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Access useful information and reports on markets and sectors abroad. Take advantage of free trade agreements, foreign investment agreements, WTO agreements and more from Canada. There are currently more than 1,100 breweries in Canada. As the craft beer industry in Canada has grown, so has the worldwide recognition of Canadian beer.
Canada has a reputation for having some of the best barley in the world, clean air and fresh water, a pleasant business environment and political stability. There's never been a better time to export your beer. This new brewing capacity has positively positioned Canadian craft breweries for export markets, which to date have been largely ignored by breweries focused on local growth. As local markets approach saturation, Canadian craft breweries are looking to grow in international export markets.
Fortunately, Canada produces some of the best raw materials used in beer. Canada also has internationally respected graduates from brewing programs at Niagara College, Olds College and Kwantlen Polytechnic University. In fact, Canada is even at the forefront of craft beer packaging. Calgary's Cask Global Canning Solutions invented the ubiquitous online craft beer canning line in Canada.
New, small artisanal malters are now even improving the global reputation of Canadian malted barley. Canada is also growing new varieties of hops. While Manitoba hops are the family tree for many older varieties, Lumberjack and Sasquatch are the first hops bred and patented in Canada. At the same time, hop producers are also rediscovering old Canadian varieties, such as Wild Turkey.
Canadian breweries are now earning an international reputation for the quality of their beer and their innovation. They are armed with the best ingredients, the best people and the best packaging. They are winning medals in some of the most important classic-style beer competitions in the world. They are also creating a new combination of flavors that beer lovers around the world are looking for.
All of these elements help to raise the reputation of Canadian craft beer globally. The CRA does not include the export account in the My Business Account web application, so it will not appear when you log in; only business accounts for 26% of GST corporate income tax GST will appear. Check with your accounting department if you are not sure if your company has an RM number. Registering with the Canadian Food Inspection Agency (CFIA) and obtaining a license under the Food Safety Regulation for Canadians (SFCR) is the second step in preparing for export.
The CFIA issues SFCR licenses and export permits in the form of COFS. The COFS is an important document that is required for export and must be issued before the product leaves Canada. The PCP is based on the internationally accepted principles of the General Principles of Food Hygiene of the Codex Alimentarius. It includes items related to packaging, labeling, classification, and identity and food safety regulations.
You can find all the details about the PCP on the CFIA's regulatory requirements page. To meet the requirements of the Food Safety Regulation for Canadians, every manufacturer must have a traceability plan. The requirements are based on the international standard established by the Codex Alimentarius (tracking food one step forward to the immediate customer and one step back to the immediate supplier) and help facilitate recalls and consumer protection. Manufacturers must identify the source of each ingredient used in the production of their beer and must prepare, preserve and maintain the traceability documents for each product produced.
Manufacturers must also keep a record of the buyers to whom the products are sold, trackable through their lot codes. For more information on how to complete a traceability plan for your facilities, visit the CFIA food traceability page. If the manufacturer uses a third party (exporter, who is not involved in the manufacture of the products) to export its products, the exporter must use a simplified traceability plan. Hazard analysis and critical control points (HACCP) certification is an internationally recognized system that indicates that a company has undergone the necessary third-party auditing and has developed principles and procedures to ensure that all food safety risks are covered.
A HACCP-based system is a legal requirement for food manufacturers in several countries and is favorably considered when they enter new markets around the world. This certification is optional but recommended. For more information on how to apply for HACCP certification in Canada, visit the Beer Canada website. The British Retail Consortium (BRC), founded in 1996, publishes standards that describe quality, safety and operational criteria for manufacturers to obtain BRC certification in terms of food safety standards.
These harmonized food safety standards are recognized globally and are used by suppliers in more than 130 countries around the world. BRC certification is optional, but is considered one of the world's leading food safety certification standards. Harmonized System (HS) codes are a standardized method for classifying import and export products. Customs authorities use the harmonized system to identify products when evaluating duties (tariffs), taxes and other fees.
For more information on Canadian export classifications, visit Statistics Canada's export classifications for beverages, spirits and vinegar. For information on the rates of the countries you export to, see the Rate Finder. Pricing your products for export requires a solid understanding of the real cost of the materials and labor that are used to manufacture your product. Compared to selling your product in Canada, there are far fewer expenses that need to be considered when setting a sales price.
This process is important because the additional logistics, export and import costs will substantially increase the cost of your beer in the foreign market. In most cases, shipments will be picked up at the brewery, so any fees will be charged at any provincial warehouse (reception, storage, etc.). Next, it's essential to brand the product according to your profit margin objectives. When evaluating the product and setting the sales price, it is useful to involve importers and other key contacts to assess the competitive landscape and remain competitive.
If you choose the wrong incoterms, you may be surprised by additional costs that you didn't intend to assume. The most favorable conditions for exporters are EXW, FCA, FAS and FOB, since the buyer pays the shipping costs. Appropriate international shipping pallets must be used for all palletized shipments leaving Canada. There are different types of materials for pallets that range from plastic to wood, with wooden pallets being the most economical.
The use of inadequate pallets can cause import delays or denial of entry to the importing country. Wooden pallets for shipments must comply with phytosanitary standards and bear the internationally recognized mark. Pallets can be new or recycled and are obtained through Uline, CHEP, Pallet King or other local suppliers. The instructions are simple; just follow the instructions in each section.
See the CFIA website for a step-by-step guide on how to complete your free sales certificate application and free sales certificate request form (Internet Explorer only). An export declaration is a customs form that must be submitted when exporting commercial products from Canada. Reports can be filled out through an automated service when exporting to countries other than the United States (U.S.). USA, USA.
UU. A Certificate of Origin (CO) is an international trade document that exporters complete to declare the origin of their products. When exporting internationally, you must include a certificate of origin in your shipment. The importer uses this document at customs to justify the eligibility of the products to enter the country and any preferential tariff treatment that may apply.
