The retail liquor landscape has been changing quite a bit over the past 5 years or so. The addition of a really big wholesaler (Southern), a few wholesalers being sold (Quality Wine & Spirits & World Class Wines), consolidation of operations with home office (Wirtz beverage) are a few of the changes with people we buy from. The craft beer boom has hit everyone full force, being from new breweries opening up or tap rooms being added to existing breweries. Minnesota wine is still growing with over 30 vineyards in our state right now. Micro distilleries are up and running in the metro and also Greater Minnesota. One of the biggest changes for the retail trade is the addition of the big box chain Total Wine and More. They opened their first store in Roseville in March. Since their first opening, they have signed leases and have been approved to open up stores this fall in Burnsville and Woodbury. Total Wine sells their products for much lower than the market has ever gone before. They say they can sell for less and make it up in volume. There are others that are opening soon. Target has decided to get into the business in MN with a store opening soon Otsego. We have even heard that Hi-Vee is looking at getting into the mix in MN. With this changing landscape how do the municipals compete? Remember, we all have a story to tell, and we all better start telling it and promoting that story if we want to stay relevant in our communities. Whether it's Total Wine, Target, Coburns, Haskell's, Hi-Vee or others, we all have competition and we need to know how and when to compete. * Do you have a wine/beer club, a loyalty program, senior discount, liquor/beer/wine of the month program? * Do you offer coupons to your customers? * Are you involved in the community? * Do you work with the different organizations in your community like the Lions, Rotary, Chamber of Commerce, senior center and others? *Are you or have you been involved with the MMBA food drive, coat drive, animal shelter drive or the support the troops drive? As you can see, there are many ways to compete and gain business by how active you are promoting your operation. In surveys we and others have done over the years, convenience is the #1 reason people shop at most liquor stores with location, service and then price rounding it out. People will pay more if they know where the money is going and feel they are treated special every time they walk through your doors. Matching prices long term with a big box retailer will not gain you any more business. Providing great customer service, competitive prices and convenience and telling your story on where the money is going, and what the liquor store is involved in will gain you customers and give your regular customers a reason to keep coming back. If you have questions on how to set up some of these programs listed above or how to best get involved in the community or how to best tell your story, do not hesitate to call Paul or any board member and we can help you get on your way. These are your dues at work and we are here for you. I wish you all great success this summer and throughout 2014! Steve Grausam Edina Liquor |