HISTORY

Founded in 1886, Shaw Wallace has come a long way. From modest beginnings to being a living legacy, Shaw Wallace has consistently risen in terms of targets achieved and standards attained. Shaw Wallace was founded in Calcutta on 1st January 1886, ust four days before the !ndian "ationalist #ovement gained momentum under the leadershi$ of W.C.%aner ee in %ombay. !t was also the year that &ama'rishna (aramahansa )eb, the great saint and teacher of %engal, $assed away, and his disci$le Swami *ive'ananda founded the +&ama ,rishna -rder+. !t is generally believed that .agore reached his full $otential around this $eriod, with the $ublication of +,ari/o/,omol+. .his was an era when the !ndian social, $olitical and business environment underwent cataclysmic changes. "ew ideas, o$$ortunities and methods led to crystalli0ation of our national character. 1t the ince$tion of Shaw Wallace, nothing great was e2$ected of it. %ut as time went by Shaw Wallace $roved worthy of its strong foundations. !t may be noted that Shaw Wallace and Com$any was one of the first im$orters of motor cars in !ndia during the beginning of the 34th century. Shaw Wallace was also the first agent in !ndia of a wireless com$any/ +#arconi+s Wireless .elegra$h+. !n 1536, Shaw Wallace acted as an agent of an airline, the +!m$erial 1irways+. .he com$any can also claim to be the foremost, outside the (ublic Sector, in the distribution of fertili0ers throughout !ndia.

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"ow in its second century of e2istence, Shaw Wallace, as an intrinsic $art of this rich and varied heritage, has set its sights high on new targets and is 'een to $rogress ra$idly towards reali0ing its $ea' $otential.
CHAIRMANS MESSAGE

We dedicate this success to the commitment, hard wor' and resolve every member of Shaw Wallace family has dis$layed. We also ac'nowledge the resolute su$$ort we have received from our sta'eholders and su$$liers. .he com$any has reached great heights because of its e2tension in the global mar'et and the trans$arent $olicy it has followed. Shaw Wallace has always strived to achieve high standards of $rofessional management and cor$orate governance. -ur goal is to be !ndia+s $remier 1lcoholic %everages com$any. .o reali0e this goal, we are introducing new $roducts, while consolidating the strengths of our e2isting brands. .echnological innovation, 6uality control and customer satisfaction are the three mandatories to achieving our goal.

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BOARD OF DIRECTORS
#r. #.&. Chhabria #r. "iran an #. .ha'ur #s. ,omal Chhabria Wa0ir #r. ..S. Shettigar #r. 8.C. 9umba #r. &.W. :ollands
Mr. Satish G. Pillai

Chairman 72ecutive )irector 72ecutive )irector )irector )irector )irector

Additi !al Dir"#t r

#r. Suresh )adlani #r. J.1. ,ershaw

1dditional )irector 1lternate )irector to #r. #.&. Chhabria

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FINANCIALS

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PROD$CTS MAN$FACT$RED LI%$OR

R &al Chall"!'" Whis(& Dir"#t rs S)"#ial Bla#( Dir"#t rs S)"#ial Whis(& M 'h*l M !ar#h D"l*+" Malt Whis(& Old Ta,"r! Whit" Mis#hi"- . d(a Paradis" Gi! ..S.O.P. E+sha/ Pr"0i*0 Bra!d& 1 h! E+sha/ N .2 Bra!d& G l# !da Bra!d& I!dias Prid" R*0

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BEER

Ha&/ards La'"r B""r

Ha&/ards 3444 E+tra Str !' B""r Ha&/ards 5444 S*)"r Str !' B""r Hi Fi," Pr"0i*0 La'"r B""r Lal T -a! Pr"0i*0 La'"r B""r R &al Chall"!'" Pr"0i*0 La'"r B""r

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DI.ISIONS
Shaw Wallace and Com$any 9imited has, over the years, grown to be an enduring asset, combining traditional values with contem$orary e2cellence. !t is one of !ndia+s leading manufacturers of alcoholic beverages with an estimated turnover of &s. 3; billion. Shaw Wallace is among !ndia+s most distinguished blue chi$ com$anies, with an im$ressive financial growth, both in the domestic as well as global mar'ets. .echnology innovation, 6uality service, customer satisfaction, team effort and high standards of $rofessional management, are the 'ey attributes of its success. Shaw Wallace com$rises the following Strategic %usiness )ivisions< 9i6uor )ivision %eer )ivision Wine )ivision !nternational %usiness .raditional %usiness

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GOING GLOBAL Shaw Wallace is now going global by develo$ing leading li6uor and beer brands for mar'ets across the seven seas. .oday Shaw Wallace accounts for 64= of all alcoholic beverage e2$orts from !ndia. .he >overnment of !ndia has honoured Shaw Wallace for its outstanding e2$ort $erformance by bagging the $restigious 1(7)1 award for seven consecutive years. Shaw Wallace is a ma or $layer in the #iddle/7ast mar'et. )irector+s S$ecial Whis'y has been a leader among li6uor brands e2$orted from !ndia. &iding on the success of )irector+s S$ecial Whis'y, Shaw Wallace has also added )irector+s S$ecial %lac' )elu2e Whis'y and White #ischief *od'a to the stable of brands in this mar'et. -ur li6uors are being e2$orted to some of the $restigious mar'ets li'e ?S1, 9atin 1merica, ,orea, #ongolia and Singa$ore. -ur beers are also gaining $o$ularity in ?S1, Singa$ore and other South 1sian countries. &oyal Challenge (remium 9ager %eer has been a$$roved on stringent international 6uality standards in countries li'e ?S1. .he &oyal Challenge brand has gone global with the launch of &oyal Challenge (remium #alt Whis'y, which com$etes with the global scotch brands. .he whis'y, made with the finest Scottish #alts, is e2$orted all over the world. .he !nternational %usiness )ivision of Shaw Wallace aims to delight li6uor connoisseurs across the globe with its blends. 7rror@ :y$erlin' reference not valid. 1$MBO GRO$P
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Shaw Wallace is an im$ortant constituent of the Jumbo >rou$, an international business conglomerate based in the ?nited 1rab 7mirates. :aving $ioneered the conce$t of Strategic %usiness ?nits, the Jumbo >rou$ is among the first transnational organi0ations with a valid global $resence. .he Jumbo >rou$ and its subsidiaries control a wide range of businesses including 1lcoholic beverages, .yres, >elatines, 1grichem, 7ngineering, .anneries, Freight Forwarding and 7lectronics across :ong ,ong, Singa$ore, Ja$an, South ,orea, *ietnam, &ussia, ?nited ,ingdom, Sri 9an'a, South 1frica and !ndia.

.he combined $roduct $ortfolios of the grou$ account for an annual revenue of ?S A 1.; billion. Jumbo >rou$, as an international business conglomerate, showcases how a s$ectrum of diverse businesses within the same grou$ can co/e2ist and flourish inde$endently. .he Jumbo >rou$ Com$anies have, for well $ast a century, been synonymous with ahead/of/time technological innovations, effective 6uality management and com$lete customer satisfaction. !n their $ursuit of unchallenged e2cellence, the grou$+s brands have almost invariably stood the test of time and have remained mar'et leaders. 1$art From Shaw Wallace and Com$any 9imited, the Jumbo >rou$ today has the following com$anies as $art of the grou$<

)unlo$ !ndia 9td.

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Falcon .yres 9td.

>ordon Woodroffe 9td.

:industan )orr/-liver

!ndia tyre &ubber Co. B!ndiaC 9td.

#ather D (latt 9td.

PROD$CTION OF ALCOHOLIC BE.ERAGES

HOW IS BEER MADE6 )ifferent styles of beer are created by variations in the brewing $rocess, which consists of four stages< .he first ingredient to come into $lay is barley, which is grain Bor in other words, a seedC. .he seeds are soa'ed and allowed to begin their develo$ment into $lants. 7n0ymes are released that will brea' down the $roteins and starches in each grain into sim$le sugars meant to nourish the baby $lant. :owever, once this $rocess while the en0ymes are at their $ea' of $roduction. .his is called malting. !n the mashing stage, the grain is actually transformed into sugar. .he grains are crushed and then soa'ed in water. (roteins are bro'en downE
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these will eventually give the beer its body. Starches are bro'en down into sim$le sugars that will nourish the yeast. Com$le2 sugars remain to give the beer its malty taste. .he mash is heated and strained to yield a substance called wort. "e2t, the wort is brought to a boil and the flowers of the female ho$ $lant are added. %itter resins and aromatic ho$ oils are released. .he variety of ho$, the amount added, and the $oint or $oints in the boil at which they are added all contribute to the flavour of the beer. .hey add bitterness when added early to the boil, flavor if added in the middle, and aroma when added at the end. .hen the beer is cooled and yeast is added and allowed to consume most or all of the sugars in the wort. .his is the fermentation $rocess, in which alcohol is $roduced. .he beer is se$arated from the yeast Brac'edC and then aged and carbonated by conducting a second fermentation in a closed container, or by adding carbon dio2ide artificially. DIFFERENT TYPES OF BEER Dar( 7""r8 %eer becomes dar'er when the barley is 'ilned for a longer $eriod of time. .his also creates richer, dee$er flavors from the roasted grain. Lar'"r8 .wo different ty$es of yeast can be used to create alcohol. 8east that ferments slowly at a low tem$erature creates a smoother, more mellow beer. Al"8 .he other ty$e of yeast, which ferments more ra$idly and at a higher tem$erature, results in a more aromatic and fruity $roduct. A07"r8 #alty, ho$$y beers with a rich golden color.
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Bitt"r8 1 %ritish style, highly ho$$ed for a more dry and aromatic beer, $ale in color but strong in alcohol content. Fr*it B""r8 Fruit may be added either during the $rimary fermentation or later. ?sually made with barriers, although other fruits can be used. I!dia Pal" Al"8 .he name is often shortened to !(1. .his ale was

