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2008 Cline and Jacuzzi National Sales & Marketing Meeting. Growth. Waves of growth Red truck Red truck sale 2005 Avzin, cal zin, cal syrah, Viognier, cashmere 2007 = red truck revenue 2008 Case volume = red truck/Cline units 2005 2008 Jacuzzi opening brand launch total 350,000 cases
Melanie – what’s the focus and message on JFV?
Chip – where are we going?
Karl – create an Reg Mgr activity calendar
Keith – with importance of PN on the JFV brand need to re-launch with focus on Cab and PN with POS to tell the story
CA Zinf – any changes/label?
Sonoma Syrah – supply meet demand with LCBO
Larger Backcards for Bigger Displays on CA Zinf
Petaluma winery and our 5 year projection
Back labels – adding new info to Cashmere and the others?
Nielsen 52 weeks 12/13/08
Taiwan – 2 wines authorized in Carrefours
Ireland – high end importer/retailer - initial purchase was 440 cases
Puerto Rico – importer, distributor and retailer
Bermuda – from Rolf Lutz
Colombia – via Service Innovations
Mexico – Cabo San Lucas – via Service Innovations
Continental Airlines – AV Zinf (First Class) and CA Zinf (Business)
Delta – two rotations of Cashmere – bought 3,400 cases!!
British Air – Sonoma Cool Climate Syrah and LC Syrah for 1st Class (Jancis Robinson and Hugh Johnson on juding panel)
Royal Caribbean Cruise Lines – CA Zinfandel BTG
Holland American – CA Zinfandel BTG
Norwegian – CA Zinfandel BTG
Disney Cruise Lines – CA Zinfandel BTG
Great job by Devine and Sons
Ancient Vines Zinfandel (10/8-11/4/08)
Oakley 5 Reds (10/8-11/4/08)
Syrah (10/8-11/4/08) On ad, but not in a national stack location
Whole Foods, Atlanta
Whole Foods, Cleveland
Town & Country Market, Bainbridge Island
What is our winery position?
Perceptions? – by you, the distributor, the trade and the consumer
Where are we going?
What is our focus?
What are we doing new?
3 year strategy and Brand direction? Impact of this direction?
Expectations from Marketing
Are we on the same page?
Avg SRP: $14.99
Blended margin: 30%
Forecast: TBD (buyer input)
Buyer input A = 5K, B = 3.75K, C = 2.5K
Preferred launch timing: April, 2009
Acceptable launch timing: May, 2009
Currently authorized in CPWM and has sold approximately 2,000 cases in 9 months
Taste profile consumer friendly
Category growth +21%
Naturally and sustainably farmed grapes
$25,000 donated to Breast Cancer Network of Strength
Costco (#1) – maintain & grow AV Zinf distribution and sales
present wooden box program
RMs to carefully mine select opportunities with SVDs and Cashmere
Trader Joe’s (#2) – fill regional distribution voids around the US with CA ZN
expand to AV Zinf with current regional successes in WA and OR
present Viognier for CA stores
CPWM (#3) – maintain current 4 core national authorizations
RMs to approach regionally on Viognier and special promotions
Achieve Wine of the Month status in May or Sept/Oct
Business review in January - TBD
Safeway (#4) – expand distro in underdeveloped regions (VA, OR, WA, NV) to parity with our 5 authorizations in CA, TX, AZ and IL
Gain Cashmere authorization
Present to go “down clusters” where appropriate
Achieve one or two floor programs
Appt with Kent on December 10th
Present AV Zin wooden box program
Sam’s Club (#5) – maintain and fill distribution on AV Zinfandel in all stores
Present wooden box program
Expand opportunities with Cashmere, SVD Zinf and Viognier
Whole Foods – get one “Top 12 under $12”
RMs to continue calling on Regional Specialists
Special multi-part label, Sonoma Syrah or AV MV
IT’S TIME TO EXECUTE AGAINST THESE STANDARDS
Jacuzzi Tasting Cards
Jacuzzi Tasting Mats
Olive Oil & Vinegar 50mLs
100 per region
60 remaining in inventory
