Terminology

Question 1

What does Wholesale mean?

Answer 1

Wholesale means the selling of wine in large quantities and at low prices to be sold to retailers.

Question 2

What does WET stand for? What does it mean?

Answer 2

WET stands for Wine Equalisation Tax.

Question 3

What does LUC stand for? What does it mean?

Answer 3

LUC stands for Landed Unit Cost. Retail term for what you (the seller) have paid for selling it. This includes the bottle, wholesale and the tax payed.

Question 4

What is a Distributor/Agent and what role do they play in Wine Marketing?

Answer 4

A Distributor/Agent help get the wine to the consumers through a distribution system. Charge fees for service which then adds on to the LUC.

Question 5

What does On/Off Premise mean?

Answer 5

On Premise means

Question 6

What does Direct Marketing mean?

Answer 6

Direct Marketing is going directly from the producer to the consumer. It avoids the role of the agent

Question 7

What does Cleanskin mean?

Answer 7

Cleanskins are bottles of wine with no label. Cannot be traded legally. Cleanskins do not have any information on allergens, additives, and health concerns, therefore are illegal to distribute.

Question 8

What does ‘Own label Brand/Buyers own Brand’ mean?

Answer 8

Own label Brand means big companies such as Coles, Woolworths and Aldi which have their own brands of wine