DIDIER ARNAUD
April 14th, 2010
UPS Headquarters
16th Annual Georgia Tech Global Business Forum
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Franchise beverage company created in 1965,
headquartered in Atlanta, owned by its
management
Offices in Paris, Sao Paulo, Buenos Aires,
Singapore, Bamako (Mali)
Lean structure with high level, independent
minded staff / management – only 2 team
members out of 12 dedicated to
administrative tasks – and 7 nationalities!
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Selling flavor concentrates and energy drinks, and
franchising soft drink brands to local independent
bottlers across the world who do not belong to the
Coke or PepsiCo system.
Monarch works with bottlers, distributors and retailers
to market a wide range of branded and custom
beverage products. Monarch operates in 33 countries.
Monarch holds registered trademarks, licenses and
trade secrets that give it a competitive edge in markets
around the globe.
Market and competitive environment
 Choosing the right partners
 Protecting your business
 Regulations
 Logistic
 Be flexible and have the right staff
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Monarch only competes in markets where
there is only one of the top 2 beverage
companies. Top markets for Monarch: Bolivia,
Malaysia, Angola, Bangladesh, West Africa…
Do not hesitate to target second tier markets:
it is often better to be big in smaller markets
than small in big markets.
91% of Monarch business is in developing
countries – but an attempt to get in China
resulted in big losses…
16th Annual Georgia Tech Global Business Forum
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Exporting is a tough business if you don’t
have the right partner, this is a key element
to your success so take your time to make the
right choice
If unsure of your future partner’s potential,
include your expectations in your contract:
minimum quantities, quality requirements…
Monarch often experienced failed
partnerships, but failure is part of the
process; just keep trying!
16th Annual Georgia Tech Global Business Forum
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Make sure your IP is protected; trademarks
and other intellectual property can take years
to be registered. Start the process early
through an IP firm you can trust.
Have a lawyer draft a contract that you can
use as a base for all future negotiations.
Do not accept litigation clause in market
where reliable legal system is not in place.
Get paid by Letter of Credit of cash in
advance; at least for initial order.
16th Annual Georgia Tech Global Business Forum
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For some industries, this is a moving target;
many countries have inefficient regulatory
bodies.
Use local partner to assist in the process,
chances are they have experience in dealing
with them (but control the process).
Even if you think everything is OK, ship a
small quantity of product to test the custom
clearance process.
Case in point: Rush! Energy in Morocco.
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Make sure to have a freight forwarding
company you can trust for your shipments.
Understand what it will take to move your
cargo from the U.S. to your target market;
maybe your product is hazardous and you
will need a special license!
Before you export you should know what the
duties will be upon arrival; your partner /
customer should know too since they will
have to pay them.
16th Annual Georgia Tech Global Business Forum
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Insure your cargo, or better, use incoterms
that moves ownership / responsibility to
buyer from plant or port.
Manage supply chain based on target market
and expected quantities. Monarch ships full
containers from the U.S. to South America
and Africa, but pallet orders from China
contractor plant for South-East Asia markets.
16th Annual Georgia Tech Global Business Forum
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You have a competence, or a recognized
name in your industry, and you are an
American company: that in itself is a selling
point!
Respect cultural differences: nobody expects
you to blend in, but nobody likes to be told
what to do.
Be flexible in your selling proposal; Monarch
offers a choice of flavors under one name to
adapt to local tastes.
16th Annual Georgia Tech Global Business Forum
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A bottler sells Pepsi products but for one
Monarch brand (Nesbitt’s); despite the low
level of business, Monarch kept a close
contact with bottler.
When PepsiCo decided to stop producing
locally, Monarch offered the bottler its
portfolio of brands: American Cola, Bubble
Up, Kickapoo, and 5 new flavors of Nesbitt’s.
Monarch’s business in Aruba doubled in 2009
and is expected to double again in 2010.
16th Annual Georgia Tech Global Business Forum
16th Annual Georgia Tech Global Business Forum
Contact Info:
Didier Arnaud
(t) 404.262.4021
(e) darnaud@monarchbeverages.com
www.monarchbeverages.com
16th Annual Georgia Tech Global Business Forum