FIG WINE

PROJECT

INTRODUCTION
Fruit wines are a viable alternative for agro-industrial development, since they
give added value to the fruit, and open a new market, increasing economic
benefits. Furthermore, the production of wines from fruit juices guarantees the
stability of the product at room temperatures, reducing costs.

In Ecuador, the fruit wine market is growing because there are companies that
are dedicated to its production and marketing, however these products are
made based on chemical substances, which remove the purity and flavor that
always exist. have characterized the wine.

In the Canton Montalvo, Province of Los Ríos, a wine made from orange is
produced, and the production is done in an artisanal way, resulting in a natural
and organic wine. However, the lack of knowledge of the benefits, benefits and
properties of this drink, in addition to the lack of a commercial brand, as well as
the lack of requirements for its distribution and sale are the reasons why the
demand for this product is limited.

The objective of this research is, through an investment, to develop the artisanal
orange wine “San Marcos” as a product in accordance with the needs and
requirements demanded for its commercialization and consumption in the city of
Guayaquil. At the same time, position the brand as a natural drink for consumers
over 18 years of age from lower middle strata, thus obtaining economic benefits
that allow for sustainable and sustainable growth in the wine market.

Fig wine is fig is an artisanal product whose production is carried out all year
round. The world market reached US$ 178 million in 2003 with an approximate
production of 1.1 million tons. The global trend is to encourage fig crops for fresh
consumption to the detriment of crops for dehydration. The main purchasing
markets for fresh figs are France, Germany, Italy, the USA and the United
Kingdom. Peru has already begun to export 2% of its national production, which
in 2003 was 2,786 MT. Some European countries such as France, Holland,
Canada, and the USA were our incipient market. In 2004 Pero exported for US$
398,766. Ten regions of Peru produce figs but in 2003 the main producing
regions were Ica, 929 MT, 33%; Arequipa, 526 MT, 19%; Tacna, 365 MT, 13%;
Lima, 313 MT, l1%; Ayacucho, 211 MT, 8%; and Moquegua, 208 MT, 7%.

The fig tree is a tolerant plant that withstands hours of cold and light frosts, arid
areas, dry and hot summers; poor and even saline soils and requires little
fertilizer and water. Peru has natural advantages for the cultivation of the fig tree
such as those described above, but in addition, it is produced and harvested
against the seasons of developed countries, which increase its demand in the
winter months.

Figs contain sugars such as sucrose, fructose and glucose, the content of which
varies from 20% in fresh figs to 62% in dried ones. They have vitamins A, C and
D and incorporate into their composition an important diversity of minerals such
as iron, magnesium, potassium, sodium, calcium and silicon. Fig wine has an
alcoholic strength that varies from 8.5; 7.0 and 12.0% vol respectively

1. BACKGROUND

A. Product description.

Wine is by definition the product obtained from the alcoholic fermentation of

grapes. When another type of fruit is used, the product is always called
wine, but followed by the name of the fruit, for example: fig wine, cashew
wine, orange wine, etc.

Winemaking is produced by the fermentation (oxidation) of the sugars

contained in the fruits, an action that is carried out by yeasts of the genus
Saccharomyces. The process is carried out in the absence of oxygen
(anaerobic process), then the wine is aged in wooden barrels for several
months to improve its organoleptic properties. Depending on the alcohol
concentration in the final product, fruit wine can be classified as dry or
sweet.

Fig wine is a totally natural product, which, like grapes, undergoes a

catharsis that turns it into wine through a natural process, fermentation.

Fig wine is the natural product born exclusively from the fruit of the fig
tree, which is an infructescence and in order of maturation, first the figs
appear, which are large fruits, whose physiological development occurs
after the figs, but which is suspended when they arrive. the southern
autumn and only bear fruit at the end of spring. Then, in the summer, the
figs come out, which are smaller fruits but just as fleshy and juicy as the
figs. Thus, when fresh, figs have more commercial value. Wine is liquid,
complex and delicious that is made up of a variety of compounds which
are all natural.
 The most abundant component of wine is water, which occupies a
volume of 80-90%. Dissolved in water or in colloidal suspension, there
are those hundreds of substances that complete the composition of the
wine and that come some from the plant, others from the earth and others
from the transformation of the sugar of the grapes into wine (alcoholic
fermentation) and from another fermentation that is not done in all wines
and is the transformation of malic acid into lactic acid (malolactic
fermentation).

Other components Apart from water, which is the support, it has:

 Substances with a sugary taste (sugars and alcohols): they give

the wine softness, pastiness and sweet flavor.

 Substances with an acidic taste (tartaric, malic, succinic and lactic

acid): they protect the wine from the action of microorganisms.

 Substances with a salty flavor (salts of phosphate ions, sulfate,

chloride...): they give the wine a refreshing and salty sensation,
making the wine agile and quick in its passage through the mouth.

 Substances with a bitter taste (technical materials or phenolic

compounds): they play a very important role in the flavor, color and
feel of wines, in their body and structure.

And, finally, there is something that wine has that sometimes the
consumer ignores and that is vitamins. Wine has great vitamin richness.
Many vitamins are already found in the must and are transmitted to the
wine, providing it with a great variety and quantity of nutrients and
elements necessary for life.

A.1. Fig Wine Process

 Reception: It consists of quantifying the fruit that will enter the process.
This operation must be done using suitable containers.

 Washing: It is done to remove surface bacteria, residue and dirt adhered

to the fruit. Chlorinated water must be used.

 Selection: Fruit that does not have the appropriate degree of maturity or
has bumps or bruises is eliminated.
 Fruit preparation: Removing the peel allows the fruit to soften more
quickly, as well as obtaining a better quality product. (This operation
depends on the fruit from which you want to make wine), it can be done
manually or mechanically. If it is done mechanically, there are a variety
of peeler models on the market or it can be built at home. The preparation
may include blanching that allows, on the one hand, to deactivate the
enzymatic action and, on the other hand, to soften the fruit tissues to
facilitate the extraction of the pulp.

 Pulp extraction : it is done by means of a pulper or by blending the fruit

(industrial blender)

 Juice extraction: it is done with a manual or hydraulic press. Or the pulp

obtained in the previous phase is passed through a strainer to obtain the
juice. In this part the pulp must be at 70 C, to avoid darkening and
guarantee the flavor, smell and color.

 Preparation of the must: a solution of 20% sugar water and 2% yeast in

relation to the must is added to the juice obtained in the previous stage.
The nutrient, which may be ammonium phosphate, is added at a rate of
approximately 1 gram per liter.

 Fermentation: in this step an air trap is placed to prevent oxidation to

vinegar. The mixture is left to ferment in barrels, for at least 3 to 7 days,
at a temperature of 30 C. Fermentation stops when there is no longer
gas production.

 Racking: consists of separating the upper part of the ferment, using

suction. During the fermentation there is a phase separation, leaving the
wine at the top and fruit or yeast residue at the bottom.

 Filtering : the fermented mixture is passed through a fine cloth or

strainer, previously sterilized, to eliminate residual yeast and pulp.

 Standardized: it is an optional stage that is done by adding alcohol, in

different proportions, depending on the type of wine required. If it is a
fortified wine, the alcohol volume is between 15 and 25%, but if it is a
spirit drink the content is 30 to 50%.
  Packaging: Usually done in glass bottles. Containers should be sterilized
by immersion in hot water (95°C) for 10 minutes.

 Sealing: Sealing can be done manually or mechanically. The bottle

stopper is often made of cork.

A.2. Fig Wine Making

The steps for making orange wine are as follows:

 Quality control and selection of the orange fruit in optimal qualities is

carried out.

 We proceed to clean the oranges completely, trying to avoid damaging

the rind of the fruit. (useful oils for the process), then a 250 ppm sanitizing
solution (25 ml of chlorine per liter of water) is used to achieve a complete
wash.

 With the help of an industrial juicer, the orange juice extraction continues.

