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/41523
Maryland often proves to be a competitive advan- tage – because he's willing to move first to adopt new innovations. For instance, while in-store wine tastings had long been allowed in the state, he lob- bied heavily to have beer and then spirits added to the list – then found himself the only retailer to do spirits tastings for about three years following passage. "Other people's complacency is good for us," he notes. The pragmatist in Ferrar knows when a setback actually should be viewed as a victory. That's certainly true for the recently inaugurated 3% sales tax increase on alcohol, on top of existing tax of 6%. The increase, effective July 1, capped a major statehouse battle in which some proponents had sought to move to 10 cents a drink in an effort to generate greater revenue for the reces- sion-strapped state. That would have amounted to $6 on a 1.75-liter bottle of spirits or $5 on a bag-in-the-box that now might go for $13.99. In light of that alternative – and the state of Maryland's undeniable need to raise revenues – adding just 3% "was a major victory, in a sense," Ferrar noted. After all, he said, there had not been an increase in the alcohol tax on spirits since 1955. The anticipated $85 million in revenue is being used to support disabilities and educational programs. Among significant recent developments was the store's being invited to join the Wine & Spirits Guild, which has recruited its 40-plus members on the grounds that they are the most innovative, influ- ential retailers in their respective markets. Joining "was the best thing we did for this store," said Ferrar. The buying aspect and shared knowledge "is like having another partner in the store whom you don't have to pay." Looking Toward Online A nother big change is looming as well: online sales. Though the retailer has been restricted from doing mail-order or online business, that's about to change: now that out-of-state wineries became entitled to ship into Maryland as of July 1, the handcuffs next will come off in-state retailers. "We're ready when the law is changed," assures Ferrar. As always, he expects his first-mover advantage to be considerable. "I figure 98% of the retailers in the state won't fool with it," he said. The store also features a well- stocked gift section and a gourmet cheese area. Though Ferrar happily acknowledges he's a political ani- mal, getting Marberger involved has been more of a challenge. Marberger readily allows that he's got his hands full enough just run- ning the business, but says he recognizes it's time to step up to some of the broader responsibilities that role entails. He was just elected vice president of the "This is one industry where you can still start small as a family business." — Chuck Ferrar state association and says he's learning from the best tutor he could hope for. "I'm very lucky to have Chuck as my father-in-law," he said. "He's both bril- liant at business and savvy about politics." As for Ferrar, his post-Sysco plan has worked out very much as he'd hoped: he's been able to be his own boss, built his tiny store into a community institu- tion, and can rely on a trusted family member from the next generation to keep it advancing into the future. All told, the wine and spirits retailing indus- try has been very good to him. "This is one industry where you can still start small as a family business," said Ferrar. s Beverage Dynamics • www.beveragedynamics.com • September/October 2011 • 25