When there is a free trade agreement (FTA) in force between Canada and the country it exports to, you must use a preferential CO. To find certification forms for other Canadian free trade agreements, go to the Forms section of the CBSA website and type “certificate of origin” in the Filter Items box. Also visit the Export Development Canada website for more information on understanding certificates of origin. If there is no FTA in place between Canada and the country to which it is being exported, a non-preferential certificate of origin can be obtained from the Canadian Chamber of Commerce (CCC) by paying a fee.
The CCC is accredited by the International Chamber of Commerce as an issuing body to provide these certificates in Canada. Even if there are no preferential tariff treatments, customs authorities use the document to determine the tariff amounts and for statistical purposes. Free Trade Agreement: Certificate of Origin form North American Free Trade Agreement: proforma certificate of origin form and commercial invoices are important documents used in global trade. Once the buyer has issued a purchase order, you can issue a proforma invoice.
The proforma invoice confirms the details of the order and can include your bank details to request payment. The commercial invoice is issued once the goods have been shipped and confirms the exact quantity of products that have been loaded and shipped. Because of manufacturing problems, supply problems, etc. Don't include additional items in your beer shipment.
Some free t-shirts, coasters, stickers, or marketing materials that aren't included in your export documents could delay the shipment of your perishable beer for weeks. A packing list details what the seller sends to the buyer and the freight agent uses it to generate a bill of lading for your shipment. Customs officials use the packing list to verify goods and authorize entry to the destination country. The packing list identifies all the items in the shipment and includes the net and gross weights and dimensions of the packages, as well as the markings that appear on the packages.
You can use your shipping list to check the buyer's purchase order and ensure that you're shipping the correct items. The items on the packing list must match all the items on your commercial invoice. There are different types of packing lists, and depending on your shipment, you can choose to use a packing list for full container shipments (FCL) or a detailed packing list for shipments of less than one container (LCL). The detailed packing list will show what's on each pallet when shipping mixed pallets.
See Annex 4 for the samples in the packing list. A packaging statement describes the type of packaging materials used to pack your products in the container. All wooden packaging, including pallets and wooden packaging material, must comply with the ISPM15 standard to protect against the spread of insects and diseases. Your packaging statement is a statement on company letterhead detailing the type of packaging materials used in your shipment and that all wood meets the requirements of ISPM15.
The pallets will bear the heat-treated ISPM15 seal and the signed document guarantees that your shipment will not be removed for quarantine and treatment before going through the customs of the destination country. See Annex 5 for a model packaging statement. The Shipper's Letter of Instruction (SLI) is a contract between the sender (you) and the transport company that organizes the transportation of your shipment. This document provides the information necessary for your freight agent to manage the export of your products and provides the ports, customs and shipping lines involved in the transaction with all the relevant information.
This checklist provides an overview of the steps and considerations for exporting craft beer from Canada. If additional capacity within your own physical brewery isn't an option, you can consider alternative production methods, such as contract brewing or licensed production. The two options mentioned above are effective ways to increase production volumes with minimal capital investment. The predominant disadvantage of a licensed contract or production agreement is the additional costs and, therefore, the lower profit margins.
The main advantage of these production systems is that, in general, they have a dramatically shorter production time, since there are no delays like those that would occur with the manufacture and start-up of new equipment. In addition, the immediate cash flow impact of contract brewing is less than that of buying and installing new equipment. If you want to sell in a country that has a different package size than Canada (i.e. Contract production is the production of a product to the specifications of a brewery in a facility that is not owned by the brewery.
Contract production allows the brewery to continue producing the product in Canada and to maintain ownership and control of the recipe, but also the physical ownership of the beer. It is also possible to produce your beer by contract abroad, although it can be more logistically complicated than authorized production (for example, obtaining similar ingredients abroad). Licensed production differs from contract brewing, as it is generally produced in a facility located in the country of the buying party. An example of this would be an Ontario-based brewery that licenses the production of its dark beer recipe and all related brands to a manufacturer in Australia.
If your brewery decides to add physical capacity to its existing facilities, it may be eligible for government grants that cover some of the costs associated with those activities. AgPal is a fantastic resource for researching the grants your brewery can qualify for. In addition, the Canadian Agriculture Association website has links to provincial contacts to obtain agri-food grants for which breweries may qualify. You can also check with your local craft brewers association about other local grants that may be available.
In short, there are three main ways to increase your capacity, each with its own advantages and disadvantages. The most essential partnership for understanding which method is best for your situation is the partnership with your exporter or buyer. Understanding the buyer's needs and timelines will help them choose the most appropriate method, in the long or short term, to increase their capacity. The first step to successful marketing is choosing the right product to market.
If you have a beer made with ingredients associated with Canada (iceberg water, maple syrup, etc.). Recognizing that this isn't possible for all breweries, how do you market your standard line of beers overseas? If your marketing is well received in Canada, there is no need for changes to foreign markets. That said, it's obviously best to adapt marketing to your new audience. The first step is to understand the legal restrictions in the export market.
Certain countries categorically prohibit alcohol advertising. Other countries have exemptions from liability and mandatory disclosures in the advertising of alcoholic beverages (health warnings or statements of responsible consumption). In addition, the country of export may have an advertising code for alcoholic beverages. Your import partner will help you with these.
Of course, marketing your beer isn't limited to advertising. The design and packaging of your label are in and of themselves marketing and, if you are preparing labels for export markets (to meet export labeling requirements), this is a great opportunity to adapt your beer label and packaging to the foreign market. Whether your marketing is based on standalone advertising materials or is restricted to your labels, the following factors should be considered:. The whole premise of this export guide is that Canada has a great global reputation.
Your marketing materials should take advantage of that. Images of Canadian nature should be used, as well as the maple leaf, a globally recognized symbol of Canada. In addition, since Canada is perceived as an agricultural country, any aspect of beer should be promoted from grain to glass. Certain countries have a specific affinity for certain aspects of Canadiana.
The Canadian Rockies are popular with Asian and German tourists. Polar bears and other Canadian animals are worshiped in specific countries. Even images of Ana from Green Gables are popular in some countries. Work with your importer to take advantage of this advantage.
In our experience, foreign markets rely heavily on public beer ratings (for example, Untappd) to choose unknown beers. As long as your beers and breweries have good ratings, you should highlight them in marketing materials. In the same way, inform consumers about any prizes your beers have won. Considering that your beer is likely to be relatively expensive in the foreign market, anything that can prove that your beer is worth the extra money is a great way to overcome resistance from buyers.