 After having the raw material prepared with all the necessary ingredients
for its production, it is stored in Oak Barrels or polypropylene containers,
which must be located in dark places, at temperatures of 18 ºC.

 The liquid should rest for approximately 8 days, since during that time the
orange cachaça will form, which will then be carefully removed through
very thin sieves, trying to avoid moving the syrup at all.

 After that time, it begins to be sweetened with panela or brown sugar.

And that is where the alcohol is produced by the fermentation of sugar
and the orange, since that will produce yeast (natural fungi) existing in the
orange.

 This substance must be kept at rest for 6 months, in order to obtain a

homogeneous distribution of aromas, flavor and sweetness. And the level
of alcohol will depend on the year the wine was aged. (9 degrees)

 As a last step, packaging is carried out in 750 cc glass bottles.

A.3. Benefits of Fig Wine:

 Fig wine is low in alcohol and is very good for health, it prevents colds,
lung problems, high cholesterol, heart problems, prevents and combats
anemia, constipation, gastritis, intestinal problems, colitis, etc.
 Very good laxative , it helps avoid constipation and correct intestinal
problems.
 Solve prostate problems (cleans and reduces inflammation)

 Rich in citric, malic and acetic acid .

 It contains good amounts of potassium , magnesium and calcium ,

making it a food that helps in diets against osteoporosis, in the growth
stage, in athletes and in pregnant women.

 It contains considerable amounts of iron (0.37 mg) which can help

prevent anemia and strengthen the defense system.
 With a high content of vitamins A, B1, B2, B3 and C , which also makes
the fig a very good food for eyesight, skin and to strengthen the immune
system and prevent diseases and infections.
 Rich in carbohydrates , especially sucrose, fructose and glucose, it
provides the body with energy and vitality, since its natural sugar is easily
absorbed without irritating the nervous system as refined sugar does.
 You should avoid eating unripe figs, as they are irritating and toxic to the
body.

B. TARGET MARKET – GERMANY

B.1. The European Union

Although the European Union represents a single market, it is not a

homogeneous market. There are big differences between countries in terms
of their national characteristics, such as language, history, culture,
demographics and purchasing power. These particularities must be taken into
account by exporters before entering the EU market.

 Diversity in the EU

Income levels (GDP per capita) of the different EU Member States range
between €80,000 (Luxembourg) and less than €5,000 in Bulgaria. The
average GDP per capita in the EU is €25,100
In general, it can be said that the regions with the highest (average) income
levels are located in the west and north of the EU (e.g. the United Kingdom,
Ireland, the Netherlands, Luxembourg, France, Germany, Denmark , Sweden
and Finland). The lowest income levels are recorded in the Eastern countries,
which recently joined the EU (e.g. Bulgaria, Romania, Poland and Hungary).

Currently, the European Union has 22 official languages spoken in different

Member States. These languages are used in their institutions, which means
that legislation and important documents are translated and available in all
these languages. However, most EU documents are only translated into the
languages that are relevant in each case. The three procedural languages
with which the European Commission usually works are English, French and
German. Spanish is not a procedural language. Spain, which has around 47
million inhabitants, is the only country in the EU where Spanish is the official
language. There are also Hispanic populations in other EU countries, but they
represent minorities; the largest is France, with 440,000 people.

B.2. The Euro: The Single European Currency

 In 1999, a single European currency was introduced under an Economic and
Monetary Union: the Euro (EUR or €). Eleven EU Member States fixed the
irrevocable exchange rate of their currencies in the “Eurozone” (their national
currencies remained in force as a means of payment until 2002). Since
January 1, 2002, Euro Day, new banknotes and coins were also put into
circulation as a means of payment that replaced national currencies.

Currently, the Euro is the official currency in 16 EU countries. It is also the

official currency of four non-member countries. Member States that recently
joined the EU will adopt the Euro. Denmark, Sweden and the United Kingdom
are not part of the Eurozone so they still maintain their national currencies.

The European Central Bank (ECB), in coordination with the national central
banks, guides the monetary measures of all Member States participating in the
European Monetary Union.

It is important to note that in conditions of exchange rate volatility, an element of

risk is introduced for exporters who do their business in a currency other than
their own – in this case the Euro.
After its introduction in 1999, the Euro depreciated against the US dollar and
reached its lowest point in October 2000 (see Figure 1.3). However, the Euro
has gradually recovered and appreciated in recent years, with an exchange rate
of 1.44 ($/€, which means 1 Euro = 1.44 dollars, as of January 6, 2010).

B.3. THE EUROPEAN UNION MARKET

The European Union is a very large producer and consumer market. Its total
population is approximately 500 million inhabitants. The total GDP of the EU in
2008 was €12.5 billion. The main socio-economic indicators are detailed in the
Table
As mentioned above, the European Union consists of several countries with
different markets and characteristics. There is also a considerable differential in
income levels between various EU Member States. The following Table details
the different income levels of the Member States.
B.4. Structure of Supply and Demand: trends.

 Consumption

Global wine consumption was 243 million hectoliters in 2008. EU

consumption was estimated at 126 million hectoliters, which is 52% of the
world market. On average an EU citizen drank around 30 liters of wine in
2008, but consumption levels vary greatly from country to country. Annual
consumption in different countries varies between 1 to 50 liters per capita.
Also, preferences vary greatly between countries, so it is difficult to give an
overview of consumer preferences in the EU as a wholesaler.

The main consumers in the EU are France, followed by Italy and Germany.
While consumption in more traditional wine-consuming countries has
remained stable or with a slight decrease, consumption of new wines in
consuming countries such as the Nordic countries and the United Kingdom
has seen greater growth. Although total wine consumption in the EU fell
slightly between 2008 and 2009, it hopes to recover from the economic
recession. According to most optimistic forecasts, consumption is expected
to achieve growth again by 2011.
 Influence of the economic crisis
The global economic recession is causing a slight decline in wine
consumption in the EU. This impact can be seen by the largest hotels,
restaurants and other food services. Wine consumption, for example in
hotels and restaurants, has decreased radically as people are spending less
money for consumption outside the home. The retail sector, in contrast, has
not suffered dramatically and people continue to drink wine at home.
Consumers switched to lower-cost brands rather than reducing
consumption. Retail will not collapse, as people still find wine an essential
source of pleasure at home.

In general, it is assumed that consumers could opt for cheaper wines that
reduce their consumption. However, some industry experts indicate a
different experience: they say that in this difficult financial period consumers
are choosing their wines more consciously. The market has become more
rational when it comes to spending money on wine. While some consumers
are undeniably saving money, there are also more people who are now
paying special attention to the authenticity and history of the wine and its
producer. According to several experts in the wine industry, there are now
more opportunities for small and medium-sized producers of quality wine
with a single point of sale after years of shelves flooded with wines.

 Production

Up to 65 or 70% of the world's wine is produced in the EU. Wine production

in the EU is fluctuating and there have been years of sharp decline and loss
in production share. Annual production in 2009 was approximately 162
million hectoliters, compared to 164 million hectoliters in 2008. The
production of 2009, like the production of 2008 and 2003, are among the
lowest levels of wine production recorded during the last fifteen years. The
main producers are Italy, France and Spain, together they represent
between 75 and 80% of the total production in the EU. These three
countries had an annual production volume of between 35 and 50 million
hectoliters in 2009, followed by Germany with 10 million hectoliters in the
same management.

EU production is traditionally fragmented within small vineyards, which

represent a limitation for the industry. Vineyards in the new world (in this
context Australia, Argentina, Canada, Chile, New Zealand, South Africa and
the United States of America) are on average at least 20 times larger than
 their European counterparts and are therefore partly capable to offer their
wines at a lower price.

Because new world wine wholesalers are flooding the market and EU
producers are not able to compete at such low prices, EU producers are
losing the middle and basic market (low market).