originally brewed in 7ngland for e2$ort to !ndia. .he large 6uantities of ho$s added were intended as a $reservative and to mas' $otential off/ flavors that might develo$ during the long voyage. Pils!"r8 .his is the term for the classic lager originally develo$ed in C0echoslova'ia, a $ale, golden/hued, light beer after which many mass $roduced 1merican beers are modeled. P rt"r8 *ery bitter, very dar', this beer was develo$ed in 7ngland as a FnourishingG drin' for manual laborers such as $orters. St *t8 *ery dar' and heavy, with roasted unmalted barley and, often, caramel malt or sugar. !nvented by >uiness as a variation on traditional $orter. Wh"at 7""r 9W"i:"!;8 #alted wheat, in addition to barley, is used for this >erman style beer. :efewei0en is a variation. :-W !S W:!S,8 #1)7H Th"r" ar" t/ (i!ds - /his(&8 #alt Whis'y which is made by the (ot Still $rocess and >rain Whis'y which is made byt e (atent Still Bor Coffey StillC $rocess. #alt Whis'y is made from malted barely only,

while >rain Whis'y is made from malted barley together with unmalted barley and other cereals.
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MALT WHIS<Y .he (ot Still $rocess by which #alt Whis'y is made may be divided into four main stages< #alting, #ashing, Fermentation an )istillation. 9a; Malti!' .he barely is first screened to remove any foreign matter and then soa'ed for two or three days in tan's of water 'nown as stee$s. 1fter this it is s$read out on a concrete floor 'nown as the malting floor and allowed to germinate. >ermination may ta'e from 8 to 13 days de$ending on the season of the year, the 6uality of the barley used and other factors. )uring germination the barley secretes the en0yme diastase which ma'es the starch in the barley secretes the en0yme diastase which ma'es the starch in the barley soluble, thus $re$aring it for conversion into sugar. .hroughout this $eriod the barley must be turned at regular intervals to control the tem$erature and rate of germination. 1t the a$$ro$riate moment germination is sto$$ed by drying the malted barley or green malt in the malt 'iln. #ore usually nowadays malting is carried out in Saladin bo2es or in drum maltings, in both of which the $rocess is controlled mechanically. !nstead of germinating on the distillery floor, the grain is contained in large rectangular bo2es BSaladinC or in large cylindrical drums. .em$erature is controlled by blowing air at selected tem$eratures u$wards through the germinating grain, which is turned mechanically. 1 recent develo$ment caused by the ra$id e2$ansion of the Scotch Whis'y industry is for distilleries to obtain their malt from centralised maltings which su$$ly a number of distilleries, thereby enabling the malting $rocess to be carried out more economically.

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97; Mashi!' .he dried malt is ground in a mill and the grist, as it is now called, is mi2ed with lot water in a large circular vessel called a mash tun. .he soluble starch is thus converted into a sugary li6uid 'nown as wort. .his is drawn of from the mash tun and the solids remaining are removed for use as cattle food. 9#; F"r0"!tati ! 1fter cooling, the wort is $assed into large vessels holding anything from 5,444 to I;,444 litres of li6uid where it is fermented by the addition of yeast. .he living yeast attac's the sugar in the wort and converts it into crude alcohol. Fermentation ta'es about I8 hours and $roduces a li6uid 'nown as wash, containing alcohol of low strength, some undrmentable matter and certain by $roducts of fermentation.

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9d; Distillati ! #alt Whis'y is distilled twice in large co$$er (ot Stills. .he li6uid wash is heated to a $oint at which the alcohol becomes va$our. .his rises u$ the still and is $assed into the cooling $lant where it is condensed into li6uid state. .he cooling $lant fre6uently ta'es the form of a coiled co$$er tube or worm that is 'e$t in continuously running cold water. .he first distillation se$arates the alcohol from the fermented li6uid and

eliminates the residue of the yeast and unfermentable matter. .his distillate, 'nown as low wines, is then $assed into another still where it is distilled a second time. .he first runnings from this second distillation are not considered $otable and it is only when the s$irit reaches an

acce$table standard that it is collected in the S$irit &eceiver. 1gain, towards the end of the distillation, the s$irit begins to fall off in strength and 6uality. !t is then no longer collected as s$irit but drawn off and 'e$t, together with the first running, for redistillation with the ne2t low wines. (ot Still distillation is a batch $rocess. GRAIN WHIS<Y .he $atents still $rocess by which >rain Whis'y is made is continuous in o$eration and differs from the (ot Still $rocess in five other ways. BaC .he mash consists of a $ro$ortion of malted barley together with unmalted cereals. BbC 1ny unmalted cereals used are coo'ed under steam $ressure in Converters for about three and a half hours. )uring this time the mi2ture of grain and water is agitated by stirrers inside the coo'er.
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BcC .he starch cells in the grain burst and when this li6uid is transferred to the mash tun, with the malted barley, the diastase in the latter converts the starch into sugar. )istillation is carried out in a (atent or Coffery Still and the s$rit collected at a much higher strength. MAT$RATION %oth #alt and >rain Whis'y must be matured after distillation has been com$leted. .he new s$irit is filled into cas's of oa' wood which, being $ermeable, allows air to $ass in and eva$oration ta'es $lace. %y this means the harsher constituents in the new s$irit are removed and it becomes in due course a mellow whis'y. #alt Whis'y which contains more of these flavoury constituents ta'es longer to mature than >rain Whis'y and is often left in the cas' for 14 years or even longer. .he $eriod of maturation for both #alt and >rain Whis'y is also affected by the si0e of cas's used, the strength at which the s$irit is stored, and the tem$erature and humidity of the warehouse. BLENDING 1fter maturation the different whis'ies are blended together. .he blend is then reduced to the strength re6uired for bottling by the addition of soft water. .he different whis'ies in the blend will have derived some colour from the cas's in which they have been matured, but the degree of colour will vary from one whis'y to another. Whis'y matured in former fresh oa' sherry cas's will usually be a dar'er colour than that which has been matured in refilled whis'y cas's. .he blender aims at uniformity in his $roduct and he may bring his whis'y to a definite standard colour by adding, if necessary, a small amount of colouring
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solution $re$ared from caramelised sugar, which is infinitesimal in relation to the volume of whis'y involved. .he whis'y is then filtered carefully. HOW .OD<A IS MADE6 *od'a is the dominant s$irit of 7astern 7uro$e. !t is made by fermenting and then distilling the sim$le sugars from a mash of $ale grain or vegetal matter. *od'a is $roduced from grain, $otatoes, molasses, beets, and a variety of other $lants. &ye and wheat are the classic grains for *od'a, with most of the best &ussian *od'as being made from wheat while

(oland they are mostly made from a rye mash. Swedish and %altic distillers are $artial to wheat mashes. (otatoes are loo'ed down on by &ussian distillers, but are held inhigh esteem by some of their (olish counter$arts. #olasses, a stic'y, sweet residue from sugar $roduction, is widely used for ine2$ensive, mass $roduced brands of *od'a. 1merican distillers use the full range of base ingredients. DISTILLATION OF .OD<A .he choice of $ot or column still has a fundamental effect on the final character of *od'a. 1ll *od'a comes out of the still as a clear, colorless s$irit, but *od'a from a $ot still Bthe same sort used for Cognac and Scotch whis'yC will contain some of the delicate aromatics, congeners, and flavor elements of the cro$ from which it was $roduced. (ots stills are relatively FinefficientG, and the resulting s$irit from the first

distillation is usually redistilled BrectifiedC to increase the $roof of the s$irit. *od'a from a more FefficientG column still is usually a neutral, characterless s$irit.

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72ce$t for a few minor styles, *od'a is not $ut in wooden cas's or aged for an e2tensive $eriod of time. !t can, however, be flavored or colored with a wide variety of fruits, herbs, and s$ices. CLASSIFICATIONS OF .OD<A .here are no uniform classifications of *od'a. !n (oland, vod'as are graded according to their degree of $urity< standard B0wy'lyC, $remium BwyborowyC and delu2e Blu'susowyC. !n &ussia *od'a that is labeled osobaya Bs$ecialC usually is a su$erior/6uality $roduct that can be e2$orted, while 're$'aya BStrongC denotes an over$roof *od'a of at least ;6= 1%*. !n the ?nited States, domestic *od'as are defined by ?.S. government regulations as Fneurtral s$irits, so distilled, or so treated after distillation with charcoal or other materials, as to be without distinctive character, aroma, taste or color.G %ecause 1merican *od'a is, by law, neutral in taste, there are only very subtle distinctions between brands. #any drin'ers feel that the only real way of differentiating between them is by alcohol content and $rice. TYPES OF .OD<A Since *od'a tends to be a neutral s$irit, it lends itself to blending with flavors and fortifying other beverages. !n the 15 th Century, high/$roof F&ussian s$iritG was held in high esteem by Sherry $roducers in S$ain, who im$orted it to fortify their wines. "eutral s$irits are still used to fortify (ort, Sherry, and other ty$es of fortified wines, although the source of alcohol for such $ur$oses these

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days tends to be the vast Fwine la'e that has been created by 7uro$ean ?nion agricultural $ractices. Flavored *od'as have been $roduced from the start, originally to mas' the flavor of the first $rimitive *od'as, but later as a mar' of the distillerJs s'ill. .he &ussians and (oles in $articular still mar'et do0ens of flavors. Some of the better 'nown ty$es are< ,ubans'aya K *od'a flavored with an infusion of dried lemon and orange $eels. 9imonnaya/ 9emon/flavored *od'a, usually with a touch of sugar added. -'hotnichya K F:untersG *od'a is flavored with a mi2 of ginger, cloves, lemon $eel, coffee, anise and other herbs and s$ices. !t is then blended with sugar and a touch of a wine similar to white $ort. 1 most unusual *od'a. (ertsov'a/ (e$$er/flavored *od'a, made with botu blac' $e$$ercorns and red chili $e$$ers. Star'a K FL-ldG vod'a, a holdover from the early centuries of *od'a $roduction, which can be infused with everything from fruit tree leaves to brandy, (ort, #alaga wine, and dried fruit. Some brands are aged in oa' cas's. Mubrov'a/Mubrow'a in (olishE *od'a flavored with buffalo Bor more $ro$erly FbisonGC grass, an aromatic grass favored by the herds of the rare 7uro$ean bison.

