International Trade

© Daniel Workman

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Aug 20, 2008

Olympics Boost Chinese Beer Sales

Posted by Feature Writer Daniel Workman

China's largest brewery increases beer sales by 16% principally due to global brand marketing arising from sponsorship of this summer's Olympic Games.


What better way to advertise your beer brands than to sponsor China's breakout sports spectacle, broadcast daily around the world via Internet and high-definition television?

Millions of younger Chinese drinkers in the domestic market are developing a brand loyalty to Tsingtao beers. Imagine how many are lifting a Tsingtao beer to celebrate winning Chinese Olympic competitors, from on the trampoline to the diving board.

Headquartered in the eastern Chinese city of Qingdoa, Tsingtao is leveraging publicity from its sponsorship of the Beijing Olympics to grow its beer sales. Tsingtao has spent US$386 million on Olympic-centered promotions of its ales.

The payoff has been a US$146 million gain in company revenues for the first 6 months of 2008, now at $1.2 billion up 16% from $995 million from the same period in 2007.

Long-term sales gains are the main objective of the Olympic advertising. Anheuser-Busch owns 27% of Tsingtao, and in turn is the target of a mammoth takeover from InBev.

Tsingtao beer may soon win a gold medal in sales on international trade markets.
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Aug 15, 2008

International Trade Audience

Posted by Feature Writer Daniel Workman

Statistics show that most visitors to our international trade articles are business researchers, followed by students and educators. But what about online shoppers?


Central to writing successful articles on global trade is an understanding of the audience. After all, the audience decides the success of any published work, whether online or hardcopy.

In the case of our international trade articles, it is important to look at both where our online readers are located, who they are and what they are looking for.

Where Our Online Audience Is Located

Based on overall website traffic statistics for Suite101.com from alexa.com, we can make some general assumptions about viewer locations for our international trade articles.

  1. United States ... 57% of all Suite101.com online visitors
  2. India ... 6.8%
  3. United Kingdom ... 5.8%
  4. Canada ... 4.6%
  5. Australia ... 2.6%
  6. China ... 1.9%
  7. South Africa ... 1.5%.
Given that almost two-thirds of our audience is from the U.S., you can understand why we use American spelling rather than Canadian. We also focus on American exports and imports more than any other country, even though Daniel Workman is proudly Canadian.

Our Online Audience Segments

We carefully studied the keywords that audience members used to find our most popular online articles. Below is the audience profile that we developed.

  1. Business Researchers ... 55% of international trade article viewers
  2. Students ... 30%
  3. Educators ... 10%
  4. Online Shoppers ... 5%.
What Our Audience Wants

Most of our viewers are researching international trade information either from a business or educational perspective. Ironically, our smallest segment Online Shoppers offers the most promise.

Webpronews.com reports that in 2007 e-commerce sales over the Internet continued to grow over 70% annually. Today, global online shopping generates over US$100 billion in sales.

By 2012, 37% of music sales will be made via the Web while over 50% of consumer electronic purchases will be completed online.

Guess which topic areas we will be covering in our upcoming International Trade articles?
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Aug 10, 2008

Oil Prices Down For Now

Posted by Feature Writer Daniel Workman

Some analysts point to high oil prices pushing energy companies to pump out more petroleum, but oil reserves are finite.


Developing countries led by China and India have 2% driving automobiles, while 14% of Brazilians drive. That compares with 80% in more developed economies like the United States and Canada.

Therefore, demand for fossil fuels is expected to increase substantially as the number of drivers in developing nations accelerates. No one expects alternative energy sources like ethynol, solar, electricity or wind to replace oil and gas to fuel vehicles - at least not any time soon.

Petrobras de Brasilia has budgeted US$250 million to develop oil properties, many of which are offshore.

The problem is that the world economy will need millions of barrels of oil to keep up with accelerating demand. The marginal cost to extract millions of barrels of oil is estimated to be at least $100 per barrel, principally because reserves are located so far below the surface and therefore difficult to pump out.

Yes, oil prices are down because as the slowing U.S. economy is pulling down demand for oil and gas in the short-term. But we shouldn't fixate on short-term fluctations in demand.

The geophysical fact is total oil reserves around the world are limited. Particularly in emerging industrial powerhouses like China and India, long-term demand for oil will be back in a big way. Oil prices will go back up.