In the case of printed material, although it is not always necessary to translate the material, if you decide to do so, work with a good and accredited translator. Good translators don't just translate words. They can translate the tone and protect you from using uncomfortable phrases that have different connotations in foreign languages. Leave the names of your beers in English.
This will help drinkers find your beers on public rating websites, and names rarely translate well into other languages. If the name of your beer is a pun, that pun will hardly ever be translated, so leave the name in English. The Government of Canada often organizes or sponsors Taste of Canada events in foreign countries. These can take the form of commercial events or online pop-up stores that promote Canadian food products.
Similarly, work with your importer to see if there are opportunities to participate in local beer festivals. Around the world, craft beer is a community and nothing will sell your beer as well as that of your own people who tell the story of your beer and your brewery. Collaborative beers are also a great way to get the name of your brewery known. By partnering with a local brewery in the export market, you bring immediate credibility to your brand with the goodwill of your collaboration partner, who automatically lends itself to your brewery.
Finally, be sure to discuss marketing with your importing partner from the start. Some will handle all the marketing, others will wait for you to provide it to them, and others will wait for you to provide a marketing budget. These issues must be determined from the start. In addition to the monetary costs of marketing materials, these materials will likely need to be exported separately.
Marketing materials are products that are different from beer and will require different documents. Don't include a few free t-shirts (for example) in your beer shipment. Those additional items can have a devastating effect on your shipment if they delay entry or impose penalties for incorrect documentation. Due to the Canadian regulatory environment, there are currently few opportunities to sell your beer online within Canada, other than direct local delivery.
Therefore, many Canadian breweries are surprised that e-commerce platforms that sell alcohol are common in other countries and may be an appropriate way for Canadian craft breweries to enter export markets. There are advantages and disadvantages to each. By using your own store, you can maintain control of the entire sales process, including capturing data about your buyers. Existing markets, on the other hand, will capture your sales data and often use it to their own advantage.
The other side of this disadvantage is that an existing market, in addition to having greater public awareness and trust in general, can use its sales data to direct the right customers to its products, which significantly reduces customer acquisition costs. In addition, existing online marketplaces are often in the right language and are aware of local tastes and regulations. Many online shoppers in foreign countries don't trust international websites at all. Of course, online marketplaces often charge fees, which range from setup and SKU fees to a portion of each sale.
Carrying inventory in the export market obviously costs money, both in terms of the inventory itself and, often, in terms of storage space. There will also be management time to monitor and manage inventory in another country. However, by taking inventory to the export market, shipping times and costs are significantly reduced, as is the risk of damaging the product. In addition, customs clearance is easier, reducing the likelihood of further shipping delays, undermining consumer confidence.
For these reasons, keeping inventory in the foreign country has significant benefits. Once an order is placed, it must be processed. You can have your own staff to package and ship the order, or you can use a full-service logistics agent. Some online marketplaces offer order fulfillment and processing services.
There are many important advantages to using a logistics service. They generally offer simple logistics, including delivery and service standards, offer unlimited storage, can reduce shipping costs (especially if they can ship other products along with beer), offer customer service (in the appropriate language) and can handle returns. The disadvantage of logistics management services is the additional cost they entail for you; the first and most important thing is that, often, returns that are too simple as such services are motivated to keep their customers happy, even at the expense of the supplier. The Canadian Trade Commission Service is always ready to help.
To get started, check out the online resources on the e-commerce page of the Trade Commissioner Service. Your first order of business is to determine which country you want to export to. As mentioned elsewhere in this report, different international markets have different levels of receptivity to imported beer and to craft beer. Your ideal export target will be receptive to both options, after which you'll be able to take advantage of Canada's reputation and your own marketing strategies to successfully market your beer.
Finally, you should consider whether you could take advantage of countercyclicality when choosing an export market. Canadian breweries are generally busiest during the summer months and, when exporting to markets in the Southern Hemisphere, there is the possibility of increasing sales without additional capital expenditure by using excess capacity in the off-season to brew beer for the summer elsewhere. Before entering a market, make sure that your names, both that of your brewery and that of any beer you want to export, don't mean something bad in the export market. Sometimes, there can be important local meanings that work in your favor, making one of your beers marketable just by name.
In addition, check local trademarks and if you want to protect your own trademarks in the foreign market, work with the right lawyer. The Trade Commissioner Service can provide a list of relevant lawyers. In fact, Collective Arts Brewing in Hamilton, Ontario, has generated enough demand in the United States to justify the construction of a second brewery in Brooklyn, New York. Similarly, Lake of the Woods Brewing of Kenora, Ontario, has built a brewery in Minnesota to support sales there.
It's not just the United States where Canadian breweries have achieved direct sales success. Russell Brewing, from Surrey BC, opened a brewery in Hefei (China). Russell's first brewery was so successful that they built a larger brewery in Jiujiang (China), which has since undergone another expansion. Working with an importer or distributor in the export market is arguably the most common way to enter a new market.
Working with someone who understands the import procedure in the foreign country allows you to connect with all the right buyers and having a consolidated sales force greatly reduces risk. Of course, your distribution partner will have to make money from the transaction, so this will reduce your margins. When negotiating with your distribution partner, make sure you understand and accept the shipping terms. In addition, make sure that you reach an agreement on the payment terms (including the payment currency).
Obviously, your dealer will want to pay you as late as possible, while you will want to get paid as soon as possible. A common commitment is to require that a deposit be paid before shipment, which at least covers the input costs of the product and the benefit be paid later. Of course, there will be receivables risk and exchange rate risk during the life of the outstanding receivables. Export Development Canada offers credit risk analysis and accounts receivable insurance (for a fee), while all major banks offer foreign exchange hedging products.
As mentioned in section 4, it's possible to make beer on a contract basis or have your beer brewed under license in the foreign market. As with any other market entry strategy, it will be essential to find a partner you trust, who produces your beer with the care you do at home. In addition, of course, it will be necessary to adjust your recipes to the quality and availability of local ingredients. As far as licensing is concerned, the breweries that have done so advise that it is best to export beer using traditional methods (that is,.
