Overview

Provided as one of the many great tools available through the Growing Wine Exports program, the FOB to Retail Calculator allows users to calculate what the bottle price will be on shelf (the RRP) in international markets for a given FOB value, and thereby assess and evaluate competitors in market through price point comparison. All you need to know is your FOB cost in Australian dollars.

About the tool

The FOB to Retail Calculator has been developed in Microsoft Excel. You will need to have Excel installed on your computer to use the tool.

There are separate calculators for a number of key markets on different tabs of the spreadsheet:

• Exchange rate sensitivity calculator – assists in determining how your FOB will change depending on the exchange rate
• China FOB to RRP model
• EU FOB to RRP model
• Hong Kong FOB to RRP model
• Taiwan FOB to RRP model
• India FOB to RRP model
• Japan FOB to RRP model
• Singapore FOB to RRP model
• South Korea FOB to RRP model
• Thailand FOB to RRP model
• United Kingdom FOB to RRP model
• USA FOB to RRP model
• New Zealand FOB to RRP model
• LCBO Wine Pricing Calculator – estimate the costs of getting through the Liquor Control Board of Ontario
• Nordics Pricing Structure – an additional tool that examines the pricing structures and strategies for the Norwegian, Finnish and Swedish export markets.

Note: when opening the Excel file, there may be a slight delay in using the tool as the exchange rates are updated through a live link.

Calculating FOB

Free on board (FOB) is the wine price that includes all costs up to being lifted onto a ship. To calculate FOB: add the ex-winery price, the delivery-to-port and ready-for-export costs such as documentation and the consolidated loading and transport costs from winery to port. The ex-winery price must be sufficient to deliver the desired profitability. Included in the costs should be some allowance for risks (i.e. exchange rates etc).

How to use the tool

For instructions on how to use the FOB to Retail Calculator, check out the ‘How to’ video below.

Any questions on the FOB to Retail Calculator can be emailed to market.insights@wineaustralia.com.

To learn more about how to export, visit the Wine Export Ready Hub page on our website.