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.
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recently been increased by the move into the market of Total Wines and More, which is expected to open a total of seven stores in the state over the next few years. But he's sanguine about the impending impact. "It will be interesting how much I feel them. Costco came in as did Sam's Club and their effects so far have been zero for me, so I'm not overly concerned." Spirits Sales Vibrant W Spirits sales at Cellars are dynamic; still, Reeck notes that the constant stream of new products provide a challenge to inventory control. advance will be expanded to allow more attendees, and some regulars are known to arrive in small groups. But since there's no dedicated space, the seminars, which include tastings, can fill the store floor. "It's in the heart of everything - it gets crowded but it creates a buzz in the store, which is good for business in the long run," says Reeck, both for the return on investment and as a loyalty building exercise. "We see new customers all the time who are hungry to try new stuff – that's why the seminars are a beautiful place to bring them the new. They appreciate and are receptive, but in any case, you have to keep things fresh and moving." Other special events include charitable combinations like the recent "Corks, Cuisine & Conservation" event held to benefit a local watershed preservation concern, complete with silent auction and multi course dinner at a fine dining restaurant. Events like these are especially important to the Cellars' business, as competition, already hearty, has hile the Cellars wine business evolves, the spirit side is vibrant as well, though a major concern is managing the flood of new products and maintaining the correct product mix, Reeck says. "There are so many new items coming out constantly on the spirit side that it's getting to the point that you can only carry so many things and have to say "no more.' I can now be picky about what I do – there's a cost of admission, and the quality must be good compared to its peers, but suppliers need to make it worth my while, work with me and help me sell." Minnesota being one of the few states with an open market law, wherein retailers can buy the same product from different vendors, Reeck can pick and choose his deals for established brands, but that doesn't make new decisions easier. "I don't want to look a guy in the eye and say 'Sorry, you're out,' but it's a decision that has to be made; when there are too many single facings of everything and there's a collage of products on the shelf, it doesn't work." Of course, he buys to stay current with trends – as a store known for single malt Scotch selection, he sees the changes even in that fairly staid category – but without growth or continuing support from vendors, products are frequently cut. This is where the Cellars' long-standing supplier relationships are important. "Once I have a relationship with a supplier and they support what I'm doing, that makes it easier and their brands will get a little better consideration than the guy who walks in and says 'Here's my brand, put it in,'" he says, noting that without backend support, even the most heralded new brands must perform quickly in his stores. But even good relationships won't convince him to add new products if he doesn't like what he's tasting. "If I don't approve of the quality, it doesn't matter how good my relationships are, shelf space is so tight you can't spin your wheels no matter how good a relationship is." Reeck says the Cellars are always open to expansion and new units, and would love to find a space at the right price in Minneapolis proper. Just as in his stores, he has found that change is inevitable in beverage alcohol retailing. "Right now I have five stores, but who knows? It might be eight by the same time next year or it might be four." I 26 • Beverage Dynamics • www.beveragedynamics.com • November/December 2013