INTERNATIONAL MARKET DEVELOPMENT CLASS PROJECT - WINE TRADE Students have been assigned to a team of 2 or 3 to develop an international market development project. Students are assigned to work for the same fictitious wine domaine: Domaine de X, with the same product line. They will be given fixed parameters/constraints regarding the wines and the domaine. Each team will be assigned a different market for these wines, specifically: -a specific country: USA -a type of retailer : Niche Supermarkets

1. http://www.quelmastermarketing.fr/

2. International Market
Negociation
American Niche Supermarkets

4. United States
Niche supermarkets
Geoffrey
Cohen
Romain

5. Wine in the United States
• 320 million people; ⅓ wine drinkers
• World’s largest consumer (13%)
• Growing market (>9$/bottle)
• Open-minded
Production :
• 4th largest => 8% of world
• 90% California
• Quality Improving
Imports
• 2014: €641 million French wine
• 2012-2014: ↓ 3.2% volume, but ↑ 2.5% value

6. Three-tier system
● Each wine must pass by an importer, a wholesaler and a retailer before the
consumer
● => 3.5-4 x EXW price

7. Differences between states
• Customs Duties
$6.3/hl
• Excise tax
Texas
● $0.20/gallon
California
● $0.20/gallon
• New York
● $0.30/gallon

8. Niche Supermarkets - American Buyer
• Mid-upper class clientele, disposable income
• Value and quality
• Organic
• Target age: Millenials
• Examples: Wegman’s (East Coast, Beauvignac
Picpoul + Coupe Roses), Whole Foods,
Zabar’s…
Open to new experiences
Follow their own path in life
Life priorities in order
Easy drinking, NOW!
Value pack and brand

9. Marketing Strategy
• Develop a solid brand => Domaine X
• Consumer community for our brand
• Communicate on Varietals
• Fewer cuvées
• Clear and recognizable labels
• BiB = easy drinking now
• Value / Experience
• Wine fairs worldwide
• Wine competitions to gain awards,
prestige, and press
• Target wine writers and publications
• Promos/tastings in stores

10. Marketing plan (Cuvées, quantities, labels)
● 75k btls Entry Red
● 60k btls Standard AOP Red
● 35k BiB Entry Red
● 54k x 5€
● 20k x 15€
● 75k btls Entry White ● 19k BiB Entry White
=> Create a community
for our brand
20€20€

11. Marketing plan (Cuvées, quantities, labels)
● 60k btls Mid-range AOP
● 60k btls Good Wine
● 120k btls AOP Languedoc
4€

12. Marketing plan (Cuvées, quantities, labels)
● 50k btls Rosé
2.10€

13. Marketing plan (Cuvées, quantities, labels)
● 10k btls high-end White
7.90€

14. Marketing plan (Cuvées, quantities, labels)
● 10k btls high-end Red
7.90€

15. Former vs New Repartition
● 10k btls high-end Red
● 10k btls high-end White
● 10k btls high-end Red
● 10k btls high-end White
● 75k btls Entry Red
● 60k btls Standard AOP Red
● 75k btls Entry White
● 60k btls Mid-range AOP
● 60k btls Good Wine
● 50k btls Rosé
● 35k BIB Entry Red
● 19k BiB Entry White
● 120k btls AOP Languedoc
● 50k btls Rosé

16. I want your wine

17. Bibliography
• Adams, A, et al. “Is the U.S. Wine Market Balanced?” Wine and Vines. Jan. 28, 2015.
www.winesandvines.com/template.cfm?section=news&content=145415
• McMillan, R. “State of the Wine Industry 2015.” Silicon Valley Bank. 2015.
www.svb.com/uploadedFiles/Content/Blogs/Wine_Report/2015_Wine_Report/wine-report-2015-pdf.pdf
• Kalikow, L. “Gen Y is Gen Wine.” The Huffington Post. Oct. 1, 2013. www.huffingtonpost.com/leora-kalikow/millenials-
wine_b_4017099.html
• “Etats-Unis : Présentation du marché du vin.” Export Entreprises SA, Sud de France Développement. November 2015.
www.suddefrance-developpement.com/fr/fiches-pays/etats-unis/vin/introduction.html
• “Tax and Fee Rates.” Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury of the United States. May 22, 2015.
www.ttb.gov/tax_audit/atftaxes.shtml
• Mueller, S. et al. “Alcohol in moderation: Market potential for low alcohol wine before and after excise tax increase.” 6th AWBR
International Conference, Bordeaux Management School, 9-10 June 2011. academyofwinebusiness.com/wp-
content/uploads/2011/09/77-AWBR2011-Mueller_Lockshin_Louviere.pdf
• “Tax Rates/Surveys - Tax Rates.” Federation of Tax Administrators, United States. Nov. 3, 2015.
www.taxadmin.org/fta/rate/tax_stru.html
• “Importation de Boissons Alcoolisées aux Etats-Unis : Réglementation Commerciale .” French Embassy to the United States. August
2013. fr.ambafrance-us.org/IMG/pdf/USA_importation_boissons_alcoolisees.pdf