Spain market entry for cachaca

 

 

see also:   Spain,  cachaca from Brazil , Spain consumer market info  ,  market entry ,  Marketing,  strategy , Exports , Import Export business models,  export subsidy  and:  MBA notes by Brian (passord)

 

The Spanish market is made up of a number of regional markets joined by the two hubs of Madrid and Barcelona.  There are a total of 17 autonomous communities in Spain (similar to U.S. states) with varying degrees of autonomy and cultural identity.  However, the vast majority of agents, distributors, foreign subsidiaries and government-controlled entities that make up the economic power block of the country, operate in these two hubs.  The key to a foreign firm's sales success is to either appoint a competent agent or distributor, or to establish an effective subsidiary in the Madrid or Barcelona areas.

 

 

credit terms, marketing assistance and after‑sales service are key factors in local purchase decisions.  The use of credit to purchase consumer goods is widely accepted in Spain, particularly in the cities, with banks competing aggressively to offer coverage

 

 

There is no substitute for face-to-face meetings with Spanish business representatives to break into this market.  Spaniards expect a personal relationship with suppliers.  Initial communication by phone or fax is far less effective than a personal meeting.  Mail campaigns generally yield meager results.  Less than 30 percent of local managers are fluent in English.

 

 Spaniards tend to be "conservative" in their buying habits.  Known brands do well.  Large government and private sector buyers appear more comfortable dealing with other large, established organizations or with firms that are recognized as leaders within their sectors.

 

 

 

 

 

source:   Country Commercial Guide 2007 - SPAIN (Spain) FY2007 [02/22/2007]

US Department of Commerce, Doing Business in SPAIN:  A Country Commercial Guide for U.S. Companies, 2007

 

 

 

Spain market entry for cachaca Adapting our product (cachaca) to enter the Spanish market:    Transportation - getting the product in / around Spain Spain infrastructure data: Local competition? Spaniards conception of Brazil? Government subsidies? Fruit needed to make Caipirinhas: Exporting rules from Brazil to Spain Market access and how to use the GSP Information on tariffs and updated statistics Potential Distributors of Cachaca in Spain Potential Retail sellers of Cachaca in Spain Sources:

 

 

 

 

 

Adapting our product (cachaca) to enter the Spanish market:   

 

1. The product label will need to be in Spanish (not portugues or english)
2. are there any regulations that are different in Spain?   
3. any different labeling requirements? 
4. can alcolohol be advertised in Spanish media?
5. is there anything else that needs to be changed?  (bottle size?  color?)
6. does the name "sagatiba" sound bad in Spanish?

 

 

Transportation - getting the product in / around Spain

 

how will the liquor be shipped to spain?  (assume by sea container...but to what port?)

how will the liquor be transported to distributors?  (by train?  truck?)

 

note that Spain has an excellent system of Trains connecting cities.

 

 

Spain infrastructure data:

Railways: total: 14,268 km (7,718 km electrified)

Highways: total: 663,795 km

Ports and harbors: Aviles, Barcelona, Bilbao, Cadiz, Cartagena, Castellon de la Plana, Ceuta, Huelva, A Coruna, Las Palmas (Canary Islands), Malaga, Melilla, Pasajes, Gijon, Santa Cruz de Tenerife (Canary Islands), Santander, Tarragona, Valencia, Vigo

 

 

 

Local competition?

 

What types of liquor are native to Spain?  what is their "fire water"?

What drinks are native to Spain?  Sangria? 

 

Spaniards conception of Brazil?

 

Will Spaniards consider drinking a Brazilian drink?  What do they think of Brazil?  

Did Brazilian soccer players at Real Madrid and Barcelona = good image for Brazil?  (Ronaldo, Ronaldinho, Roberto Carlos, etc..)

 

 

Government subsidies?

 

I wonder if wine is cheap in Spain because of subsidies to farmers?  What

 

Is sugar subsidized?

 

 

Fruit needed to make Caipirinhas:

 

I wonder if limes are easily available in Spain?  are they expensive?  do people like them?  Are they grown locally?  can you find them in supermarkets?

 

(note:  an easy supply of limes is essential to making caipirinhas)

 

 

 

 

 

Exporting rules from Brazil to Spain

 

 

Market access and how to use the GSP

 

Spain, as a member of the European Union, use the same market access rules of other member countries. So, a great variety of Brazilian export products is benefited from the GSP (Generalized System of Preference).  The signature of an agreement between the EU and the MERCOSUR member countries, in 1995, opened a new horizon to the bilateral commerce. Spain tries to play important role in the approach of both markets.

 

 

Information on tariffs and updated statistics

 

Information on foreign trade statistics, customs tariffs and non-tariff barriers, list of importers and other subjects related with the Spanish market can be obtained in the Department of Commercial Information (DIC), in the Ministry of External Relations, in Brasilia, in the Sectors of Trade Promotion (SECOMs), in Madrid or Barcelona, or in Spanish official representations in Brazil.

 

 

 

 

 

Potential Distributors of Cachaca in Spain

Potential Retail sellers of Cachaca in Spain

Sources: