U.S. Market Price Structure Pro Forma for Wine (<14%ABV)
For an updated database with active wine importers and distributors from the U.S. you can access our solution.
Our partners from Bevology can also help you get prepared for the U.S. market. That can include a “street-smart” education on navigating the complex Three-Tier System, selecting the right Import and Distribution solutions, and acting as the brand representative in the United States.
*The explanations, processes and tables included are simplified and generalized.
They also do NOT incorporate the “Craft Beverage Modernization and Tax Reform Act” excise tax reductions.
The calculator ONLY applies to Open states. Many/most control states have their own, unique, and in some cases mandated price structure.
Control State: Similar to a monopoly structure where the state functions as the wholesaler and/or retailer for both wines and spirits
FET: Federal Excise Tax
FOB: Freight on Board. With imported products it describes the price of a product once it is on the international transport ship. Some/many distributors will call the price they buy the product from the importer for (which includes FET) as FOB as well.
Landed Cost: The total paid by the importer for receipt of goods at a destination warehouse, and includes the importer paying the excise tax.
Laid-In Cost: The price charged to the distributor for receipt of goods from an importer. It typically includes interstate transfer costs, warehouse costs, state taxes.
Margin vs. Markup: Markup is the percentage difference between the actual cost and the selling price, while margin is the percentage difference between the selling price and the profit.
MSRP/SRP: Manufacturer’s Suggested Retail Price