Regis Dias.
Dr. Basztyk.
B4036 International Market Entry and Distribution
November 19, 2008
CASE STUDY ASSIGNMENT
Importing wine from Uruguay to Canada
The product chosen for analysis in this case is the red wine Cabernet Sauvignon Classic 2005. It is produced by the vineyards and winery Juan Toscanini e Hijos S.A., located on the town of Canelones in Uruguay, South America. Their current production is composed by 9 classic wines, 4 reserved wines, and a few others, as well as a line of special wrapped wine for gifts.
The plan is to import only the Cabernet into Canada, more specifically into Ontario, where it will be sold to the Liquor Control Board of Ontario (LCBO) and then be made available to customers. Prior to importation, an agent in Canada will go through the extensive process of selection that LCBO requires to make sure the wine meets the standards that they require. If approved, the Cabernet bottles will be brought into the country and LCBO will set the final retail price.
Uruguay is the main world producer of Tannat wines, and the first country to develop wines 100% Tannat. One of their Tannat wines is already sold into the Quebec market.
The choice of the Cabernet to start the importation was made because it is a mainstream type of wine already familiar to Canadians and, hopefully, will have a strong demand throughout the province. The Cabernet Sauvignon Classic 2005 has won an international award in Argentina for second best red wine in 1997.
PRODUCT CHARACTERISTICS
Value:
Once that wines usually have a big rang ...