Great Start of 2017 for Aussie Wineries: China Import Tariffs Further Reduced!

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1 January/February 2017 Great Start of 2017 for Aussie Wineries: China Import Tariffs Further Reduced! Australian wine exporters expect to receive a profit boost in 2017, with a further reduction of tariffs to China now in effect. Upon the signing the FTA agreement in 2015, the tariffs on imported Australian wines were reduced to 11.2%, down from 14%. With annual reductions over the following years, tariffs will decrease by 2.8% from previous year, based on the terms of the FTA agreement. Eventually being eliminated by 1 January Australian winemakers and exporters can get a real leg up over the competition in China where there is still plenty of opportunity to expand their international business. China is the nation's largest export market for wine, with the export side of the industry now worth almost $375 million annually, however, with the further tariff reductions, China's middle class will be able to access more wines at a better price. China is now Australia's biggest market, so this is a great chance for the winemakers to increase the profits in this new year too. Who wants to miss this chance? HOW TO TAKE ADVANTAGE OF THIS? 1. Using our FTA Express service: FBLOG s own LCL consolidation service direct between Adelaide and Shanghai! Dedicated for wine & food products, fitted with a thermal blanket at no extra cost to you. Departing Adelaide Every Fortnight! 2. Using our competitively priced direct FCL Direct services to the main ports in China. IMPORTANT NOTE The reduction was effective from Jan 2017, however the CERTIFICATE OF ORIGIN issued by shipper should be with data after 01/01/2017; otherwise, in the Chinese customs system will show 2016 as the import date and the importer will not enjoy the reduction. Or ask our experts!! CHINA TEAM Ms. Cindy Du F & B Sales Executive - Shanghai Phone :(+86) x cindy.du@hartrodt.com More information available about ChAFTA: ChAFTA product tariff rates are available through an online tool at Guide to using ChAFTA (export & import goods): AUSTRALIA TEAM Ms. Ling Wu Customer Service Supervisor Phone (+61 8) ling.wu@hartrodt.com

2 Introducing our colleagues around the world - Spotlight on: FBLOG India ARVIND SAROHA! 1. When did you start working for FBLOG and what is your job function? I started working for FBLOG in We started with marketing campaigns across India and focused of FBLOG customer s requirements, created awareness in Indian market about our strength and focus for handling food and beverage products and shipments worldwide. 2. What have you experienced/learned working in FBLOG and what do you enjoy most about your job? FBLOG is a unique product and customers prefer to work with the specialists for their food & beverage shipments. It is interesting to understand the regulations, rules applied by government for these products. Temperature requirements for food & beverage products as well as limited shelf life requires fast transit time. 3. If you had to describe the Indian FBLOG team in three words, which would they be? Experienced, caring, customer oriented. Arvind Saroha, FBLOG Manager India from New Delhi 6. Last and most important question to someone working in the F&B industry - What is your favorite drink and food? I have a liking for sweets and bakery products, I like freshly brewed beer in hot Indian summers. 4. Where do you see the potential for FBLOG in India now and in the future? There are new regulations implemented so customers are preparing themselves to adapt to these changes but in future when government policies are fully implemented the business will start to grow as there is good potential for food & beverages business in India. 5. What do you see yourself doing in the next few years at FBLOG? India is a geographically quite diverse, there is lot of potential to tap across different regions which we can do in coming years. If you have any further questions please do not hesitate to contact food & beverage logistics India! Mr. Arvind Saroha FBLOG Manager India Phone ( ) arvind.saroha@hartrodt.com

3 Ireland available at a store near you everyday not just St Patricks Day! Lá Fhéile Pádraig Sona Duit - Happy St Patricks Day! - Feliz dia De San Patricio Glücklichen St. Patricks Day St Patrick is a patron saint of Ireland and lived in the 5th century. He was an international traveler in his days - born in Roman Britain, raised in Ireland, educated in France where he joined the church, he later returned to Ireland as a missionary. He died on 17th March around the year 493. St Patricks Day is now a near global celebration of Irish culture enjoyed not just by Irish people and people of Irish descent around the world but also by the local communities in which they live and work. Festivals and parades are held in every city, town and village in Ireland irrespective of the weather! The oldest, longest and perhaps the most famous parade is the one held in New York City which dates back to 17th March Ireland today is a vibrant nation and trades extensively with the world. Irish products such as Kerrygold, Guinness, Jameson plus a whole host of products in confectionery, snacks and of course meat, can be found in most countries even at a store near you! Ireland in numbers: Population: 6.4m Balance of trade (Jan-Nov 2016) Exports: 108 Billion. Imports: 64 Billion. TEU s: Import/Export with the world: 834,510 TEU s to EU 152,345. TEU s from EU 184,981 (Data from 2014) Key Export Products: Total Irish food & beverage exports topped 10B in 2016 with beverages accounting for 1.4B which included Irish Whiskey 505M Irish Cream Liqueurs 305M. Dairy products exceeded 3B for the first time. Many exporters work under the Origin Green accreditation which ensures the highest standards working with nature in a sustainable way from farm gate to the dinner plate. Dublin

