Municipal Liquor Store PRST STD Box 32966 U.S. POSTAGE Minneapolis, MN 55432 PAID Permit No. 1770 CHANGE SERVICE REQUESTED Minneapolis, MN Difference DEUTSCH The www.municipalbev.com MINNESOTA MUNICIPAL BEVERAGE ASSOCIATION BEVERAGE MUNICIPAL MINNESOTA OFFICIAL PUBLICATION OF THE OF PUBLICATION OFFICIAL Volume 68, Number 2, 2009 2, Number 68, Volume Griggs, Cooper & Company has been DeliveringWIRTZ CustomerBEVERAGE MINNESOTA Service for 126 years! has been Delivering Customer Service for 127 years! 1882 20092008 WeWe are are ProudProud ofof OurOur 9898 Full-ServiceFull-Service Sales and ManagementManagement Team Team Members Members thatthat SellSell andand ServiceService the Largest InventoryInventory of of Wines Wines andand SpiritsSpirits to Retailers ofof Minnesota.Minnesota. 1882 Eagle WIRTZWine Company BEVERAGE MINNESOTAPrior Wine Company 2008 Division Division 1882 Eagle Wine 489Company Fine Wine PriorCompany Wine Company 2009 Division Division Division 126 Years of Continuous Service. 489 N. Prior 127Ave. •Years St. Paul, of MN Continuous 55104 • 651-646-7821 Service. • 800-672-0970 489 N. Prior Ave. • St. Paul, MN 55104 • 651-646-7821 • 800-672-0970 MUNICIPAL LIQUOR On The Cover STORE For the past 25 plus years, the W.J. Deutsch portfoloio has evolved from Volume 68, Number 2, 2009 mainly the popular George Duboeuf line from France to a dynamic and Official publication of the Minnesota ever-growing line of fine wines that appeal to every consumer taste – Municipal Beverage Association. Published including the tremendously popular Yellow Tail line. six times annually: September/October, November/December, January/February, March/April, May/June, July/August. For With several new additions, a great portfolio was made even better. advertising and editorial inquiry contact Paul Kaspszak, Editor, Box 32966, Fridley, For more information on these new brands, go to page 6. MN 55432. Phone 763-572-0222 or 866-938-3925. Advertising rates available upon request. Change of address: List both old and new address. VIRGENE SHELLENBARGER Liquor Hutch 245 Washington Ave. East DIRECTORS Hutchinson, MN 55350 320-587-2762 TOM AGNES (President) STEVE GRAUSAM Brooklyn Center Liquor Edina Liquor 5625A Xerxes Ave. North 6755 York Ave. South Brooklyn Center, MN 55430 Edina, MN 55435 763-381-2349 952-903-5732 DAN BAHR GARY BUYSSE (Vice President) (Past President) (Ex-officio) Bemidji Discount Liquor Rogers Liquor 460 Paul Bunyan Drive NW 22350 South Diamond Lake Road Bemidji, MN 56601 Rogers, MN 55374 218-751-8868/3911 763-428-0163 BRIAN HACHEY BRIDGITTE KONRAD (Sec./Treas.) (Ex-Officio) Stacy Wine & Spirits City of North Bravch 30962 Fenway Avenue P.O. Box 910 Suite 700 North Branch, MN 55056 Stacy, MN 55079. 651-674-8113 651-462-2727 NANCY DRUMSTA MICHELLE OLSON Delano Wines & Spirits Sebeka Liquor P.O. Box 108 P.O. Box 305 Delano, MN 55328 Sebeka, MN 56477 763-972-0578 218-837-9745 LARA SMETANA BOB LESLIE Voyageur Bottle Shop Pelican Rapids Liquor 205 - 6th Street P.O. Box 571 Pine City, MN 55063 Pelican Rapids, MN 56572 320-629-2020 218-863-6670 JOYCE ZACHMANN TONI BUCHITE Central Park Liquors Fifty Lakes Bar & Bottle Shop 8101 Hwy. 65 N.E. P.O. Box 828 Spring Lake Park, MN 55432 Fifty Lakes, MN 56448 763-780-8247 218-763-2035 MMBA President’s Message • Obviously cost determines things, the guy who was there 50 years ago but is it a steady cost or a and 5 managers ago used, use a system temporary reduction? that protects your organization and gives a fair price to your consumers. • Look at your category pricing Then own that system!! structure. Wine higher marks, Tom Agnes liquor mid range and beer lower. We have seen too many cities that have President let price raises slip away year after year What do we sell? • Volume moved is important, have and as a result lose their business. a higher mark for the “Product A” Look at the state auditor’s report of Many would answer wine, liquor and that costs you $14.10 but only municipal liquor every year and see beer. I would say the answer is much move 10 a month and a lower where your profits compare to the more complex than that. We sell mark for “Product B” that costs average. For 2007 the average municipal “brand names” and “sizes”. Otherwise you $14.10 and you move a liquor store was at a gross profit of we would only have three sku’s on hundred a month. 