Beverage Dynamics

Beverage Dynamics Jan-Feb 2016

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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www.beveragedynamics.com of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye of the ye www.beveragedynamics.com January/February 2016• Beverage Dynamics 15 T he fi rst 2016 Retailer of the Year is a family-owned chain of about a dozen stores located in and around Colum- bus, Indiana. Cork Liquors is owned by Warren Scheidt, an active member of the bever- age alcohol industry who's the current president of the American Beverage Licensees (ABL), a trade association for on- and off-premise retailers. The fi rst Cork location opened in Columbus in 1982, after Warren's family obtained a permit for a new store in town in partnership with his parents Virgil and Bettie, and his brother Don. "We knew absolutely nothing about the busi- ness," Scheidt says. "My father always wanted a package liquor store, so when it became available we got to- gether and started the business in a 4,800 square-foot store, which was a big store at the time." Since then, the original lo- cation has undergone three additions and now stands at 13,000 square feet – the largest in the chain. At the time the Scheidts obtained their permit, local boards collected and approved applications. Permits were issued on a quota system, with one store allowed in a town or city per 5,000 people. Since then, state law has changed so that a commission in Indianapolis auctions permits off for the entire state. "Thirty years ago they thought local people were better to choose who got the permits because they knew their fellow citizens," Scheidt says. "When we applied, we were one of 13 groups. We ended up getting the permit because we were the only ones who fi lled out all the information correctly." At fi rst, Bettie Scheidt ran the store during the day since her husband and sons worked full-time elsewhere. Warren, Don and Virgil divided up the six days of the week the store was opened (Indiana still doesn't allow sales on Sunday) and worked the evening shifts. "We each worked two nights a week for many years, until the time when we acquired more stores," Scheidt says. "We re- ally made it a family business, and we put every dime we made back into the company." UNINTENDED GROWTH Over the years, Cork has grown through acquisition, as stores in Columbus or surrounding towns became available. More than T he fi rst 2016 Retailer of the Year is a T he fi rst 2016 Retailer of the Year is a T he fi rst 2016 Retailer of the Year is a T he fi rst 2016 Retailer of the Year is a T family-owned chain of about a dozen T family-owned chain of about a dozen T family-owned chain of about a dozen T family-owned chain of about a dozen T stores located in and around Colum- T stores located in and around Colum- T stores located in and around Colum- T bus, Indiana. Cork Liquors is owned by T bus, Indiana. Cork Liquors is owned by T bus, Indiana. Cork Liquors is owned by a few times, the sellers came to Scheidt and asked him to buy them out. Other times, very little persuasion was required. "There was a fellow in town who owned two stores, and I saw a sign outside his store one day saying he was selling Coke machines," Scheidt says. "I stopped to chat with him and told him if he ever wanted to sell, I'm always interested in expanding. He told me, 'I'm ready to sell right now.'" Within a few days, Cork Liquors had two new locations. Scheidt owns all seven permits for Columbus, which has a population of about 40,000. It took nearly 22 years to col- lect them all, which he says required patience. In the case of Shelbyville, where all four permitted stores in town are Cork locations, luck was on his side. "I was out of town and got a call from a retailer in Shel- byville asking me if I'd like to buy his two stores because he wanted to sell," Scheidt says. "Within a few days we worked out a deal. Less than three months, another guy who owned the other two permits in town asked me to buy his business too. I'd never spoken to him before, so it wasn't any aggressive marketing on my part. I was just answering the phone." Across all 12 locations (there's one Cork Liquors in Greens- burg), Scheidt's retailing philosophy ties the chain together. "I've always believed that no matter how much you dislike the competition – Kroger, Walmart, all the big guys – there are certain things they do right," he says. "If you look at bev- erage retailing, that includes wide aisles, well-lit displays and clean stores." Cork's marketing philosophy is to offer competitive Patience Pays Off Cork Liquors has remained independent by growing steadily through acquisition. BY JEREMY NEDELKA Patience Patience Warren Scheidt (center) with his daughter Allison and son Travis.

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