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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While some smaller stores don't carry every niche product (stores range from 2,800 to 13,000 square feet), each town offers a full range of products across its stores. "Every area is unique," Scheidt says. "Columbus is a small town, but every neighborhood is different. When we set up a store in a new market, we have to stock the basics like Bud Light and Jim Beam, but we also begin to sort out what sells and what doesn't on a store level. There's no specifi c product mix – we start tweaking the stocking and it can take up to a year before we get to an ideal mix for the customer base." Above all, Cork's number one strength is location. "My family was in the real estate business, so one of our keys to success is placing stores where they should be," Scheidt says. "You can't always compete with CVS for the best locations, but you can be somewhere with good access and an attractive building. For ex- ample, Shelbyville is divided into quarters by two highways that run north to south and east to west, so we're trying to get a store into each quarter of town, near the highway exits." "It's taken fi ve years to get the location we wanted for a store we're building now (to open by July)," he adds. "It takes patience, but the old saying is correct: it's all about location, location, location." WORKING AS A FAMILY Cork Liquors is among the rare family businesses to last through three generations – Warren's son Travis, daughter Allison and son-in-law all work at the company full-time. "My favorite part of being a retailer is having my family heav- ily involved in the business," Scheidt says. "Allison is only a few feet away from me and runs our business offi ce, and her hus- band is the liquor buyer at our main store. Travis oversees all of our marketing and pricing and specializes in craft beer. Having my family here is a big treat for me." Warren's brother Don handles the company's real estate ac- quisitions, leases and property purchases, given his background as a realtor. Allison joined the business after she graduated from Purdue in 2008, and Travis came on board in 2006 following his graduation from Ball State. While he was in school, Travis worked at a number of Indiana beer wholesalers, giving him a unique perspective on the industry. One day, Scheidt hopes his children will pass the business on to the fourth generation. "I'm going to live forever, even though I haven't fi gured out the details yet," he jokes. "But it's very important for me to keep the business family-owned. I would still only have seven stores if it wasn't for them." When the opportunity to purchase four locations in Shel- byville came along, Scheidt was hesitant to expand. At that stage of his life, he "had a good thing going" in his hometown and didn't have the need or desire to expand into a new market. But his children were young and aggressive and willing to com- mit to joining the business when they fi nished college. "That made all the difference in the world," he says. "Now I'm committed to serving small, outlying communities where we can make a signifi cant difference in the types of stores we build and the products we sell. Every town we've entered, we've tried to make things better than they were before we arrived. We want to be an asset in the community, and that's something you can do in a small town." INDIANA'S BEVERAGE LAWS Every state has a unique history with laws controlling the sale of alcohol, Indiana included. In the Hoosier State, these are some of the legal requirements and restrictions that retailers face: Indiana is one of a dozen states that don't allow Sunday off-premise sales. Package liquor stores can sell beer (warm or cold), wine and beer. Convenience stores and gas stations can sell warm beer, but not beer out of a cooler. Drug stores, grocery stores and big box stores can sell beer, wine and spirits, but not out of a cooler. Package stores can sell warm bottled water and soda, but cold sales can only be made out of a vending machine outside the store. Package stores can open as early as 7 a.m., and must be closed by 3am. Cork's stores are open as late as 1am on the weekends, and most open at either 7 or 8 a.m. Permits are given on a quota system, with each incorpo- rated town or city limited to one permit per 8,000 people (although many stores were grandfathered in at an earlier 5,000-person calculation). There are no limits on how many permits one person or company can hold. If a wholesaler offers a volume discount to one retailer in the state, it must offer the same pricing to all retailers (even cooperative buying groups). BD patience, but the old saying is correct: it's all about location, BEVERAGE LAWS Every state has a unique history with laws controlling the sale of alcohol, Indiana included. In the Hoosier

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