concentrate on your brand.  Beyond incentives for your distribution tier reps, in order for successful market entry you will personally need to employ a team dedicated to support programs at retail accounts.

Some distributors are ‘multi-state’ or ‘national,’ which means their distribution network spans across various states and each branch of their company specializes in compliance for the state they operate in. Depending on the state, some wholesale distributors can also hold import licenses.

Working with national distributors or wholesale distributors with import licenses can sometimes simplify the import process in the three tier system, but it does not mean you will not be required to provide incentive programs, support programs and marketing campaigns to go along with those provided by your distributor reps. No matter what state you enter and with what import and distribution partners, be prepared to build a healthy market for your beverages.

 

Retail Sales

Retail sales are separated into two main account types – on-premise and off-premise. Retailers will buy stock from distributors at the wholesale price where-upon the product will be distributed to the retail store for further sale to the consumer.  Each state regulates retail sales and each set of laws, licenses and taxes, for both on-premise and off-premise accounts, varies from state-to-state considerably.

Chain and box stores often receive the best pricing and volume deals (incentives) from wholesalers while independent retailers work hard to market their offerings (variety, POP, POS, support programs, etc.)  Depending on what type of distributor you are working with, you will need to be able to service the type of retail partners they work with.

Independent retailers typically need to price their offerings higher (approximately 25%-50% margin) because they are unable to sell at the volume that Chain and Box stores (20%-45% margin) can.

Breweries, Wineries, Distilleries and Suppliers often have a SRP that they want to see as a final listing price at the retail level, but they seldom have any direct control over the final PTC.  Depending on any discounts, incentives, % mark-up, compliance factors, programming, marketing, and promotional campaigns that has gone into getting the product to market, the retail price can be dramatically different from that of a supplier’s initial SRP.

On-premise retail accounts are usually limited to selling to consumers by-the-glass, or by the bottle, and for consumption at their establishment only. Some states allow on-premise accounts to sell to consumers for off-premise consumption and some even allow securely sealed, opened bottles to leave the premise.  Support programs (promotional give-aways, merchandising, etc.) are also highly encouraged to build customer bases at important on-premise locations.

Depending on state laws, some wineries, breweries , distilleries and suppliers can sell direct-to-consumer (DTC).  This is often limited to producers selling directly to consumers at tasting rooms and brew pubs or at events, but DTC internet clubs directly associated with the producer are very popular in states where it is permitted.

For a good pricing overview for the USA market, please read Three Tier System and Pricing Overview for USA Market 

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Are you a winery, brewery or distillery looking to export your beverages to the USA?  Come network at Australia Trade Tasting and grow your brand.

Looking For A Beer Importer in USA? Be Prepared For These 7 Questions.

Craft Beer Importers

Our recent interview with Jon Reynolds who has been working in the american beer industry for more than 30 years helps us craft the ‘The 7 most important questions that will help you find a US beer importer partner‘.

The Three Tier Distribution Model is a difficult system to navigate, especially for international brands new to the compliance restrictions and regulations present in each individual state. Finding the right importer whose company profile fit’s your brewery’s needs is the first step towards getting your beers into retail stores across the USA. This means developing strong sales pitches, support programs and freight networks so that your import partners can establish healthy relationships between your brand and their distribution and retail accounts.

Finding the right import partner and getting your international beers into stores across the USA.

1 – What are the most important steps and sales tools that the Australian brand owner could take before they begin importing and selling?

The Australian brand owner should prepare, at minimum, the following Marketing Presentation of their Imported beer brand:

  • Marketing Story
    Main points of difference vs. the competition already available on the market.
  • The Brewery and the Source
    Unique place, landmarks, water, minerals, elevation, country’s lifestyle, culture, tap room and unique hops and grains
  • Brand Portfolio
    Sell sheets, photos and packaging/SKU’s are very important.
  • Distribution Secured
    What countries, states and markets, annual sales plus excess capacity are available?
  • Brewing Awards Won
    Include a full list of Domestic and International Brewing Awards and Competitions.
  • Marketing support elements on all Media platforms
    Detail your, POS, website, video, social media (Facebook, Twitter, Instagram, Google, and Pinterest, etc.) sampling programs, trade samples, incentives, merchandising/display enhancers, and truck decals.
  • Sales support elements
    Outline all U.S. sales agents, tasting groups, media agencies, brand managers, and feet-on-street availble to support importer.
  • Samples
    Samples can be expensive if shipped from overseas, so the brand owner should attempt to get its importer in place before too many samples are sent FEDEX or DHL.

2 – What are the target price points for your Aussie beer brand?

  • First, research the market and develop an Aussie brand to target the U.S. market you are expanding into (East Coast, West Coast, Midwest).
  • Establish an F.O.B. in Australia that covers your full cost of goods and provides margin for your Brewery.
  • Estimated landed costs for containers into the U.S.; should include inland freight to Aussie Port, Export Duties, Sea Freight to the US. Port, Import Duties, Federal Excise Taxes, Importer Fees/Margin, Inland Freight to U.S. destination, State Excise Taxes, Distributor Margin (30% normal), Sales Rep Commission and Retailer Margin (25-30% normal).
  • This should lead the brand owner to Recommended PTR’s/PTC’s for each SKU.

Please find All 7 Questions You Will be Asked by US Beer Importers here: http://beveragetradenetwork.com/en/btn-academy/ready-to-export-your-craft-beer-to-usa-here-are-the-7-questions-you-will-be-asked-by-us-beer-importers–389.htm

If you are looking to export your craft beer brand to USA, we encourage you to attend US export conference on Sept 2. Check out the speakers here http://australiatradetasting.com/en/conference-26.htm

 

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