The same analysts pointing to the temporary pullback in petroleum demand will lead the chorus screaming for alternative energy including uranium.
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Jul 30, 2008

International Trade Article Visits

Posted by Feature Writer Daniel Workman

Studies show that people using search engines quickly look for answers to specific questions and will leave if not found within a couple of seconds.


Actually, most search engine users will leave a page if they can't find what they're looking for within a second.

Some searchers may stay for up to 10 seconds. But the point is that articles published on the Internet must be highly focused, concise and structured to present essential information where it can be immediately found by the audience.

That's why International Trade articles include a heading that strives to answer questions asked by users with a pressing need to know from around the world. Subheading further focus on questions closely related to the article's main point.

Where possible, we include lists that enable viewers to quickly scan for the keywords or statistics they need.

Online article writing is much different from penning articles for traditional hardcopy forms of journalism. We need to be blunt, not witty.

For example, which title do you think more closely reflects what users will enter into a search engine: Brazil's Trade Buddies or Brazil's Trade Partners? Sure "buddies" is cuter and maybe shows more personality. But statistics show that researchers around the world are far more likely to enter "Brazil's Trade Partners" into a search engine simply because it more accurately and intuitively reflects what they are looking for at that moment.

Highly focused, keyword-rich articles also facilitates companion Google display ads that more accurately reflect the content of the article. Just as important is the fact that the displayed information is more pertinent to what the audience is looking for.
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Jul 24, 2008

American Chocolate Consumption

Posted by Feature Writer Daniel Workman

Britain consumes almost twice as much chocolate as the United States, although tAmerica exports much more chocolate than all of the United Kingdom.


Nicole Weston of Slashfood.com reports that, on average, Brits eat 22 pounds of chocolate contrasted with 12 pounds for Americans. Both nations prefer milk chocolate, although dark chocolate is making progress given increased awareness of dark chocolate health benefits.

Countries Where Chocolate Is Most Popular

Below is a list of top consuming chocolate countries in 2004.

  • Britain ... 22 pounds of chocolate per person
  • Germany ... 17.8 pounds
  • France ... 15 pounds
  • United States ... 12 pounds
  • Spain ... 8.5 pounds
  • Italy ... 4.8 pounds.
According to the Food and Agricultural Organization of the United Nations (FAO), the following shows the top chocolate exporting countries in 2004.

  • Germany ... US$1.9 billion in chocolate exports
  • Belgium ... $1.7 billion
  • France ... $1 billion
  • Netherlands ... $853 million
  • Canada ... $726 million
  • Italy ... $596 million
  • United States ... $560 million
  • United Kingdom ... $498 million.
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Jul 12, 2008

Canadian Online Banking

Posted by Feature Writer Daniel Workman

Canadians rank first in online banking according to global Internet survey for 37 countries.


Worldwide Internet information consultant Comscore Media Metrix revealed that 67.1% of Canadians did their banking online in April 2008, far ahead of the United Kingdom (49.5%) and the United States (44.4%).

Comscore president Brent Bernie notes that the world-class Canadian banking system is so developed and competition is so fierce that Canadian banks must meet the needs of consumers online to grow their banking business.

In fact, online banking in Canada is a must for even the largest bank's survival over the longer term.

Royal Bank Financial's website had 4.6 million visitors in April 2008 (down 2% from April 2007), the most of any Canadian bank. A close second, TD Canada Trust had 4.5 million online customers (up 2%).

The study shows an ongoing re-engineering of how Canadians do business. While bricks-and-mortar banking services are still important, the future of Canadian marketing and business transactions clearly lies on the Web.

This is even more true of international trade. A click of a mouse button will soon become the most common method to source products and sell merchandise from around the world.
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Jul 6, 2008

Ontario Beer Distribution Channels

Posted by Feature Writer Daniel Workman

Smaller Canadian brewers have little chance promoting their brews when faced with leading global brands.


Several years back, Brick Brewery Company had a chance to own a part of the Beer Store, one of the premier retail channels for selling suds to Ontario drinkers. Brick declined, partially because no dividend payment was part of the deal.

Now a small brewer like Brick is having great difficulty getting their products on the shelves of one of Canada's largest chain of beer stores.

Instead, the 3 large multinationals that own the Beer Store dominate the ad space and shelf space. Those huge companies are:

  • Labatt's owned by InBev, the world's largest beer company by volume
  • Molson Coors
  • Sappolo out of Japan.
Those huge multinationals have multimillion dollar advertising budgets. As a result,, consumers are much more familiar with Labatt's, Molson and even Sappolo brands. Going into the Beer Store, guess which case of beer drinkers will ask for?