Olive Oil and Vinegar
105 OO remaining
70 vinegar remaining
Must be approved by Larry
Larry requires a TradePulse report of the customers performance
Brief description of their business with Cline and/ or the relationship to the account
T&T form COMPLETELY filled out
Maria lives below
11 miles from the winery
They must check in @ the winery (check-in and out in a timely manner)
3 bedrooms [8 people is the max]
Forms are due back to me at least 6 days prior to their stay
Introduce in all remaining markets
Focus on Pinot Noir and Cabernet – due to inventory position
Sangiovese – BevMo only unless developed in your market(s)
Pricing (effective Jan 1, ’09)
Sei Sorelli - $72 ($13 SRP)
Sette Fratelli & Pinot Grigio - $90 (no change - $15 SRP)
Sangiovese/Primitivo/Barbera/Pinot Noir - $120 (no change $20 SRP)
Giuseppina - $96 ($17 SRP)
Cab Sau - $60 per six pack ($20 SRP)
Valeriano - $75 per six pack ($25 SRP)
Re-define our mission
Greater focus on Italian varietals of the high quality
Lower alcohol levels in the Italian tradition
Reduce focus wines
Reduce to one Chardonnay
Set stage to raise prices
Normal POS Material
Tova must receive the POS request by COB on Friday
Laurel will fulfill the POS requests on Monday
Sarah will send the POS on Tuesday via UPS ground to your requested location [estimate 2-5 days]
NO emergency shipments
If careful planning didn’t work out
Last minute shipping costs must be cleared through Larry
Note: We may not be able to accommodate your request
No color print outs. Period.
Keep a decent inventory at your home to keep things running smoothly
Laurel is only here on Mondays and Tuesdays
Sarah is only here Monday-Thursday
We still don’t have any extras
We will only ship the heavier items such as racks, wood boxes and 3Ls on a distributor’s truck
Distributor must put the Premium request on their purchase order
E-mail will not suffice as fulfillment is handled through the warehouse
Please follow these rules
Work specifically with On-premise Focus people
Tailor incentives to them
Create Account List w/ specific goals
Re-identify brand, make focus items
Incentives for On-premise and Fine-Wine Shops
Placement programs--include Managers on incentives
March Placements $, May $/Case, September Placement $
Official 1835 State Motto: “Si quaeris peninsulam amoenam circumspice”
If you seek a pleasant peninsula, look about you
New 2008 State Motto: “Nos es propinquus pro construxi”
We are now closed for remodeling
Total Cline 2692 3515 3827 +9%
Independents 1689 1690 flat
Chains/Clubs 1826 2137 +17%
World Market (closed 9 of 14 MI stores) 403 160 - 60%
Meijer 282 192 - 32%
Trader Joe’s 212 206 - 3%
Sam’s Club 376 445 +19%
Kroger 59 86 +46%
Costco 0 797 + ∞
Michigan is the #1 most economically challenged market in the U.S.
The challenge: “Because the Overall Michigan Market is Shrinking, We Must Build Cline and Jacuzzi on the Backs of our Competitors”
The history of America is closely tied to that of Virginia, particularly during the Colonial period.
Jamestown, founded in 1607, was the first permanent English settlement in North America and slavery was introduced there in 1619.
The surrenders ending both the American Revolution (Yorktown) and the Civil War (Appomattox) occurred in Virginia.
The state is called the “Mother of Presidents” because eight U.S. presidents were born thereVA / Cline Market Overview
Today, the service sector provides one-third of all jobs in Virginia, generating as much income as the manufacturing and retail industries combined in 1999 and accounting for 23% of gross state product. (The largest component of the service sector is business services, which includes computer and data processing services.)
