Download - USA Pricing Model for Wine and Spirit Brands
U.S. MARKET PRICE STRUCTURE MODEL
© 2015 Steve Raye
A Beverage Trade Network Webinar
Steve Raye President of Bevology, Inc. Marketing consulting company helping
export brands enter and grow in the U.S. market.Steve RayeBevology Inc.401 Park Ave. So, 10th FloorNew York, NY [email protected]: OH-pinions
Simple Formula to Estimate Retail Shelf Price
3.5 times Ex-Cellar Price or2 x Distributor Laid-In Cost
NB: this is a rough estimate
Retail Shelf Price =
Formula is a Simplified Model and Point of Reference Only
Factors that are incorporated into this formula Marketing support from winery and importer
(usually 5% each). Can be via direct contribution or % of sales for wine dinners, in-store tasting events, PR etc.
Samples allow 2% for net total, (usually funded half from winery/supplier and matched from distributor). For new products sample budget may be higher/more the first year.
Simplified Formula for U.S. Wine Price Structure
Georgia 1.51$ 3.59$ Hawaii 1.38$ 3.28$ Idaho 0.45$ 1.07$ Illinois 1.39$ 3.30$ Indiana 0.47$ 1.12$ Iowa 1.75$ 4.16$ Kansas 0.30$ 0.71$ Kentucky 3.18$ 7.56$ Louisiana 0.11$ 0.26$ Maine 0.60$ 1.43$ Maryland 1.35$ 3.21$ Massachusetts 0.55$ 1.31$ Michigan 0.51$ 1.21$ Minnesota 1.17$ 2.78$ Mississippi -$ -$ Missouri 0.42$ 1.00$ Montana 1.06$ 2.52$ Nebraska 0.95$ 2.26$ Nevada 0.70$ 1.66$ New Hampshire -$ -$ New J ersey 0.88$ 2.08$ New Mexico 1.70$ 4.04$ New York 0.30$ 0.71$ North Carolina 1.00$ 2.38$ North Dakota 1.06$ 2.52$ Ohio 0.32$ 0.76$
Variable Charges Including Freight, Duty Warehouse
Est. Ocean Freight $ 3.00 Est. Marine Insurance $ 0.20 Ad Valorum & Harbor Tax $ 0.34 Duty $ 0.62 Warehouse Charges $ 1.50 Total 5.66$
State Excise Tax RatesState State Excise
Tax $/gallonState Excise Tax
$/9L caseState Excise Tax $/gallon
State Excise Tax $/9L case
State Excise Tax $/9L case
Alabama 1.70$ 4.04$ Missouri 0.42$ 1.00$ Alaska 2.50$ 5.94$ Montana 1.06$ 2.52$ Arizona 0.84$ 2.00$ Nebraska 0.95$ 2.26$ Arkansas 1.42$ 3.38$ Nevada 0.70$ 1.66$ California 0.20$ 0.48$ New Hampshire -$ -$ Colorado 0.32$ 0.76$ New J ersey 0.88$ 2.08$ Connecticut 0.72$ 1.71$ New Mexico 1.70$ 4.04$ Delaware 0.97$ 2.31$ New York 0.30$ 0.71$ Dist. of Columbia 1.61$ 3.83$ North Carolina 1.00$ 2.38$ Florida 2.25$ 5.35$ North Dakota 1.06$ 2.52$ Georgia 1.51$ 3.59$ Ohio 0.32$ 0.76$ Hawaii 1.38$ 3.28$ Oklahoma 0.72$ 1.71$ Idaho 0.45$ 1.07$ Oregon 0.67$ 1.59$ Illinois 1.39$ 3.30$ Pennsylvania -$ -$ Indiana 0.47$ 1.12$ Rhode Island 1.40$ 3.33$ Iowa 1.75$ 4.16$ South Carolina 1.08$ 2.57$ Kansas 0.30$ 0.71$ South Dakota 1.27$ 3.02$ Kentucky 3.18$ 7.56$ Tennessee 1.27$ 3.02$ Louisiana 0.11$ 0.26$ Texas 0.20$ 0.49$ Maine 0.60$ 1.43$ Utah -$ -$ Maryland 1.35$ 3.21$ Vermont 0.55$ 1.31$ Massachusetts 0.55$ 1.31$ Virginia 1.51$ 7.19$ Michigan 0.51$ 1.21$ Washington 0.87$ 2.07$ Minnesota 1.17$ 2.78$ West Virginia 1.00$ 2.38$ Mississippi -$ -$ Wisconsin 0.25$ 0.59$
Wyoming -$ -$
Terms and Terminology Distributor = Wholesaler: they are synonyms FOB: Technically means Free on Board/Freight on Board
In practice simply means the price that is being charged…from supplier to importer or from importer to distributor. Ownership and liability changes from seller to buyer at this point.
Get a specific and firm agreement for what it includes in your deal
Laid-In Cost: the fully loaded cost to distributor before markup and before state taxes.
Wholesale Price: The frontline (undiscounted) price charged to retailer
Terms and Terminology FET: Federal Excise Tax Duty: a tax on imported products separate
from FET State Excise Tax: Tax on alcohol component
of the product, definitions may vary by state. Discounts: DA (Depletion Allowance), SPA
(Special Purchase Allowance), FSA (Floor Stock Adjustment), RIPS (Retailer Incentive program), MIPS (Management Incentive Program)
Contact
Steve RayeBevology Inc.401 Park Ave. So, 10th FloorNew York, NY 10016+1-212-613-2713 (office)+1-860-833-6272 (cell)[email protected]: OH-pinions