So You Want to Start Exporting. Craft Brewers Conference Denver, CO

Transcription

1 So You Want to Start Exporting Craft Brewers Conference Denver, CO

2 Agenda v Why Exporting v Where to Export v Finding an Export Partner v Exporting Your Beer

3 Why Exporting? v Questions to Ask v Why do I want to Export? v Prestige v Profit v Ensure Quality / Grey Market Protection v Logical Next Step for Growth v Am I ready for the expense? v Trade Marking Legal Fees by Country v Package or Draught v v Label Redesign for Package Cooperage investments (One-Way Keg Purchases) v Time to Invest v Visiting the New Markets v Separating the Beer in the Warehouse? v Filing for Excise Tax Refund?

4 Where to Export? v Who is your target audience? v Who Can Help You Identify the Audience? v Brewers Association EDP Group v Mark Snyder v Fellow Craft Brewers v US Government v USDA Export Group v Demographics

5 Where to Export? v What other Questions Need to be Asked? v What is the Beer Culture? v Is it a light lager Market? v Is it a bottle market or draught market? v What is the preferred bottle size of the Market? v Is there a willingness to try darker and heavier beers? v Is there an understanding and appreciation for US Craft Beer? v Freshness / Shelf Life Perceptions / Requirements

6 Where to Export? v What other Questions Need to be Asked? v What is the regulatory situation? v Is there a three tier system? v Are there Importing Tariffs? v Are there Importing Protections? v What are the tax regulations? v What are the labeling requirements?

7 Where to Export? v What is the Retail Pricing for US Craft Beer? v Fellow Craft Brewers can help you with this v Importers can help you with this v What is the velocity for US Craft Beer? v Fellow Craft Brewers can help v Importers will discuss this with you, but you need to ask! v It won t be as much as you think

8 Where to Export? v Answering those first few questions will help you determine your desire and direction to Export

9 Choosing a Partner v Identifying Importers v How do I start? v Brewers Association EDP v They can inform you on Qualified Importers v Are they financially strong? v Where are they headquartered? v Their contact information v Fellow Craft Brewers

10 Choosing a Partner v Researching a Partner v US Embassies can help here v If you have names: v They can run a business history on them v They can interview potential partners for you (For a Fee) v Fellow Craft Brewers

11 Choosing a Partner v Researching a Partner v Interview Them / Check their Website v How is their portfolio structured? v Beer Only? v Import Beer Only? v What is their overall beer strategy? v What is their strategy for US Craft Beer? v Need to Ask v Are they the Distributor? v Do they send it out to Sub Distributors? (How is Quality Monitored?) v Be cautious of Brand Collectors

12 Choosing a Partner v Researching a Partner v Need to Ask v What is their Route to Market Like? v How do they ship the product overseas? v How do they store the product at its destination? v How do they ship it to the retailers? v How do they ensure their retailers are serving it properly? v How do they service accounts v Are they driver sales / presell? v What is their sales force like? v Are they educated on Beer or Craft Beer? v Do they have set routes? v Do they have a computer system that can report on your movement? v What is their quality assuredness policy?

13 Choosing a Partner v Researching a Partner v Need to Ask v What is their launch plan for your brands? v Have them present the launch and marketing plans to you. v What is their forecast for your brands? v What type of margin are they willing to work on? v Do they have all the costs figured from FOB to retailer, to consumer? v What type of marketing support are they looking from you?

14 Choosing a Partner After doing all of that research It comes down to what your gut says!

15 Exporting Your Beer v Start Shipping Beer v We practice LIFO with our Exports v We have sent temperature recorders in some of our shipments to track temperature fluctuations v Depending on the laws we ll ship POS with the Beer too v We attend the biggest beer event of the year v To connect with our fans v To survey the market

16 Questions?