Virginia has a large number of manufacturing industries, including transportation equipment, food processing, electronic and other electrical equipment, chemicals, textiles and apparel, lumber and wood products, and furniture.
Agriculture remains an important sector, and the state ranks among the top ten in a variety of agricultural products, including tomatoes, tobacco, peanuts, apples, summer potatoes, sweet potatoes, snap beans, and turkeys and broilers. Virginia also has a large dairy industry.
Virginia is one of the top ten coal producers in the U.S. Coal accounts for roughly 70% of Virginia's mineral value; crushed stone, sand and gravel, lime, and kyanite are also mined.
Points of interest include Mt. Vernon, home of George Washington; Monticello, home of Thomas Jefferson; Stratford, home of the Lees; Richmond, capital of the Confederacy and of Virginia and home of Larry Holman; and Williamsburg, the restored Colonial capital.
The Chesapeake Bay Bridge-Tunnel spans the mouth of Chesapeake Bay, connecting Cape Charles with Norfolk. Consisting of a series of low trestles, two bridges and two mile-long tunnels, the complex is 18 miles (29 km) long. It was opened in 1964.
Other attractions are the Shenandoah National Park, Colonial National Historical Park, Fredericksburg and Spotsylvania National Military Park, the Booker T. Washington birthplace near Roanoke, Arlington House (the Robert E. Lee Memorial), Luray Caverns, the Skyline Drive, and the Blue Ridge National Parkway
Population: 7.7 million (approx 2.5 % of U.S.). VA is 12thhighest populated state.
Gomberg/Index: VA @ 2.7%, WV @ .2% = a total of 2.9% of the U.S.
The Country Vintner (TCV) was started in 1980 in Richmond, VA as a fine wine distributor, the first true fine wine house in Virginia.
TCV was later purchased from those founding partners in the early 1990’s by Doug Adams and investors. During Doug’s ownership they also purchased another excellent fine wine distributor, Spencer Graham’s Company.
In August of 2008 TCV was purchased by a new group of owners including David Townsend, President & CEO (and a previous partner); Michael Collier, VP Business Development; Mike Shepherd, VP Wine Supply/Chains, (both previous managers of TCV); plus a couple other VP’s; with PNC as the banking equity partner.
The Virginia market is a very strong franchise state with no dual distribution rights allowed.
TCV operated for many years with a very “free style/free agent” type attitude, regardless of performance, without consequences due to that franchise “protection”. Even today, on its website Customer Experience page it states, “there is never a quota for our people on the sale of any wine in the Country Vintner portfolio.”
While it has generally been a decently performing company, the franchise law has provided TCV with a type of brand insurance and annuity…..For example, when Ravenswood was purchased by Constellation a few years ago, the new owners could not move Ravenswood, so a payoff check reportedly amounting to millions was written for TCV to release Ravenswood. The same thing took place for TCV to release Blackstone, K-J, Rosemount and others.
Another issue had been a considerable preference for the brands that TCV “controlled”, i.e. TCV either brought them in to the U.S. as Importer or for the brands that TCV sold in all of its 7 markets. (Cline is in 2 of its markets: Virginia and West Virginia)
TCV has tended in the past to be rather indifferent to many other “independent” suppliers, with limited communication, especially to those in California, and yes, including Cline.
In the past, under the previous ownership, TCV had also operated very closely with Total Wine, oftentimes to the exclusion of other viable chains.
Sales Meetings are usually “closed” - for TCV employees only, and/or limited to the brands that they import or those brands they sell in all 7 markets.
The extent of “normal” Sales Meeting participation has been to present your wines for tasting only, along with a couple dozen other suppliers at the same time, with no vocal presentation to the group. The TCV salespeople, if they desired, would just walk around tasting. The suppliers are available to pour wine for a period of about 4 hours.
