Jump to content
ADI Forums
Napa Valley Distillery

DUTY FREE SHOPS

Recommended Posts

Does anyone here have experience working with Duty Free shops or have any knowledge about how they work in terms of purchasing? I've been to many duty free shops and most of the spirits products I've seen can be found just about anywhere. Nothing really "hard to find" or unique. A specific question I have is for instance.... if a California licensed producer sells to a Duty Free shop in New York or Nevada, does the product need to be registered in that state or is there some sort of "duty Free" provision that prevents the need to register in that state?

Share this post


Link to post
Share on other sites

Also I've noticed that many duty-free shops seem to have slightly non-standard products or packaging - for instance offering only 1L bottles instead of the more typical 750mL bottles. It has always been my theory that they do this to make you think you're getting a better bargain than you really are. In any case, my add-on to the original question is whether you would have to do some sort of differentiated product/packaging in order to sell in Duty Free shops?

Share this post


Link to post
Share on other sites

We have explored this option and decided our production could not stand the hit and allow us to keep our regular customers supplied. The Duty Free shops are high volume (depending upon the location) and the vendors expect serious discounts for the product, deeper than a national distributor would require. It is a lucrative market if you can get in and keep up.

Duty Free shops are typical operated by independent companies who pay a percentage of their gross to the airport management company, sometimes as high as 60%. The Duty Free shop is typically in a "Duty Free" zone and is therefore considered "export". No State or Federal excise taxes are paid on exported goods. Check first before you start selling and claiming export since there are rules to follow on reporting export sales (not to mention paperwork).

R

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×