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!n recent years numerous other flavored *od'as have been launched on the world mar'et. .he most successful of these have been fruit flavors such as currant and orange. HOW GIN IS MADE6 >in is a colourless alcoholic beverage made from the fermentation and distillation of unmalted grain. !n this it is similar to *od'a, the main difference being that while *od'a is generally left neutral in flavour, gin is flavoured by infusing the s$irit with certain berries and s$ices. 1fterwards, it is then re/distilled with the resultant mi2ture in order to restore the clear colouration. .he $recise ty$es of flavouring material used vary from brand to brand, but the dominant one is always uni$er barries. !f uni$er berries are not used, the result is sim$ly flavoured vod'a and not gin at all. .wo main ty$es of gin which are available are 9ondon gin and (lymouth gin. 9ondon gin is the most common, a ty$ical su$ermar'et brand being about NO.;= 1%*. (lymouth gin is ty$ically about ;= stronger and more delicately flavoured, but is less commonly available.%oth varieties are also made for e2$ort, in which case they may be u$ to ;4= alcohol. &aw gin may be flavoured further by infusing fruit in it after the second distillation, to $roduce fruit ginsE the most common and freely available of these is sole gin, which is flavoured with the berries of the sloe tree.

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THE ALCOHOLIC BE.ERAGE MAR<ET IN CANADA

E=EC$TI.E S$MMARY .he Canadian 1lcoholic %everage industry has shown e2cellent growth over the $ast ; years. !m$orted $roducts made u$ 13= of the sector an increase of 3; over the $revious yearC with foreign com$anies being well $ositioned to ta'e advantage of continuing growth in two 'ey areas within this mar'et, namely s$ecialty beers and single malt whis'y. 1 few large "orth 1merican com$anies dominate the beer mar'et,

however, over the $ast few years the micro or craft brewery industry has grown by lea$s and bounds and served as a ma or stimulant in changing consumer tastes. .his has led to an increased demand for dar'er and tastier beers/moving away from "orth 1merican/ style lagers/ $roviding e2cellent o$$ortunities for !ndian brewers to meet this demand. !ndian mar'et share of the im$orted beer category, increased to over &s.N8I5341 in 3444. Similarly, over the $ast decade, consumers have become more educated with regard to alcoholic beverages and demand has steadily increased , and is much less $rice sensitive than im$orted beers.

MAR<ET O.ER.IEW

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Consumers still $referred beer by far to any other alcoholic beverage in the fiscal year 1555P3444. :owever, sales of s$irit/based coolers soared during the year. 9i6uor authorities and breweries sold 3.; billion litres of alcoholic beverages in 1555P3444. %eer accounted for the vast ma ority of sales, 8N=, while s$irits accounted for 6=. !m$orted alcoholic beverages continued to a$$eal to consumers. #easured by value, sales of im$orted beer and s$irits grew faster than that of their domestic counter$arts. .he value of im$orted s$irits was A1.1; billion in 3444. Canadians $urchased more beer than any other alcoholic beverage/3.1 billion litres in 3444. Sales of im$orted beer increased to A1.I billion. 1s a result, the mar'et share of domestic brands fell for the fifth straight year. (er/ca$ita sales of s$irits were strongest in 8u'on. #anitoba recorded the strongest whis'y sales. .he "orthwest .erritories had the highest $er/ca$ita vod'a sale. "ewfoundland recorded the highest rum sales and Quebec ran'ed first for li6uor, gin and brandy.

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COMPETITI.E EN.IRONMENT L #al Mar("t BEER Canadian com$anies have $ioneered two of the most im$ortant develo$ments in brewing techni6ues in centuries K continuous malting and continuous brewing. .he vast ma ority of beer sold in Canada is domestically $roduced. !n 3444, only 6.8= of all beer sold was

im$orted. .his is due $rimarily to the Canadian brewing sectors success in establishing licensing agreements with foreign beer com$anies. Canadian malting barley, which is high in 6uality, has a N4=/I4= share of world mar'et trade, while Canadian malt has a 1;= share of world trade in malt. Canadian barley itself had a 13/1;= share of world mar'et trade. 9abetts %lue and #olson !ce are the most $o$ular brands in Canada. SPIRITS S$irits have been distilled for more than 344 years in Canada. .he first distilling license in Canada was issued in 1O5I. !n Canada, the $roduction, blending and bottling of distilled s$irits is carried out by I8 distillers licensed by the federal distilling industry government. .he success of the

in Canada is closely related to the availability of

cro$s used in s$irits manufacture, such as grains, $otatoes and in the case of li6ueurs, fruits and nuts. .hese are 61I domestic s$irit brands available. Canadian Whis'y BryeC continues to be the most $o$ular

distilled s$irit in Canada, ca$turing N8.1= of domestic mar'et $roduction

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in 3444. Canadian rye whis'y accounted for 36.I= of the total Canadian s$irits mar'et in 3444. INTERNATIONAL COMPETITION BEER Canadian beer im$ort have steadily increased from A5O.8 million in 1558, to A1.3O billion in 1555 and finally to A1.IN billion in 3444. !n 3444 #e2ico was the largest source of Canadian beer im$orts. .he ?.S. maintained a strong mar'et share. .he -ther ma or !m$orters were "etherlands, !reland and >ermany. SPIRITS !n 3444, s$irits im$orts grew to nearly A1.1; billion from A1.13 billion in 1555. Currently #e2ico, ?.S., "etherlands and >ermany account for the ma ority of total im$orts. DISTRIB$TORS AND WHOLESALERS .he Canadian mar'et is regulated through $rovincial 9i6uor %oards that control the im$ortation, sale and distribution of all alcoholic beverages. 1lberta is the only $rovince that has deregulated the sale and distribution of alcoholic beverages, even though the im$ortation thereof is still controlled by the 1lberta 9i6uor %oard. 7ach $rovince should be viewed as a se$arate mar'et as regulations and re6uirements will differ between the 9i6uor %oards. .he 9i6uor Control %oard of -ntario B9C%-C is the largest single $urchaser of alcoholic beverages in the world and $rovides a very im$ortant mar'et. -ver the
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$ast few years the 9C%- has become

increasingly aware of the need for effective

merchandising and has

$laced a new and much needed em$hasis on the re6uirements of their customers. .herefore, the $ac'aging of the $roduct and mar'eting su$$ort made available by the su$$lier, $lay an im$ortant role in achieving success in this mar'et with gift/$ac'aged items ma'ing u$ a large $art of the inventory year round. .he ma or im$orters of alcoholic beverages into Canada are 9i6uor control board of -ntario K .oronto 9i6uor distribution branch of %ritish Columbia K *ancouver/ %C Societe )es alcools du Quebec K #ontreal K Quebec.

NAMES OF PRO.INCIAL AND TERRITORIAL LI%$OR BAORDS !t is to be noted that some $rovinces re6uire alcoholic beverage labels to be reviewed by the Canadian Food ins$ection 1gency as $art of their listing $rocedure and, if re6uired, to be revised. "ewfoundaland 9i6uor Cor$oration "ova Scotia 9i6uor Commission (rince 7dward !sland 9i6uor Control Commission "ew %runswic' 9i6uor Cor$oration 9i6uor Control %oard of -ntario #anitoba 9i6uor Control Commission

FIIB, NEW DELHI

Sas'atchewan 9i6uor and >aming 1uthority 1lberta >aming and 9i6uor Commission 9i6uor )istribution %ranch (rovince of %ritish Columbia 8u'on 9i6uor Cor$oration %oard ".W... 9i6uor Commission Societe des alcools du Quebec

FIIB, NEW DELHI

PAC<AGING AND LABELLING RE%$IREMENTS

>oods should be $ro$erly $ac'ed and mar'ed for shi$ment, to reduce both the ris' of damage and $ilferage. (ro$erly $ac'aged and labelled goods will also hel$ to e2$edite customs e2amination. (roduct must include the following < Common name It"0 P"r#"!ta'" Al# h l 7& , l*0" %*ali-i"d # 00 ! !a0" r # 00 ! !a0" r">*ir"d ! th" la7"l a!d i! a!& ad,"rtis"0"!t 1. 1.1 to 3.; 72tra 9ight %eer, 72tra 9ight 1le, 72tra 9ight Stout, 72tra 9ight $orter 3. 3.6 to I.4 9ight %eer, 9ight 1le, 9ight Stout, 9ight (orter N. I. I.1 to ;.; ;.6 to 8.; %eer, 1le, Stout, (orter Strong %eer, Strong 1le, Strong stout, Stronger (orter, #alt 9i6ueur ;. 8.6 or more 72tra Strong %eer, 72tra Strong 1le, 72tra Strong Stout, 72tra Strong (orter labels

"et Quantity )eclaration 1lcohol by volume declaration "ame and address of dealer

FIIB, NEW DELHI

Imported goods labelled with the name and address of a dealer

Canadian

-ne of the following re6uirements must be met for $roducts which are wholly manufactured in a country other than Canada, whether $ac'aged and labelled in Canada or elsewhere, when the name and address on the label is that of a Canadian dealerE 1. .he name and address of the Canadian dealer must be $receded by< a. Fim$orted byPim$ort $arG, or b. Fim$orted forPim$ort $ourGE or 3. a declaration of the geogra$hic origin must be shown 9ist of ingredients

FIIB, NEW DELHI

THE COMMERCIAL IMPORT PROCESS

!n order to bring non/$rohibited goods into Canada, im$orters must< (rovide the $ro$er documents to Canada Customs and &evenue 1gency B&evenue CanadaC including .wo co$ies of the cargo control document BCC)CE .wo co$ies of the invoice .wo co$ies of a com$leted from %N, Canada Customs Coding Form 1 form 1 K certificate of origin Bwhen necessaryC 1ny im$ort $ermits, health certificates, or forms that other federal government de$artments re6uire. Calculate and declare the value of duty of the im$orted goods Baccording to the valuation $rovisions of the Customs 1ctC #a'e sure that the goods are $ro$erly mar'ed with their country of origin (ay any duties that a$$ly.

FIIB, NEW DELHI

C$STOMS BRO<ERS Canada Customs and &evenue 1gency B&evenue CanadaC licenses customs bro'ers to carry out customs/related res$onsibilities on behalf of their clients. 1 bro'ers services include< obtaining release of the im$orted goods $aying any duties that a$$ly obtaining, $re$aring, and $resenting or transmitting the necessary documents or data maintain records and res$onding to any Canada Customs and &evenue 1gency B&evenue CanadaC concerns after $ayment. Clients have to $ay a fee for these services, which the bro'erage firm establishes. NON?RESIDENT IMPORTERS "on/resident im$orters are com$anies that im$ort goods into Canada but which have addresses outside of Canada. .hese com$anies are re6uired to have a %usiness "umber B%"C and an im$ortPe2$ort account registered with the Canada Customs and &evenue 1gency B&evenue CanadaC. #ost non/resident im$orters have a addresses in the ?nited states. !n these cases, the ?.S. state is indicated in listings of F#a or !m$ortersG and no $ostal code information is dis$layed.