An alternate version of Sales Meetings is to go to each of the several Lead Wine Consultants (virtual Sales Managers) for various regions within Virginia for a meeting, involving a meal (breakfast or lunch, paid for by supplier). Then move on to another Lead Wine Consultant’s region to do the same thing and so on.
The future: Seeing a light…..?
In just the last few months of 2008 we have seen these significant changes:
The new ownership team has come into place, with the papers signed in early August.
Relocation from “the barn” offices and the remote warehouse* to the new 170,000 square foot state of the art combined location of TCV (offices and warehouse) with its challenges.
TCV taking over the Henry Wine Group operations in the Mid-Atlantic (MD, VA, DC), including brands, inventory, some office and virtually all sales staff.
TCV no longer distributes in Florida.
TCV appears to be entering a new period of improved supplier communication and relations. There now is a VP of Supplier Relations as well as a Director of Winery Relations, the latter of which I have dealt with easily/effectively the last few years as pricing manager.
* Under the previous ownership, TCV’s offices were located in a restored barn on the farm where the owner lived. The warehouse was an old furniture warehouse in a somewhat remote part of Central VA more than 30 miles away from the offices.
And more brightness……?
With the new refreshing attitude toward Chains (other than Total Wine), being more than 50% of TCV’s business, we have begun to see placements in more of these stores. Mike Shepherd the VP of “Wine Supply” is also a reasonable, agreeable person to work with. His predecessor was quite different from Mike with his own agenda.
There is an additional Lead Wine Consultant in the Central/Western part of Virginia to provide sales management/leadership there. That now brings the total number of these “Regional Managers” to 4.
Cline depletions YTD thru Sept 2008: 3382 cases, up 15% over previous YTD. (at this rate TCV will hit 5000 case goal in ’08)
Cline depletions for full year of 2007: 4322 cases, up 8% over previous year
Roger Gobler PresentsEffectively Managing ProgramsA Meticulous – Painstaking Task - That Pays Off
What is a program
An organized series of resources designed to create incremental volume and distribution during a specified timeframe
Step # 1
Timing: 120 days prior to start of program - present program to Larry & Charene
Step # 2
Timing: 70 days out – present & communicate program to distributor management and establish case depletion and new account placement objectives by channel
Step # 3
Timing:60 days out – establish distributor inventory levels
Timing: 30 days out
Step # 5
Timing: No earlier than one week prior to start of program
Step # 6
Timing: First two weeks of program
Timing: By the 20th of first month
Step # 8
Timing: Within 30 days of program completion
Thanks again for our meeting this Morning! Attached is the document that you and I covered today and I wanted you to have a digital copy as well to sign off on! With your agreement on attainment of the goals in the attached document we can move forward together to start our partnership in the State of OR! Look out here we come! I will be sending the Focus and Goals for the Western Washington and Eastern Washington markets as well as Alaska with the same type of agreements this weekend! Thank you for your signature and your partnership in building Cline Cellars and Jacuzzi Family Vineyards in the Great Northwest!!
Loeb Family DBA Alaska Distributors
Full Coverage AK, WA and Brokerage in ID, MT, WY
Wine, Beer, Spirits in AK and Brokered the rest and Non Alcoholic
Coors Distribution Rights in AK, WA
Mellitus Family DBA Columbia Distributors
Full Coverage in OR and WA
Wine and Beer
One Brother Owns Miller and Coors Distribution
One Brother Owns Budweiser Distribution
Lytle Family DBA Mt Hood Beverage Co
Full Market Coverage of OR
Wine Beer and Non Alcoholic
Coors Distribution OR
Odom Family DBA Odom Corp
Full Market CoverageAK and WA
Wine, Beer, Non Alcoholic and Spirits in AK
1998 Young’s Market Partners with K&L Levine Family
1998 Columbia Distributors of Oregon Mellitus Purchases Sid Eland Distributing of Washington
1999 Columbia Distributing of OR and Now WA Purchase G. Raden and Sons of WA
2000 Columbia Distributing of OR, WA Partners with Young’s Market’s of WA and buys out the Levine Family shares
2007 Miller-Coors Merge creating 1 distributor in some markets where there used to be two
2008 Columbia Distributing OR merges with Mt Hood Beverage to create CoHo Young’s Columbia sales division handles wine
Large Wine Distributors need Major Beer Brands to cover large geographic area efficiently
2008 Miller –Coors Merge! Distributor rights on Beer in strict franchise states cause more distributor mergers and Sales!