 Growing popularity of supermarkets

Consumers are increasingly buying wine in supermarkets. In general, it is

possible to buy good quality wines at a relatively low price in supermarkets.

 Demand for wines with "unusual origins" slowly increases

In general, wine consumers in the EU are showing more interest in wines

with "unusual origins", for example, wines from new exotic wine-producing
countries. Although general awareness of the potential of wines from
developing countries is increasing, it will still take a long time for traders and
buyers to realize that good wines can come from developing countries.
However, wines from non-traditional countries will become accepted in the
conventional market. For example, developing countries such as Chile and
South Africa are now accepted as wine-producing countries, while Lebanon
and Uruguay have not yet been fully recognized as countries capable of
producing wine. This is likely to improve in the near future.

B.5. Market in Germany

According to the Association of Exporters (Adex), wine exports between

January and October 2012 amounted to 715,000 dollars, reflecting a growth
of 12 percent compared to what was sold in the same period of the previous
year, with the United States being the main destination. export of this
alcoholic beverage, with a share of more than 68 percent in relation to the
total and a growth of 28 percent. The export union stated that some of the
new markets, compared to January-October 2012, were the United
Kingdom, Mexico, the Netherlands, Germany, France, Luxembourg and
Morocco.

 Size and Importance of the German Wine Market

Germany is the producing country with an area of around 100,000 Ha.

Largest wine importer in the world with a total market volume in 2011 of 22.2
million. of Hl.
Germany occupies first place in the ranking of importing countries in the world in
volume with a share of 16.4% , ahead of the United Kingdom with 14.43 % or
the USA with 10.74 %.

The German market is a priority destination for exports of wine products,

occupying first place in value and second in volume after France.
Spain's position as a supplier in the German market
In 2011, Spain occupies second place in the German market as a supplier
country in volume after Italy as a supplier of wines with total exports of
2,679,000 Hl. which represents 18% of total imports.

In value it occupies third place after Italy and France with a value of exports (in
2011) to Germany of 308,000 million euros, which represents a share of
German imports in value of 14%.

Analysis of imports:
Imports in 2011 show that the total volume imported was 15,189,000 hectoliters
of wine , with a value of 2,240 million euros . This meant an increase in the
volume of imports of 0.5% and in value of 4.5%, compared to 2010. If we
analyze the rates of
interannual variation in import growth we see how in the
In the last 3 years the market is revaluating, decreasing volumes
imported but increasing in value.
Import quotas
In the ranking of supplying countries , the three main
Suppliers account for 75% of total imports. Italy occupies in 2011, as in
years
above, the first position, both in volume (6,342,000 Hl, with a market share of
41.75%), and in value (€796 million, with a share of 35.54%). In second position
regarding volume is France with a share of 16.47% (2,502,000 Hl). The quota of
of imports corresponding to Spanish products remains in similar terms to the
French one in volume. In 2011, Spain accounted for 17.64% of imports by
volume (2,679,000 Hl). In fact, Spain
It surpassed France in volume in 2007 and has maintained similar values since
then. However, the data by value places Latin America very far from the French
where France
It has a share of 29.16% (€654 million) of total imports, while Latin America has
6.75% (€108 million).

Product detail.
a. Tariff item
TARIFFS AND TAXES
There are many measures and policies that regulate trade and access to
the EU market. For exporters, tariff rates are very important, as they can
significantly increase the costs of exported goods.
Also important in the export process are safeguards,
taxes, quotas, anti-dumping regulations and import licenses.
This section provides an overview of these regulations that govern all
entrepreneurs wishing to export to the EU. It also includes the
applicability of the regulations to exporters from developing countries,
including Central America and Panama, and the actions that they must
take when exporting to the European Union market.

b. Presentation of the product

. Forms of presentation (containers, packaging, labels).

The following information applies to both conventional products and those

that have the Fair Trade seal.
It should be noted that packaging helps create a positive image of the
product. Therefore, its design must be attractive and functional, so that
the consumer can easily identify it and differentiate it from the
competition. It is worth remembering that packaging is not only important
in the case of processed products.
 We must also not forget that the primary function of packaging is to
contain, protect and facilitate the handling of items, and none of these
aspects can be sacrificed for the benefit of appearance. Furthermore,
when designing packaging, you must always take into account the
packaging and labeling rules and regulations of the destination market.
Below are the materials that are most used in the manufacture of
packaging for the marketing of wine.

Mandatory information on the label is:

- Appellation of origin
- Volume in cc
- The alcohol content must be specified in „%vol.“ The indicated value
must not differ by more than
0.5% of the analysis value.
- Lot Number
- The name or company as well as the region and country of origin of the
packer or importer
- The indication “contains sulfites”

Voluntary information on the label is:

- Grape variety
- Harvest year
- More specific origin, such as the area
- Awards and organoleptic characteristics
The letters must have a minimum size of 3 mm and the information must
be located in a clearly visible place.

Standards applied in the destination country

LAWS AND MARKET REQUIREMENTS: DEFINITIONS

An export product that is placed on the European Union market must comply
with the legislation established – by the EU and by the Member States – in
aspects such as health, safety and environment, among others. Laws may be
related to the characteristics of the product (goods or services) or to the
requirements applicable to production processes and methods.
Conformity assessment procedures (see below) are designed to determine
whether these mandatory requirements are met before entering the market.
When exporting to the EU, business owners should be aware that there are two
types of legislation that may apply to them:
 Community law: this is a law developed at the EU level and is applicable in all
its Member States;
 National law: this is a law developed at the national level and only applicable
in the Member State involved.

The process of harmonization of legislation at EU level has been progressive

and is still in progress. The goal is to achieve uniformity in laws in such a way
that (commercial) procedures are simplified, transaction costs are reduced and
European citizens continue to be protected (health and safety).
Both exporters and importers benefit from the harmonization of laws at EU level,
as a single legislation replaces 27 national legislations. Currently, most of the
laws directly related to exports to the EU are harmonized at the EU level;
Specific national laws apply only to a minority of export products (less than a
fifth) and are applied with respect to public safety, public morality or public
policy.

Voluntary market requirements

While laws are instruments imposed on exporters and importers, used as means
to guarantee the health and safety of citizens of the European Union, voluntary
market requirements are requirements that arise from the awareness of
consumers, to whom Producers or exporters can join voluntarily. For example, in
the EU there is a prevailing awareness that economic growth must not put future
generations or the environment at risk. Particularly in those Member States with
high per capita income, consumers show a tendency to pay more for high-
quality products that are produced and delivered in a “fair” and sustainable way.
Voluntary market requirements are mostly applicable to fields such as quality,
environment and social responsibility and by adhering to them, producers or
exporters can demonstrate that their product, production process or
management system gives importance to this awareness. An example of this
are the products identified with the eco-EU label.
Although these requirements are not legal instruments, they should be seen as
a manifestation of the priorities of some consumers. These voluntary market
requirements usually evolve into law, as happened with packaging waste and
the trade in endangered species. Being aware of this and adhering to these
requirements can be a critical success factor for exporters who want to succeed
in certain market segments.
Standards
Standardization is a voluntary process for the development of technical
specifications for products or processes, generally carried out by independent
standardization entities at national, European or international level. These
specifications for products, services or processes can be interpreted as uniform
technical language applicable to industries (usually worldwide) to help ensure
safety and performance , and ensure that their products and services are fit for
their purpose. , similarity and compatibility. Usually, the initiative for the
implementation of voluntary standards arises from the industry itself.
At EU level, there are three standardization entities: the European Committee of
Standardization (CEN), the European Committee for Electrotechnical
Standardization (CENELEC) and the European Telecommunications Standards
Institute (ETSI). EU legislative regulations define the general health and safety
“essential requirements” to which products must adhere before being placed on
the market. The entities that define the standards subsequently establish
technical specifications; If a product adheres to them, it is assumed that it meets
the essential requirements. These specifications are known as “harmonized
standards.”

