Minnesota Municipal Beverage Association Newsletter
(July 13, 2014 - July 19, 2014)
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for the
As I See It...
Change

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
 

Winter Tramples on Minnesota's Fledgling Wine Industry
Wine2

by: KIM PALMER , Star Tribune

There's yet another casualty of last winter's polar vortex: grapes.

 

About 30 percent of the state's wine-grape crop is missing in action, said Terri Savaryn, secretary of the Minnesota Grape Growers Association. Individual losses vary widely, from almost zero to 80 percent and up at some northern vineyards.

 

"Some are in very good shape, and others are taking it on the chin," said Peter Hemstad, University of Minnesota grape breeder and co-owner of St. Croix Vineyards in Stillwater. "It's not a catastrophe, but nobody's happy about it."

 

Kyle Peterson, winemaker at the family-owned Winehaven Winery in Chisago City, Minn., considers himself lucky to have lost only 10 percent of his winery's grapes. "We were really fortunate," he said. "Given what winter threw at us, we dodged that bullet."

 

Less fortunate was Carlos Creek Winery in Alexandria, which lost about 80 percent of its expected grape yield, according to co-owner Tami Bredeson. Most of the vines' roots survived, but the flower-producing died. That means they'll produce fewer grapes - or none at all.

 

The lowest temperature recorded last winter, minus-27 degrees, was "not extreme by Minnesota standards," Hemstad said. But the cold was unrelenting. "We had 50 days below zero."

 

"There was no January thaw," Bredeson said. "There was never a letup for the plants. They had to struggle so hard, for so long."

 

Because of the relative youth of Minnesota's wine industry, the plants also are young, which makes them more vulnerable to an extreme winter, according to Savaryn.

 

The state has nearly 50 bonded wineries, and most of them are young, she said. "There are few 20-year-old, established plants."

 

To supplement their own supply, growers who lost a lot of grapes are looking to other growing regions where yields are plentiful. "We're forced to source," Bredeson said.

 

Buying grapes from outstate growers won't increase the winery's costs, she said.

 

"We can purchase California grapes, and pay for shipping and still have it less expensive than Minnesota grapes," which require the same expensive equipment but are produced on a much maller scale than in major wine-growing regions.

 

While local wine production is likely to decrease in the short term, that doesn't mean Minnesota vintners can raise prices accordingly. "The problem we have is it's a worldwide market," said Hemstad.

 

"Argentina and Australia aren't going to be raising prices. People with Minnesota pride are willing to pay a premium over what they could get from Gallo, but only so much."

 

Wine connoisseurs who have developed a taste for Minnesota-grown wine likely won't notice any difference in taste, Bredeson said. "Making wine from Minnesota grapes is technically more difficult, and winemakers here have a lot of tools in their tool belt. They will be able to take the grapes purchased elsewhere and replicate the taste."

 

The impact could show up on wine labels, however. Instead of adding 10 percent of Cabernet grapes to a Marquette wine, a Minnesota vintner might have to switch to 70 percent Cabernet - and give the wine a fanciful name like "Winter Kill Red," Bredeson mused.

 

And with grapes in shorter supply, you might see more Minnesota wines made from other fruit, such as apples, berries and rhubarb. "We may experiment with black currants or aronia," said Bredeson. "This is the year to do that." 


How Were People Born?

A child asked his father, "How were people born?"

So his father said, "Adam and Eve made babies, then their babies became adults and made babies, and so on."

The child then went to his mother, asked her the same question and she told him, "We were monkeys then we evolved to become like we are now.

" The child ran back to his father and said, "You lied to me!"

His father replied, "No, your mom was talking about her side of the family."

You have to learn the rules of the game. And then you have to play better than anyone else.

  


Future Dates to Remember

2014 MMBA Regional Meetings 

 

Thief River Falls  September 10

Alexandria
September 17

Worthington
September 24

Rochester 
October 1

Duluth
 October 8

Metro
 October 9
Ask A Director

Gary Buysse
Rogers
763-428-0163

Cathy Pletta
Kasson
507-634-7618
  
Bill Ludwig
Paynesville
320-250-3325
  
Candice Woods
Hutchinson 
320-587-2762
  
John Jacobi
Isanti
763-444-5063

Michael Friesen
Hawley
218-483-4747

Lisa Kamrowski
Nevis 
218-652-3135

Steve Grausam
Edina
952-903-5732

Toni Buchite
50 Lakes
218-763-2035

Brenda Visnovec
Lakeville 
952-985-4901
 
Bridgitte Konrad
North Branch
651-674-8113
  
Shelly Dillon
Callaway
218-375-4691
  
Karissa Kurth
Buffalo Lake
320-833-2321
 
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925

 
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