Loeb Family- Alaska Distributors decide to sell their AK, WA and Brokerage business
2008 currently Odom Family and Southern Wine and Spirits Create Partnership and Purchase ADCo of AK, WA, and Brokerage of ID, MT and WY
2008 September Odom –SWS Purchase McClaskey Distributing in OR
1993 South Carolina
2000 New Mexico
2004 New York
2005 New Jersey
Virginia, North Carolina, Vermont,
Maine, New Hampshire andWest Virginia
Mississippi and Alabama
2006 Washington, Oregon, Idaho, Montana, Utah and Wyoming
2008 DelawareTexas and Nebraska
1996 K&K Distributing (ID)
Silvestri Distributing (WA)
1998 Miller Franchise (WA)
1999 Hewitt Distributing (WA)
Valley Beverage (all non-AB products) (WA)
Northern Beverage (ID)
Selkirk Beverage (ID)
Hamilton Distributing (WA)
Northwest Select Wines (WA)
2001 Frontier Wine Portfolio (Gallo) (WA)
2002 Coors Franchise (WA)
Empire Distributors, Inc. (WA)
2004 Columbia Distributing (WA & ID)
Labatt (WA & ID)
Vintners/Odom Transition (WA)
2005 Buddy Beck Distributing (ID)
Pistoresi Distributing (WA)
Northwest Wine Co. (WA)
2006 B&F Distributing (WA)
2007 Mission Distributing (WA)
2008 Superior Beverage (WA)
2008: Establishment of the Odom / Southern Partnership in the Pacific Northwest
Oregon Sales Center Location
Prince of Wales-
Southwestern Idaho DMA
Consolidation occurred because of the greater need of suppliers to have a stronger statewide network with one-stop distributor point of contact.
Florida – Cline California Series
Laid In $75.89
Freight $4.53 (distributor freight charge is in motion)
FOB increase, (reduce D.A. support)
Fluctuate distributor portion of free goods chargeback
Free goods chargeback = laid in cost
Sales meetings on all pads (Main & D&E) month before
Cline took care of sales sheets, printed at distributor
Special pricing, Glazer’s took minimal margins, Cline paid same DA as usual
Larry and Lisa came in to work blitz $2000 each
Cases sold 1732
Blitz cost approx. $11.50/case
DFW/HOU=$500 cash once they hit 1100 case goal for state
AUS/SANA=$300 cash once they hit 1100 case goal for state
DFW/HOU % over LY--Winners get Steak dinner
AUS/SANA same, loser gets BBQ
Both BBQ’s at a house (Mel’s and Austin mgr—dates invited) —(total $2220)
• Sales representative incentive-
$5/case all Cline/Jacuzzi for month of May
$7/case once state hits 1100 case goal=$7604
No Sam’s or Costco paid, but counted for cases
Head gets trip to winery and 2 night stay in San Francisco
Individual Chains given goals, Committed to 1300 cases
LQD’s and pricing lower than any month in year
$500 Gift Certificate to Main Chain Person
• DOS payout--$2500—only 4 managers qualified (payout--$1400)
• District Manager Competition—if goal met, parties in all markets w/dates
Cline 100% wine, Glazer’s 100% food ($900)
• Sales Rep $7/case—($10,150)
• Samples 50/50 ($900)
• Lisa and Larry—stayed in each market for 3 days working market ($3000)
Total cases 2028—Cost $8.30/case
#1 Market Challenge:
(this is Larry’s favorite subject)
Depletions Past Five Years
2004: 1116cs (includes Red Truck)
2005: 1448cs (does not include Red Truck)
2006: 1625cs (+12% over ’05)
2007: 1856cs (+15% over ’06)
2008: 1667cs Projected (-10% over ’07)
2008 YTD: -11% or -142cs (Costco)
No VP/Gen Wine Manager or upper management, only Executive VP of both SWS and AWS (Warren Shon)
Little or no communication by management
Only 6 KAS for all Islands
Prices too high and not line priced – did not reflect FOB pricing
No DA’s in place
Old Inventory (five warehouses, one on each island)
No samples being pulled – EVER!