FIIB, NEW DELHI

E=PORTS FROM INDIA TO CANADA

Pr d*#t %t 9Lts; %eer Whis'y &um >in *od'a ;4 3INII 1161; / / 2@@AB@CD .al*" 9Rs.; 11I8 1I5O435 N534I4 / / N8316 1OO88 36134 / / 2@@CB@@ %t 9Lts; .al*" 9Rs.; O568N1 133O156 5N45O3 / / %t 9Lts; 16NN88 / / / / 2@@@B44 .al*" 9Rs.; N8I5341 / / / /

Source: Statistics Of The Foreign Trade Of India By Countries, Vol , !"ports #nd $e%!"ports, &arch '''

FIIB, NEW DELHI

SALES OF ALCOHOLIC BE.ERAGES

S)irits Wi!"s B""r T tal S)irits Wi!"s B""r T tal

E 0illi !s 1588P85 1585P54 1554P51 1551P53 1553P5N 155NP5I 155IP5; 155;P56 1556P5O 155OP58 1558P55 N16; N181 N45I N4;5 N446 358; 35I3 35I4 3585 N458 N3N6 1O46 1ON; 1O65 184; 186N 1543 15;4 34O6 33;1 3I11 36N8 IO1I ;41; ;3N1 ;IN4 ;;;6 ;IN3 ;;4O ;6I4 ;OIN 634I 6;41 5;8; 55N1 1445I 1435I 14I3; 14N15 14N55 146;; 14583 11O1I 13NO; 164 1;I 1I; 1NO 135 13O 13O 138 1N4 1N8 1I8

Milli !s - litr"s 3;; 3I; 3N6 3N1 335 33O 3NN 3I1 3;N 364 3ON 3115 3113 3483 34I; 15ON 1586 341; 34NN 344N 34NN 34OI 3;NI 3;14 3I6N 3I1N 3NN1 3NI4 3NO; 3I43 3N8; 3IN1 3I5I

Source: The (aily, Thursday, )une **, *+++

FIIB, NEW DELHI

PROD$CT CLASSIFICATION HTS NO. 334N4444 3348N4N4 3348N464 3348I441 3348;441 33486444 Bri"- d"s#ri)ti ! %eer made from malt !rish and Scotch whis'y Whis'y other than !rish and Scotch &um >in *od'a

CANADIAN IMPORTS HS 334F444BBEER MADE FROM MALT 2@@C #e2ico ?nited States "etherlands ?nited ,ingdom !reland >ermany %elgium Source: usitc,goHS 334CF4 B WHIS<IES ?nited ,ingdom ?nited States !reland
FIIB, NEW DELHI

2@@@ N1,8O1,3NO N;,O14,154 31,;58,I41 14,;58,I41 5,564,O46 O,44O,NNI 1,5;3,16N

3444 N;,4;;,8N4 NN,;O1,8I6 35,O1O,;64 11,N61,INN 11,NIO,4;8 8,;1O,N4O N,881,33N

15,4I;,8I; NN,I38,66; 1I,3OI,6;4 5,813,I;5 6,8NN,34O 6,N86,4O1 1,N43,I46

I3,84O,35I O,415,ON5 1,48I,;43

I;,OI8,4N6 8,563,O43 1,154,3O4

I,85N,3O43 5,151,8NI 1,3;8,865

&e/im$orts BCanadaC !taly Bincludes

1,48N,5; 181

1,38;,8N 1561

118,345 31,;;3

*atican City StateC "etherlands Source: usitc,goHS 334CG4BR$M AND TAFIA ?nited States Jamaica %ermuda %arbados >uyana *ene0uela Cuba Source: usitc,goHS 334C54BGIN AND GENE.A ?nited ,ingdom Sweden ?nited States "etherlands >ermany Source: usitc,goHS 334CH4 B .OD<A Sweden &ussia Finland I,55O,11O 1,ON5,;4O 3,513,85I 6,ON4,4;3 3,I5;,514 N,N66,O3; O,661,8;I 3,O3;,OI5 3,688,;68 8,NI;,8IO 63I,;38 1I8,3N5 N5,N4N 1,54N 5,518,II4 8N5,;15 165,363 O1,3I; 1,54; 5,61;,1N6 O5N,;I1 1NO,O53 N6,;3O N,844 1O,668,564 I,;OO,5N5 I8,5N 5,8I6,4; 3,4I6,613 ;6N,;46 3;4,643 11,63I,6NN 6,143,N16 6,O;;,O5O 1,141,8IN 1,I6I,;85 6;5,IN1 N;3,3;8 13,ON4,68; ;,55N,I41 I,O34,5IN 1,686,165 1,3I;,63; ON6,6O3 6;4,I68 / N6 1O,434

FIIB, NEW DELHI

(oland ?nited States ?nited ,ingdom France B!ncludes

8N8,16I OI;,I3N 5N,N6; 1N

1,;41,O4N 863,I35 3I6,;66 113,6IN

1,I;3,431 1,3OI,4N4 3I3,1I3 3NI,;11

#onaco and 1ndorraC ?'raine "etherlands Source: usitc,go1IO,441 34N,8N O5,431 315,8;I 1;8,;44 13O,II5

ANALYSIS AND CONCL$SION

.he beer industry is in the maturing stage of its life cycle. .here are few big $layers, barriers to entry, small growth, head to head com$etition, consolidation, increased demand, and $rice wars. .his is characteristic of the entire industry because there are a few big $layers, while there are also many smaller com$anies striving to grow and catch u$, however the barriers for growth are large and $revent them from maturing. .he beer industry is considered to be concentrated because a large $ercentage of the mar'et share is in the hands of a few of the com$anies within the industry. .he high/volume segment is very mature because they have consolidated into the large com$anies that dominate the industry .he microbreweries seem to be emerging industries because each is trying to differentiate themselves, low barriers to entry and uneducated buyers .he regional segment seems to be between emerging and maturing stages because consolidation is beginning at a small stage and

FIIB, NEW DELHI

consumer awareness is more 'nown. :owever, there are still many com$anies and barriers to entry are higher.

BARRIERS TO ENTRY enormous costs to o$erate any consumer $ac'age business Bbreweries, $ac'aging, em$loyees, trans$ortation, mar'eting,

advertising, federal ta2es, etc.C microbrews and regional com$anies may have success high level of sales needed to $rohibit newcomers concentrated locally find it almost im$ossible to go national because of the costs more li'ely to enter this segment of the industry brand recognition a factor Bif you don+t 'now it, you are less li'ely to try itC//also translates into customer loyalty governmental regulations very strict on alcohol com$anies / limits advertising ability Bwhat they can show to the $ublic / no beer drin'ingC domination by high volume com$anies ustify high legal costs which

FIIB, NEW DELHI

have the resources ultimately affect the entire industry Bbuy or $ut smaller com$anies out of businessC

<EY S$CCESS FACTORS #aintaining distributorshi$s throughout a wides$read geogra$hic area. .his will increase sales. #aintaining brand recognition through innovative advertising cam$aigns. .his will inevitably increase sales through clever advertising that will induce beer drin'ers to buy their brand, but the costs are e2tremely high. !t is also im$erative that com$anies $romote res$onsible beer consum$tion by adults and discourage underage drin'ing. !ncrease each com$any+s vertical integration. .his will hel$ 'ee$ costs low and hel$ to control the su$$lies. :owever, the technological innovation may not be as high as if $urchased through inde$endent su$$liers. (rovide a wide $roduct line, offering both high/6uality beer with high $rofit margins and low/6uality beer with high sales. .his allows the com$any to offer an assortment of beers with different interests for each brand. #aintaining strong networ' of wholesale distributors to hel$ gain access to retail outlets. .his allows the distributor and the firm to build trust amongst each other.

FIIB, NEW DELHI

THE ALCOHOLIC BE.ERAGE MAR<ET IN THE $NITED STATES

E=EC$TI.E S$MMARY %eer sales account for over ;3= of total sales, while wines and s$irits account for N1= and 1O= of sales, res$ectively. .he beer mar'et is also $ro ected to achieve steady growth 1= annually through 344N. :owever, an increase in the number of young consumers Baged 34 to 3;C is e2$ected to be the 'ey factor in the growth of this mar'et. -verall, s$irits sales have steadily declined in recent years. !ncreasingly health/conscious consumers have reduced their consum$tion of s$irits, as these beverages are widely viewed as the least/healthy alcoholic drin's. :owever, li'e the wine and beer mar'ets, higher/end $roducts have increased their sales as consumers with more dis$osable income have shown a willingness to $urchase higher/$riced, better 6uality $roducts. While the ?.S. mar'et for alcoholic beverages has slowly increased, im$orted $roducts have e2$erienced e2ce$tional growth. %etween 1555 and 3444, im$orts of beer and s$irits increased by 1;= and 13= res$ectively. 1lthough im$orts are not e2$ected to maintain this level of growth for an e2tended $eriod of time, im$orts are forecast to grow at a much more ra$id $ace than the mar'et as a whole. !n 3444, !ndia accounted for 4.44O8= of ?.S. beer and s$irits im$orts.