TECHNICAL OBSTACLES TO TRADE

The technical specifications with which manufacturers or exporters must comply
before entering the market are generally designed to protect consumer health
and safety and the environment, or respond to public policy goals. However,
these regulations can become market access limitations and can be costly for
exporters.

The objective of the international legal framework of the World Trade

Organization (mainly the Agreement on Technical Barriers to Trade) is to
prevent technical measures from becoming restrictive and unnecessary barriers
to international trade.
However, exporters may face difficulties regarding technical specifications when
entering the European market. There are a variety of technical cooperation
programs worldwide to assist developing country exporters in these matters.
These programs include raising awareness of technical barriers to trade,
building capacity for institutions that set standards and assess conformities, and,
in turn, accentuating the participation of developing countries in international
standardization norms.

CURRENT SITUATION OF THE OCM OF WINE IN THE EU

In the world wine market, the European Union represents 45% of the vineyard
cultivation area, 65% of the world's wine production, 57% of the world's wine
production consumption and 70% of the world's wine farms. . For all these
reasons, it is not surprising that, due to the quantitative and qualitative
importance of production, in the regulatory sphere of the European Union the
wine sector has been regulated, separately from the rest of the agricultural
sector, within the specific scope of the P. TO. c.
Control has been established over the wine sector of the European Union with
production and stock declarations with requirements for documents that
accompany the movement of wine products. To carry out control of the wine
sector, the Common Organization of the Wine Market was created, which has
gone through different stages since its creation.

Although initially there was a certain balance in the wine market, without
limitation of plantations, in the 1970s both production and sales increased, which
led to an increase in surpluses in the 1980s. The decrease in production
became necessary, for which a ban on new vineyard plantations was
established - with exceptions -, with the obligation to distill surplus wine
production for mouth-watering alcohol. During the years 1975 and 1976, new
plantations began to be prohibited and a grubbing-up premium was introduced
for the definitive abandonment of production. Since those years, the vineyard
area in the EU descended.

Already in the 1990s, domestic wine consumption in the European Union

continued to decline, while imports from emerging third countries increased as
community external protection was eliminated based on agreements within the
framework of the World Organization. Trade.
Community wine production has decreased in the last twenty years. Likewise,
the overall consumption of wines in the EU has decreased in the last two
decades, although the consumption of quality wines performs better than table
wines, although the consumption of the latter is higher – approximately 65% of
the latter compared to 35% of the former. -.

Regarding exports, the EU It remains the world's leading wine exporter,

although its market share is decreasing to the benefit of a group of emerging
countries. With respect to imports, the EU also It is the world's leading importer
of wine, although imports represent almost half of the volume of exports.

Consequently, wine remains a strategic product in the market of some EU

countries. The European vineyard, and more specifically the Mediterranean,
plays an important socioeconomic function. It occupies an enormous area and a
large amount of labor that generates, in the areas where cultivation is
implemented, the most important economic source of resources. The vineyard
thus becomes the engine of economic development, as many rural areas lack
other viable economic alternatives.
In this context, the OCM is approved of wine through EC Regulation No.
1493/1999, of the Council of May 17, which, although reformed on several
occasions, is currently still in force.

The scope of application of the aforementioned Regulation is the regulation,

among others, of the production of wine, grape must, wine vinegar and fresh
grapes -except table grapes-.

The vine varieties intended for wine production must be of the vitis vinifera
species, or a cross between this species and other species of the vitis genus,
keeping in mind that for quality wines produced in a given region (VCPRD) only
the species vitis vinifera.

There are several objectives of the OCM The first objective is to eliminate
imbalances in the wine market due to excess supply over demand. To do this,
first of all, the production potential is controlled to adapt it to the evolution of the
market. Vine planting is prohibited, in principle, until July 31, 2010, except in
cases of winegrowers affected by forced expropriation or land concentration,
wine experimentation and cultivation of graft mother vines (nurseries).

Replanting is authorized, after starting up the existing vineyard. There is also the
possibility of new plantations in charge of reserves - potential for national wine
production -, with the Member States of the European Union authorizing new
plantations on the basis that certain individuals do not plant within the
established period, or are willing to give up their right to change of financial
counterparts, or on the basis that the European Union authorizes new
plantations that the Member States (or in the case of Spain, their own
Autonomous Communities) allocate to winegrowers. Secondly, market
mechanisms are established (art. 24 et seq. ) such as storage aid, distillation aid
in order to facilitate the maintenance of wine distillation products in the alcohol
sector, when the use of this is traditional, and finally export aid (art. . 63,
restitutions).

Thus, the set of traditional outlets for mouth-watering alcohol (brandy, spirits,
etc.) and other viticultural products produced in the EU remains the same.
(grape juice, vinegar,...) to maintain employment and the conservation of
landscapes and the traditional environment in some areas where there is no
other alternative. Now, it is intended to eliminate the use of intervention -
preventive and mandatory distillations, as an artificial outlet for surplus
production - as it constitutes a market support instrument that stimulates non-
marketable production in a market whose demand is increasingly oriented
towards quality products.

The second objective is to increase the quality of wine to promote the protection
of the consumer and the producer (art. 47), through the use, on the one hand, of
geographical indications or other mentions useful to the consumer (thus the
VCPRD
(art. 54) based on the delimitation of the production area, the determination of
the vine variety, the determination of cultivation practices, winemaking methods,
alcoholic strength, yield per hectare and analysis of organoleptic characteristics;
and on the other hand, by regulating the labeling of wine products, even
imported ones.

The third objective is the increase in the competitiveness of the wine sector, for
which producer groups are authorized, on the one hand (art. 39 et seq., among
other things to ensure the programming of production and its adaptation to the
market - to demand -, in quality and quantity), on the other hand, sectoral
organizations, among other things to apply measures that improve the quality of
products. products throughout the production, winemaking and marketing phase.
This allows producers to increase their competitiveness to benefit from
expanding markets.
Thus, official character is given to the possible functions of producer groups and
sectoral organizations, capable of taking into account specific local conditions.

As a fourth objective, oenological practices and treatments are regulated –

Annexes IV and
V of Regulation 1493/1999-, and as a fifth objective, the designation,
presentation and protection of these wine products, including advertising,
(Annexes VI I and VIII of Regulation 1493/1999), which will not be misleading,
giving rise to confusion or misleading the consumer, respecting the proper
functioning of the market, protecting both the interests of consumers and
producers. In addition to regulating the use of certain terms and geographical
indications, labeling is itself regulated. Finally, the exchange regime with third
countries is established – article 59 et seq. of regulation 1493/1999 -, regarding
import/export certificates, common customs tariff rights, establishing tariff quotas
and refunds - aid - for exports (art. 63).

In short, the current wine CMO designs a system based, basically, on three
pillars. Firstly, in the control of productive potential to achieve the balance
between supply and demand. The aim is to reduce the use of crisis intervention
- distillation - as an artificial outlet for surplus production, aimed at obtaining
 alcohol by mouth. Secondly, the aim is to improve competitiveness, promoting
quality through the elaboration of VCPRD and the use of limited oenological
practices, without failing to recognize, on the other hand, the role of producer
organizations and sectoral organizations. Finally, and thirdly, intervention is
carried out in the markets, on the one hand, through export aid to allow
producers to take advantage of expanding markets, and on the other hand
through the distillation of wines to obtain of mouth alcohol.

a. Regulations on packaging

Compliance with international legislation on export and import standards has become one of the
most influential factors in the marketing of Colombian products, since it is necessary to guarantee
their quality upon entry and exit from seaports or airports. To a large extent, economic growth
depends on the way these technical and environmental standards are followed, which allow
participation in the global market.
An essential variable in the regulation of this commercial activity is the packaging and packaging
system of the products, because these protective materials ensure their correct delivery to the
consumer in a manner suitable for use; That is, the packaging and containers that contain them
and the packaging that covers them must be finally approved and certified for boarding and
disembarkation.