Four Largest Hawaiian Chains:
Costco: (AV Zin) 960cs in ’07, Sales were 50% of total depletions – almost all eggs in one basket
Foodland: (CA Zin, Vio, AV Zin) 170cs in ’07, No merchandising
Safeway: (All CA Tier, AV Zin) 60cs in ’07, Stores were buying on bottle price, not case price
Tamura’s: (Rose, CA Zin, Vio, AV Zin) 50cs in ’07, No merchandising
Now have both a VP/Gen Wine Mngr, Asst. Wine Manager and VP Chains (all work under Warren Shon)
Much better communication with management (not perfect, but it is HI after all)
From 6 KAS to 20 On-Sale Salespeople, 3 Off-Sale Salespeople, 4 Chain Acct Executives, 26 Chain Merchandisers
Line priced each tier to reflect FOB pricing
Set up DA’s
Set up Bank and Incentives
Getting rid of old inventory
Pre-approved all samples pulled (under a case)
Four Largest Hawaiian Chains:
Costco: (AV Zin) -240cs or 33% over LY due to Costco adding 3 more Zins (from 4)
Foodland: (CA Zin, Vio, AV Zin) Sales up 75% due to merchandising
Safeway: (All CA Tier, AV Zin) Stores are now buying on Case price (thank you Larry) sales will triple this year getting closer to 200cs
Tamura’s: (Rose, CA Zin, Vio, AV Zin) Sales have doubled due to merchandising
#2 Market Challenge:
Depletions Past Three Years
2007: 2586cs (+138% over ’06)
2008: 1500cs Projected (-42% over ’07)
2008 YTD: -47% or -978cs (CA Zin)
Sales down February thru May
Changed buyer in 1st Quarter
Did not see any suppliers until beginning of April
Scan only in place for January during first six months of year
No ads for first six months
Was first SWS supplier to make presentation in April
Better than old buyer….able to make faster decisions
Lives in Sonoma, very familiar with Cline
New buyer approved CA Syrah, cut into shelf in July
Scan now in place July thru end of year
Ran August and will run again in November
Ran display incentive for merchandisers along with ad and scan in August
Featured CA Zin during summer ad
#3 Market Challenge:
Depletions Past Three Years
2007: 2789cs (+121% over ’06)
2008: 1817cs Projected (-35% over ’07)
2008 YTD: -36% or -769cs (AV Zin)
Sales down seven out of the nine months this year
New ways of buying and selling
Margins have gone up on ad/programmed wines
Smaller inventory on hand
No more ‘Winery of the Month’ and other promotions
No Holiday Catalog starting this year
Less programming on AV Zin due to low margins
Shelf sales only
Very loyal to Cline
Lives locally in Sonoma
T&T at Jacuzzi…..
Huge Cline/Jacuzzi fan, loves Charlie
Always gives high scores (89pts on all Jacuzzi items)
Used Sei Sorelle Chard for BevMo! Wine Club/January
Authorized Jacuzzi Primitivo, Sangiovese and Barbera
First Chain Distribution, Exclusive to BevMo!
All Cline and Jacuzzi wines are available on BevMo! website
Scans, in store tastings, staff tastings, store openings
My Own Private Hell
To get any Cline item into large, Kroger owned Grocery Chain in Southern California.
