Best Practices on

financing a generic

organisation

TARIJA,

3 April 2013

Generics in the world

Wines of Chile

Wines of Argentina

NZ Winegrowers

Wines of SouthAfrica

WineInstituteof California

Wines of Uruguay

Employees 9 10 18 11 30 2+2pt

Countries 5 6 4 6 17 1

Funded by 75% vol/ user pays25% state

50% state50% CoviarUser pays

Levy€c1.25/lit€c0.75/kg

95% levyRc7/lbRc5/lit

Levy bysizeUS Ag dept

Levy+60% INAVI

Budget $5m $4.5m €1.725m R27m n.d. $0.4m

Exports $1.256b $800m €400m R5b $951m

Top-3 USAUKCanada

USAUKCanada

UKUSACanada

UKGERNL

EUCanadaJapan

UKUSAGER

Events >100 >100 100 >300 >100 30

Scenarios: Financing Wines of Bolivia: basic assumptions

VCA:

-size main producers

-average yield per ha = 75hl

-wine and singani

Exports:

-no exports in Year 1

-will gradually grow to 10-25% by 2017, depending on ambitionper participant

Centre for the Promotion of Imports from developingcountries | April 3-4, 2013

3

Scenarios: Financing Wines of Bolivia

Category Size (in hl) Fijo ($1/hl) Variable ($10/hl exported)

A 10-1000 $1,000 10% x exports

B 1001-5000 $5,000 10% x exports

C 5001-10,000 $10,000 10% x exports

D 10,001-30,000 $30,000 10% x exports

E 30,001-adelante $50,000 10% x exports

Scenarios: Financing Wines of Bolivia

Centre for the Promotion of Imports from developing countries | May 27, 2010

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Category Company(based on 75hl/ha VCA)

ContributingYear 1

Contributing at 10% exporting

A (10-1000) -Uvairenda (375hl)-Sausini (450hl)

-Bodegas Magnus (750hl)

$1,000 10%-25%

B (1001-5000)

-Casa Grande (2,250hl?) $5,000 10-25%

C (5001-10,000)

-Concepcíon (4,000hl wine) + (5,000hl singani)

-Kuhlmann (10,000hl singani)

$10,000 10-25%

D (10,001-30,000)

-Campos de Solana(12,000hl)

-Kohlberg (13,875hl?) -Aranjuez (15,000hl)-Casa Real (20,000hl)

$30,000 10-25%

E

Scenarios: Financing Wines of Bolivia

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Category Fijo Ultimately Variable Companies

A $3,000 $ 3

B $5,000 $ 1

C $20,000 $ 2

D $120,000 $ 4

Total $148,000 $17,320 8

Scenarios: Financing Wines of Bolivia: basic decision making

FIJO contribution per category:

-is $1/hl acceptable?

Variable contribution for exported wine per category:

-is $10/exported hl acceptable?

Centre for the Promotion of Imports from developingcountries | April 3-4, 2013

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