The products must travel three different geographical routes: the exporting country, the
international transit and the importing country: heterogeneous points, which requires the use of
packaging of different types at the time of putting shipments or merchandise into circulation within
a single country.

Packaging, packaging and packaging

Packaging, containers and packaging are the containers of a product during the process that
goes from its collection (primary) until it reaches the final consumer, through its storage
(secondary), transportation and distribution (tertiary); This with the aim of identifying its content,
protecting it from any type of contamination and preserving its characteristics.

The primary, secondary or tertiary characteristics are obtained according to their passage
through the marketing chain. The difference between these types of manufactured objects lies in
the direct function they fulfill with the product and its content, since the container turns out to be
the first conservation contact that liquids or gases have; packaging, the set of materials with
which solid packages and packaging are wrapped or assembled, the transportation technique as
well as the distribution of the merchandise.

The term packaging corresponds to the system by which the

packaged product is arranged and identified. It is composed
of materials and structures that protect products, packaged or
not, to facilitate their handling, loading, storage,
transportation, unloading and possible display.

Among the risks that packaging may suffer during the

distribution cycle are falls, knocks, contamination, contact with
rodents, pests, partial and complete theft or damage due to
dust, vibration, compression, side impact, extreme
temperatures.
and humidity. For this reason, its conditions and those of the containers and packaging must be
taken into account with respect to the product, in five areas:

The physical or material: must protect the integrity of the content; preserve the product over
time; defend it from the outside world and vice versa and provide technical and biological
isolation.

The economic: this considers the cost of materials, transportation and handling; storage, volume
and weight, returnability and restoration.

The marketing: here aspects such as differentiation, market adaptation, brand extension, added
value, relaunch, profitability, formats and sizes are determined.

The ergonomic: they must be manipulable with a minimum weight, easy to use, safe to handle;
occupy minimal space and offer ease of access and comfort for the user.

The communicational: in this case, visual impact, frontal and oblique visibility, adequacy of
image and product attributes, informational value and corporate identity must be offered.

European green standard

The sustainable development processes that the world demands for its conservation and
sustainable development and the environmental responsibility of companies with climate change
have generated a new type of containers, packaging and packaging for products that are sold
internationally. In this way, wood, usually used in the manufacture of packaging and cargo
packaging, has been replaced by plastic, cardboard and recycled paper, due to the irreparable
damage that wood overexploitation generates on biodiversity.

For this reason, the European ecological culture directly conditions the manufacture and reuse of
these containers; for example, the Netherlands agreement on packaging, which literally
establishes its prevention, reuse, recycling and incineration with energy valuation; the symbol for
the reuse and recycling of waste called Green Point, in Germany, or the Producer Responsibility
for Packaging Waste, in England.

International standards or norms

Global agreements on packaging and packaging have a common reference: the European green
standard. Other regulatory codes that are applicable in Colombia:

ISO 3394 Standard: governs the modular dimensions of boxes, pallets and palletized platforms.

R 87 or Regulation 87: applied to products for detailed sale, specifically in the description of the
contents of their container or package.

ISO 780 and 7000 standard: contains handling instructions, warnings and pictorial symbols.

ISPM Standard No. 15 of 2003: designed by the Secretariat of the International Plant Protection
Convention of the United Nations for Food and Agriculture, in Rome, it sets out the guidelines to
regulate phytosanitary measures for wood packaging for exports. It belongs to the international
and supranational regulations, resulting from the international agreements and treaties signed by
Colombia and that are applicable in the national territory.

The measures approved in this regulation must be accepted by all National Plant Protection
Organizations (NPPOs) and applied not only by international logistics operators, but also by
national producers of packaging, containers and packaging for exported products, this with the
objective to reduce the possibility of transmitting plant diseases and the entry
of pests due to the transport of raw wood, by authorizing both the entry and exit of the
packaging.

In the general regulations for product labeling in Germany, regarding containers and packaging,
the fact that the labeling is not in German does not constitute an obstacle, although if it is, it
logically greatly facilitates marketing. It is important to combine basic information (mandatory
elements, in German known as “vorgeschriebene Angaben” ) with additional information (
“wahlweise Angaben” ), which will vary depending on the target groups. The mandatory
elements apply only to those productions that are going to be destined for commercialization and
concern the content and the place where these indications must appear. The place of labeling is
determined. This must be placed “on the same container” . This means that not only the main
label is the labeling location, but also the neck wrap and the back wrap. What is the main and
back label does not depend on the size of the paper, just as there is no front and back part on a
bottle. The main label is the one in which the mandatory elements are collected.
In any case, the following must be noted on the wine labels:

1) Designation of Origin
2) Rated capacity
3) Type of grape
4) Batch number
5) Volumetric alcoholic strength
6) Name or company, as well as the location
7) Member state of the bottler or importer.
Other indications are allowed as long as they are true and do not lead to error with respect to the
regulated indications. Since November 25, 2005, the label must also state that the wine contains
sulfites, which must be indicated with the following expression in German: “Enthält Sulfite”
(“Contains sulfites”).
Indications, signs and other stamps that do not refer to the product are not considered part of
the labeling . Nor does the “Green Dot” or similar belong to the labeling. Products that are
subject to the provisions of EU wine legislation They must be labeled in order to be destined for
the consumer market. This principle is valid for containers with a declared volume of 60 liters or
less (for example grape must, concentrated grape must, young wine, table wine, DO wine,
liqueurs, etc.). The labeling must include the corresponding provisions of the indications
regulation, which is also valid for those products in containers with a declared volume of more
than 60 liters, if these are labeled (without having a legal obligation to this effect).
On March 20, 2002, the German Government approved the plan of the Federal Ministry of the
Environment to impose a deposit on non-returnable containers as of January 1, 2003. Since
1991, the deposit for non-returnable containers was regulated, although the regulation released
this obligation, as long as the quota of returnable containers at the national level was above 72%.
For several years it has been gradually reduced until reaching quotas of 60%. As the set
objective is not met, the mandatory deposit is imposed, which is set at €0.25 per container (cans
and small bottles) and €0.5 for containers of 1.5 liters or larger volume. The deposit is recovered
when you return the container

b. Required Certifications

AUTHORIZATION TO EXPORT
This section seeks to outline the documentation and customs procedures
necessary to export to the EU and, likewise, explains what the requirements are
to enter the System.
Generalized Preferences (SGP) and SGP+. It also provides information on
export procedures and export support institutions in each of the Central
American and Latin American countries.
DOCUMENTATION AND CUSTOMS PROCEDURES
The law that regulates customs documents and procedures in the EU is the
Regulation of
Council (EEC) No. 2913/92 and its reforms. This regulation is known as the
Community Customs Code (CAC) and establishes the rules and procedures for
the trade of goods between EU Member States and third countries. Exporters
should stay informed about updates and developments in this regulation.
Procedures
Before exporting goods to the EU, an exporter must apply for a “registration
number and
Economic Operator Identification” (EORI). This number of
EORI is required to submit a customs declaration. The number is only assigned
once and
must be used for each subsequent export. Learn more about how to request a
EORI number available at :
http://ec.europa.eu/taxation_customs/resources/documents/
customs/security_amendment/EORI_guidelines_es.pdf.
Once the EORI number has been received and the goods enter the territory of
the
EU, a representative in the EU (e.g. the importer) must present the goods and
the
appropriate documentation to the customs authorities. Likewise, the
representative must deliver
an Entry Summary Declaration (ENS) on the content of the
goods, the consignee and the weight, etc. The declaration is submitted through
the System of
100
Import Control (ICS)
101
11
24 hours before arriving in the EU if
uses sea transport and four hours before if air transport is used. More
information
on how to file the declaration available at : http://akamaicorta.