Shipping beer (to a distributor) to build your brand in the export market before embarking on the licensing strategy. On the other hand, there is a risk of oxygen accumulating during transport and during packaging, especially since that packaging will be beyond your control. Canadian craft beers have the potential to perform well in the Australian market. Australian consumers in general, and craft beer consumers in particular, are thrilled to experiment with new products, including imported beer.
Canadian products have a good reputation in the Australian market and are considered safe and of high quality. As a sister nation of the Commonwealth, there is an inherent level of trust between the two countries. A special tax, or equivalent customs duty for imported alcohol, is paid on all alcoholic products sold in Australia. Excise tax rates are expressed per liter of alcohol for alcoholic beverages.
The volume of alcohol subject to excise tax is calculated by multiplying the real volume of the product by its alcoholic strength. Excise tax rates for alcohol are indexed twice a year, according to the consumer price index. Indexing usually occurs in February and August. In the case of beer, a special tax is paid on the alcohol content greater than 1.15% ABV in the finished product.
Australia is the only country in the Organization for Economic Cooperation and Development (OECD) that applies different types of excise taxes to bottled beer and draft beer. In addition, there are different rates depending on the alcohol content of beer, with rates that range between the thresholds of 1.15% ABV, 3.0% ABV, 3.5% ABV and 10% ABV. See the Canadian government's rate finder website for specific information. The bottom line is that Australia has the fourth highest excise tax on beer in the industrialized world.
The Goods and Services Tax (GST) applies at a rate of 10% of the retail price of beer, including excise tax. As a result, taxes (excise and excise taxes) represent nearly half (42%) of the price of a typical case of non-alcoholic beer. Food Standards Australia New Zealand (FSANZ) is the Australian government agency that develops food standards for Australia and New Zealand. Food standards are included in the Food Standards Code.
The FSANZ includes the labeling requirements in the Food Standards Code; this document is a user guide that provides an overview of the requirements of the Food Standards Code in relation to the labeling of alcoholic beverages. While there are a small number of importers that distribute Canadian beer in Australia, Canadian beer is certainly not widely available in Australia. The largest supermarket chains expect a uniform supply and many small breweries in Canada have not been able to meet these requirements. Canadian craft breweries have had limited success with specialty stores.
Another way to show your beer to the Australian market is to attend one or more of the fairs held in Australia. The best beer fair in Australia is Good Beer Week, which takes place in May. Its website describes it as a global festival comprised of more than 300 diverse and innovative events in Melbourne and Victoria that attracts seventy-five thousand attendees from across Australia and abroad. There are, of course, other similar events.
Australia's main seaport is Melbourne. On the west coast, the port of Hedland is the largest container port in Australia. Other major ports include Sydney, Brisbane and Freemantle. Taking into account that the seasons in the Southern Hemisphere are the opposite of those in Canada, it is recommended to use temperature-controlled containers, given the change in temperature during transit.
China is the largest beer market in the world. Although the total volume of beer tends to decline, as consumers' purchasing power increases, the value in dollars of the beer market increases. Young Chinese consumers, in particular, are getting a taste for high-quality international products, but craft beer is still immature and represents less than 0.1% of the total beer market. That said, some other labels, such as organic ones, are prohibited.
The alcohol content of beer must be marked with the unit followed by the% vol. Beers must also indicate the original wort concentration, titled with the original wort concentration, and the unit will be °P. The country of origin, the date of manufacture, the type of beer, the content (in metric system) and the name and address of the Chinese distributor must appear on the label. Shelf life must also be disclosed, but fermented alcoholic beverages (alcoholic beverages whose alcohol content is greater than 10% ABV) are exempt from this requirement.
Several common ingredients in Canadian brewing, in particular clarifying agents such as biofine, are banned in China. There are other restricted ingredients for beer (for example, saffron and elderflower), so if you make beers with unusual ingredients, you shouldn't assume that just because they're acceptable in Canada, they would be acceptable in China. Be sure to work with a local import agent to ensure that you don't inadvertently conflict with these prohibitions. Products are tested before they are launched in China, and often food products, including beer, require laboratory testing before they are allowed to leave Canada.
Customs duties, value added and consumption taxes are applicable and are calculated at the point of import. If you're working with an importer, make sure it's clear who is responsible for paying these taxes. Although the craft beer market is relatively small in China, it is growing. The dark beer market, for example, has grown by around 50% per year in recent years.
While the beer market in general favors direct sales beer, craft beer largely favors non-commercial beer. Despite the interest in foreign beer, China's population firmly supports domestic companies. Therefore, a partnership or joint venture with a domestic brewer is a viable strategy. Either way, partnering with a local agent is essential.
There are regional preferences that local agents understand better. Building a trusting relationship with a new business partner can take a long time. Therefore, if possible, a presentation through a common party is a better way to start. Expect to have several meetings to build a relationship before any real business takes place.
When considering a market as large as China, it's important for breweries to develop specific market entry plans. There is strong competition and, generally, Canadian brands lack brand recognition and have limited knowledge of customers. Canadian breweries entering the Chinese market must be prepared to spend resources on developing a market by working together with their importer. The Chinese market generally avoids high-alcohol beers.
There is a very strong preference for beers with 5% alcohol or less. Cheap domestic beers range from 2% to 3% ABV, so 5% ABV is already perceived as strong beer. Chinese millennials are active on social media. In China, WeChat and Weibo reign.
In fact, WeChat, which incorporates email, is often the preferred platform for doing business. China has a reputation for intellectual property theft. If you intend to protect your intellectual property rights, please note that the China Trademark Office operates on the “first come first” principle. With a relatively long coastline, China has 34 major ports and thousands of smaller ports.
The port of Shanghai is not only the largest port in China, but also the largest port in the world. It is the gateway to the Yangtze River Delta. With so many ports, it'll be a simple matter of working with your freight agent to find an efficient route for your beer. The Japanese beer market is the fourth largest in the world.
