Giovanni Brusegan Federico Curtolo Antonio De Luca Alessandra Magro Tatjana Mihajlovic Federica Patron Jessica Pessotto Mauro Smaniotto

CARTA DO VINHOSTaças de vinho Garrafas de vinho

Prosecco DOC……..15 R$ Pinot Grigio…..….13 R$

Dom Perignon vintage 2002………1000 R$ Amarone della valpollicella………..500R$

#Introduction #Data analisys

#Bureaucracy and tariffs #Distribution

#The company: Casa Vinicola Zonin #Zonin in Brasil #The new strategy

#Swot #Conclusions

Brazil

BRICS + Emerging medium class

-More and more people buy wine

-Growing interest in wine culture

-Travel -European/North American life style -Status symbol -Sophisticated products

- 4172,5 million $ +4.9/year  (‘08  –  ’12)  

Brazilian wine market value

- 290,2 million $ -­‐3%    (‘12  –  ’13)                

Value of the Brazilian imported wine market

Recorded alcohol per capita (15+) consumption (in litres of pure alchohol) by the type of alcoholic beverage

Spirits Wine Beer Other

Data Analysis

Italy ChileArgentina FrancePortugal Other

Chile Argentina France PortugalItaly Others

Import market shares by country

Import in value : million $

Data Analysis

Liters (HL) Dollars $/lChile 2830000 9.084.300 3,21

Argentina 1270000 4.495.800 3,54

Portugal 930000 3.924.600 4,22

Italy 830000 3.220.400 3,88

France 330000 2.468.400 7,48

Others 610000 3.050.000 5

Total 6800000 24.820.000 3,65

Bottled wine (imported and still)

Chile Argentina PortugalItaly France Others

Liters

Dollars

Data Analysis

Liters (HL) Dollars $/lFrance 1.306.606 22.873.679 17,51

Italy 944.968 4.223.637 4,47

Spain 777.931 3.917.939 5,04

Argentina 705.001 2.545.215 3,61

Chile 122.900 478.646 3,89

Portugal 64.497 331.054 5,13

Others 43.587 282.353 6,48

Total 3.965.490 34.652.523 8,74

Bottled wine (imported and sparkling)

France Italy SpainArgentina Chile PortugalOthers

Liters

Dollars

Bureaucracy and Tariffs PRODUCT II) IPI ICMS PIS COFINS AFRMM Wine)of)fresh)grape,)Must)of)grapes)different)from)the)item)no.)2009 Champagne/others 20% 20% 25% 1,65% 7,60% 25% In)container)with)capacity)equal)or)lower)than)2)liters 27% 10% 25% 1,65% 7,60% 25% Other)must)of)grapes 20% 10% 25% 1,65% 7,60% 25% Vermouth)and)other)wine)of)fresh)grapes)flavoured)with)plants)and)aromaNc)substances In)container)with)capacity)equal)or)lower)than)2liters 20% 30% 25% 1,65% 7,60% 25% Others

20% 30% 25% 1,65% 7,60% 25%

# Legislation does not impose any particular difficulties with regard to imports of Italian products

# However, it is slow ,comports cost management and put some constraints:

-Wine composition may not exceed 13% alcohol

-Anyway , we find "fortified wine“ linked to an higher taxation (27% for g wine compared to 40% of liqueur wines)

Bureaucracy and Tariffs

- Certificate of Origin (Certificate of goods’ Origin, issued by the competent authority of the country of origin)

- Analysis Certificates (it must be contain analytical parameters inspect in Anexo VIII)

- Wine labeling ( it can be in the country of origin language but with a back-label translated in Portuguese)

- Packaging (certificated treaty wood pallet, or in plastic)

Needed documents:

- Export invoice (drafted in English or Portuguese, presented in 5 copies to the customs authorities)

- Customs Declaration

- Transport documents (Bill of Lading or Air Way Bill)

- Packing List

Distribution Channel

About the 56% of invoices come from GDO big chain like

Hypermarket National Chains

-Carrefour

-Wallmart

-Cencosud

-Companhia Brasileira De Distribuicao

-Companhia Zaffari

-Irmaos Muffato

Difficulties of the Brazilian market:

-The average consumer consider all European wine as the same

-High escalation of prices

-It’s not easy to find an importer willing to sell new product

-Federal state (many distributors to approach)

-Storytelling needed

Casa Vinicola Zonin- The largest family-owned grape growing and wine making company in Italy.

