Beverage Dynamics

Beverage Dynamics Sept-Oct 2012

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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With a wide selection of bourbons and ryes and more than 200 brands of Scotch (as well as about 40 brands of gin), D&M garners 40% of its overall revenue from sales of spirits. more than 100 selections of these domestically produced spirits. Gin is also a hot category and 40 different gins, from classic London Dry to smaller, esoteric brands are stocked. Local spirit labels, such as the vodkas and other spirits from hometown producers like St. George Spirits/Hangar One Vodka, are also popular. Bay Area clients continue to be passionate in their support of local products, notes Politz. The Distinction P art of what sets D&M apart from the competition is the staff's dedication to customer service and wine knowledge. Despite the relative youth of the four- person staff, (not including Politz and his wife Karen), the salespeople are incredibly focused and knowledge- able. They are not hesitant to make suggestions, offer pairing ideas or share the names of some their local favorite wines under $20. Politz also works closely with them on new purchases and fine-tuning the friendly, low-key service. The small sales staff at D&M is constantly tasting new arrivals and vintages on a weekly basis. They are also encouraged to attend local tastings to ramp up their wine and spirits back- ground. The store has no shelf talkers, so interaction with the staff is the only source of information. The store also invites producers and other educators in to do comparative staff tastings. Politz believes that his customers choose to go to smaller stores because they want an education and new insight familiar and lesser-known wines. He added that he and his staff blind taste every product that comes in the door. He added that his four years experience as a checker at Safeway also gave him some key insights on customer service. Part of D&M's constant strategy to stay competitive, according to Politz, is "thinking out of the box." In a wine- savvy, major metro area where wines are available at major supermarket chains and powerhouse beverage alco- hol stores like BevMo! it is essential for a small store to stay agile in its buying and merchandising strategies. Local competitors include the three-location K&L — only two of which are in the Bay Area — the Jug Shop, BevMo! and several high-power, out-of-state operators. That short list, according to Politz, includes Binny's Beverage Depot in Chicago, Park Avenue Liquors in New York City and Hi-Time Wine Cellars in Los Angeles. He adds that, because of their limited selection and different focus, supermarkets and small liquor stores aren't part of the competitive picture. Social media has been a small, but ever more important, part of D&M's marketing efforts. The store is present on Facebook and Twitter and Politz is looking into more opportunities. It rebranded and launched its website in March of this year. The new format is focused on user friendliness and making it easier for customers to navigate the site. It also offers more pictures of products and simple and straight-for- ward search functions. Politz shares that he has seen an uptick in business as a result. The store also sends out an e-blast once a week letting customers know about specials and new releases. A focus on specialty products, like Champagne and fashionable spirits, as well as a passion for the retail busi- ness, have keep D&M solid for the past five decades. Hopefully the family tradition will continue for another fifty years. s 40 • Beverage Dynamics • www.beveragedynamics.com • September/October 2012

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