As in much of the rest of the world, overall beer sales have fallen or stagnated in recent years. In addition, in much of the rest of the world, craft beer is the exception to this downward trend. That said, craft beer is still less than 1% of the total beer market. There is no beer fee in Japan for beer from Canada.
However, beer is taxed at different rates depending on the malt content. Canadian brewers who use all malt should know that their products will be taxed at the highest rate. The Japanese government must approve all beer labels. There is a significant amount of mandatory information on the label in Japanese that must be on each individual can or bottle and on any container (such as a box of six units).
Most importers will ask you to place these labels in Canada, but some importers may be able to change them in Japan. In any case, Canadian breweries must work closely with their importer to ensure compliance with these requirements. Your cans and bottles must bear the Japanese recycling symbol. No additional registration of the container itself is required.
It is recommended that companies work closely with a local partner to determine the exact export and retail requirements of the market, as local companies have a large presence in the Japanese beer market. Companies interested in exploring these markets should consider gaining first-hand experience through trade shows and conferences. Two trends in craft beer are the divergence of alcohol content. Both high-alcohol and non-alcoholic beers are gaining in popularity.
Beer sales have been affected in recent years due to the growing popularity of RTDs based on spirits. Local breweries have responded with beers with high alcohol content (between 7% and 8% alcohol), which have proven to be popular. On the other hand, consumers over 40 years of age who want to enjoy beer from Monday to Friday have opted for non-alcoholic beers. Japan has a significant amount of non-commercial beer, especially craft beer.
However, imported beer has seen significant growth in trade, as consumers who eat out are more likely to try foreign beer. South Korea has a highly educated workforce with low unemployment and low public debt, and has enjoyed sustained and stable economic growth. By law, only authorized liquor importers can import alcoholic beverages, including beer. All imported food products must be labeled in Korean.
There are labeling rules that apply to all food products, including beer. While there are some export markets where labeling requirements can be met with a strip of labels, in the case of South Korea, you may have to print a label specific to that market. It is mandatory to recycle and label all beer containers. The symbol varies depending on the color and the letters depending on the material of the container.
Your importer should help you with compliance. For the food import declaration, a list of all ingredients with a component ratio ratio (100%) and a process flow chart will be required. A bill of lading, a commercial invoice and a packing list are the documents required for import clearance. In addition, to take advantage of the tariff benefit of the Canada-Korea Free Trade Agreement, a certificate of origin signed by the Canadian brewer is required.
As with other aspects of exporting to South Korea, breweries are encouraged to work with their South Korean importing partners to obtain detailed documentation and registration. One of the best ways for new suppliers to establish a relationship with an importer in South Korea is to attend a trade show. Trade shows are particularly impactful because South Koreans value face-to-face contacts and are not likely to respond to cold calls. Specialty breweries are the only place to sell craft beer.
Hypermarkets, supermarkets and convenience stores generally only sell domestic beer or major import brands (Asahi, Heineken, etc.). South Korean consumers are looking for variety in beer and premium and international brands. This is offset by a general tendency to reduce alcohol consumption due to health problems. Low-alcohol craft beers can work well.
For the shooting market, the most common are PubKeg and KeyKeg in size of 20 liters, although 30 liters are accepted. The use of steel barrels and barrels of more than 30 liters is not recommended. Shipping rates to South Korea are favorable, while shipping rates from South Korea are not, so the cost of recovering empty steel barrels is prohibitive. The South Korean beer market accepts claims of top quality products.
Labels should use words such as premium to promote their high quality. Other statements, such as environmentally friendly packaging, limited edition, season, without additives or preservatives, are useful. The main port of entry to South Korea is the port of Busan. Tanks are not mandatory for cans and are optional for refillable bottles.
However, there is a tax on beverage containers that are not refillable. Despite being the only country in the EU that doesn't require deposits, Belgium has some of the highest recycling rates in the world, thanks to the collection of blue bags on the street. A pilot project is being carried out in Wallonia. This program aims to further improve recycling rates by rewarding the collection of discarded cans, but once again, there are no deposit requirements.
If you choose to disclose nutritional information, the disclosure should be based on data per 100 milliliters or per serving. Sixty percent of beers sold in Europe have calorie labels. Imported beers are only slightly higher in price (if any) than domestic beers. Another reason for the decline in beer consumption has been the tendency to adopt healthier lifestyles.
Coinciding with this, the non-alcoholic and low-alcohol beer segments are growing. Beer consumption has tended to be more extrabudgetary. While up to two-thirds of beer sales have historically occurred in commerce, that proportion is now just under half. Sustainability is an important trend across Europe.
More than 70% of beer in Belgium is supplied in returnable and reusable containers (bottles and boxes). While that's obviously not practical for imported beers, any environmental certification you have should be promoted. In addition, Canada's clean environment should be promoted in your brand. The port of Antwerp is the second largest port in Europe.
It is likely to be the port used for logistics directly to Belgium, but beer is also easily transported by truck to Belgium from within the EU. Many products are transported by truck to Belgium from EU member states, in particular the Netherlands, which have established themselves as a transport and logistics hub. Germany has a population of about 83.7 million people and has the largest economy in the EU. Germany is Canada's largest export partner in the EU (the sixth in the world).
The world-famous Reinheitsgebot does not apply to imported beer. However, German beer drinkers still consider it a sign of purity. Beers that comply with the Reinheitsgebot would do well to promote that fact. Beverages contained in single-use containers are subject to a mandatory deposit and return system under the German Packaging Act and must be marked accordingly.
Your domestic German importer, as the “first distributor”, must charge a deposit for the sale, participate in the deposit and return system and label the packaging as subject to the single-use deposit. The importer can attach a sticker demonstrating compliance with these requirements to an existing barcode to meet these requirements. It's no secret that Germany enjoys beer. Surprisingly, however, the volume of beer sold has fallen, although spending on beer is increasing.
This indicates a shift towards more expensive beers. Pilsner, the market-leading beer style, is particularly shrinking. Instead, helles and other beers have been gaining popularity. A handful of new German craft breweries have opened, brewing more of the North American craft beer style.
