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 distilling company producer of wide range of popular

spirits spirits ranked among the best on

Slovak market traditional recipes

Product

Zbojnícka slivovica - 52 % distilled spirit traditional method made of juicy plums and

crystal-clear Tatra water

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

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

Tariffs and TaxesHS 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%

Tariffs regulations

Based on a Single 700 ml BottleEuro CAD

Original Cost 8.19 1.47667 12.09Shipping 0.99 1.47667 1.47Warehousing Fee 0.14 1.47667 0.21Insurance 0.25 1.47667 0.37Canadian Tariff Duties 0.12 1.47667 0.17Gst @5% 0.41 1.47667 0.61Federal Excise Tax 2.21 3.27

Total Cost 12.31 1.47667 18.18

BCLS Markup 9.93 1.47667 14.66inc pst

Cost + Markup 22.24 1.47667 32.85

Profit 4.06 6.00

Total Selling Price 26.31 38.85

Profit Margin 32.99%

Exchange Rate Risk

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

Consumption

Increase from 8.18 litres per capita in

2002 to 8.53 litres in 2005 and 9.2

litres in 2009.Dollars Litres

Domestic spirits

15 867 000 426 101

Import spirits 9 877 000 314 827

Competitors

Three levels of competition:

- world-known brands of spirits

(whiskey, vodka)

- national drinks (rakia, schnapps etc)

- different types of spirits from plums

Volumes and distribution

Distribution places:

- BC liquor stores

- Bars, clubs, restaurants

Marketing

Marketing research

Promotion tools:

- Sample testing

- Point of purchase advertising/samples

- Social media (meetup.com) promotion

Summary & conclusions

Great opportunity!