Beverage Dynamics

Beverage Dynamics Jan-Feb 2015

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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16 Beverage Dynamics • January/February 2015 www.beveragedynamics.com "We talked periodically, then one day I got a call and he said they were ready to hire me." That was 1993, when the Trig's in Minocqua only had a small beverage alcohol department and Cellar 70 didn't exist yet. Working slowly with Solberg and Lee Guenther, the company's President and CEO, Kohl built up the wine selection. By 1999, the company decided it was time to use a retail space previously occupied by a video store to create the fi rst Cellar 70, which Kohl calls "our fi rst serious wine department." "There were two other liquor stores in the area, but I knew this region was ready for the wine business in a big way," he says. "I wanted to expand into French wine, Italian, Australian, South Amer- ican (which no one around here had a great selection of at the time). So we started importing more wine, bringing in fi ner wines from California, Washington and Oregon – and it grew from there." Today, Cellar 70 locations offer as many as 10,000 wine SKUs. EXPANDING THE BRAND The name Cellar 70 came from the fi rst store's proximity to high- way 70 in Minocqua. When the company decided to remodel the Trig's grocery store in that location, it brought in the Cellar 70 concept – a process it has continued with each store remodel over the past two decades. "The The cellar look for the stores came from a trip Lee, Trig and I took out to California to visit with Korbel," Kohl says. "Between the tasting room and retail store, there's a Spanish grotto with an arched gateway, decorated with Spanish tile. Trig looked at it and said 'I like the idea of the archway, but we'd need something more local to replace the Spanish tile,' so we decided to use cedar with Cellar 70." Guenther describes the look as an inverted barrel, which appeals to the store's large wine- and spirits-drinking customer base. "De- pending on the size of the store, there are several of those vaults," he says. "Each store has a slightly different color, but they all have soft lighting with wooden fl oors." The store sizes vary from 6,000 to 13,000 square feet, depend- ing on the space available during each remodel. For example, the Eagle River Cellar 70 was built from the ground up, whereas the Cellar 70 in Rhinelander was previously a restaurant. More recently, a small Cellar 70 has been added to the Trig's Village Market in Manitowish Waters. "We're always looking for opportunities for more locations, but all of our grocery locations have a Cellar 70 at this time," Guenther says. "Our only room for expansion at this point is our six gas station and convenience locations. Some of those sell liquor, but none have a big selection." REPLICATING SUCCESS ACROSS LOCATIONS When the second Cellar 70 opened, Guenther and Kohl faced a problem – how to apply the concept to a new market, with new customers and new employees. "Our differentiation is the size, selection and variety of products in the store, but most important is the knowledge Dennis brought to the company when we opened the fi rst Cellar 70," Guenther says. "Fortunately he was able to train other associates, which really set us apart." To this day, in addition to teaching classes at the college level, 2015 RETAILER OF THE YEAR MEET THE STAFF Each Cellar 70 location is staffed by consultants with experience in various markets throughout the midwest. The company's exper ts include: • Dennis Kohl: Cellar 70's head beverage consultant, who has been with the company for more than 20 years, Dennis has been in the business since 1979. He taught wine appreciation at the Cooking and Hospitality Institute of Chicago, and now teaches a wine and spirits course at Nicolet College. Dennis is also a member of the Beverage Dynamics national retailer wine panel. • Bruce Conard: With Cellar 70 since 2003, Bruce is a graduate of the Chicago School of Wine and previously worked for Hyatt Hotels and Resorts in Chicago. • Jeff Tewes: In charge of advertising and marketing for all Cellar 70 locations, Jeff has more than 30 years of retail and management experience. Minocqua Cellar 70 offers as many as 10,000 wine SKUs.

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