Elimination of customs duties triples BDG's business

BDG, the importer of Jack Daniel’s whisky and Corona beer, in Q1 of this year registered 72% higher sales volume against the same period in 2006.
Consecutively the company’s turnover soared by 215%; however, BDG representatives refused to disclose the exact sales figures.
“Growth is primarily due to price changes implemented at the beginning of the year, as well as to the continuous supply of traditional brands (Corona, Budweiser, Evian, Baron Phillipe, Heinz wines) and the Easter sales peak, which was experienced in March instead of April, as it was last year,” stated Petre Berciu, managing partner with BDG Import.
According to the company’s representatives, the biggest increases in Q1 were witnessed by Corona (53%), Budweiser (176%), Evian (69%) and in the wines category, which saw an increase almost four times as much as in 2006.
Last year, imports of Corona beer were limited in terms of quantity because of the level of custom duties, which stood at 280%. For 2007 BDG plans to sell more than 1.2 million bottles (0.33 litre each) of Corona beer, which would result in Corona becoming one of the company’s top five brands.
“If looking at the sales to consumers, the biggest increases were registered by the brands of Brown Forman, in particular Jack Daniel’s which experienced 73% higher sales and Finlandia, which witnessed a 600% increase,” stated Berciu.
Last March, BDG Import took control of the import and distribution of the Jack Daniel’s, Finlandia Vodka and Southern Comfort brands owned by Brown Forman, one of the biggest US companies operating on the wine and alcoholic drinks market, with annual sales worth 2.7 billion dollars.
“The Brown Forman brands accounted for 61% of the total sales generated by BDG Import,” Berciu added.
BDG’s portfolio comprises only premium products, including Corona Extra, Budweiser Budvar, Evian and Heinz. Most of these products were subject to custom duties, which were dropped this year, a move that resulted in 10-30% lower prices.
In the wake of these price decreases, the whisky market is expected to reach 3.7 million litres this year, over 30% more than in 2006. In terms of value, the market will expand by a maximum of 10-15%, to 45 million euros.
In 2006 BDG posted a turnover worth around 12 million euros and expects to derive a turnover between 15 and 20 million euros this year.