Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/128596
Distilled spirits also plays a significant role in Hazel's product mix, including this special area for exclusive and ultra-premium offerings. a big selection so you may carry some things for lack of a better word part of the liquor museum. You sell a few bottles a year but people expect you to have them. From a purely economic standpoint they don't make any sense, but from an operational standpoint they do." Just as some spirits highly touted as the next big thing fall flat, one never knows which one will take off. Espolon tequila is a major performer among the growing tequila category for Hazel's. "I'm not sure yet why but I have to buy a hundred cases of spirits – and Dean says his customers are enjoying the every six weeks or so." Colorado may be known as the Napa Valley of beer opportunity and responding accordingly – by buying. because of all its small brewers, but Dean thinks the "When people get a chance to taste something there state's small distillers are making a similar is an amazing impact on sales." mark, so fast are they opening and flourWhile wine is the largest category ishing in the state. Stranahan's may be and beer perhaps the most sought "We're not doing best known, but such others as local after, spirits are still a crucial comrocket science or saving Boulder Distillery, Roundhouse ponent of Hazel's selection. Like Spirits, and Spirit Hound are elsewhere, vodka is the biggest lives here – we're selling developing retail and consumer category, but last year's confecalcohol, but we do think fans fast. Dean thinks the easy tionary flavors have faded in access to retailers has allowed popularity and some like cake some of what we're doing these micro-distillers to flourflavored are getting discountmight change how people ish and go to market more eased and replaced with more ily in other states where chains classic flavors, Dean says. look at the retail aspect of are able to dominate a portion While national sales data the alcohol industry." of the market. So he makes room says flavored vodka is still grow— Jim Dean, for many of them among the 1,600 ing rapidly, Boulder seems to be Hazel's Beverage World or so spirit skus Hazel's carries. an anomaly, according to the records Like every other modern business, Dean keeps at Hazel's. It seems that the Hazel's maintains an active digital presence, university students who shop at his store with an in-store marketing director in charge of using have an overwhelming flavored vodka line favorite – Facebook and Twitter. Little newspaper advertising is Burnett's. If he screens out those sales, the first flavored vodka doesn't show up in the top 70 vodkas sold. "You done, and then, mostly as brand building for Hazel's can't allocate for that," he says. "You can't keep cutting every day low price approach and to tweak competitors. Soon they will roll out mobile shopping via a down the space of core brands for two more facings of a mobile phone app to accompany text coupons and other flavor that may not sell. How many raspberry or cake flavored vodkas do you need? We watch things and will take digital marketing. The loyalty program, the Z-Card, them of the shelf and put them on the discount rack if has 26,000 members already, attracted by rewards based they don't perform, but you cant just leave it because that on purchases, drawings and weekly emails. But when all is said, Dean is levelheaded about the real estate is way too valuable." enterprise, despite the early successes. "We're not doing rocket science or saving lives here – we're selling Wide Spirits Selection he size of Hazel's means Dean must also keep alcohol, but we do think some of what we're doing well-stocked on spirits better known than bought. might change how people look at the retail aspect of I "Because it's a big store people expect you to have the alcohol industry." T 36 • Beverage Dynamics • www.beveragedynamics.com • May/June 2013