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
44 Beverage Dynamics • September/October 2014 www.beveragedynamics.com [ RETAIL PROFILE ] and you've got to be up for the challenge. We do so because we un- derstand that new items are a signifi cant factor in keeping our store vibrant for our consumers," Josh says. The recession also slowed the annual compound growth of Bus- ter's wine sales for the fi rst time in more than 50 years; the percentage has receded from a high of 63 to its current 53 percent of sales. Josh says the recession caused customers to trade down within the wine category, but also over to spirits, which were already poised to surge (beer currently only accounts for a couple of percentage points, with spirits accounting for the remainder of sales). The Hammonds have been at the epicenter of the American whiskey boom, outpacing national trends and up more than 40 percent over the past few years. Finding and stocking new or rare bourbons and ryes has become far more important, and with local distillers also contributing to the boom, Buster's has developed a sig- nifi cant whiskey business. Currently, Buster's has 14 private barrel whiskey selections in barrel, and Josh is concerned about the effect of the so-called whiskey shortage on his business. "Our biggest supplier has been Buffalo Trace though I just heard they would be limiting us to only fi ve barrels this year," he says. "Private barrels are obviously getting much more popular." Buster's also does a good business in the Tennessee distillers in- cluding Pritchard's, Old Smokey and Corsair. "These guys are doing a really good job marketing here in Tennessee and the 'shop local' thing is something that crosses over to all aspects to the industry. Most of the local bars carry some of their stuff partly because it's a source of pride to carry Tennessee products." On the operational side, the new law that has allowed Buster's to carry non-alcohol has created some other issues. Tennessee stores have long been prohibited from shipping or delivering, and while the new law would allow possible delivery, the rules and regulations haven't been fully determined by the state Alcohol Beverage Com- mission — at least not in a manner that have encouraged the Ham- monds to rush into the service. So in the meantime, internet sales will remain for pick up only, as face-to-face transactions have long been the prevailing limita- tion. Buster's launched an easy-to-shop website with more than 8,000 items about two years ago, a project they are very pleased with so far. "People seem to love it, and we average more than 250 visitors a day, with about half of them local, so it's well worth its weight in advertising, if nothing else than to show who you are in the community." Keeping the Buster's name out there is important as well, whether through advertising weekly in the local newspaper, promoting the shopping experience through in-store tastings several days a week of beer, spirits and wine, hosting wine dinners each month with local restaurants, and participating in a number of events throughout the city using the large "Buster's" event tent. And keeping operating systems current in such a large store is also important, as in employing hand held devices to keep inventory current and limit out-of-stock snafus, crucially important as on-line shopping grows. But right now, the focus is on the various referenda. The TWSRA doesn't have the wherewithal to mount a campaign of any size comparable to the money being spent by the giant grocers to promote the "Wine in Groceries" law, but they are making sure local retailers are fully informed about the potential impact on their business, and getting ready to adjust to what may be a much different wine retailing landscape. "This is uncharted territory - there hasn't been a change compara- ble to this in some time, and no one can really predict the impact on us as retailers and on the rest of the state if and when so many others are allowed to sell wine." BD The Hammonds have been at the epicenter of the American whiskey boom, outpacing national trends and up more than 40 percent over the past few years.