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International Market Negociation

Scandinavian Wine Market

Scandinavia

Mathieu BechetFrédéric GarciaFlorence Limousi

How can Domaine “Clos Florentin”enter this market ?

Overview of countries

✓ 21 L wine per capita /year✓ Consumption : + 40%✓ Exports to Norway and Denmark

✓ 16 L wine per capita / year✓ Consumption : + 50%

No productionGrowing consumptionState monopolyFew inhabitants

✓ 10 L wine per capita / year✓ Consumption : doubled

The State Monopoly

❖ Vinmonopolet : 85% ❖ Importer for Vinmonopoly

and “on-trade”

★ Systembolaget : 90%★ Assortiment to order★ Swedish wineclubs

❑ ALKO OY : 65% ❑ Importer for ALKO OY or for "on-

trade"

❑ Small-scale ferry trade

Calls fo tendersLicensed importers

Consumer profile

★ BiB = 50%★ Traditional wines ↓★ But back to “old world” qualitative

wines

❖ BiB = 30% ❖ Seasoned consumers❖ Traditional European wines

❑ BiB = 40%❑ Vodka : 24% ❑ Adapting their taste in a more

traditional way.

Open-mindedPrefer red wines, few roséQuality for European wines

❖ Italy : 1st ❖ France: 2nd ❖ Chile : less qualitative❖ Languedoc : 300,000 L

Competitive context

★ Italy: 1st (value) ★ France: 2nd (value)★ Chile & South Africa : less qualitative★ Languedoc : 4 M. L

❑ France : 1st (value) ❑ Chile : 2nd (value) ❑ Italy : 4th ❑ Languedoc : 1.5 M. L

Trends

★ Increase in quantity★ Increase in red, white and rosé★ BiB : stable

❖ Increase in quantity❖ Red : stable, white and rosé : increase❖ BiB : increase

❑ Decrease in quantity ❑ Red : stable, white : increase,

rosé : stable❑ BiB : increase

Increase in qualityFrench increase in volume

Import taxes❖ Excise tax : €0.48 / L ❖ VAT : 25% ❖ Taxes on packaging : €0.13❖ Environmental tax : €0.33

plastic €0.55 glass & metal, €0.14 cardboard

★ Alcohol tax : €2.3/L★ Excise tax : €2.77/L★ VAT : 25%★ Importer : 15% cut★ Systembolaget : 19% + €0.37/unit

(BiB)

❑ Excise tax : €3.39/L. ❑ VAT : 24%❑ Tax on packagings : Packing up :

€0.67/u, Recyclable : €0.17€ /u❑ Alko Oy : 54%

Market positioning

AOC standard red_€7.5/BiB

BiB, French: increase in volume, mostly red, high taxes

IGP entry level red, white_€6/BiB

Market positioningBiB, French: increase in volume, mostly red, high taxes

AOC mid-range red_€3.45/bottle

Bottle, seasoned, red, low taxes, open-minded

AOC high-range red, white€7.9/bottle

AOC upscale red €4.6/bottle

Market positioning

 

AOC mid-range red_ €17/BiB

Bottle, seasoned, red, low taxes, open-minded

IGP entry-level rosé_€2.1/bottle

Market positioning

BiB, mostly red but increase in white, high taxes

IGP entry level red, white_€6/BiB

AOC standard red_ €9.5/BiB

Market positioning

BiB, mostly red but increase in white, high taxes

Market positioning

AOC upscale red €4.6/bottle

Marketing Strategy

★ Calls for tenders -> importers

❖ Specialised press & contests ➢ AOC high-range ➢ AOC upscale

❖ Low alcohol and fachionable packaging➢ IGP rosé

❖ Calls for tenders -> importers➢ AOC mid-range BiB

❑ Directly contact the monopoly ✓ IGP entry level, BiB ✓ AOC standard BiB

❑ Specialised press & contests ✓ AOC upscale red

Thanks for listening !