Wine pricing strategy for export markets
Getting wine pricing right for export markets is one of the most critical decisions in export strategy. Too high and buyers cannot make margin work; too low and you leave money on the table. Here is the complete methodology.
Ex-cellar to retail calculation
Working backward from target retail: retail price to wholesale: divide by 1.3 to 1.5 (retailer margin 30-50 percent on wholesale). Wholesale to importer: divide by 1.7 to 2.5 (importer/distributor coefficient depending on market and premium). Add: import duties per market, VAT per market, expected consumer promotion allowances.
Positioning considerations
Match your positioning to your ex-cellar price. Premium winery: aim for premium retail with confidence. Entry-level: understand you are competing on volume and value. Middle segments most competitive; consider positioning explicitly premium or explicitly value rather than middle. Willingness to invest in promotion, tastings, marketing support affects importer decision.
Frequently asked questions
Should I quote the same ex-cellar price to all markets?
Generally yes for consistency. Local price adjustments are possible but require careful communication.
What is the impact of exchange rate?
Significant for USD and JPY. Consider annual price reviews to protect margin.
How to price for premium hotel channels?
Position at the premium range. Premium hotels pay above wholesale for exclusive supply and marketing exclusivity.
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