The famous American company Stone Brewing opened a brewery in Berlin. Although that brewery has since been sold to the Scottish company BrewDog, these developments demonstrate an interest in North American-style craft beer. Even German hop producers are recognizing this change in consumer tastes. They have been raising and selling hops with the U.S.
Only around 6% of the EU population buys food and drinks online, although this figure is rising. Among European countries, Germany is in second place (after the United Kingdom) in e-commerce sales. Alcohol is the seventh most popular food product purchased online in Germany. Online beer sales increased by more than 20% in the last year.
Selling food and beverages online is more common among Millennials and Generation Z. In addition, among this group, what these online shoppers are looking for are organic, vegan, gluten-free and socially responsible products or foods of known and specified origin. This means that there are e-commerce opportunities for imported craft beer. The largest volumes of beer can be shipped directly to Germany, with the ports of Hamburg and Bremerhaven being the largest.
Once imported into the EU, beer can be transported by truck to anywhere else in the EU. By contrast, beer destined for Germany can be shipped anywhere in the EU and transported by truck to Germany from there. In this case, Antwerp and Rotterdam are the largest container ports in the EU and are well configured to handle shipments from Canada. The Netherlands is known for its canals, windmills, wooden shoes and a large domestic brewery.
However, since the 1970s and the creation of a consumer organization promoting beer called PINT, interest in craft beer has been increasing. Today, there are several hundred breweries in the Netherlands (more than there are in Belgium) and a strong interest in imported craft beer. While beers from neighboring Belgium greatly influence the beer scene in the Netherlands, there has recently been an interest in North American styles of craft beer. The Netherlands acts as a port of entry for many goods imported to Europe.
As a result, the Netherlands must be considered part of its broader European plans. If you have an active buyer in another country in Europe, it can be relatively easy to increase your shipment and find buyers in the Netherlands. Being so familiar with international trade, the Netherlands has a lot of importers and distribution companies. Many of these companies are the most sophisticated in Europe when it comes to VAT compliance and acting as their tax representative.
In addition, there are many online stores in the Netherlands, with the highest Internet usage of all countries in the European Union. Online beer sales are increasing and, once again, as part of the Netherlands' role as a logistics hub, there are many storage and logistics options. Belgian styles of beer are very popular, followed by American styles. Non-alcoholic beer has also grown dramatically in recent years.
To date, large national breweries have dominated sales of non-alcoholic beer, but it is likely that the popularity of these beers will soon extend to the tastiest craft beers. As mentioned above, the Netherlands has established itself as a transport and logistics hub for Europe. In fact, more than 300 logistics service providers are represented by the non-profit organization Holland International Distribution Council (HIDC). HIDC can help you not only with logistics in the Netherlands, but also with logistics across Europe, using the Netherlands as a gateway.
In addition to importing by sea, through Rotterdam, the largest container port in Europe, Amsterdam's Schiphol Airport is the second best connected airport in the world and is well prepared for air freight. Each of the Nordic countries is a small market, but collectively they represent a good opportunity. Denmark (with a population of 5.7 million inhabitants) enjoys one of the highest standards of living in the world and Danish consumers are very open to familiarizing themselves with other food cultures. Finland (5.5 million inhabitants) is the ninth largest export market in the EU and Canada.
Finland has an English proficiency rate of almost 90%. Norway (5.4 million inhabitants) drinks imported beer (18%), and most of this beer is made by major global brands. In reality, there is no good industry data on the size of the craft beer market, but it is estimated that they are around 5%. Sweden (10.4 million inhabitants) is the largest market in the Nordic region.
Sweden has doubled its premium beer market in the last five years. Labeling requirements in Norway, which is not an EU country, are discussed below. Denmark is a member of the EU and therefore imported beers must meet all EU labeling requirements. Mandatory information on consumer products in Finland must appear in both Finnish and Swedish.
This includes the product name, manufacturer, country of origin, and amount of content (in metrics). Finland has very high alcohol taxes. In addition to this, there is a value added tax of 24%. Overall, Finland has the second highest alcohol taxes in the EU.
As in the other Nordic countries, alcohol is highly regulated in Norway, including its import. Importers must have a license under the Alcohol Act. The retail sale of alcohol with a alcohol content above 4.75% is carried out through the state monopoly Vinmonopolet. Alcohol is subject to high taxes on a scale, according to the ABV.
The importer's contact information on the beer label is also required, although it may be the importer to Sweden or Denmark without the importer from Norway having relabeled. There is a general ban on the advertising of alcoholic beverages. The retail sale of alcohol with a alcohol content above 3.5% is carried out through the state monopoly Systembolaget. The label must also show the Swedish recycling symbol, which must be placed next to the bar code.
The minimum size of the recycling symbol is 10x15 mm. The advertising of alcoholic beverages on television and radio is prohibited, but it is allowed in print media, as long as it does not contain more than 15% alcoholic alcohol. Sweden has the highest alcohol taxes in the EU. It's rare for retailers in Denmark, even big chains, to import for themselves.
Therefore, it will be important to have an external importing partner. Although the trend toward cans is slow, in most cases, especially in higher-volume supermarket chains, bottles are still the preferred packaging for craft beer. Denmark has a very liberal mentality and has few restrictions when it comes to branding. In fact, while many countries would ban a beer label with Santa Claus because it is attractive to children, such labels are common in Denmark.
Danes love to celebrate every holiday with unique seasonal products. However, the use of models that may appear to be under 25 years of age would violate the guidelines of the Alcohol Advertising Board. In addition to large supermarket chains, there are a good number of specialized retailers, many of whom can achieve respectable sales volume through e-commerce sites. The availability of alcohol in Finland is regulated by strict bidding procedures through Alko, the state monopoly on alcohol.
There are strict laws, so breweries are recommended to work with a local importing partner. Beer with less than 4.75% alcohol can be sold in supermarkets and this is where most beer is sold (approximately 83%). Otherwise, beer is sold through Vinmonopolet, the state monopoly on alcohol. Vinmonopolet will issue beer tenders for which importers can apply.