MAR<ET O.ER.IEW
FIIB, NEW DELHI

.he mar'et for alcoholic beverages is generally bro'en down into three subsectors< beer, wine and s$irits. BEER 1lthough the mar'et as whole e2$erience minor growth, sales of light beers and micro/brewery $roducts Bsu$er $remium beersC increased significantly. Consumers have also shown a strong interest in im$orted $roducts. .he growth of these categories is due to consumer willingness to $ay more for su$erior 6uality beers. Currently , this trend is $revalent for all alcoholic beverages. 1lthough the $ercentage of beer consum$tion by the 14 largest states has slowly declined in recent years, these states still account for over ;N= of total ?.S. consum$tion. )es$ite the fact that the share of the to$ 14 states is forecast to continue its low decline, these states will remain 'ey contributors to overall consum$tion levels. Within the light beer category, %ud light is the dominant brand, accounting for a$$ro2imately one third of light beer sales. !n 1555, %ud 9ight was also the second leading beer $urchased in the ?nited States. -ther light beers ran'ing among the to$ 14 selling brands were Coors 9ight B the fourth most $o$ular brandC, 1nheuser /%ushch "atural 9ight BninthC, and %usch 9ight BtenthC. .he growing $o$ularity of light beer is $rimary due to increased consumer demand for healthier $roducts. .he $o$ularity of im$orted beers has risen shar$ly in recent years. 1mong the im$orted beers, Corona is the mar'et leader, accounting for one out of every four im$orted beer sales. :eine'en is the second most $o$ular brand with an 18= mar'et share. .he double/ digit growth of im$orted brands is e2$ected to continue until at least 344N.
FIIB, NEW DELHI

SPIRITS .he s$irits mar'et has undergone a long/term decline in volume. Consumers $erceive s$irits as the most harmful of the alcoholic beverages, and therefore, while health consciousness has increased consum$tion of s$irits has decreased. !n addition, ta2ation rates on s$irits are $articularly high when com$ared to other alcoholic beverages. 1ccording to the )istilled S$irits Council of the ?nited States, ta2es ma'e u$ ;8= of the $rice of an average bottle of s$irits. Whis'y is the most $o$ular beverage within this mar'et, accounting for one third of all sales. White s$irits, such as vod'a, were the second most $o$ular drin's, followed by li6ueurs, and rum. 1lthough this mar'et is e2$ected to continue to decline for the foreseeable future, there are some $ositive signs. First, li'e the beer and wine mar'ets , sales of higher /6uality $roducts have increased in recent years. !n addition, new $roducts, such as flavored vod'as, have been well received by consumers. 1lso, s$irits have $rofited from the increased $o$ularity of cigar bars. &estaurants, where coc'tails tend to be widely consumed. .hese cigar bars tend to a$$eal to younger consumers and manufactures ho$e that this will build a base for future s$irit sales. !m$orts re$resent one area of growth within this mar'et. !n 3444 s$irits im$orts totalled AN.5 billion, u$ A 544 million from 155O. !m$orted

$roducts have benefited from consumer demand for higher 6uality $roducts.

FIIB, NEW DELHI

COMPETITI.E EN.IRONMENT
LOCAL MAR<ET BEER .he ?.S. beer is dominated by three com$anies < 1nheuser /%ush !nc., #iller %rewing Co., and 1dol$h Coors. .he three brewers account for nearly 84= of total sales. .hese manufactures are firmly entrenched as the industry leaders, and attem$ting to ta'e mar'et share is nearly

im$ossible due their vast financial reserves and recognition among consumers. 1nheuser /%usch is not only the largest brewer in the ?nited States but it is also the world+s largest brewer. 1nheuser, which $roduces five of the 14 most $o$ular brands, currently accounts for I8= of total ?.S. beer sales Bin volumeC and categories. 1nheuser has maintained its dominant $osition in the mar'et through aggressive mar'eting, com$etitive $ricing and by $ressuring distributors to focus on their brands. #iller, a subsidiary of (hioli$o #orris Com$anies inc., is the second largest brewer in the ?.S. mar'et. #iller has been able to com$ete with 1nheuser due in large $art to the vast financial resources of its $arent com$any. #iller attem$ted to gain mar'et share by lowering although this strategy sim$ly led to lower $rices across $rices, the beer

industry. !n recent years, the com$any has strengthened it $osition by $urchasing brands #iller 9ite, #iller %eer, and #iller >enuine )raft. $SA Mar("t Shar" 1nheuser %usch
FIIB, NEW DELHI

I8.N=

#iller Coors -ther

15.8= 11.1= 34.8=

Source: #nheuser%Busch,Com

FIIB, NEW DELHI

INTERNATIONAL COMPETITION
BEER ?.S. beer im$orts have steadily increased from A16.5 billion in 1558 to A 18.8 billion in 1555, to A 31.6 billion in 3444. !n the first two months of 3441, beer im$orts have continued to show, increasing from A3.8 billion to A N.3 billion this year. !n 3444, #e2ico $assed the "etherlands as the largest source of ?.S. beer im$orts. #e2ico e2$orted A O.; billion worth of beer to the ?nited States, accounting for almost N;= of total im$orts. #e2ican im$orts have been driven by the growing $o$ularity of the brand Corona , which overtoo' :eine'en as the most $o$ular im$orted beer. .he "etherlands maintained a strong mar'et share with e2$orts of A O.N billion, or NN= of ?.S. %eer im$orts. -ther to$ e2$orters include >ermany, the ?nited ,ingdom and !reland. SPIRITS !n 3444, s$irits im$orts grew to A;.6 billion. Currently, the ?nited ,ingdom and France account for ;4= of total im$orts. !n total, the to$ si2 e2$orters Bincluding Canada, #e2ico, Sweden and !relandC account for nearly 8O= of ?.S. S$irits im$orts.

FIIB, NEW DELHI

CHANNELS OF DISTRIB$TION BEER ?nli'e s$irits and wine, beer is ty$ically shi$$ed directly from the manufacturer to the retail outlet BsC. !n this scenario, the retailer and not the distributors is res$onsible for building shelf dis$lays, rotating $roducts and maintain accurate signage. 1lthough bars and restaurants account for the largest individual share of sales, nearly three/6uarters of the all beer is $urchased for consum$tion at conveniences store and gas station, su$ermar'ets and s$ecial retailers. Convenience stores gas stations are the second/ largest distributor channel for beer but, due to limited shelf BcoolerC s$ace, these retailers ty$ically only carry a few to$/ selling brands. 1s a result, !t would be unli'ely that a new $roduct would be sold through these retailers. Su$ermar'ets on the other hand have steadily increased the selection and amount of shelf s$ace allocated for beer. Storage costs are minimal for su$ermar'ets since the $roduct is shi$$ed directly from the $roducer to the retail outlet. Su$ermar'ets generally carry a wide variety of com$eting $roducts including less $o$ular s$ecialty P micro/ brewery beers. S$ecialty stores carry the widest variety, and the greatest 6uantity , of im$orted and micro/ brewery beers. .hese outlets $rovide a good starting $oint for new $roducts to the ?.S. mar'et.

FIIB, NEW DELHI

DISTRIB$TORS AND WHOLESALERS 1lcoholic beverages by both federal and state governments. !n most cases Bdue to ?.S. distribution laws for $roducts containing alcoholC, alcoholic beverages must be distributed using wholesalers or distributors that are licensed im$orters. 1lthough distributors are also re6uired to ensure that all im$orted $roducts com$ly with ?.S. food and beverages regulations, manufactures must ta'e the initiative to ensure that $roducts meet with ?.S. im$ort and labelling regulations. -nly one distributor

may be necessary to access to access a s$ecific region of the ?nited States while multi$le distributors may be necessary to ensure national distribution. When see'ing the services of a distributor or wholesaler, e2$orters

should consider the relationshi$ that these individuals have with local governments, buyers and ban's E the condition of their willingness and ability to 'ee$ inventory. Foreign $roducers are advised to review ?.S. im$ort regulations wth a 6ualified lawyer before entering into an

agreement with a $ros$ective $artner. .able identifies the five largest alcohol wholesaler, in the ?nited States. .hese com$anies account for a$$ro2imately one third of the total revenue generated by alcohol wholesalers. Currently, there are an I;44 li6uor distributors in the ?nited States. Lar'"st al# h l /h l"sal"rs, 2@@@9 E 7illi !s; sal"s Southern Wine D S$irits or 1merica Charmer !ndustries PSunbelt %everage AI.3 A3.N estimated

FIIB, NEW DELHI

"ational )istributing Co. 8oung+s #ar'et Co. >la0er+s Wholesale )istributors Source: &ar.Intel , &ar.et Share $eporter, &ay ', ''',

A3.4 A1.6 A1.6

#any 4f the large brewers detailed agreements with their distributors that s$ecify the amount of time and money that the distributor is re6uired to s$end selling the com$any+s $roducts. For instance, if a $roducer+s brands account for ;4= of a wholesaler+sPdistributor+s sales, the contract will ensure that the wholesalerPdistributor devotes ;4= of its resources selling the com$any+s $roducts. to

FIIB, NEW DELHI

STATE DISTRIB$TION RE%$IREMENTS IN $.S.A Stat" Alas(a O*tB -Bstat"Ii0) rt"d 7""r a!d li>* r !m$orters may not sell $roducts directly to licensees without obtaining a general wholesale license for each distributing $oint in the state, a$$ointing an agent and obtaining other a$$licable licenses as re6uired. Cali- r!ia !m$orted beer and wine may only be sold to a

licensed im$orter, who in turn may only sell it to other im$orters or, beer and wine wholesalers. :olders of an out/of/state beer manufacturers

certificate may hold licences for the retail sale of their own been and wine $roducts. Wholesalers and

im$orters may hold licenses for the retail sale of wine. -ut/of/state brewers and wineries may be licensed to act as their own wholesalers, but would have to establish a $resence in the state. C !!"#ti#*t Foreign $roducers must obtain an out/of/state

shi$$erJs $ermit to sell beer to manufacturers and wholesalers in the state. -ut/of/state brewers and wineries may be licensed to act as their own wholesalers, but would have to establish a $resence in the state. Fl rida *endors BretailersC may not im$ort alcoholic

beverages. !m$orters may sell only to licensed manufacturers or distributors. !m$orters are $rohibited from holding any interest in retail licenses.

#anufacturers of alcoholic beverages must distribute

FIIB, NEW DELHI

only to licensed distributors and licensed vendors. Ha/aii -nly manufactures and wholesalers may im$ort

li6uor. #anufacturers and wholesale dealers are $rohibited from holding retail licenses. Idah -nly dealers and wholesalers may im$ortE

cor$orations not authori0ed to do business in the state may not obtain dealers or wholesalers the licenses. 1 FdealerG is defined as any $erson who im$orts, or $roduces or manufactures, beer for sale in the state. -ut/of/state brewers may be authori0ed to conduct business in !daho and may obtain a wholesaler license, however the brewer must a$$oint an in/state

registered agent, maintain as in/state office and establish an in/state $resence. Illi! is "on/?.S. brewers may sell to either holders of a foreign im$orters or a non/resident dealers license, who may sell alcoholic li6uor to each other and to holders of an im$orting distributors license. !m$orting distributors may in turn sell licenses. I!dia!a 1n out/of/state brewer may only sell to the holder of a beer wholesalers $ermit. Foreign wine can only be im$orted by wholesalers and wine or beer are $rohibited from holding in/state wholesale $ermits or from having any interest in a beer wholesaler. F$ersonsG are defined as a natural individual, firm, cor$oration, association or other legal entity. to holders of retailers

FIIB, NEW DELHI

I /a

-nly holders of a class F1G $ermit may im$ort beer into lowa. :olders of a class FCG $ermit for the sale of beer at retail may only beer $urchased from the holders of class F1G $ermits. !m$orted wine must be sold either by the state li6uor authority or at wholesale by a class F1G wine $ermit holder. Foreign $ersons $roducing beer and wine are $rohibited from holding class F1G $ermits. F(ersonsG are defined as including any individual, association, $artnershi$ or cor$oration. Wholesalers are $rohibited from having any interest in a retail license.