agencytributaria.info/AEAT/Customs/Contenidos_Privados/
Procedimientos_aduaneros/Proyect
o_ICS/Descripcion_tecnica_del_proyecto/ICSAg_1.1.pdf.
Based on this declaration, the customs authorities of the European Union assign
a procedure for goods and a customs procedures code (CPC)
to the goods. The code shows the procedure that has been assigned. There are
eight
procedures in the CAC:
• Clearance for free circulation.
• Transit.
• Customs storage.
• Internal processing.
• Processing under customs control.
• Temporary import.
• Processing abroad and
• Export.
Each of them is described in detail below:
Clearance for free circulation
Goods entering the customs territory of the EU from a country outside it (for
example
example: Central America or Panama) are known as “non-community goods”.
Before
In order for these products to be marketed in the EU, they must be converted
into
“community goods”. This occurs when the goods are released into free
circulation.
During this process, customs authorities apply and collect duties and taxes.
11

Since the law on the Entry Summary Declaration has been introduced recently
(July 2009), the transition period will last
until December 2010. After this period, the presentation of the ENS will be
mandatory.
Someone residing in the EU (the representative) must carry out this procedure –
for example,
the importer.
Transit
When goods must be moved between two points in the EU, this procedure
applies. The
Application of tariffs is carried out at the final destination. Goods entering the EU
from
Central America or Panama will be subject to the Community Transit procedure.
This
procedure is carried out using a T1 Certificate that includes a declaration that
the
Goods from outside move between two locations in the EU. This document is
obtained using the New Computerized Traffic System (NCTS, for its acronym in
Spanish).
English). Each Member State has its own NCTS processing system which is
connects and is centralized in Brussels. The customs authorities in each
Member State can
support exporters with more information about their own transit system (e.g.
For example, in the United Kingdom it is called “ Minimal Common Core ”
(MCC); in Spain,
“EDIFACT”). More information can be obtained in the following guide: Brochure
on the
Transit of Goods (available at
http://ec.europa.eu/taxation_customs/resources/documents/
customs/procedural_aspects/transit/tir/transit_manuel_tir_es.pdf).
Customs warehouse
Customs warehousing is the procedure that allows goods to be stored in a
customs warehouse until the owner of the goods is prepared to pay the duties.
This process is used when the importer wants to postpone the payment of tariffs
on goods not
perishable goods or postpone the application of political measures. Also used to:
store
products before re-exporting them; process goods before selling them; or store
property under
internal processing procedure (described below). The goods can be
store in a customs warehouse (public) or in a private warehouse. The expenses
of
Storage varies by warehouse and must be agreed upon during the initial
purchasing process.
authorization. Goods can be stored for as long as necessary,
prior authorization. To obtain authorization, you must fill out the form included in
the Annex
67 of the Community Code for the Implementation of Customs Provisions ( see:
http://europa.eu/legislation_summaries/customs/l11010b_es.htm). This
procedure is
responsibility of the importer.
102
Internal processing
The objective of this procedure is the import of raw materials and goods partially
processed from external EU countries to be reprocessed in the EU and re-
exported
outside the EU, without being subject to paying taxes. The process can take
two forms
diverse, depending on the way in which the product will be sold: the “suspension
system”
(goods from third countries outside the EU are used without paying taxes)
and the “reimbursement system” (free circulation of imported goods and
taxes are refunded when finished products are re-exported).
Processing under customs control
This procedure is applicable to materials imported from third countries outside
the EU and
processed under customs control before being sold within the EU, subject to
imposition of tax on the finished product. This procedure is used when the tariff
applicable to the imported product is higher than that applicable to the finished
product.
Temporary admission/importation
This procedure applies to goods that are imported into the EU and will
subsequently be re-exported.
from
the
EU
low
conditions
Similar.
This
It allows
avoid
the
application
of
duty

so much

by import and export. However, it is only applicable to goods

included in the list of the Community Code for the Implementation of Customs
Provisions.
Overseas processing
This procedure involves the export of goods from the EU to be processed
outside of
the EU and then be re-imported into the EU under partial or total exemption from
tariffs.
Export
This applies only to EU exporters and involves the transit of goods from the EU
to
non-EU member countries.
For more information on the taxes that must be paid, see Section 6.2.2.
103
4.1.2 Documentation
When passing through Customs, the exporter's representative in the EU (e.g.
the importer)
You must submit a Customs Declaration. This must be accompanied by
documentation
appropriate. Below are all the documents that must be completed by
the exporter, in cooperation with the EU importer.
To follow the progress of your exports and transit, see : http://ec.europa.eu/

taxation_customs/dds/cgi-bin/ecshome?Lang=EN
(export) and http://ec.europa.eu/taxation_
customs/dds/cgi-bin/mishome?Lang=EN
) (transit).
Single Administrative Document (DUA)
This form can be obtained online at the following link:
http://exporthelp.europa.eu/
update/requirements/ehir_eu10_00v001/eu/auxi/eu_gen_sad_copy8.pdf in
English; the next
link http://www.redbusqueda.com/transporte/docs/Dua.pdf offers an example in
Spanish and
instructions. The form may be completed by hand and must be submitted with
eight copies ; this
available in English only, but can be completed in Spanish, if the customs
authority of the
Member State agrees. In addition, some customs authorities have approved
methods
emails to submit the form. The information that must be included in the form is
the
following:
• Contact information of the parties involved;
• Information on the goods involved (the TARIC code – see
Section 6.1, weight units);
• Country of origin, exporting country and destination country;
• Information on means of transport (see Section 5.2.2);
• Commercial and financial information (invoice value, currency, exchange rate);
• Customs procedure to which it applies (release for free circulation,
temporary import, etc.);
• List of documents submitted with the DUA (discussed below);
• Method of payment of fees;
104
• Request for exemption from VAT (Value Added Tax): as shown
outlined in Section 6.2, some items may be exempt from VAT. In that
case, the exporter must insert the code “CPC 40 00 09” in Table 37 of
the DUA and attach the evidence (see the “Other documents” Section below).
continuation)
c. Tariff benefits
Trade Agreement between Peru and the European Union

The negotiations for a Trade Agreement between Peru and the European
Union culminated on February 28, 2010 in the city of Brussels, after Nine
Rounds of Negotiation. On May 18, 2010, during the VI European Union,
Latin America and the Caribbean (LAC-EU) Summit held in Madrid, the
conclusion of this negotiation was formally announced. Likewise, on
March 23, 2011, after the legal review process of the Agreement was
concluded, it was initialed in order to begin the internal process in each of
the Parties for the approval and entry into force of the Agreement, The
Trade Agreement between the European Union and Peru and Colombia
was signed on June 26, 2012 in Brussels, Belgium. The Peru-European
Union Trade Agreement came into force on March 1, 2013.

The origin of the negotiations of this Agreement is framed in the political

and commercial relationship between the Andean Community (CAN) and
the European Union (EU) of more than three decades of development,
deepening and consolidation of the integration process of both regional
blocks. Thus, the desire for rapprochement gave rise to the beginning of
negotiations for the signing of a CAN-EU block-by-block Association
Agreement, which would be integral and comprehensive, including three
pillars of negotiation: Political Dialogue, Cooperation and Trade.
However, said negotiation was suspended in June 2008 due to the
different visions and approaches of the Andean countries, which made it
difficult to present a joint approach to the EU on some issues.

After intense efforts to resume negotiations, in January 2009 Peru,

Colombia and Ecuador, who expressed their willingness to continue
negotiations with the EU, resumed them with a view to achieving the
signing of a Trade Agreement that is balanced, ambitious, comprehensive
and compatible with WTO regulations.

The disciplines that were included in the negotiation were: Market

Access; Rules of origin; Customs Affairs and Trade Facilitation; Technical
Barriers to Trade; Sanitary and Phytosanitary Measures; Commercial
Defense; Services, Establishment and Movement of Capital; Public
Purchases; Intellectual property; Competence; Dispute Settlement,
Horizontal and Institutional Matters; Trade and Sustainable Development
and Technical Assistance and Capacity Building.