The beers are then chosen through blind tasting. Outside of the bidding process, importers can list products on Vinmonopolet, but volumes are often very small. Since the advertising of alcoholic beverages is prohibited, a successful strategy is unlikely to be limited to publishing products on Vinmonopolet without the support of the monopoly (which will actively promote its tendered products). As in the other Nordic countries, breweries are advised to work with a local importing partner to ensure compliance with the large number of legal restrictions.
Given the relatively small size of the markets in the Nordic countries, it may be advisable to work with a partner who can sell several markets to achieve efficient shipping. Denmark, Finland and Sweden are members of the EU, which facilitates logistics between them once beer enters the EU. Denmark's main seaports are Aarhus and Copenhagen. Finland's main seaports are Hamina-Kotka and Helsinki.
Norway's main seaport is Oslo. Sweden's main seaports are Stockholm and Gothenburg. Thanks to the efforts of CAMRA (consumer group) and SIBA (commercial group), the United Kingdom has never been dominated by just two beer manufacturers, like much of the rest of the world. This is despite the consolidation efforts of some of the most important players.
The amount of beer tax in the United Kingdom depends on the concentration of beer, depending on the alcohol level. In view of this, it's important to find the right import partner who will position your beer properly. The two biggest barriers to imported craft beer are finally collapsing. First of all, the unique British system of tied houses is shrinking.
While it is true that pubs are still closing in the United Kingdom, independent pubs without ties are growing. Second, off-site beer consumption is increasing. SIBA reports that with its members (national brewers), free trade bars are essential. Ten times more beer is sold in free establishments than in linked outlets.
With a fractured market, it will be important to partner with a national or regional wholesaler. Beer drinkers in the UK are experts. Seventy percent of beer drinkers have said that they were served a pint that was stale or without beer, while 39% of beer drinkers have stated that they have avoided a branded beer because they drank it in poor condition. An almost equal number, 37%, have told their friends about a bad look.
With a well-informed consumer, rapid rotation to ensure a fresh product will be key to success in this market. As for beer styles, remember that the United Kingdom is where the phrase session beer comes from. A beer with 5% alcohol is considered strong. Certainly, beers with a higher alcohol content can and are sold, but most of the beers that UK residents drink in quantity have around 3.5% ABV.
Pale beers and IPAs represent 60% of the craft beer market. The market share of Stout and Porter beers has varied between 11% and 15% in recent years, and growth has occurred mainly in the imperial part of the market segment. Sour beers, while growing, do so at a slower rate than the rest of the world. They still account for less than 7% of the craft beer market.
While lager beer represents an important part of the overall UK market, the share of lager beer in the craft market remains small (between 5 and 6%). When it comes to packaging, cans reign supreme in the United Kingdom, as the 440 ml can is the preferred size, as it has supplanted the formerly popular 330 ml can in just a couple of years. The 500 ml bottle, historically omnipresent, is practically dead. Nearly a third of the UK population buys food and drinks online.
Among European countries, the United Kingdom ranks first in e-commerce sales of food and groceries and, in the United Kingdom, alcohol is the third most popular food product purchased online. This means that there are e-commerce opportunities for craft beer. John Lewis, Tesco, Sainsbury's, ASDA and Ocado offer beer in their online stores and, recently, these large retailers offer beers from small craft breweries. Finally, Amazon offers fresh produce options (groceries) and has a central distribution center in the United Kingdom.
Of course, the United Kingdom is comprised of two large islands (and several smaller ones), so there are plenty of ports, one of which may be closer to your final destination. The United States is probably the largest craft beer market in the world. In addition, luckily for Canadian craft breweries, the United States is Canada's biggest export market. Despite this, Canada is the seventh most important source of beer imported to the United States.
On a volume basis, out-of-business sales represent approximately three times as much as in-store sales. In general, the price of beer on sale is three times the price of non-commercial beer. In the craft beer segment, where consumers are looking for many types of beer at more affordable prices, non-commercial beer is more important than for mass-market beers. Canadian beer is often the most expensive beer in the United States market.
This is because Canadian breweries tend to have a significantly smaller scale than regional craft beer companies. Once the margins for the importer and the distributor are added, Canadian beer is often the most expensive beer in a retailer's portfolio. The craft beer market in the United States is highly competitive. Breweries should expect to invest significant resources in the growth of this market, and yet they will encounter significant resistance.
In fact, some Canadian breweries that tried to enter the market in the past and then abandoned it have left a bad taste in the mouths of some distributors and have given Canadian breweries a bad reputation. Breweries entering the U.S. market should expect to spend some time in the market promoting the brand. The United States is by far Canada's biggest trading partner.
Raw materials and finished products travel daily across Canada-U.S. Cross-border, so logistics aren't usually a problem, even if you ship less than full containers or less than full trucks. Many freight agents are dedicated to the consolidation of shipments, so the rates are competitive. That said, some truck routes carry more traffic than others, so the cost of routes can vary (in multiples) for equal amounts of beer.
Finally, keep in mind that most of the U.S. Buyers use different shipping terms than those used elsewhere, especially when dealing with Canadian sellers. Incoterms are the international standard, but most of the U.S. Some of these terms are nominally identical, but legally different, so it's important to understand what terms are used and what they mean.
Two facts are required to understand the Canadian craft beer opportunity in California. First, California has the highest consumption of craft beer per capita. Second, while California has the absolute highest number of breweries of any state, it doesn't have the highest number of breweries per capita. This margin between supply and demand makes California a great opportunity.
Under California franchise laws, distribution agreements must be in writing and filed with the state. A brewery cannot fire a distributor for not meeting a sales objective if it considers that the sales objective was unreasonable under the prevailing market conditions. Distributors can transfer distribution rights with the consent of the brewery, but if that consent is unjustifiably denied, the brewery can be held responsible for the damages. California has the 25th highest excise tax rate on beer in the United States.
California is home to some of the largest craft breweries in the world, so there will be pressure on prices. It has a sophisticated consumer base and sophisticated store shoppers. Having a comprehensive market entry plan will be essential to success. Distribution agreements in Florida must be in writing and provide for exclusive territories.
Agreements can only be terminated after 90 days notice and can only be terminated for good cause. During the 90-day notice period, the dealer can remedy any deficiencies. Good cause is a violation of a reasonable and material term of the agreement. Florida has the eighth highest excise tax rate on beer in the United States.