<a!sas

Foreign manufacturers are $rohibited from holding distributors licenses but may establish an in/state distributor. #anufacturers and distributors are

$rohibited from holding retailer licenses. <"!t*#(& %eer may be im$orted only by a distributor, who may in turn sell to a retailer. &etailers are $rohibited from holding any other ty$es of licneses, and therefore cannot act as distributors. Foreign brewers are

$rohibited from acting as distributors. 1 retailer may $urchase beer from a brewer or wholesaler. L *isia!a -nly wholesalers are $ermitted to im$ort alcoholic beverages or beverages of low alcoholic content

Balcoholic beverages containing not more than 6= alcohol by volumeC. Foreign $roducers of alcoholic beverages, or beverages of low alcoholic content, are $rohibited from acting s wholesalers. !n/state retailers

FIIB, NEW DELHI

are $rohibited from acting as wholesalers. Mai!" -nly wholesalers may im$ort wine or malt li6uor. 1 retail licensee is $rohibited from holding any interest in a wholesale license and a wholesale licensee is $rohibited from holding any interest in a retail license. Foreign $roducers of beer and wine are $rohibited from holding wholesale liceses. Mar&la!d &etail dealers may only $urchase alcoholic beverages from manufacturers and wholesalers licensed in

#aryland. !n/state wholesaler are $rohibited from having any interest in a retail license. 1n out/of/state brewer may obtain a wholesalers license if one of its cor$orate officers has been a #aryland resident for at least 3 yeas. Massa#h*s"tts -nly holders of wholesalerJs and im$orterJs licenses may im$ort beer and wine. Foreign cor$orations may not be licensed as either wholesalers or im$orters. WholesalePim$ort licensees may hold retail $ac'age licensees, however, wholesale licensees may not hold retail on/$remise licenses. 1n out/of/state brewer or winery may not establish its own wholesaler in the state. Foreign nationals may not $ersonally hold licenses for the sale of alcoholic beverages. Mi!!"s ta Foreign cor$orations may not obtain a wh4lesalers license. !m$orts must be shi$$ed to a licensed wholesaler. #anufacturers and wholesalers are

$rohibited from holding any interest

in a retail

FIIB, NEW DELHI

license. M !ta!a -ut/of/state beer must be shi$$ed to a wholesaler. Wholesalers may not own retailers, nor may they sell beer to the $ublic. -ut/of/state brewers licnesed by the ?nited/States which $roduce less than 64,444 barrlesPyear may sell directly to retailers from their own in/state storage facilities. N"/ Ha0)shir" -nly the holder of an im$ort warehouses license may im$ort wine into "ew :am$shire. .he holder of a beverage im$orters license may only sell foreign manufactured beverages Bbeer and wine not less than one/half of 1= alcohol by volume and not more than 6= alcohol by volumeC to wholesalers. 1 foreign brewery may obtain a beverage im$orters licence only if it establishes a cor$oration in :am$shire or in another ?S state and registers to do business in "ew :am$shire. Foreign cor$orations may not obtain wholesalers licenses $ermitting beer or wine

deliveries to retailers. #anufacturers and wholesalers are $rohibited from holding any interest in a retail license.

FIIB, NEW DELHI

Ohi

Wholesale distributors may im$ort beer and wine. .he retailers license does not include the right to im$ort beer or wine. Wholesalers are $rohibited from holding any interest in a retail license. 1n out/of/state brewer or winery may establish its own wholesalers in the state. Foreign $roducers may not hold a wholesale license.

Or"' !

1lcoholic li6uor may be im$orted into -regon only by a $erson holding a manufacturers or wholesalers license, or by the 9i6uor Commission. Foreign

manufacturers of beer and wine may establish their own in/state wholesalers if they establish an in/site $resence. Wholesalers are $rohibited from holding retail licenses and retailers are $rohibited from holding wholesaler licenses. P"!s&l,a!ia Foreign breweries must sell to im$orting distributors. -ut/of/state wineries may only sell their $roducts to li6uor im$orters, who in turn may sell it only to manufacturers or the (ennsylvania 9i6uor Control %oard. !m$orting distributors are $rohibited from holding any interest in a retail license and retail licensees are $rohibited from holding any other ty$e of license. Rh d" Isla!d -nly wholesaler may im$ort alcoholic beverages. Foreign manufacturers of beers and wine are

$rohibited form holding wholesale licensed to act as wholesale distributors. R"-.7 < .he ?nited States

FIIB, NEW DELHI

$rovided a statement from .ennessee )e$artment of &evenue which indicates that the $rovision

$rohibiting non K?S citi0ens from being licensed is not enforced.S T"+as !m$orted wine must be sold to wine bottler or wholesaler for resale to retailers. &etailer are

$rohibited from $urchasing wine directly from foreign $roducers. !m$orted beer Bno less that T $er cent alcohol by weightC must be sold to resident im$orter for resale to retailers. &etailer and foreign $roducers are $rohibited from holing im$orter licenses.

#anufactures and distributors are $rohibited form holding any interest in the business or $remises of retailer. $tah -nly beer wholesales may im$ort FlightG beer

Bcontaining less than N.3= alcohol by weightC into the state. 1nd out/of/state brewer may establish its own wholesaler in the state to sell FlightG beer. Wholesaler may not hold wholesale licensees. F:eavy %eerG is defined as any $roduct containing more alcohol by volume obtained than I=

by fermentation and is

considered to beer F9i6uorG for the $ur$ose of the 1ct, and must be sold only to the)e$artment. .ir'i!ia !m$orted beer may be sold only to beer im$orters, who in turn may sell it only to wholesalers. Foreign beer $roducers are not $ermitted to hold wholesale

licenses. #anufactures an wholesalers are $rohibited

FIIB, NEW DELHI

from holding retail licenses. Washi!'t ! 1 foreign brewer or winery must sell to the holder of an im$orterJs licenseE this liceses authori0es sales

only to wholesaers and P or for re/e2$ort. 1n im$orter must be a state resident and maintain an office in the state. 1n out/of/state brewer or winery must establish a $rinci$al office in the state to be eligible for an im$orters license. W"st .ir'i!ia Foreign wineries must sell to licensed wholesalers or the alcohol beverage control commissioner

FIIB, NEW DELHI

Wis# !si!

Foreign

brewers

must

obtain

an

out/of/state

shi$$ers $ermit which $ermits them to sell only to licensed wholesaers. 1ll shi$ments malt beverages of fermented

from outside Wisconsin to a

Wisconsin wholesaler must be unloaded at and distributed from the wholesalers warehouse in Wisconsin. 1n out/of/state brewer may establish

its own wholesaler in the state. Foreign wineries may only shi$ to manufactures and wholesalers. Wholesalers are $rohibited from holding any

interest in licenses which $ermit retail sales of beer for consum$tion on or off the $remises where sold.

FIIB, NEW DELHI

PAC<AGING AND LABELLING RE%$IREMENTS >oods should be $ro$erly $ac'ed and mar'ed for shi$ment, to reduce both the ris' of damage and $ilferage. (ro$erly $ac'aged and labeled goods will also hel$ to e2$edite customs e2amination. Food sam$les are e2em$t form labelling re6uirements, but must be mar'ed as sam$les and shi$$ed in com$liance with ?.S. im$ort regulations. (roduct labels must be in 7nglish, and must include<

"ame of the $roductE )escri$tion of the $roductE 72$iry date and any storage re6uirementE (roduct+s country of originE 1lcohol content, by volumeE #anufacture+s lot or batch numberE "utritional informationE 9ist of ingredients and weights in metric unitsE and 9ist of additives, $reservatives, or coloring used.

FIIB, NEW DELHI

E=PORTING TO THE $NITED STATES

#ore and more com$anies are becoming involved in e2$orting to the ?nited States. :owever, they are finding that e2$orting, while $rofitable, also $oses considerable challenges< confusing classification codes, burdensome $rocedural demands, and com$le2 and fre6uently changing ta2 and legal re6uirements. .o gain a better understanding of the ?.S. im$ort $rocess and what, if any actions can be ta'en by e2$orters to avoid unnecessary ris's and difficulties, it may $rove useful to $lan the initial entry into the mar'et strategically. COMMERCIAL IMPORT PROCESS .he im$ort $rocess consists of the following essential elements< 1. 1 sale of merchandise from a foreign e2$orter to a ?.S. im$orter ta'es $lace. 3. When the merchandise reaches a $ort of entry, documents must be filed with Customs in order to assign a tentative value and tariff classification to the $roduct. >oods are generally released u$on $resentation of these documents, unless Customs selects the shi$ment for $hysical e2amination. N. Customs may choose to e2amine the merchandise to see whether there are any restrictions on im$ortation Bsuch as 6uotasC, to ensure com$liance with Customs and other agency regulations Bsuch as $ro$er ma'ing or other means of identificationC, and to uncover any $rohibited items Bsuch as contraband or counterfeit godsC. I. )uties are generally $ayable within ten wor'ing days after goods are released by Customs. )uties must be $aid before release by Customs for certain categories of goods, including wearing a$$arel.

FIIB, NEW DELHI

;. !f the estimated duties $aid are determined to be correct, and Customs does not re6uire any additional information, the entry is Fli6uidatedG without change. !f Customs determines that the estimated duties $aid were not correct, the entry is li6uidated with a bill for increased duties or a refund of over$aid duties. :owever, once a $roduct is sold within the country, many local urisdictions collect inventory or sales ta2es, which vary from state to state. .o ma'e or file a customs entry, the following documents are generally re6uired. 1. 1 bill of lading, airway bill or carriers certificate Bnaming the consignee for customs $ur$osesC as evidence of the right of the consignee to ma'e entry. 3. 1 commercial invoice, obtained from the e2$orter, that shows the value and descri$tion of the merchandise. N. 7ntry manifest or a$$lication and s$ecial $ermit for immediate delivery and I.(ac'ing lists if a$$ro$riate, and other documents necessary to determine whether the merchandise may be admitted.

