Beverage exporters face unique challenges in the international marketplace. From a complex web of regulations to the potential for unexpected disruptions in supply and demand, ensuring a successful exporting effort requires careful planning and consideration. Here are ten of the most important things to consider when exporting beverages.
1. Regulations
Every country and international trade bloc has its own regulations governing the importing and exporting of beverages. Exporters must seek to understand and comply with both the government and private-sector regulations in force in the destination market. Regulations may dictate production and labeling requirements, certifications required for exports, and even variations in labeling and packaging to different countries. Conducting a thorough review of current regulations prior to exporting is essential for compliance and success.
2. Tariffs and Taxes
Tariffs and taxes are very much a part of international trade, and the costs of both can be a large contributor to both the cost of goods and the financial success of an export business. Exporting companies must ensure they are aware of and paying any applicable taxes, and must understand the impact of various tariffs on their potential profits. Understanding what the proper payment looks like and how to classify exported beverages can also be an issue, as misclassifications can lead to fines, stoppages, and other difficulties.
3. Distribution Networks
Reaching end-consumers in foreign markets depends on a viable and effective distribution network. Foodservice providers such as caterers, restaurants, bars, and hotels can serve as both initial destinations as well as major purchasers of beverage exports. To successfully penetrate the target market, exporters must develop a distribution network that includes a wide range of potential points of sale.
4. Sourcing and Supply data.com/en/solutions/restaurant-chains/’ target=’_blank’>chain
Exporting beverages requires reliable and consistent sourcing and supply chain operations. Quality ingredients and packaging materials must be obtained at competitive prices, and must remain stable and dependable. Establishing and maintaining the right suppliers for dependable and cost-effective production is essential for success in the international marketplace.
5. Branding
An essential part of any successful beverage export business is comprehensive branding. Developing and executing a comprehensive branding approach requires a deep understanding of the target market and potential customers. This includes both language and design elements, as well as special considerations like fonts, colors, symbols, and other visual storytelling elements.
6. Transport Logistics
Getting beverages from the producer to the customer involves a network of transportation logistics. The exporter must understand the modes of transport, routes, tariffs, and taxes for getting the product to the target market. This includes not only the physical movement of the product, but also the necessary paperwork and other documentation required for international product shipment.
7. Cultural Considerations
Beverage exporters must adapt to the culture and customs of the target market. This includes not only price points and product variations, but also customer service and advertising campaigns. Understanding the local culture and adapting to it can ensure the success of a product in the overseas market.
8. Pricing
Competitive pricing is an essential component of the beverage export business. This includes both looking at the cost to manufacture the product, including the cost of ingredients, packaging, and transport, and how that cost stacks up against the competition in the target market. Furthermore, price points and strategy must match the target market’s taste and budget.
9. Advertising
Building a successful beverage export business requires a sound advertising strategy. To succeed in the target market, exporters must craft a comprehensive advertising campaign that takes into account the local culture and target demographic. This includes traditional marketing such as billboards and print ads, as well as digital marketing including website design, search engine optimization, and social media marketing.
10. Data and Analytics
Data and analytical insights can be invaluable to beverage exporters looking to understand customer behavior and explore the viability of potential markets. By gathering and analyzing key data, marketers can gain a comprehensive understanding of not only current trends in the target market, but also potential opportunities for success.
