Booze Business | A blog dedicated to the business of spirits and wine

It Ain’t Always Carnaval

March 20, 2011 No Comments

When the music stopped during the never-ending corporate version of musical chairs, he found himself with the glorious (or was it to be inglorious?) title of Executive Vice President Marketing and Strategy, Americas. A mouthful. Sounds better than it was.

From Canada to Chile, as he liked to say, he learned about the international side of the business, cultural differences, people and working style differences. In fact, Canada was a dream. Despite the business and profitability constraints, the Canadian operation was top of the game.

South America was another matter.

The Americas was run by a South American ex-pat who was smart and hard working but a micro manager with an occasional reluctance to pull the trigger. In other words, tough to work for.

But, all in all, the experience was terrific. Where else but in Latin America are the following expressions a life principle?

It’s better to apologize than ask permission.

A red traffic light is merely a suggestion.

All things are possible (said while rubbing the thumb, index and middle fingers).

But then, and even more so now, security while traveling was an important issue. On one of the first trips, for example, he was met by a driver/security person just outside of immigration who chastised him for putting his passport into the breast pocket of his jacket. He was informed that he wouldn’t get out of the building without having his pocket picked.

Big deal he thought. A friend had his wallet picked on the streets of Paris.

He heard about a French colleague mugged during daylight in Sao Paulo. Another had his computer ripped out of his hands in Mexico City. Most of his South American associates lived in gated communities but, unlike the US, the gatekeepers had machine guns.

So what, he thought, I grew up in Brownsville, Brooklyn, NYC and the world is a tough place. “Don’t rain on my ‘salad days,’”[1] was his motto.

Then one fine day he got a wake up call.

The Swedish partners decided to concentrate on expanding the business in Latin America and wanted to have a conference to discuss brand development issues in the continent. The marketing folks wanted the meeting to be held in Bogota, Columbia. He wasn’t pleased but, whatever… never been there, how bad could it be?

To go there he needed a visa and had to go through Corporate to get things arranged. That’s where the story begins…

He comes into his office one day and Mary, his assistant, says, “You can’t go to Bogota because Leo won’t let you go.”

The scene shifts to Leo McGillicudy – the nicest and most decent person he had ever met at the company. Head of security and a former former FBI agent, Leo was a friend and someone he respected and admired.

“What the hell?” he said to Mary. “I’ll call him,” knowing full well if Leo said no, it was no.

He: “’Hi Leo. How’s the family?” (Pause) “Great…listen Leo, what’s this about my not being able to go to Bogota?”

Leo: “Are you nuts? Do you read the papers? It isn’t safe and I can’t let you go.”

He: “ Come on, it’s my job, how bad can it be?”

Leo: “Are you listening? The last thing I need at this point in my life is to go to Bogota and save your sorry ass.”

He: “What am I am suppose to tell my boss…”

Leo: “Whatever you want. You aren’t going.”

He: “But he’s from Latin America and I’m new on his staff…what’s he going to think when I tell him I’m not going?”

Leo: “I don’t give a s**t. Tell him I said he can’t go either.”

The meeting was held in Aruba.

[1] Refers to a person’s heyday when somebody was at the peak of his/her abilities

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?