FIIB, NEW DELHI

E=PORTS FROM INDIA TO $.S.A

Pr d*#t %t 9Lts; %eer Whis'y &um >in *od'a 88;N5I 53N;4 146441 / 3N 2@@AB@C .al*" 9Rs.; 16586548 N188485 N836;36 / 18;4 2@@CB@@ %t 9Lts; 1N864;4 I4454 N;444 / 3 .al*" 9Rs.; 31O18II5 16;3;OI 13;4O86 / 144 2@@@B44 %t 9Lts; 14N85;6 14444 3 / / .al*" 9Rs.; 3NNO3N11 141O131 144 / /

Source: Statistics Of The Foreign Trade Of India By Countries, Vol , !"ports #nd $e%!"ports, &arch ''' $S IMPORTS FOR CONS$MPTION A C$STOMS .AL$E FOR BEER
S *r#" 2@@C 2@@@ 3444 P"r#"!t - t tal 3442 1a!*ar&BF"7r*ar& Th *sa!d d llars 1ll sources #e2ico "etherla nds Canada >ermany ?nited 'ingdom !reland !ndia A1,655,I5O.3 A;;1,141.1 A;68,N14.I A1OO,II6.3 A135,;N4.5 A56,6N3.N A8;,6I31.; A1,3O4.5 A1,881,N56.4 A6;4,I16.; A63I,551.I A1O5,315.N A1N6,833.5 A148,386.I A8;,65;.O A1,33I.N A3,16;,;6N.N AO;6,N;6.; AON1,O61.I A34O,O43.3 A1I1,;45.O A134,1O6.5 A141,1N5.5 A1,O45.3 144.4= NI.5= NN.8= 5.6= 6.;= ;.;= I.O= 4.1= A385,IO5.8 A5O,58;.N A55,NO6.N A36,454.8 A1;,N85.; A16,O45.8 A31,84N.N AN18.5 AN3;,ON1.O A111,146.4 A11N,1N;.; AN8,OI5.4 A16,34;.6 A31,88I.1 A14,8I1.; A154.1

Th *sa!d d llars

Source: /S ITC,0OV
$S IMPORTS FOR CONS$MPTION AT C$STOMS .AL$E FOR GIN
2@@C 2@@@ 3444 3442 P"r#"!t

FIIB, NEW DELHI

S *r#" Th *sa!d d llars P"r#"!t 1a!*ar& BF"7r*ar&

#ha!'" YTD 3444B YTD3442

Th *sa!d d llars 1ll sources ?nited ,ingdom "etherlands France A14N,3N8.1 A143,IN4.8 A336.6 A386.4 A111,8I6.I A148,6OI.8 A1,;81.4 A1,353.I A1NI,111.N A136,II;.N A6,1O1.4 A1,414.5 144.4= 5I.N= I.6= 4.8= A1I,88;.5 A1I,N63.4 A36O.1 A346.3 A1;,33N.3 A1I,;33.3 A644.N A5O.3 3.N= 1.1= 13I.O= /;3.5=

Source: /S ITC,0OV
$S IMPORTS FOR CONS$MPTION AT C$STOMS .AL$E FOR .OD<A9NOT O.ER G LITRES, .AL$ED NOT O.ER E3.45ILITRE;
2@@C S *r#" 2@@@ Th *sa!d d llars 3444 P"r#"!t 3441 1a!*ar& BF"7r*ar& Th *sa!d d llars 1ll sources Sweden &ussia Finland "etherlands ?nited ,ingdom A1,;35.3 AI31.N AN5;.3 A11.4 A;8.I A33I.O A1,;33.4 ANI5.N AN43.I AOO.1 A186.N AN1O.; AN,56N.1 A888.3 A8I4.6 A83N.N A61I.1 A386.N 144.4= 33.I= 31.3= 34.8= 1;.;= O.3= ANON.1 A;4.N A4.4 A1I6.4 AII.O A;;.; AN36.N A64.O A13O.5 A4.4 A146.O A4.4 /144.4= 1N8.O= /144.4= P"r#"!t #ha!'" YTD 3444B YTD3442

/13.;= 34.O=

Source: /S ITC,0OV $S IMPORTS FOR CONS$MPTION AT C$STOMS .AL$E FOR .OD<A9.AL$ED O.ER E3.45ILITRE;
2@@C 2@@@ 3444 3441 P"r#"!t

FIIB, NEW DELHI

S *r#"

Th *sa!d d llars

P"r#"!t

1a!*ar& BF"7r*ar&

#ha!'" YTD 3444B YTD3442

Th *sa!d d llars 1ll sources Sweden &ussia "etherlands (oland Finland France )enmar' ?nited ,ingdom A38I,II;.N A163818.; A;N538.5 A1OIN5.N A1I8I8.8 A31533.8 AN4O8.N AN354.I ANO64.1 AN6;,4;;.8 A18O56N.1 AO165O.6 AN6O4I.5 A31665.5 A3;3OI.I A6838.4 AN38O.5 A;I11.5 AI33,5 A3143NO.5 AO135O.6 A;4334.6 AN164N.N A3N;58.O A1O38O.; A6.O3;.4 AIOOO.O 144.4 I5.O 16.5 11.5 O.; ;.6 I.1 1.6 1.1 A;1,OI6.8 A3III6.N AO513.4 A6N18.5 AI4;8O.1 A;3;1.I A1I56.5 A866.N AIOI.5 A6;ONO.; A3O6OO.3 A1NONO.6 A81I5.5 AI8N3.O AI43;.5 AI34;.I A5I1.1 A14NI.1 3O.4 1N.3 ON.6 35.4 15.1 /3N.N 184.5 8.6 11O.8

Source: /S ITC,0OV

FIIB, NEW DELHI

$S IMPORTS FOR CONS$MPTION AT C$STOMS .AL$E FOR .OD<A9O.ER G LITRES; 2@@C S *r#" Th *sa!d d llars 9E; 2@@@ 3444 P"r#"!t a'" 144.4 N5.I 3I.4 3442 1a!BF"7. Th *sa!d d llars 9E; ;3.6 4.4 I8.I 3.4 4.4 4.4 /144.4 P"r#"!ta '" #ha!'" YTD344 4B YTD344 2 /56.3

1ll sources (oland ?nited ,ingdom &ussia "etherlands #e2ico Canada France

NO.5 4.4 4.4

168.5 4.4 61.O

IO3.4 186.4 11N.N

1;.N 6.N I.6 8.3 N.;

4.4 4.4 4.4 4.4 4.4

;I.5 ;3.1 IO.6 18.1 4.4

11.6 11.4 14.1 N.8 4.4

4.4 4.4 4.4 I.3 4.4

4.4 4.4 4.4 3.4 4.4 /;3.I

Source: /S ITC,0OV

$S IMPORTS FOR CONS$MPTION AT C$STOMS .AL$E FOR WHIS<Y

2@@C S *r#" Th *sa!d d llars 9E; 1ll sources N1O85O.8 N6338;.4 N64I33.6 2@@@ 3444 P"r#"!t a'" 144.4 3442 1a!BF"7. Th *sa!d d llars 9E; II86;.5 ;NIN3.8

FIIB, NEW DELHI

Canada ?nited ,ingdom "etherlands Sweden France

N1O3;6.8 318.; 66.; N.N N.O

N6181I.; N8N.I 4.4 I;.1 4.4

N;8;84.I 1I68.; 34;.I 1I4.N 15.1

55.; 4.I 4.1 4.4 4.4

IIOI3.3 63.O 4.4 I5.O 11.3

;NNI;.6 8O.3 4.4 4.4 4.4

Source: /S ITC,0OV
TOTAL PROD$CTION IN INDIA OF BEER AND IMFL M !th Feb 3444 #arch 3444 1$ril 3444 #ay 3444 Jun 3444 July 3444 1ugust 3444 Se$tember -ctober 3444 "ovember 3444 )ecember 3444 January 3441 Feb 3441 B""r Pr d. 9<ls; N4N18 NNINO N;33O NON44 3613N 153O5 3ONO6 153N5 36N18 3I;ON 15546 15NI1 3485I NIO4 N5O6 I4;O ;4N3 I658 IO5; I446 IO34 IMFL Pr d. 9<ls; N8O8 NO85 NI3O NO6O

Source: C&I!, &onthly $e-iew Of The Indian !conomy, &ay *++

ANALYSIS AND CONCL$SION

.he mar'et si0e of the beer industry is incredible. .he wholesale volume in the beer industry is a$$ro2imately A1N.O billion .he mar'et consists of many com$etitors, some being very large and some o$erating on a very small scale. .he com$etitive rivalry is bro'en u$ into three segments, "ational, &egional, and #icrobrewers. "ational com$etitors have a wide mar'et coverage and generally a large com$any.
FIIB, NEW DELHI

&egional com$etitors are smaller than national in the fact that they only distribute in certain regions. #icrobrewers are the smallest of the three because their si0e and ca$acity limit them to only distribute to small geogra$hic areas. .here are many com$anies in the industry. .he "ational mar'et consists of ten ma or com$etitors. .he Com$etitors in this mar'et are 1nheuser/ %usch, #iller, Stroh, >. :eileman, 1dol$hs Coors, (abst, >enesee, C. Schmidt, Falstaff, and (ittsburgh. .he !m$ort mar'et consists mainly of ten ma or brands also. .hey are :eine'enB"etherlandsC, #ooseheadBCanadaC,

#olsonBCanadaC,

%ec'+sB>ermanyC,

9abattBCanadaC, St. (auli >irlB>ermanyC, )os 76uisB#e2icoC, Foster+s 9agerB1ustraliaC, 1mstel 9ightB"etherlandsC, and CoronaB#e2icoC.

.hese ten brands hold about 8O= of the im$orted mar'et share. 1 few regional com$anies, and many small microbrewers ma'e u$ the rest of the com$anies in the industry. .he ease of entry in the beer industry is segmented among the three mar'et coverage ty$es. !n the national mar'et the ease of entry is low. .here are many barriers to entry in the national mar'et. regulated in ;4 different ways in the ?nited States. %eer is

9arge ca$ital

re6uirements and distribution networ's ma'e it hard to enter the national mar'et. .he regional mar'et is a little easier to get into because of fewer regulations due to smaller mar'et coverage. Ca$ital re6uirements are not as big in the regional mar'et. 9ocal or microbrewers have the fewest barriers to entry. Ca$ital re6uirements are small com$ared to that of a national or regional brewer. #icrobrewers generally o$erate in a small geogra$hic area thus reducing many of the regulations faced by national and regional brewers.

