Say it isn’t so…

Two news items that caught my eye recently and just in case you haven’t seen them here they are. Both were reported in Mark Brown’s newsletter.

Southern Wine alcohol distributor seeks loans of $2 billion

Source: The Associated Press

Not even the alcohol distributors are immune from the national financial crisis.

Southern Wine & Spirits of America Inc. is seeking $2 billion in loans to refinance existing debt. The Miami-based distributor is the largest in the United States.

Bank of America Corp. is arranging a $1 billion revolving credit line and a $1 billion term loan, a source said. Both loans will mature in five years.

Budweiser’s Clydesdales now come clopping at a cost

Source: USA Today

The Budweiser Clydesdales are still available for appearances … at a cost.

The St. Louis Post-Dispatch reported Monday that Anheuser-Busch has quietly begun charging $2,000-per-day for Clydesdale appearances, ending the brewery’s long practice of absorbing nearly all of the cost of showcasing the iconic horses.

The brewery says the fee helps to offset the $8,000-per-day cost of putting a hitch team on the road. Until now, event organizers or beer wholesalers were asked to pay nominal costs for stabling and feed.

It’s tough out there…

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No extra charge

Gregg Mineo sent me the following story about Sabra Liqueur. It was originally developed and introduced in 1963 by  Edgar Sr. Currently it’s produced by Carmel wineries, I believe.

Back in the days of the Seagram Empire, before the industry centralized and contracted, there were small companies like Park Avenue Imports.  They sold cordials and niche products like Vandermint, Cherry Suisse and, of course, the inimitable Sabra.

Sabra was a quality product, made from Jaffa oranges and Swiss chocolate.  It was packaged in a unique bottle similar to a Genie bottle, but unfortunately didn’t have a long shelf life.  I think in my early days of sampling Sabra, I gave more away than I sold.  It was a hit in assisted living care facilities, and of course Miami.

Well, as the story goes, one of the established retailers in Miami started selling Sabra at a brisk pace, and developed a loyal following, especially with a particular gentleman who was buying a bottle once a month.  He began buying it before the brand took off in this store, and one day came back to return one of the bottles he purchased.  He complained that this bottle of Sabra was not the same product he was used to, that it lacked something special he really enjoyed.

The retailer asked what the difference was, and the customer responded that “it didn’t have the chocolate bits in it.”

Stifling a laugh, the retailer offered him something else; all the while knowing that the bottles of Sabra the customer was used to had passed the expected shelf life. Obviously, the customer didn’t care.

What I want to know is — were the chocolate bits available at no extra charge?

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Where’s the alcohol section?

The late Bob Dubin once told me a story about the folks he had to deal with at Allied Domecq.

It seems they weren’t very happy with the way their brands were being run in the States (New York in particular) and one of their top ranking marketing people was coming over for a series of meetings to get to the reasons behind the poor performance.

A senior member of the NY sales team met the executive at the airport when he came through customs. He ushered him to his car and told him that the plan for the first day was to bring him to the hotel, get settled and then they would tour the market.

“I hope to see stores as they really are and not have one of your set up visits,” said the marketing guy. To which the sales person replied, “any store you like…you’re staying in Manhattan so lets start there. You choose.”

A few minutes went by and the visitor exclaimed that he needed to go to a drug store right away. “Please find one close by.”

Thinking that he must have had a headache or some other physical ailment from the flight, the salesman pulled off the expressway and stopped at the first drug chain store he saw.

He was gone for about 10 minutes then came storming out, got back in the car and complained loudly and bitterly that he had looked all over the store and couldn’t find any of their brands.

The salesman patiently explained that in NY, the sale of alcohol was not allowed in drugstores.

“But it is allowed in other states isn’t it?”

“Yes, in a few states” said the salesman.

“So, if you and your associates weren’t so damn lazy, you’d get the law changed, wouldn’t you?”

The salesman didn’t bother to explain.

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