While not all breweries can launch with such fanfare, the U.S. The craft beer market is generally competitive. Canadian breweries must trust the success of Collective Arts Brewing and understand that American markets require efforts. Illinois has the 23rd highest excise tax rate on beer in the United States.
There are only a handful of beer distributors. Some smaller, more specialized distributors have recently stopped operating due to competitive pressures. Generally, these distributors are not involved in product support, but should be considered as distribution logistics providers. Therefore, you will need a sales team in the field, either that of an importer or your own.
Because Chicago's craft beer market has a wide range of local, regional and national players, breweries must focus on products that are unique. Minnesota is ranked 14th with the most breweries per capita, including some regional players. However, the proximity to Canada, and in particular to Manitoba and western Ontario, means that there are opportunities for Canadian breweries. Under Minnesota franchise laws, distribution agreements must be in writing and provide for exclusive territories.
Such agreements can only be terminated after 90 days' notice and for good cause. Justified cause does not include the change in ownership of the brewery, but it does include the loss of the license by the distributor, the bankruptcy, or the substantial breach of the reasonable and material conditions of the franchise agreement. The dealer has the opportunity to remedy any deficiencies during the 90-day notice period. Minnesota has the 35th highest excise tax rate on beer in the United States.
There are only a few regional breweries in Minnesota, so the rest are small local businesses. As a result, the market is receptive to many brands. In fact, Lake of the Woods Brewing Company, based in Kenora, Ontario, was able to take advantage of its brand and enter the U.S. Market by building a brewery in Warroad, Minnesota, on the shores of Lake of the Woods.
Of course, a less ambitious approach to entering the market, but it's also possible to work with local importers and distributors. According to the Brewers Association, Ohio is right in the middle of the ranking, ranking 26th in number of breweries per capita. Some of these breweries are larger regional players, so despite ranking 26th in terms of breweries per capita, they always rank much higher in craft beer production, generally in the top five. Ohio's population of nearly 12 million people is widely distributed among many major cities.
This provides many centers with a sufficient population of craft beer lovers to achieve respectable sales through a single distributor. Under Ohio franchise laws, agreements must be in writing and provide for exclusive territories. These agreements must be presented to the State. Distributors must act in good faith and represent the brewery in a way that protects the reputation and business name of the brewery.
Distribution agreements can only be terminated in good faith and for a just cause. Even so, you have to give 60 days' notice. Ohio has the 25th highest excise tax rate on beer in the United States. There is at least one beer distributor based in Ohio that works with Canadian craft beer brands, mainly from Ontario.
A marketing plan is essential to be successful in this competitive market. In Ohio, beer can be sold in specialty beer stores, as well as convenience stores and grocery stores. These larger chain operations have sophisticated expectations and purchasing programs. The rights of beer distributors in Texas are notoriously strong.
Agreements must be in writing and provide for exclusive territories. Such agreements can only be terminated for good cause, which is the substantial breach of an essential, reasonable, and commercially acceptable condition of the agreement. Even so, 90 days notice must be given, during which time the distributor has the right to remedy any deficiencies. Texas has the 27th highest excise tax rate on beer in the United States.
Texas consumers are knowledgeable, passionate and have opinions. Texas is a patriotic state and they support Texas businesses. The success of a Canadian craft brewery will depend on its ability to offer something superior or unique. As in the rest of the United States.
In the U.S., the three-tier system is largely applied in Texas. You will need the services of a reseller. In addition, a large part of the sales of specialty beers are made through large chains of buyers. Therefore, there will be expectations of a solid marketing plan.
A distributor will also be essential to ensure compliance with Texas' large number of alcohol regulations. Texas has dry counties, dates and times when alcohol cannot be sold, and restrictions on marketing activities. A local partner will help you comply with these regulations. Canada's rate finder provides up-to-date information on custom rates for countries with which Canada has a Free Trade Agreement (FTA).
Indicate the current rate for the specific good being sought, as well as for the following years, when it is available. The Benefit Finder is a tool that can help you find the benefits and services you might be eligible for. Export Development Canada (EDC) is a Corona corporation that provides Canadian companies with access to working capital, financing and risk mitigation through insurance that reduces the risk of doing business abroad. The bank for Canadian entrepreneurs, BDC, offers financing, investment and advisory services.
For up-to-date information, be sure to visit Agriculture and Agri-Food Canada online. For more information on the iconic trade events of the AAFC Canada Pavilion, visit the Agriculture and Food Trade Show Service page. When creating a group profile, you will be asked to designate one or more people in the roles described below. You may need to consult your company internally before deciding which people to assign to these roles.
The same person can be appointed to more than one function. For example, the profile administrator can also be the profile authority and the emergency contact. A single-party profile is best suited for companies that want to manage all business interactions with the CFIA through a central office or a single location. With an individual profile, your company can assign a profile manager and invite contacts from other parties, such as employees or brokers, to log in to the profile.
All of the parties' contacts will be able to view and send requests on behalf of your company. If you want to have a license for your entire company, you will need to have an external profile for your entire company. You can't request a license for your entire company using multiple third-party profiles. When you have the required documents, go to the My CFIA site and log in to your account.
Once you have successfully registered in your match profile, log out so that the CFIA can validate your account. This usually takes a day or two. How to manage your account once it's set up. Question 1: Have unacceptable packaging materials such as packaging or packaging material been used in the shipments referred to in this document?.
(South Korea), Ministry of Food and Drug Safety, 201.Labeling regulations can be complicated and breweries should work with an experienced importer to ensure compliance. Most coffee lovers, and especially coffee snobs, who are often found out and about, are used to having to make concessions when it comes to their beer. As a beer mug judge, I was able to witness presentations in which a brewer prepares a cup of coffee in an innovative way that highlights the particular characteristics of the coffee he has chosen. This ensures that all the water in the infusion comes into contact with the coffee and promotes a greater and more uniform extraction of coffee particles.
This will allow your coffee to be extremely precise and to prepare it at specific temperatures for consistent results every time. .