March, 2011 | Booze Business: A Blog Dedicated to the Business of Spirits and Wine

The WSWA

March 11, 2011 No Comments

And now, on to the foremost industry show of the year, at least in my opinion. The Wine and Spirits Wholesalers of America (WSWA) 68^th annual convention is in Orlando at the beginning of April. Once upon a time this was a key meeting point between suppliers and wholesalers. Speakers, exhibitors, award presentations were all a sideshow to the supplier-wholesaler hospitality suite meetings and dinners. Brands and lines were awarded and lost at this event. Friendships were made and solidified. Animosities were seeded and blossomed. All in all, it was one of the events that drove the business.

But there may be problems this year.

Last week, Wine and Spirits Daily reported as follows:

“WSD had heard rumblings that some DISCUS members will not be attending the WSWA’s annual convention this year. Initially we supposed this was due to disagreements over the CARE Act, but a number of distiller sources we have spoken to say the issues are unrelated and that it is a commercial decision.”

A commercial decision? WSD closed the piece with:

“Our conclusion? While we don’t doubt DISCUS’ reasoning for bowing out, it’s likely that disagreements over the CARE Act sped up the process.”

Ah, the CARE Act (aka H.R. 5034) – let me see if I can simplify the issue.

The CARE Act aims to clarify that states have primary authority to regulate alcohol. I can go on and on with details about letters to congress, lobbying rationales, assorted fine print gobbledygook and each side’s arguments and counter arguments. But it’s simple — the wholesalers want to protect and solidify the three-tier system and the suppliers want to make inroads and cause some erosion.

So, back to the WSWA –

I don’t believe the attendance will be down. I also don’t buy the argument that “we see the wholesalers on a frequent basis already so why go to the event?” Because, it’s called relationship building. Because, the size of the line alone is not the answer for “winning the hearts and minds” of distributors and their salespeople.

As for the wholesalers, if the big boys don’t show in the same numbers as in the past, perhaps they will spend more time in the exhibit area and get to know the smaller suppliers and the new brands and players that may become the powerhouses of the future.

It’s fascinating to see each of the oligopolies battle each other. I guess it’s called the “irresistible force” meets the “immovable object.”

Trade Shows

March 7, 2011 No Comments

The Nightclub and Bar Show opens this week in Las Vegas. It’s considered by many to be the foremost trade (on premise) show in the business. That is, for those who can recollect what transpired while they were at the show.

Seriously, my own experiences with the show have been good. From a supplier’s standpoint, it’s an opportunity to showcase new products, new drinks and other innovations. It’s also a chance to see and mingle with the trade and get a first hand sense of the state of the bar business and what’s on their mind.

So, a supplier’s presence among the nation’s bar and nightclub owners and managers is a bit like chicken soup – it may not help the business but it certainly won’t hurt. There’s much to be said for a presence at this event. Probably explains why there are more large suppliers there this year.

In any event it’s “Vegas,baby.”

Which brings me to a show I attended last week at the Javits Center in NYC, The 3^rd Annual New York Wine Expo. It’s a wine tasting event for consumers who paid roughly $75 for admission, less with a discount. Regardless of what they spent, all attendees were determined to get their money’s worth in sips.

I’m amazed that it survived the first 2 years. Consumers, who staggered from exhibitor to exhibitor, seemed less interested in learning about the wines shown than in comparing the alcohol effects from one country to another. So I couldn’t understand why the wines bothered to exhibit. “It’s about the last day and the trade,” one exhibitor told me. So I went on the last day and to my surprise, it seemed like some business was being done. Lesson learned for me – only go to trade shows.

Next posting: The Wine and Spirits Wholesalers of America (WSWA) convention. Any stories to share?

In the News….

March 1, 2011 No Comments

In my never-ending desire to bring items of interest to the attention of my readers (all 3 of you), here are a few things I came across in the news about the industry.

From Mark Brown’s Buffalo Trace Newsletter….

Former ‘MADD’ Chapter President Busted for DUI

Source: KTLA, February 25, 2011

The former president of a Gainesville, Fla. chapter of Mothers Against Drunk Driving, or MADD, is facing DUI charges, according to the Gainesville Sun.

48-year-old Debra Oberlin was pulled over last week after officers reportedly spotted her driving erratically.

She blew a .234 and a .239 on a pair of breathalyzer tests, the Sun reports, well over Florida’s .08 legal limit.

Oberlin apparently told officers she’d had four beers.

Oberlin has not commented.

She was the president of Gainesville’s MADD chapter for three years. The chapter closed in 1996 due to a lack of funds.

All I care to say is that 3 times over the limit on 4 beers? I’ll leave the other punch lines to you.

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From boozenews.com (no relation)….

A Tangle of Corkage Laws Around The Nation

Virginia and Maryland debate whether to overturn bans on restaurant BYO; a Wine Spectator survey finds laws around the country remain a confusing tangle.

As more Americans drink wine regularly with meals, more are asking their favorite restaurants that perennial question: Can I bring my own bottle? Like most practices created in the aftermath of Prohibition, corkage laws are a jigsaw puzzle of arcane, contradictory and confusing rules that vary from state to state and even from town to town. But whether they call it “corkage,” “BYOB” or “brown-bagging,” most wine drinkers want the freedom to bring a bottle of wine from their personal collection into a restaurant.

This year, some states with longstanding corkage bans have begun to reconsider. Last week the Virginia state Senate passed a bill allowing corkage; the House is voting on it today. Groups in Maryland are pushing to end their state’s ban as well.

A Wine Spectator survey of all 50 states, plus the District of Columbia and Puerto Rico, found that 25 of these allow corkage in restaurants with a license to sell wine; some also permit the practice in unlicensed restaurants, though individual municipalities—and, of course, individual restaurants—can often elect to outlaw or limit the practice. Fifteen states forbid corkage outright, and an additional 12 have more convoluted regulations.

Everyone clear on these rules and regulations?

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And, finally, Mike Bacco brought this to my attention….

Coke to ramp up Seagram’s distribution

Atlanta Business Chronicle, February 28, 2011

The Coca-Cola Co. is looking to capitalize on a partnership with Seagram’s made back in 2002.

Atlanta-based Coca-Cola (NYSE: KO) said it is expanding availability for the full line of Seagram’s Ginger Ale and mixers across the country. Coca-Cola gained the rights to the Seagram’s business in 2002, but distribution for Seagram’s brands has been limited within the Coca-Cola system. Now, Coca-Cola Refreshments and other bottlers are combining the Seagram’s brand with the Coca-Cola distribution system to boost availability of Seagram’s Ginger Ale, Club Soda, Seltzer and Tonic Water in retail outlets.

See…brands do have a life of their own. I guess after nearly 10 years they thought it was a safe thing to do.