THE QUALITY BRAND IMPORTS BLOG

CBMA Tax Benefit for European Wineries

The Craft Beverage Modernization Act (CBMA) provisions provide for reduced rates or tax credits for beer, wine, and distilled spirits produced in or imported into the United States. These CBMA tax benefits are limited in quantity for each producer, including foreign producers. Foreign producers utilize these CBMA tax benefits by assigning them to U.S. importers of their products.  U.S. importers pay the Federal excise tax on imported beer, wine, and distilled spirits, and must receive an assignment of the CBMA tax benefits from the foreign producer to take advantage of the CBMA tax benefits. Starting in 2023, the Alcohol and Tobacco Tax and Trade Bureau (TTB) will take over the [...]

November 28th, 2022|

How to create a new Wine Brand

Many of the larger wine suppliers in the United States frequently create new wine brands – often geared towards a specific target market.  For example, the Chloe Collection by the Wine Group targets female wine consumers. https://www.chloewinecollection.com/ The wines offered by many of these brands do not necessarily come from one vineyard.  Often, they buy grapes from other sources to create a unique wine portfolio from a variety of wine regions that appeal to the selected target market. While it may feel strange for vineyards steeped in tradition and proud of their current brands to create a brand-new label, creating a new wine brand will supplement a vineyard's current wine [...]

October 27th, 2022|

When in America, do and think as the Americans do

We all have heard the old saying ‘When in Rome, do as the Romans do’.  It makes a lot of sense and applies to any country in which one wants to do business successfully.  We discussed the definition of success in an earlier blog post. Attitudes towards business, risk, and business relationships, in general, vary greatly between Europe and the United States. Europeans tend to be more conservative about business, money, and risk. Relationships between companies tend to last for years. The same is often true for relationships with employees.  Developing new business relationships in Europe generally takes a long time and requires a high level of trust and bonds [...]

October 25th, 2022|

The Definition of Success

Or more specifically, what is the definition of success for foreign wine producers in the US market? When speaking to wineries in Europe we often hear that they are simply looking for an importer.  Finding an importer and selling their wine to the importer seems to define success for many.  Does that make sense? How do most manufacturers of consumer products define success?  Selling the product to An importer? A wholesaler? A retailer? A consumer? Most brands understand that sales to consumers are key to and definition of success.  Not just sales to consumers but repeat sales to consumers.  Students learn that in entry-level business classes. I am sure many [...]

October 21st, 2022|

Why are French wines so cheap in France yet so expensive in the US?

Anyone who has traveled to and spent time in France will have noticed how inexpensive wine is there.  The average price for a bottle of red wine in France was €4.91/liter in 2020, for white wine the average price was €5.65/liter according to FranceAgriMer. Yet at the same time, French and European wines in general are much more expensive in the US market.  Apparently, it is not the fault of French winemakers.  Word on the street is that European wines retail for an average of 4 x EXW or more in the US.  Why is that?  The simple answer: Too many hands in the cookie jar.  An article written [...]

September 25th, 2022|