Adelaide Hills Distillery

1.

Adelaide Hills
Distillery
Strategy Presentation
David Kerns - a1682688
Pavani Rajandra - a1690865
Yue Ren - a1661711

2.

Country of Choice
SINGAPORE
- Geographic location
- Status of a global hub
- Large number of tourists
- Popular and well-accepted alcoholdrinking culture
- Westernised-Asian nation

3.

Opportunities & Potential for Sales
- Large bar scene means a wider range of
bars
- Australian brand from Adelaide: Seen as
exclusive, considered a speciality and not
commonly found outside the state
- Free Trade Agreements and longstanding relationship between Australia
and Singapore

4.

Challenges:
Taxation:
According to Singapore Customs, all liquor
imports will face an an excise duty.
Total excise duty = Total quantity in litres x
Excise duty per litre of alcohol x % of alcoholic
strength (Customs.gov.sg, 2017).
The fee levied at spirits is S$88/Litre
(Customs.gov.sg, 2017)

5.

Modifications:
Pricing Strategy:
Due to competition and the environment, repricing the product for the Singapore market is key.
Domestic Competition: Currently Hendricks Gin sells for $68.95AUD domestically. Whereas 78 Degrees
gin, sells for $80AUD.
Foreign Competition: Hendricks Gin in Singapore sells to an upwards of S$108 or around $100AUD.
Environment: High duty accounts for the increase in price. As noted by the USDA however, “demand for
these products is fairly inelastic. As such, consumption is not expected to decline as a result of the higher
prices” (U.S Department of Agriculture, 2014).

6.

Recommendations:
Labelling: In accordance with Singapore standards, the amount shown on the bottle should be changed
to centileters. I.E: 70 CL
Corporator : To find a corporator in Singapore help sell ( high end club, etc.)
Competition : There are only a small amount of companies that are direct
competitors due to AHD’s niche target market and production
Promote : use social media, find a famous spokesperson in Singapore to present our
premium brand, push-pull strategy: For a new brand, use push first to hold a highend Party invite important people come to taste and then use push do the promote
let people come to buy.

7.

Recommendations
Price: According to high GDP and power of consumption in Singapore and also high
tax can put the price a bit higher( 150-200) to do just premium people with high
profit margin
People: more businessmen in singapore - which is our target crowd
Package and size keep standarlization as want people remebered me if they have
drink our product in other contry.

8.

Reference List
Anon, (2017). [image] Available at: http://www.publicdomainpictures.net/view-image.php?image=138969&picture=raffles-hotelsingapore [Accessed 15 Oct. 2017].
Customs.gov.sg. (2017). Excise Factory Scheme. [online] Available at: https://www.customs.gov.sg/businesses/customs-schemes-licencesframework/excise-factory-scheme [Accessed 15 Oct. 2017].
Danmurphys.com.au. (2017). Buy Wine, Champagne, Beer & Spirits Online | Dan Murphy's. [online] Available at:
https://www.danmurphys.com.au [Accessed 15 Oct. 2017].
Department of Foreign Affairs and Trade. 2017. Background of the Singapore-Australia Free Trade Agreement - Department of Foreign Affairs
and Trade . [ONLINE] Available at: http://dfat.gov.au/trade/agreements/safta/Pages/background-of-the-singapore-australia-free-tradeagreement.aspx. [Accessed 16 October 2017].
Gin Foundry. 2017. Hendrick's Gin reviewed on Gin Foundry. [ONLINE] Available at: http://www.ginfoundry.com/gin/hendricks-gin/.
[Accessed 15 October 2017].
Hotels.com, (2017), Boat Quay Singapore [ONLINE]. Available at: http://www.singapore-guide.com/nightlife/boat-quay.htm [Accessed 2
October 2017].

9.

Reference List
Statistics & Market Insights Overview . 2017. Statistics & Market Insights Overview . [ONLINE] Available at:
https://www.stb.gov.sg/statistics-and-market-insights. [Accessed 16 October 2017].
Statistics Singapore - Latest Data . 2017. Statistics Singapore - Latest Data . [ONLINE] Available at:
http://www.singstat.gov.sg/statistics/latest-data#17. [Accessed 16 October 2017].
U.S Department of Agriculture (2014). GAIN Singapore: Excise Taxes Increased on Alcoholic Beverages.
WorldAtlas, (2017), Singapore [ONLINE]. Available at: http://www.worldatlas.com/webimage/countrys/asia/sg.htm [Accessed 2 October
2017].
WorldAtlas, (2017), Singapore flag and description [ONLINE]. Available at:
http://www.worldatlas.com/webimage/flags/countrys/asia/singapor.htm [Accessed 2 October 2017].