Looking around and only seeing poster-sized ads for the huge beer brands and only those beers on the shelf, a small independent brewer like Brick has no chance.

In international trade, distribution channels are sometimes more important than the product itself.
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Jun 30, 2008

Canadian Internet Ads Boom

Posted by Feature Writer Daniel Workman

In Canada, Web-based marketing continues to grow faster than any other segment.


Being an online Feature Writer at Suite101.com isn't a quick way to get rich. But it is encouraging to see that Internet marketing is enjoying healthy sales increases as more people around the world get connected to the Web.

According to PriceWaterhouseCooper (PwC), Web-based advertising in Canada will soar 21.1% compounded annually to $3.4 billion in 4 years. Toronto Star Business reporter Rita Trichur recently quoted PwC director Jerry Brown as identifying the following 3 fastest-growing drivers for online marketing:

  • Keyword searches
  • Classified advertising
  • Online video advertising (full-motion video ads shown on the Internet).
Traditional media advertising like newspaper classifieds are expected to grow at a slower pace of less than 10%. Even then, digital advertising is expected to fuel much of those gains.

Still, the older generation age 50 and over will still demand the older forms of media to which they become accustomed.

Hopefully, more young and old Web researchers will find their way to our International Trade articles to find immediate answers to the questions for which they want answers.
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Jun 26, 2008

Canadian Food Exports Profit

Posted by Feature Writer Daniel Workman

Countries around the world are hungry for more Canadian food exports while Canadians pay moderately more for imported food.


Paul Waldie of Toronto's Globe and Mail points out that 80% of Canadian wheat is exported. So far this year wheat prices have increased by 50%, a trend that benefits Canada as one of the world's leading wheat producing countries.

Revenues from Canadian agricultural exports continue to hit all-time highs on the way to a record US$11-billion trade surplus this year.

At the same time, Canadians have experienced price increases for food imports, but not as high as those experienced in other countries.

Statistics Canada reports that Canadians paid an average of just 1.2% more for food during the 12 months ending April 30. That rise is 5 times lower than food price increases in America and 6 times lower than in Europe.

The world's most heavily populated country China has experienced a 22% increase in food prices.

So while Canadians are paying about 10% more for cereals and breads due to higher grain prices, cereals and breads represent just 12% of total Canadian food purchases. More meats, fruits and vegetables show up on Canadian food bills, and prices for those products have fallen. Why? Because a strong Canadian dollar has reduced imported vegetable costs by 13% and imported fruit prices by 4%. About 40% of vegetables and fruits that Canadians consume are imported.

Oil comprises only 5% of food prices, so any energy cost pressures are expected to be moderate.

Besides, Canadians are in the enviable position of being able to substitute different foods like potatoes should rice prices multiply. Populations in other countries depend on rice to survive, and therefore suffer the most as Canada's food exports continue to profit.
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Jun 19, 2008

Canada Imports More Alcohol

Posted by Feature Writer Daniel Workman

Statistics Canada reports that in 2007 imports generated 75% of red wine sales, 60% for white wine, 30% for spirits and 11.4% for beer.


Last year, Canadians drank US$18 billion worth of beer, wine and spirits. That amounts to a 4.9% gain over 2006.

Canadian beer drinking continues to slow, although sales of imported brands did grow faster than Canadian-made brews last year. Overall, Canadian purchases of beer rose 2% in 2007 - the slowest of any alcoholic beverage category. Imported beers now represent 11.4% of Canadian beer sales, twice the Canadian beer market share 10 years ago.

Wine sales to Canadians moved ahead 9.5%. Red wines now account for 61% of Canadian sales. Wine imports dominate 75% of Canadian red wine and 60% of white wine sales, respectively.

Statistics Canada also revealed that sales of spirits rose 5.8% in 2007. Up 10%, vodka was the fastest-growing spirit last year. While imported spirits garner less than 30% of the Canadian spirits market, foreign spirit brands are growing their sales faster than Canadian-made products. Whisky, scotch and bourbon remain the most popular hard liquors in Canada.

So why do imported alcoholic beverages led Canadian alcohol sales? We should consider the following trends.

  1. A compelling trend towards drinking more red wine in Canada, particularly more expensive brands of imported red wine
  2. A 1.5% population increase in Canadians over age 15
  3. More sales of premium alcohol combined with a 0.9% rise in alcoholic beverage prices
  4. Overall, Canadians spent 3.1% more on alcohol last year.
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