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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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 17 NOT ALWAYS SMOOTH SAILING Like any business, Cork Liquors has faced its share of challenges over the years. "We face the same hardships as any small business – mostly diffi culties in fi nding a consistent labor force and competing against larger stores," Scheidt says. The towns where Cork operates are home to a number of large manufacturers. Cummins, a diesel engine manufacturer, is located in Columbus, and Greensburg is home to a Honda plant. "Our unemployment rate is very low, so people are at a pre- mium – especially good ones," he adds. "But from speaking to retailers around the country, I know a competitive labor market isn't unique to southern Indiana." In addition to increased labor costs, Cork competes against stores that sell a wide variety of products that package stores aren't allowed to carry. To make things worse, many of these big box stores sell alcohol as a loss leader, below cost. "They're not doing anything illegal – if these stores want to lose money on certain products, that's their prerogative," Scheidt says. "But I'd rather see it not take place, especially when all I can sell is alcohol products." Other than cold beer, big box stores like Walmart and Kroger can sell any items found in Cork locations. "People need food, fuel, clothing and medicine – all things these stores can sell legally that I can't," he adds. "When a com- petitor can sell the staples of life and then turn around and offer the only products we carry to consumers at below cost, I don't like it very much. If those stores can afford to lose money, they should lower their prices on things that people need." INDUSTRY INVOLVEMENT In part because of Indiana's complex regulations governing the beverage alcohol industry, Scheidt has long been involved in networking with and fi ghting alongside his fellow retailers. "I joined our state association in 1984 because I was raised in a political family," he says. "It came naturally to be involved with the inner workings of the industry I was involved in. From early on it was obvious to me that, in an industry where every- thing you do hinges on what the legislature says you can do, you should be involved in the process or you may not have a business to be involved in." Scheidt was the longest-serving president of the Indiana As- sociation of Beverage Retailers, held nearly every elected offi ce and served on every committee. The IABR's membership is very strong on a per-capita basis, with nearly 50% of state retail- ers participating in the association. "I worked my way up and paid my dues, and then the reason I joined the ABL was because I'd already done everything on the state level," he says, adding jokingly, "I think they sent me to Washington to serve on the national committee to get rid of me because there was nothing left for me to do." Nationally, the ABL is focused on sharing information among its state association members, as well as lobbying mem- bers of Congress to serve its membership's interests. "State regulations affect retailers during their day-to-day business and you really notice changes in the law very quickly," he says. "On a national level, the changes are more subtle and often we need to team up with other industry associations to accomplish the things we believe in." The ABL has recently worked on issues as varied as doing away with the "death tax," transportation bills, interlock regula- tions and repeat-offender laws. Scheidt was elected president of the ABL in June and is currently serving a two-year term. He's previously been the as- sociation's vice president, treasurer and chairman of the com- munications and fi nance committees. "I'm running out of positions again, like at the state level" he says. "I'm not sure what I'll do next, but I'm always looking for new opportunities and keeping my ears open." BD " My favorite part of being a retailer is having my family heavily involved in the business. " — Warren Scheidt

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