4 Ireland available at a store near you everyday not just St Patricks Day! Ireland in numbers: Two thirds of Ireland s land is used for agriculture and in fact, 80% of Ireland s agricultural land is devoted to grasslands, with a yearly grass growth rate that exceeds the European average by more than a third we get a fair amount of rain! Pharmaceuticals are now a major export as many multi national corporations have their European headquarters in Ireland. Key Import Products: Ingredients, oils, foodstuffs, wine we like wine! Wine Imports 2015: 8.5M cases. Market Share: Chile 25.3% Australia 18.% - see chart. White Wine 50% Red: 47% Rose: 3%. Consumers: 61% Female, 39% Male. Excise Duty highest in Europe at 3.19 per 9 bottle. Ireland has long been a country of interest to a. hartrodt and in late 2015 the company opened its own office in the centre of Dublin City. The company operates throughout the island and provides an extensive range of services to industry including sea freight, air freight, European groupage, LCL, warehousing, bulk, customs brokerage as well as access to the a. hartrodt global network of facilities and local expertise. If you have any further questions please do not hesitate to contact our colleagues in Dublin! Mr. Gerard Kiernan National Sales Manager Phone (+353 1) gerard.kiernan@hartrodt.com The a. hartrodt team in Ireland looks forward servicing you!

5 Customer corner advertise your products or services here! Are you looking for new distributors? Or would you like to import a new product? food & beverage logistics is happy to help you. Just get in contact with your local sales representative and provide the most important information about your business and what you are looking for. We will publish an advertisement in our customer corner. The food & beverage logistics newsletter will be distributed to customers and colleagues around the world! Don't miss this great opportunity! SANTE A. Kowalski Sp.j. is a leading Polish producer of functional food and breakfast products. In our offer, you can find breakfast muesli/crunchy/granola, muesli bars, cookies, superfood and many other fine products. All our products are produced with utmost attention to the quality and taste (BRC certificate included). At the moment we are looking for a reliable Partner for importing and developing Sante branded products. Full portfolio of our fine products you can find on our website Contact person: Magdalena Krajewska, mkrajewska@sante.pl, Mobile: a. hartrodt Peru at FRUIT LOGISTICA in Germany a real success Our Peruvian office had a booth inside the Peruvian Pavilion recently at Fruit Logistica trade fair in Germany. Receiving the visits of importers and key players of this growing business. 2,884 exhibitors and 75,000 visitors attend FRUIT LOGISTICA every year to realise their full business potential within the international fresh produce. This year, a. hartrodt group was greatly represented in the Peruvian pavilion in Berlin. Many new international contacts were made, interesting talks and not to mention they had the opportunity to meet their existing customers. Our expectations of the fair had been fully achieved. From left: Nicky Corrochano (Managing Director AH Peru), Jessica Valladares, Chris Vargas, Andreas Wenzel (Managing Partner), Willem van der Schalk (CEO AH Germany) Save the date: Did you miss the exhibition this year? You still have the chance to participate in the next edition of ASIA FRUIT LOGISTICA that will be held from 6-8 September 2017 in Hong Kong. Or come to Berlin next year: FRUIT LOGISTICA 2018, 7-9 February

6 Wine of the quarter Our new series a. hartrodt italiana proudly announces a new periodical release called the wine of the quarter to be published on this newsletter. As we all know, Italian wines are very successfully exported to many countries. We are talking about hundreds of wines and grapes. At the moment, there are about 350 official Italian wine varieties. According to unofficial counts, there are over 2,000 different Italian grapes, but this might be a bit of an exaggeration something Italians can do well too! On quarterly basis, we will prepare a snapshot analysis of a specific wine. We will try to give a wide coverage of the production regions, from the North to the South passing through the Center of Italy. We will review not only the best known wines, but also a few which may not be too famous but are nonetheless excellent products. If you have any request or suggestion please feel free to let us know and we will do our best to accommodate your wishes. To start with, please find below a synthetic map of the Italian wine regions and major wine varieties. Learn about the 20 Italian wine regions and which ones to try first when delving into this wonderful product. Enjoy! Virgilio Gazzolo & Marco Piccicacco food & beverage sales force, Italy If you have any further questions please do not hesitate to contact our colleagues in Italy! Mr. Virgilio Gazzolo General Manager Marketing & Sales Italy Phone ( ) virgilio.gazzolo@hartrodt.com Mr. Marco Piccicacco Sales Executive Italy/Genova Phone ( ) marco.piccicacco@hartrodt.com Source: winefolly.com/review/italian-wine-regions-map