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/379477
www.beveragedynamics.com September/October 2014 • Beverage Dynamics 41 [ RETAIL PROFILE ] W hen a company operates for nearly 60 years, dealing with change becomes part of its business DNA. But the owners of Buster's Liquors and Wines, long known as Memphis, Tennessee's premier wine and spirits shop, are in the midst of a serious shift. In what could be the most serious change in decades in the state's wine and spirit retail business, Election Day looms as localities prepare to decide whether to alter the way beverage alcohol is sold. Some signifi cant changes have already occurred in Tennessee: as of July 1, wine and spirit retailers like Bus- ter's were granted the right to expand beer selection dramatically, and to start selling a wide range of non-beverage alcohol items like glassware, mixers, and food. But the major concern for retailers in the state is the possibility that grocers will soon be able to sell wine. As of mid-August, pro-gro- cery sales teams had gathered enough signa- tures in 37 towns and municipalities across the state to get the referendum on the ballot. (To be placed on the ballot, pro-grocer groups will need to gather suffi cient signatures in 156 communities on a locality-by-locality basis, as each designated area will be allowed to decide for them- selves. Currently, Tennessee also disallows franchise stores in the liquor business, with owners limited to one outlet.) Joshua Hammond, the president of Buster's, has been at the fore- front of the ongoing tussle. "Right now, the grocery lobby is trying to get folks to sign and get the referendum on the November ballot; in Memphis, it will be iffy — expanded alcohol sales may concern more of our citizens, and shopping local has a bigger impact than in Nashville, where it may be more likely to pass," he says. The rules, as Joshua reads them, could make wine sales almost ubiquitous in the state. "It's called the Wine in Groceries bill, but to me it should be called wine in gas stations," he says. "They defi ned a grocery store as a business of 1,200 square feet and selling at least 20 percent food product — that opens the door for much more than grocery stores selling wine. It will really change the landscape of where wine will be sold in Tennessee." Hammond explains that the law the legislature passed allowing wine in groceries was hashed out after years, with benefi ts granted to established retailers regardless of any referendum. "The deal that was fi nally worked out allowed wine and spirit retailers to expand what we sell, and the grocers got the chance to have a referendum. We did a lot of things that make it more equita- ble, but I still don't think we can make up for when grocery stores start taking our bread and butter by selling accessories and other things," he says. Founded in 1954, the 10,000 square-foot Buster's is now being run by Josh, along with his brother, company CEO Morgan; they're the third generation of family ownership following father Rommy and grandfather Buster (the founder). Josh is also president of Ten- nessee Wine & Spirits Retailers Association (TWSRA), the orga- nization that represents the state's 500 or so independent retailers who have been resisting the changes promoted by the large national grocery chains. Meanwhile Kroger, Walmart, Costco and others have been busy gathering signatures at their many locations. He's expecting that if wine in groceries passes in his market, up to half his wine business will be affected. While Buster's has a well-earned reputation as a fi ne wine business, Joshua points out their customer base includes every type of wine consumer. "We sell a lot of bread and butter items — popular brands like Kendall-Jackson and Clos du Bois, as well as 1.5 liter bottles and box wine," he says. "When you have 10,000 items, you're going to attract people with all types of palates, from the white zinfandel shopper to enthu- siasts looking for an albarino from Spain to pure collectors we call Buster's is Watching the Ballot Leading Tennessee wine retailer gets ready for uncharted territory. BY JACK ROBERTIELLO Election Day looms as localities prepare to decide whether to alter the way beverage alcohol is sold. As of July 1, wine and spirit retailers like Buster's were granted the right to expand beer selection dramatically. Before the new law, wine and spirits retailers were limited to selling beer at six percent alcohol and above — now, all beer can be stocked. W