Placement incentive for Account Exec, hasn’t worked.
New SWS in house exec at Ralph’s might help
Go through Kroger Corporate?
Roger’s IRC program?
Wood box AV Zin and Cashmere?
To significantly increase Broad Market depletions
More work withs
More aggressive programming
Change sales divisions
Rifle approach, focus on certain items with quotas
2008 vs. 2007 (YTD)
88 vs. 51 Accounts Sold
278 vs. 139 Cases Sold (100 cases to BevMo)
Pricing restructured (Merlot, Chard, PG at low end, Sangio, Barb, Prim, PN at mid tier, Cab and Valeriano high end. Two 6 pack on prem deals)
Incentives put in place
Aggressive sales techniques preached (Encouraged wholesaler reps to pursue any possible deal)
Focus on what can be sold most easily (Barbera-95, Pinot Noir-44)
BevMo authorization. (Barbera, Sangio and Primitivo)
Have separate package for wholesale sales on Chard and Merlot.
Use JFV Cab bottle for merlot and find an affordable Burgundy bottle for chard.
Continue to sell squat bottle pack out of tasting room
Total number of firms in NM 136,711
Firms owned by Hispanics (21.7%)
Total number of Hispanic firms in US (6.8%)
It has the third-highest percentage of Native Americans after Alaska and Oklahoma, 4]
Total number of American Indian owned firms in NM 5% versus the US at .9%
As a result, the demographics and culture of the state are unique for their strong Spanish, Mexican, and American Indian cultural influences.
A division of Southern Wine & Spirits of New Mexico
General Sales Manager – John Mahan
Sales Managers - Kelly Fagan and John Grimm
Sales Force – 6 representatives
In addition, 6 reps in rural areas that sell full book. However their focus is SWS.
On premise – 440 accounts
Off premise – 310 accounts
Retail Advertising Allowed yes
Mail In Coupons Allowed yes
Instant Coupons Allowed yes
State price posting required no
Wine brand franchise state yes
State tax per 9L cs: Still Wine $ 4.05
Fortified $ 13.50
Sparkling $ 4.05
Free Goods yes
Quantity Discounts yes
Depletion Allowances yes
Special Purchase Allowances yes
In Store Tastings yes
SWS manage the off premise chain business with a separate chain division
Off premise Key Acct Mgrs. – Craig Richards, Mike Houseman, Jason Mann and Todd Piskorski
On premise chain sales –Kelly Fagan and John Grimm (BWP)
HTMT LTM Total
Quarter's 2 1 3
Kelly‘s 2 4 3 9
Sunflower Mkt 1 1
Jubilation 1 1
Toucan Market 1 1
Total Key Liquor 7 5 3 15
Club StoresHTMTLTM Total
Costco 2 2
Sam’s 4 2 6
Trader Joe's 2 2
Total Stores 8 2 10
Drug / Convenience HTMTLTM Total
Walgreens 6 8 10 24
Giant 10 10 43 63
7-11 4 4 9 17
Total Drug / Conv 20 22 62 104
28% GP at BWP versus SWS runs a lower GP
Problem: John Mahan bonuses at 28%
Cline is running under 28% GP
Solution: Bring Larry the attack dog in to meet with SWS
New Mexico – $41,452
Louisiana – $40,926
Alabama – $40,554
Kentucky – $40,267
Arkansas – $38,134
West Virginia – $37,060
Mississippi – $36,338 Puerto Rico – $17,741
For the last 2 years they have increased road checks, sting operations and that has certainly hurt the on premise business in wine and spirits.
Many restaurants have closed and only a few new openings
Top 3 Market Challenges
And Action Plan
fit Clines profile. In addition there must be a formulated and an identified account breakdown to be targeted by SM then by SR. The accounts then must be attacked by all parties and tied to certain SKUs and a reasonable time frame.