- 10 estates located in the most highly regarded winemaking regions in Italy

- 550 employees

- 154’000’000 €

- “Family business and a business of families”

Key strengths in international market

-Multi-branded portfolio with dedicated range to OFF and ON trade.

-Wide assortment covering all the price segments from daily consumption to top fine wines.

-Strategic partnerships in each market.

-Attention to the global market trends and opportunities through tailor made marketing strategies.

Casa Vinicola Zonin

International Depar

tmentInternational director

Zonin USA 39 people

43’400’000 €

Zonin UK 39 people

24’200’000 €

Export sales director

Area manager Area manager Area manager

Country manager in loco

Country manager in loco

Casa Vinicola Zonin +

Brazil =

Success

Italian wine +

The history…from the beginning

- Early 90’s

- Long-term relationship with two main importers, one in Sao Paulo and the other in Bahia.

- The dimension of the market has continuously increased year by year

The fall

-2011: peak of sales of the company -> 300000 bottles

-2012: lost more than half of their market, bankrupt of its Sao Paulo importer -> 120000 bottles

THE REACTION: three alternatives

-Look for another importer

-Open a branch of the company in Brazil

-Direct importation

NEW STRATEGY

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The Idea to relaunch sells in Brazil was to establish a new branch in the country

By having their local branch Zonin could be able to:

-Evaluate directly market trend

-Evaluate consumer Need

-Grasp different business opportunity

-Set up a Marketing campaign

-Enhance corporate image

-Minimize the Tax base for entering the country

This strategy has been quickly set a-side because the forecast of the sales volume was not enough high to justify the investments

The new approachThis distribution process in 4 step is too costly, the sum of markups is too high

With a 3 steps distribution channel Zonin can export at a higher price without pushing his product out of the market

The new approachAvoiding the importer passage the prices of Zonin change radically.

The price of a “Linea classici” bottles passes from 35–50 RBL to 25–35 RBL

Lower prices -> more competitive in the market

C class

B class

A class

wines from 30 to 40 R$

wines from 50 to 80 R$

wines over 100 R$

Zonin Linea Classici

R$R$

R$R$

Zonin Linea Spumanti

Zonin Linea Jewels

The most important volumes are sold in the price range that goes

from 30 to 60 R$

C class

B class

A class

R$R$

R$R$

Discount

International chain

Wholesales

distribution sys

tem

Regional high-end

supermarket

Walmart, CarrefourCencosud

St MarchèZaffariPerini, Muffato, Angeloni, Zona Sul

OUR TARGETS:

REGION SUPERMARKET

Sao Paolo Rio de Janeiro Distrito Federal Bahia Paranà Santa Catarina Rio Grande do Sul

St Marchè Zona Sul Dona de Casa Perini Muffato Angeloni Zaffari

SWOT ANALISY

S Good reputation of Italian wine  

Tailor-made products  

Large portfolio of products  

Country manager in loco  

Good value for money  

Bureaucracy and tariffs  

Price escalation  

Strong power and low reliability of importers  

Weak brand awareness  

Pro-capita consumption is growing  

Increase of GDP per capita and purchasing power  

Wine culture is expanding  

New emerging class  

Italian wine is fashion  

Appeal of European lifestyle  

Wine as status symbol  

Domestic production is increasing  

Market growth is slowing down  

Changes in the legislation  

Italian sounding wine  

Different legislation region by region  

Competition from South America  

SW

O T

Thank you for your attention