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/82861
wine, great value wines and a focus on brown goods in its spirits selection. It also features a small, artisanal beer selection. Bitters have also been gaining sales traction and the store probably carries the largest selection in the Bay Area, according to Politz. He adds that local bartenders even buy them from him. Long ago Politz's family decided to focus the shop on Champagne offerings, as a way of selling something unique, and it still one of the country's top sparkling wine and Champagne specialists. Bubbly accounts for an amazing 30% of their total sales today. These figures are impressive and unique in a city in which many retailers tend to cater to the interest — of both locals and tourists — in California wine. Politz adds that Champagne need not be saved for special occa- sions, as "it can be a daily beverage." Top-selling brands include Taittinger and Monthey in the Champagne category and Schramsberg and Roederer Estate in the California sparkling. Many of the smaller pro- ducers' labels sell faster than the well-known names given D&M's savvy customer base. D&M carries 1,800 SKUs of beer, wine and spirits storewide, according to Politz. That set breaks down into 1,300 SKUs of wine and Champagne, 500 SKUs of spirits and a handful of beers. Spirits—with a heavy focus on brown goods—account for 40% of total store sales. Top brands include Rittenhouse, Bulleit and High West. In terms of beer, the store focuses on microbrews over the big brands. D&M is renowned for its wide and deep selection of sparkling wines, particularly Champagnes, which alto- gether account for about 30% of the store's revenues. Despite the surprisingly small footprint of the store at 900 square feet — with a warehouse of 10,000 square feet — and its humble beginnings, business and profits have been solid. According to Politz, sales were up 10% as of the end of April this year, over the previous year. Sales are also significantly up since the store opened. In its second year of business — almost a half century ago — D&M grossed $130,000 annually and has seen those sales figures increase 40 times since then. The Rundown hile the store is a top go-to retailer in Northern California and stocks many domestic wine and spir- its brands, it has also sought to distinguish itself over the years by focusing on champagnes, sparkling W Seventy percent of the wine selection is either from California or domestic, with the bulk of the labels coming from California. Prices vary from $8 to $3,500 a bottle. Well- priced offerings, such as the Bliss Vineyards Sauvignon Blanc from Mendocino for $9.99, stacked out in wooden bins at the front of the store are popu- lar items. The customer base skews to local as much as out of town (and often out of state), and much of the store's business is conducted over the Internet. Buyers range from 25 to 85 years old, according to Politz, and run the gamut from "new, young blood to hard-core pros that have been collecting for 20 to 30 years." The Champagne Connection he store has long offered an extensive selection of both mainstream and esoteric Champagnes. While D&M carries major labels of both Champagne and California and domestic sparkling wine, it has moved T 38 • Beverage Dynamics • www.beveragedynamics.com • September/October 2012