Industry Matters/News | Booze Business: A Blog Dedicated to the Business of Spirits and Wine

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.

____________________________________________

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?

__________________________________________

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.

The Bronfman Enigma

January 24, 2011 2 Comments

There have been lots of conversations among Seagram alumni since it was announced on Friday that Edgar Bronfman Jr. was convicted of insider trading in a French court.

The news reports I read raised a number of questions. According to Crain’s NY Business, “The conviction came even though the prosecutor had recommended acquittal…” That’s curious.

The report went on to say that “the prosecutor felt the executives did not have enough information themselves about the company’s health.” What? Are we talking Edgar Jr. here? Didn’t have enough information after having bet the heritage and fortune on a guy who referred to himself as Master of the Universe?

I wonder what the judge heard and saw that the prosecutor missed.

Edgar Jr. sometimes referred to the ease and depth with which people in Hollywood were capable of lying. He described studio executives as people who can swear on their mother’s life that it is raining outside when you and they know it’s a beautiful sunny day. Yet, he couldn’t wait to do business there.

Every year since the 1950’s, Seagram ran the Seagram Family Association (SFA) meeting, an annual session for senior managers and distributor principals. At what turned out to be the last SFA, while it wasn’t known at the time, the deal to sell the company was in the works. Rumors were widespread and felt to have more than the ring of truth. Every conversation, among distributors and management alike, dealt with the speculation. Junior was at the event but hardly visible. Stayed in his suite the entire time, and based on subsequent events, was probably cutting the deals.

He showed up at the last session where customarily the owner addressed the distributors to remind them that Seagram was a family in both the literal and figurative sense of the word and to provide remarks on the state of the business and the future.

When he walked into the back of the room, he stopped and asked what we thought he should touch on in his remarks. What was the tempo, what were the top issues, what’s on their minds?

The answer was candid. “What’s on everyone’s mind is — are we going to be sold?” “The concerns are palpable…they, we, all want to know what’s going on.”

He just looked at us and went on the stage. Immediately, he began to address the topic of a sale in no uncertain terms. He said emphatically and repeatedly that Seagram was not for sale. He didn’t say this — but it was almost as though he swore on his grandfather that would not happen. Less than a month later the announcement of a sale was made.

It was a sunny, beautiful day in southern California but inside the meeting room the rain was pouring down.

In a previous blog on the Bronfman’s I wrote about pity or scorn. This is another occasion for pity. Junior orchestrated the end of his family’s spirits and wine business in favor of the idea of integrating media, entertainment, information and communications in one hand held device. The Smartphone. The idea he had was ahead of its time and with the wrong people.

Quel dommage.