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Yulia Dorofeeva, Martina Valkovicova, Levi Wood

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

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Yulia Dorofeeva, Martina Valkovicova, Levi Wood

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  1. Yulia Dorofeeva, Martina Valkovicova, Levi Wood

  2. Agenda • The Company • Product • Shipping • Import procedure • Tariffs and taxes • Volumes and distribution • Customers • Competitors • Marketing and promotion • Summary and conclusions • Questions

  3. 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

  4. Product Zbojnícka slivovica - 52 % distilled spirit traditional method made of juicy plums and crystal-clear Tatra water

  5. 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

  6. 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

  7. Tariffs and Taxes • HS 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%

  8. Tariffs regulations

  9. Exchange Rate Risk

  10. 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

  11. Consumption Increase from 8.18 litres per capita in 2002 to 8.53 litres in 2005 and 9.2 litres in 2009.

  12. Competitors Three levels of competition: - world-known brands of spirits (whiskey, vodka) - national drinks (rakia, schnapps etc) - different types of spirits from plums

  13. Volumes and distribution Distribution places: - BC liquor stores - Bars, clubs, restaurants

  14. Marketing Marketing research Promotion tools: Sample testing Point of purchase advertising/samples Social media (meetup.com) promotion

  15. Summary & conclusions Great opportunity!

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