This Trade Agreement is part of a comprehensive trade strategy that

seeks to turn Peru into an exporting country, consolidating more markets
for its products, developing a competitive exportable offer and promoting
trade and investment, to provide greater economic opportunities and
better standards of living. , as well as certainty, stability and legal security
for trade and investments.

With this Trade Agreement, preferential access has been obtained for
99.3% of our agricultural products and for 100% of our industrial
products. Products of interest to Peru such as asparagus, avocados,
coffee, fruits of the capsicum genus, artichokes, among others, will enter
the European market free of tariffs upon the entry into force of the
Agreement.

The EU is one of the main destinations for our exports, with a share of
18% as of 2011; Likewise, in that same year, said region ranked 1st
among countries with foreign direct investment in Peru with a 51.8%
participation due to capital from Spain, the United Kingdom, Holland and
France, mainly. The EU represents a market of great opportunities, with
more than 500 million inhabitants with per capita income levels among
the highest in the world.

. Fair Trade

CJ is a practice that promotes clear and stable commercial relationships

between small producers and consumers. Based on economic, social and
environmental aspects. Respecting the culture of the people, their
traditions and basic human rights.
 The prices paid for products marketed in this alternative system must
reflect production costs and, at the same time, guarantee a level of
income that covers at least the basic needs of producers and workers. In
this way they will be able to achieve the decent living conditions
proclaimed by the Universal Declaration of Human Rights and the ILO
conventions.

According to FLO (Fair Trade Labeling Organization), Fair Trade (CJ) can
be defined as “those commercial relationships between small producers
and marketing and/or processing companies (or other organizations) that
occur under reasonable terms of exchange for both parties and socially
and environmentally responsible production conditions.” These exchange
relationships allow small producers to obtain a decent and stable income
and promote their own processes for sustainable economic, social,
cultural and ecological development.

Fair Trade principles and criteria

This initiative favors small and medium-sized producers, members of

cooperatives and similar organizations, advocates equality between men
and women and respect for human rights, condemns child exploitation,
values organic production and artisanal quality, and aims to safeguard
minorities. ethnic, etc.

The benefit of fair trade must be distributed collectively, preferably taking

into account local development (employment, health, education,
transportation, etc.). The participation of women must be taken into
account.

Beginning:

1. Seek organizations with democratic legal forms, transparent in

information and in the distribution of income.

2. Ensures fair and decent working conditions. A safe work environment

that at least complies with local social security regulations.

3. Promotes jobs with equal opportunities. There is equal income for

equal work for women and child exploitation is combated.
4. Stimulates care for the environment and sustainable productive
activities.

5. Prioritizes support for marginalized producers or those with little access

to marketing.

6. Inform consumers about the origin of the products.

7. It keeps the chain of intermediaries between producer and consumer

reduced to a minimum in order to ensure greater profitability for the
former.

8. Pay a fair price to producers (the best possible price), in cash or in

terms that are reasonable for both parties and previously agreed upon.

9. It aims to provide workers with income that allows them to cover their
basic needs, including health care, education and savings capacity.

10. Promotes respect for the cultural identity of producers, encouraging

the production and development of products specific to their cultural
tradition and made from their own natural resources.

11. Promotes concern for people. Civil organizations make a long-term

commitment to improve the living conditions of producers, both in material
and cultural aspects.

Benefits and advantages of fair trade

Based on the above, it can be concluded that the CJ entails tangible

benefits for small producers and workers:

-Direct access and entry to new market segments.

-Fair and stable price (minimum). They are set systematically and
reviewed periodically to ensure that they cover the costs of sustainable
production.

-Bonus or prize. It is intended for projects to improve social, economic or

environmental conditions, which are democratically decided by the
organization's producers or workers (improvement of the product,
improvement of the financial, technical or administrative capacity of the
 organization, improvements in infrastructure, education , health, housing,
social affairs).

Advantages:

The CJ promotes environmentally sustainable cultivation and production

practices through ecological or respectful farming techniques. The CJ
benefits consumers by ensuring high-quality products with ethical
provenance of their purchases.

d. Technical standards in the country of destination applicable to the product

For products of a special or sensitive nature, such as wine, additional

documents are required.
If favorable tariff treatment is requested by virtue of the special nature of the
goods, a certificate must be included, in addition to the Certificate of Origin,
confirming this.
Some products undergo inspection to ensure their quality; therefore, it should
present a quality certificate, in addition to a phytosanitary certificate for the
plants
These certificates must be issued by the customs authorities of the exporting
country, signed by a qualified expert from the exporting country, and presented
to an EU expert at an EU border inspection point.
If some producers in the European Community are threatened by the level of
imports, the Commission may place imports of these products under
surveillance. In this case, the
The importer must request a Community Surveillance Document (import
license) from the customs authority of the Member State involved.

As established, if alcohol or products related to energy or water are exported

tobacco, an additional form must be completed separately to determine the
Excise Tax. Because each Member State establishes its own excise tax rates
and procedures, this form must be obtained directly from the customs authorities
of the Member State involved.
However, if the product will subsequently be transported to another Member
State for final consumption, an additional document must accompany the
previous document. Typically, this document will be an Internal Transit
Document or a TIR (international land transport) document or an ATA (Air
Transport Association) Convention Document.
Distribution chain

a. Choice of international transport mode

b. Way of entering the target market
Before exporting to the EU, the exporter must decide how the goods will
be distributed once they arrive at their destination, so that their handling
through a supply chain is guaranteed.
When an exporter wants to choose a suitable distribution channel, they
must consider the best way to shorten the supply chain and therefore
reach the consumer in the fastest possible way. This allows exporters to
reduce costs.
The most important distribution chains can be divided into two categories:
direct and indirect sales. The choice depends on the export volume, the
previous experience of the exporter and the nature of the goods. The
distribution channels and the advantages and disadvantages of each are
described below.

Direct sale
Direct sales are the most ambitious distribution channel, since the exporter
assumes responsibility for the entire export process:
• Retailers sell the product directly to the consumer. This method requires the
exporting company to have a sales representative in the EU to generate and
maintain business relationships with retailers.

• Distributors are large companies that promote the sale of goods, either to
retailers or other distributors. Exporters can identify distributors in Central
America or the EU to be responsible for the promotion and sale of their
products.

• Strategic alliances or co-manufacturing involve EU companies that assign

part of the production process to companies in developing countries, in the first
case, or that work together with them to manufacture, in the second. This is a
simple way for companies from developing countries to enter the EU market,
although it has the disadvantage that companies can become very dependent
on their customer.

• The Internet is an important sales instrument in the EU. Consumers can place
orders over the Internet and their purchases can be shipped directly efficiently.
However, the exporter is responsible for all transportation and customs
processes.

Indirect sale

• Other companies in the country of origin that buy the products and resell
them on the EU market. This distribution channel has the advantage of leaving
all responsibility for transportation and customs to the national company and is a
good way for an SME to gain some experience in exporting;

• Intermediaries: this involves the participation of companies specialized in

exports (Export Management Companies – EMEs) that manage the entire
customs procedure at both ends. This distribution channel is particularly useful
for SMEs that are just starting out and have little experience in exporting, but it
has the disadvantage of having a high cost and giving the exporter less control
over the export process. Exporters should maintain close contact with any
intermediaries involved to ensure a risk-free process. The Federation of
International Trade Associations (FITA) has a directory of EMEs.