FIIB, NEW DELHI

(roduct characteristics vary among the mar'ets. !n the national mar'et the beer is highly standardi0ed and heavily advertised. .he beer is

ine2$ensive. .here is some $roduct differentiation in the mar'et with the broad $roduct offerings that the national brewers can give. e2. 9ight

beer, 1mber beer, 9ow 1lcohol, 1nd #alt 9i6uor. !m$orts are $erceived to be better 6uality< when in fact, they are really not. %ecause of this $erce$tion, !m$ort beer costs more than domestic beer does. !m$orts are differentiated by taste and $ac'aging. Small brewers offer a

su$er$remium $roduct that is not very differentiated.

.he main

differences can be attributed to the brewing $rocess, $rice, and $ac'aging.

!ndustry (rofitability is decreasing due to heavy ta2ation and a declining mar'et. %eer is one of the most heavily ta2ed consumer $roducts. .here largest cost in the $rice of beer is the ta2 that is $laced on it by local and state governments. .he industries $rofitability is also changing due to changing lifestyles, stricter laws, and a declining 18/NI age grou$. .he rivalry among e2isting com$etitors is strong. $roduct is slowing. )emand for the

!n order for a com$any to increase mar'et share,

another com$any has to lose it. Switching costs are low for consumers. %ecause switching costs are low, Com$etition is very intense to gain new mar'et share. .he beer industry is a cut throat business with e2treme com$etition. %ecause they are in a declining mar'et, it order to stay

alive it must be survival of the fittest. (otential of new entrants is moderate. Ca$ital re6uirements can be a "ew

very inhibiting factor as to whether a com$any can start u$.

FIIB, NEW DELHI

entrants must also establish a very strong and sound distribution networ' that is all to often not that easily attainable. #any laws and regulations may also inhibit a new entrant from coming into the mar'et. .he $ower of buyers is very strong. Switching costs are very low thus enabling a consumer to buy whatever brand he wants. %eer drin'ers are easily swayed by advertising and social trends. S$ecial $romotions tend to sway brand loyalty. Changing societal concerns, attitudes, and lifestyles are driving forces for the industry. .hese factors $lay an im$ortant role as to where the industry is going. -ther causes include 1. .he $o$ulation is concerned about healthier lifestyles. 3. .he >rowth of the 18/NI age grou$ is declining. N. )rin'ing and driving laws are getting stricter with the $ush of su$$ort grou$s. I. 9egal drin'ing age raised to the age of 31. ;. "ew buyer $references. "ational brewers are in the strongest $osition because of broad $roduct offering and low/to/moderate costs. !m$orts are in a fairly decent

$osition because of their decent $roduct offering and 6uality. &egional and local breweries are in the wea'est $osition because of higher costs and limited $roduct offering. <EY S$CCESS FACTORS #aintain Quality in e2isting $roducts.

FIIB, NEW DELHI

#ust build a stronger networ' of distributors #a'e attractive $ac'aging !m$rove access to financial ca$ital for future endeavors. !nnovative low cost ideas to $romote $roduct. TARIFF D$TIES FOR CANADA Tari-- It"0 SS D"s#ri)ti ! - G ds $!it M"as. MFN Tari-A))li#a7l" Pr"-"r"!tial Tari--s 334F.44.44 B""r 0ad" -r 0 0alt. 4.G JIlitr" CCCT, LDCT, GPT, $ST, MT, CIAT, CT8 Fr"" + %%%%% Of an alcoholic strength by -olume not e"ceeding ,*1 -ol *+ %%%%% Of an alcoholic strength by -olume e"ceeding ,*1 -ol but not e"ceeding *,21 -ol %%%%% Of an alcoholic strength by -olume e"ceeding *,21 -ol: 3 %%%%%% 4ager 9.& 9.& 9.& 9.&

FIIB, NEW DELHI

3* %%%%%% 5orter or stout 3' %%%%%% Other

9.& 9.&

Tari-- It"0

SS D"s#ri)ti ! G ds

$!it M"as.

MFN Tari--

A))li#a7l" Pr"-"r"!tial Tari--s

33.4C

$!d"!at*r"d "th&l al# h l - a! al# h li# str"!'th 7& , l*0" l"ss tha! C4K , lL s)irits, li>*"*rs a!d th"r s)irit* *s

334C.34.44

7","ra'"s BS)itirs 7tai!"d 7& distilli!' 'ra)" /i!" r 'ra)" 0ar" + %%% In bul. '+ %%%%% Other -Whiskies 9(1 9(1

Free

CCC., 9)C., >(., ?S., #., C!1., C.< Free

334C.H4.44

Free

CC., 9)C., >(., ?S., #., C.< Free

%%%% Bourbon 6,, In bul. '6, Other ,,6,Scotch: * 6, In bul.s

9(1 9(1 9(1

FIIB, NEW DELHI

Tari-- It"0

SS D"s#ri)ti ! -G ds

$!it M"as. 9(1

MFN Tari--

A))li#a7l" Pr"-"r"!tial Tari--s

33.4C.G4.44

R*0

13.38 APlitre of absolute ethyl alcohol

CCC., 9)C., >(., ?S., #., C!1., C.< Free CCC., 9)C., >(., ?S., #., C!1., C.< Free

334C.34.44

B Gi! a!d G"!",a 14 /// !n bul' 54 ///// -ther 9(1 9(1 9(1

I.53 APlitre of absolute ethyl alcohol

334C.H4.44

- Vodka

13.38APlitre of absolute ethyl alcohol

CC., 9)C., >(., ?S., #., C.< Free >(.< 6APlitre of absoltue ethyl alcohol

334C.F4.44

B Li>*"r"s a!d # rdials

9(1

13.38APlitre of absolute ethyl alcohol

CC., 9)C., >(., ?S., #., C.< Free >(.< CC., 9)C., >(., ?S., #.

334C.@4

B th"r

9(1

Free

Tari-It"0

SS D"s#ri)ti ! G ds

$!it M"as.

MFN Tari--

A))li#a7l" Pr"-"r"!tial Tari--s

35 ////// -ther 9(1 N4 ///// !rish

9(1 9(1

FIIB, NEW DELHI

I4 ///// &ye ///// -ther< 51 ////// !n bul' 55 ////// -ther 3348.I4 3348.I4.1 4 / &um and tafia /// &um

9(1

9(1 9(1

3I.;6 UPlitre of absolute ethyl alcohol

CCC., 9)C., >(., ?S., #., C!1., C.< Free

14 ///// !n bul' 54 ///// -ther 9(1 Source:strategic,gc,ca

9(1 9(1

FIIB, NEW DELHI

TARRIF D$TIES IN $.S.A

D"s#ri)ti ! G ds $!it %*a!tit& Rat"s - D*t&

2 G"!"ral %eer made from malt Whis'ies !rish D Scotch &um !n containers each holding not over for litres, valued not over AN(f P9itre *alued over A NP(f 9itre (f. 9itre (f..9itre 3N.Ocents P (f. 9itre Free B1,C1,),7,!9C O.I cents P(f. 9itre B#VC 9itre (f. 9itre 4.3 centsP 9itre Free S)"#ial Free B1,C1,7,!9,J,#VC

1N.3 centsP9itre A1.55P (f. 9itre A1.N3 P(f. 9itre

8.Ocents P(f 9itre

Free B1,C1,),7,!9C O.I Cents P (f 9itre B#VC

A1.N3P(f .9itre

-ver I 9itres *alued not over 65centsP (f 9itre -ver 65 cents

(f. 9itre

3N.OcentsP(f litre 8Ocents

Free B1, C1,),7,!9C O.I Cents B#VC Free B1, C1,),7,!9C O.I Cents B#VC

A1.N3P(f. 9itre A1.N3P(f. 9itre A1.55P(f. 9itre A1.O8P(f. 9itre

(f. 9itre

>in D >eneva *od'a "ot over I litres valued not over A3.4;Plitre *alued over A3.4;Plitre -ver I litres

(f. 9itre (f. 9itre

Free Free

(f. 9itre (f. 9itres

Free Free

A1.O8P(f. 9itre A1.N3P(f. 9itre

Source: dataweb,usitc,go-

FIIB, NEW DELHI

Project Report On

MARKET POTENTIAL OF ALCOHOLIC BEVERAGES IN US AND CANADA

Under the Guidance of: Mr. GIRISH SODHI

9D")*t& G"!"ral Ma!a'"r, Sha/ Walla#" a!d C 0)a!& Ltd.;

Submitted by: A.CHANDRA SHE<AR

In Partial fulfillment of PGDBM in International Business !"""-!""!#

FIIB, NEW DELHI

FORTUNE INSTITUTE OF INTERNATIONAL BUSINESS NEW DELHI

FIIB, NEW DELHI

CONTENTS
TOPICS 1c'nowledgement Com$any (rofile
(roduction of 1lcoholic %everages

PAGE NO. 1/5 11/33 3N 3I 3; 36 36 35 N1 38 I1 I3 I; IO I8 ;1 61 63 65

CANADA 72ecutive Summary #ar'et -verview 9ocal #ar'et !nternational Com$etition )istributors and Wholesalers (ac'aging and 9abelling &e6uirements Commercial !m$ort (rocess 1nalysis D Conclusion $SA 72ecutive Summary #ar'et -verview 9ocal #ar'et !nternational Com$etition )istributors and Wholesalers State )istribution &e6uirements (ac'aging and 9abelling &e6uirements Commercial !m$ort (rocess 1nalysis and conclusion ANNE=$RES

AC<NOWLEDGEMENT
I am grateful to Mr$ Girish Sodhi 7(eputy 0eneral &anager8 for guiding me for the successful completion of the pro9ect, I would li.e to than. Mr$ %a&il 'hanna 7Sr, Vice 5resident8 % Shaw :allace ; Company 4td, and &r, $a.esh Saraf 70eneral &anager8 <

FIIB, NEW DELHI

Shaw :allace ; Company 4td,, for gi-ing me an opportunity to wor. in this company, ! would also li'e to than' the e2ecutives of Shaw Wallace D Com$any 9td. and others who have directly or indirectly hel$ed us to com$lete the $ro ect.

FIIB, NEW DELHI

ANnEXURES

FIIB, NEW DELHI