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+--- Thread: The Allocation Game (/thread-12461.html)
- stevebody - 05-09-2005
Just wanted to get your feedback...
In thinking about our new shop, two of my advisors told me that I would need to unclench about allocations, something which I have always taken a militant stance against. Notably, one of my best distribs, a guy I spend time with socially and whose wife knows my girlfriend, told me that I would have to cough up for a couple of cases of Chateau Montelena Chard to get a chance to buy one case of Montelena Cab. I told him - and not too gently - that there is a whole lot of wine out there and that I would live without Chateau Montelena. This was in my restaurant. I don't see that we suffered at all from the lack of the Cab but my buddies think I made a mistake. We just replaced the Montelena with the Beringer Reserve and sold a ton of it. They - both of whom owned wine shops - thought I should be flexible enough to do buying programs with good wineries.
I'm not quite enough of a jughead to think that I know everything, so I'm asking you guys: My bedrock inclination is to say "If you can't sell me what I want without extorting something else, see ya!" Now, this is a different thing from the rep telling me that there just isn't enough to go around and that his larger accounts will get his supply. That I have no problem with. When I become one of his better accounts, I expect the same consideration. At first, I don't. But any sort of attempt to leverage a wineries crappy stock to get to the good stuff gets every one of my hackles up and I'm inclined to simply say that the whole catalog will not be in my shop.
Whaddaya think?
- Bucko - 05-09-2005
I'm with you. I have a friend who owns a shop in CA that gets the same song and dance. He refuses to play the game -- too much wine out there these days. Screw 'em.
- Kcwhippet - 05-09-2005
Same at our shop. The owner, who's been around a long time in importing, wholesale and retail, has created a very large shop with about 1800 facings. He was hit by the Gallo and Constellation folks to take stuff he didn't want in order to get other "good" stuff. He told them to stuff it, and we were in operation for over a year with nothing from either of them, and doing very, very well, thank you. Anyone who came in and wanted Arbor Mist or Ecco Domani or the rest were told them to try somewhere else. Both companies finally came in last fall and told him he could take his pick from their portfolios. Again, he told them to stuff it until a few months ago, when he decided to order some things that were being asked for by the customers - mostly the low end items to boost the bottom line some more.
[This message has been edited by Kcwhippet (edited 05-09-2005).]
- Innkeeper - 05-09-2005
Agree with all above. The same thing can happen with the "Big Guy" wholesalers. They will say take this and this or we won't sell you that and that. The solution in this area has been the rise of small independent distributors. All the successful retailers in the area as diverse as an independent, a four store chain, and a regional Coop use these guys as much as possible. This has brought the "Big Guys" around to just sell them what they want. One of these has recently surfaced over in New York, and he is peddling Finger Lakes wine all over New England.
Hopefully you have or will find some folks like this out your way.
- wondersofwine - 05-09-2005
One exception might be on vintages. A producer in Burgundy or Bordeaux possibly could not stay in business if no one was buying an average vintage. If say the 2002 vintage is considered outstanding or classical and the 2003 vintage only good or very good, the distributor might say you have to accept some of the 2003 to get the 2002 or to be considered for the following release. I can see some validity to that. But I don't think you should have to take the plonk to get the decent wines.
- wineguruchgo - 05-09-2005
I totally agree with you.
This is coming from the distributor because he is forced to take the Chard - like it or not.
If you are willing to pay the price just order the cab directly from the winery. Sure there is an upcharge - but if people are looking for it you can make a special order.
Won't the distributor rep be surprised if he sees it in your place! hehe!
Estate Cab is going for $125.00 per bottle out of winery.
- Kcwhippet - 05-10-2005
Guru,
I don't know about WA, but here in MA wine MUST go through a distributor before a retailer can touch it. We can't order, and receive, goods directly from a winery.