I.

Brief description of Product for Import

Franzia Wine

Franzia is a brand of wine produced by The Wine Group, known for its

box wines sold in 3 and 5-liter cartons. Franzia wines, throughout their

history, were known as affordable table wines, popular in the 1960s and

1970s as "jug wine", and now as "box wine". The Wine Group is the third

largest wine company in the world, behind Constellation Brands and the E&J

Gallo Winery. The brand originated from Ripon, California at Joaquin Valley.

The group chose wine as their beverage to import since a recent Global

Agricultural Information Network (Gain) report noted that the total volume of

imported wine this year will increase by 2.2 million liters, from 13.8 million

liters recorded in 2017. Philippine wine imports could rise by at least 16

percent to 16 million liters this year due to the country’s economic expansion,
 as well as the increasing demand of young Filipinos for the alcoholic

beverage.

On the other hand, with the increasing demand of Filipinos for US wine,

it will be an opportunity for the importers to bring their wines because of the

current economy of the Philippines because of its increasing urbanization, a

growing middle-income class, and a large and young population. It was also

mentioned on Philstar.com that USDA importers have capitalized on the

growing health-awareness of the country, which most of the Filipinos shifted

their consumption preference from beer and spirits to wine. The report also

noted that the US would remain as the top source of imported wine for the

Philippine this year since the country is accounted as the highest dollar value

worth of wine imported in the Philippines during 2017 with US$10.4 million

(30.9% of imported Filipino wines).

II. Situation Analysis

A. General Outlook of the Philippines:

 Location of the Operation

 Competitive Landscape

Players in the industry are investing more in engaging with

young consumers, especially millennials and young professionals, in

order to build brand loyalty and gain a competitive edge. Promotional

strategies intended to appeal to millennials are likely to increase over

the forecast period, as more mature age groups are more set in their

consumption habits. The opportunities for significant growth lie in

 marketing goods for the young adult population, especially young

professionals. As the number of young professionals is expected to

continue to grow, brands aim to capture them early.

 Political Situation

 Market Size

Fig 1. Market Size, source: Euromonitor

As seen on fig 1. The market size and sales for Wines,

Champagne and Spirits is increasing over time. The retail current value

sales grow by 6% in 2018 which is expected to reach PHP 1.2 Billion

with the help of young professionals as their primary target. Sales are
 also expected to rise at a 7% increase in current value of CAGR over

the forecast period to reach PHP1.6 billion in 2023.

 Pattern and Growth Competition