25.10 % for liquor stores and 39.2% our shelves, or should I say shelf, one for combination facilities. Where is bottle of liquor, one bottle of wine and • As Steve Grausam mentioned a yours? one case of beer. couple weeks ago in our newsletter watch where you end your prices. I constantly look at new ideas, not long Yes our stores and bars are filled with .49, .79 and .99 are all that is ago a software provider encouraged me choices for our customers, some like needed. to look at ROI when purchasing light beer, some like dark and others products, this tool he sells allows you like hoppy. You have your $11.99 mag • Look at your market, are there to see what you will make on a product vodka buyer and your high end $49.99 certain things you have to go based on the amount you are considering vodka buyer all shopping the same below where you would like to if buying over the life of that single area. Then there is the wine everything you have match competition, purchase. from strawberry flavored varieties to that’s fine just so you limit this to the customer that will only buy from a few items per category, and only So protect your profits by always the Alsace region of France. on high volume items. looking to price things in a way that will be attractive to customers and So why should our pricing strategy be • Take the opportunity to find attractive to your bottom line, simplicity as simple as one liquor, one wine and perceived value in certain items. can be your enemy in this situation. one beer? I would like to encourage If it is an item you will not find at Have a great summer selling season. you to expand how you look at pricing every liquor store out there maybe Call me or e-mail me anytime for your product line over several areas, you can build a little extra in this questions or ideas about pricing category, size and volume moved. item. structures or anything to do with your First of all don’t be afraid to raise municipal liquor operation. prices when it is necessary, many of us • Watch your sizes, when you fall to that fear that we are going to change a price on a 750 ml of Tom Agnes 763-381-2349 hear it from our customers when we wine is the how does it compare raise beer in February or the several to the 1.5 price, raise or lower a [email protected] times a year the whiskey might take a brand not an item. raise. One of my managers at Brooklyn Center, John LaChance likes to raise • Listen to your sales reps, but not more often in smaller increments so too much!! Remember their focus that it is not noticed as much by is different than yours. customers. While many of us have a pricing When determining where you will end structure, look at it from time to time up on a retail price look at a few and see if you can reform or update the things. ideas. Don’t use the same structure that MUNICIPAL LIQUOR STORE 4 Profile: SWOP Ad Name: Turn up the wheat Closing Date: 2.25.9 Trim: 8.5 x 11 Item #: PST20099493 QC: SM Bleed: none Job/Order #:596683-200621 Pub: The Municipal Liquor Store Live: 8 x 10.5 The DEUTSCH DIFFERENCE A Look at the ASCENTIA Portfolio By Blair Brewer W.J. Deutsch District (1000 feet or more) Napa Valley tier (white labels) and the Estate Manager -Minnesota vineyards located on Atlas Peak, Vineyard Series (black labels) – Mt. Veeder, Spring Mountain, and Ramal Vineyard and Clonal For the past 25 plus years, the Howell Mountain Selection W.J. Deutsch portfolio has • Each of the wines from Atlas Peak - evolved from mainly the popular Napa Valley, Mt. Veeder, Spring COLUMBIA WINERY George Duboeuf line from Mountain, Howell Mountain, and www. columbiawinery.com France to a dynamic and ever- Claret expresses its own distinct high Appellation: growing line of fine wines that elevation terroir. Columbia Valley Founded: 1962 appeal to every consumer taste • Only French oak barriques are used Wine Maker: Kerry Norton profile. With the tremendously in the production of Atlas Peak popular [Yellow Tail] brand, • 2 different product tiers – Napa • Washington State’s First Premium the Deutch Family has Valley (white label) and the Winery, founded by a group of 10 complimented their selections Mountain Series (black labels) – friends, 6 of whom were University with Hob Nob, Villa Pozzi, Mt. Veeder, Spring Mountain, of Washington professors; as Kunde Estates and Diego Zamora. Howell Mountain, and Claret pioneers in high desert Columbia Last year with the addition of the Valley viticulture, they were united Ascentia portfolio selections from BUENA VISTA CARNEROS in the belief that classic European California and the Pacific Northwest www.buenavistacarneros.com wines could survive the harsh made a great portfolio even better. Appellation: Carneros (Sonoma) Washington winters and that fine Founded: 1857 wine could be made in Washington The largest immediate challenge for Wine Maker: Jeff Stewart State our sales force was to familiarize • Due to the extreme northerly latitude ourselves with these brands and their • California’s First Premium Winery ñ of the Columbia Valley, the regionís key selling propositions.