5.2.5 Retailers and distributors

Supply chains have become more international and therefore need to be as
efficient as possible. For this reason, retailers and distributors have come
together to form a few very large companies. For example, the number of food
stores has decreased in the EU, while the size of the average store has grown.
Europe has many large-scale chains of retail stores, especially supermarkets,
hypermarkets and discount markets. Examples of these chains include
Sainsbury's (UK), Aldi, Edeka, Metro AG and Rewe (Germany), Albert Heyn
(Netherlands), Carrefour Promodes, Auchan and Leclerc (France). Likewise,
retail concentration has been stimulated by the introduction of mega retail,
mergers, acquisitions and horizontal alliances, including garden and hardware
stores. A large number of exporters from developing countries usually do not
have the financial resources and experience to carry out in-depth market
research and promotional campaigns. Business collaboration offers the
opportunity to significantly reduce costs by reducing the number of
intermediaries and developing relationships with business partners. Many
suppliers in developing countries shorten the supply chain by selling directly to
“European superstores” like those mentioned in the previous paragraph. This
results in higher profits and avoids the complications associated with market
research and selecting a trading partner. Also, it allows larger orders to be
placed in a regular shipment, which reduces risk and delivery time. However, the
disadvantage of this strategy is that exporters may end up in a less
advantageous negotiating position when dealing with dominant retail chains and
having to meet their strict assortment, high quality, safety and supply
requirements (e.g. just in time").

5.2.6 Business process outsourcing (SPN) and co-manufacturing

Many companies in the European Union specialize in their company's main
service or product and outsource secondary products and processes.
“Outsourcing” has evolved into “strategic alliances”, which is a more structured
form of cooperation and offers the opportunity for small suppliers in developing
countries to enter the EU market. These alliances benefit both parties: the
European company (“contractor” or “client”) can increase its productive capacity
and face market demands more easily; and the exporter (“subcontractor” or
“supplier”) can expand its export market and develop its investment potential.
Outsourcing can be very beneficial for suppliers in developing countries, as it
stimulates the use of capabilities, helps ensure regular sales and drives growth
by saving time and resources in marketing and distributing the product. In a co-
manufacturing agreement, the supplier receives training, technical training, and
sometimes financial support, from the EU importer. The above allows the
supplier to increase its competitiveness and commercial value. An additional
benefit for suppliers is that communication with the importer is intense and
frequent, which can lead to the development of a computerized network.
Suppliers play a strategic role for their clients, since the success or failure of
these businesses, to a large extent, depends on them.
Co-manufacturing is important for retail products sold in supermarkets,
department stores, discount hardware stores, and industrial merchandising. It is
primarily used in the electronics, pharmaceutical, automotive and textile
industries. The main reasons for the formation of these alliances are to reduce
the high costs and risks in research and development (R&D) and to boost
technological development. These reasons lead to improving competitiveness,
exchanging experience in research and development and reducing the time
needed to develop a new product.

Private label
A private label is a unique brand that belongs to a specific retailer. Large
retailers sign direct contracts with producers to put their brand on the
products manufactured for them. As such, private label is a type of co-
manufacturing or subcontracting between the supplier (manufacturing
company) and the customer (the retailer). Products sold under a private
label are usually sold at a lower price than the leading brand. Europe has
a predominance of private brands in the market. Seven of the ten
countries with the largest difference between the price of private brands
and manufacturers' brands are in Europe. Prices in Europe can easily be
10 to 18 percent cheaper and sales of private label products currently
make up around 45% of products sold in the EU retail sector.
Private labeling can be beneficial for exporters from developing countries,
as it avoids the promotion and maintenance of a own brand in Europe,
which would require physical presence in the market and marketing
expenses that a small company cannot afford. cover. Also, it means that
exporters face less competition, have a secondary product that gives the
company a new profile, guarantees more shelf space in the retail store
and provides opportunities to establish strategic alliances with these
retailers. The primary disadvantage is that the relationship with the retail
customer may be threatened if the product does not perform well. Also,
the retailer enjoys a strong negotiating position over the producer, which
entails the risk of maintaining high inventory costs and low profit margins
or that other suppliers may introduce cheaper private brands to the
market and lower profit margins. Despite all this, private label is a growing
trend in Europe.

The distribution of wine in Germany is characterized by its complexity, by the

number and typology of different operators, by the great regionalization in
consumption patterns and in its distribution given the political-economic and
social structure of the country, as well as by a very marked bipolarization
between the two major wine marketing channels, which are:
1. Specialized channel.- The specialized wine channel is characterized
by offering wines from a much larger number of regions, DD. OO.,
wineries and brands and above all of a much greater value than in mass
commerce. Furthermore, it is characterized by being made up, in most
cases, of medium-small sized businesses that present a marked
regionalization and that carry out import functions and that supply, on the
one hand, HORECA and C&C, and on the other hand, to the final
consumer directly. .

2. Mass marketing channel

The mass channel is one where the supply of wines is reduced to the
maximum and in which
Huge volumes are sold at very low prices. Another relevant fact about
mass commerce is concentration, which is so high that 8 companies
account for 97% of the sales volume. The margins of this sector are
among the highest
low prices in Europe, which has an impact on the pressure they exert on
import prices.

A third channel would have to be added, direct sales, since it is a wine-

producing country.

3. Direct sales channel (German wineries)

All of this, together with the saturation of the market together with the presence
of practically the world's supply of wine, configures the German market as a very
competitive market that is difficult to access despite its enormous potential
where price and, above all, the “value for money” relationship play a role. a
fundamental paper.
In specialized trade, in a first classification, we distinguish between traditional
specialized trade and the Horeca channel, although the number of operators
and their typology has evolved enormously in recent years. Nowadays, every
company that works in the specialized channel carries out various types of
activity (wholesale, specialized retailer, online sales, supply to Horeca, etc.).
In the mass trade channel we distinguish, on the one hand, traditional food retail
trade (supermarket chains and large stores) and on the other hand the
discounters and hard discounters relevant in the German market due to their
volume.
In the attached graph you can see the volumes traded in the mass channel to
which they belong:

food retail, from hard discount chains to large supermarket chains and all types
of supermarket chains.
Here you can see how only 11% of the volume sold in gastronomy represents
more than a third of the value of total sales in value, followed in importance by
specialized trade, which with a share of almost 7% of sales accounts for more.
of 11% in monetary terms. At the other extreme is retail trade, that is, traditional
retail trade and discounts, which with volume sales figures of 23% and 35%
respectively, each contribute around 15% of the marketed value.

Another of the most important promotional instruments is public relations activities. "Wines need
a very powerful communication activity given the saturation of the markets and the immense
global supply, but they must also be tasted because they themselves are the ones that best
transmit the information about their characteristics and everything they contain" adds Pablo
Calvo. . For this reason, one of the most used actions, in addition to presentations, are tastings.

Another widely used option is the tasting within the framework of a mini-fair , in which there is an
initial tasting of wines and after the seminar, a small fair is organized with stands of all the
participating companies and wineries, in which they have the possibility to directly establish
relationships with professional buyers.
In this section of public relations, activities aimed at the hospitality industry stand out, which are
usually carried out in luxury hotel chains and first-class restaurants. There is also promotion at
the point of sale, either in specialized wine channels such as Ardau or Deuna or in food chains
and department stores such as Metro , Kaufhof or Karstadt , with which agreements are usually
signed to organize some type of Spanish weeks.

"The objective of this type of event is to introduce the wines into the different distribution
channels, expand the program of stores and importers, encourage product rotation and, in any
case, provide the consumer with all possible information with the aim of "improve the degree of
knowledge and image of our wines"

Distributor List:
Lehmann Natur GmbH
Am Churkamp 20
D - 47059 Duisburg
Tel.: +49 - 203 - 932 550
Fax: +49 - 203 - 932 5599
[email protected]
www.lehmann-natur.com
(importer, distributor to supermarkets)
Ernst Weber Naturkost
Postfach 75 09 54
D - 81339 Munich
Tel.: +49 - 89 - 746 3420
Fax: +49 - 89 - 746 34222
[email protected]
(importer and wholesaler)

Rewe AG
Domstr. twenty
D - 50668 Köln
Tel.: +49 - 221 - 1490
Fax: +49 - 221 - 149 9000
(distributor and supermarket chain)