Replies to post #68028 on California Grapes International, Inc (CAGR)

[dh30067]

It's in the 2011 year end financial statement page 4.

The efforts to date by the various export brokers, wineries and direct buyers from China result in wine being offered to the consumers with 300-500% markups above US retail and it is not uncommon to see a $2 bottle of wine being sold for $30 in China.

BTW, a $2 bottle selling for $30 is a 1400% markup.

CAGR's markup is currently less than 20%.

Please show us where CAGR "advertised" a 300% profit margin. I don't believe I have ever seen that. Thanks in advance.

[dh30067]

Also from page 4 of the 2011 year end financial statement.

"As you can see...", sorry but all I see are 17% margins and no it didn't cover "operation, logistics and marketing".

With the ability to engage and influence direct consumers with an internationally accepted product like wine, we can now look at the value of CA Wine in the Chinese market. With over 3,000 wineries in CA and over 70% of those being “boutique” producers of 30k cases or less a year, the average retail price is between $15-$25 USD per bottle. “CGI” averages a cost of 50% or better with the purchase price and an in-market average resale price between $25-$35 USD per bottle. As you can see there is a good amount of margin to cover operations, logistics, marketing and sales on every bottle sold.

[pantherj]

Oh, good grief. Just read the year end report!