Southern + Alaska Sittin’ in a Tree K-I-S-S-I-N-G
Well, it’s official. The ass monkeys known as Southern Wine & Spirits have finally roofied a Washington state distributor into “surrendering their catalog.” For those who have never had the unique joy of dealing with wholesalers (and by joy I mean terrible pain just below the coin slot), Southern Wine & Spirits is to the wine business what Wal-Mart is to just about every other business in this country. And starting in May, Alaska Distributors (the largest distributor in the Northwest) is shacking up with Southern.
See, if you want to sell your wine in Washington state, you have to have a local distributor and be posted with the state. So we only have two mega-tard distributors because of the barriers put up by our bureaucracy. Alaska was big enough to keep those Southern bastards out of our market, until now. (What’s that they say about the devil you know?)
I hated dealing with large companies like Alaska when I was a buyer. I mean, they sell Caymus out one end and Keystone and Schlitz out the other. They spent half their time trying to sell me crap that had nothing to do with my shop. But the most annoying practice within a distributor such as these, is segmenting. This happens when one very large distributor has two wineries or portfolios that don’t want to share a sandbox (or a distributor has just too damn much product). So the distributor dreams up another “division” with some different name on the letter head to keep Napa Crappa happy. I dealt with one company that had 85% stuff I didn’t need but wanted to assign 4 salesmen to sell it to me none the less. (yeah, Young’s-Columbia, I’m talkin’ about you)
And that’s why this merger, arranged marriage, or whatever the hell it is will annoy so many buyers. It’s just going to take up more of their time. You see this news as a buyer and you think, Oh great. How many more dog and pony shows can I take?
Steve Loeb, one of the higher ups at Alaska, said in their press release:
It’s an exciting day for our Spirits West Division to partner with Southern Wine & Spirits of America. Their vision for a fully integrated Control State Group, focused on on-premise excellence and operational efficiencies, will help strengthen our existing operation and create more value for all our suppliers.
Allow me to translate.
“integrated Control State Group” = crap wine assimilation for resistant states
“on-premise excellence” = sommelier kick backs
“operational efficiencies” = lay offs
“strengthen our existing operation” = destroy some ponytail distributor ass
“create more value” = leverage for price fixing
They broke up Ma Bell for a reason. And companies like Southern Wine & Spirits remind us of that reason. Bigger is only better for the monkeys at the top. And it always translates to less choice for the customer.
And no, forty one flavors of bulk Napa Craper-net is not a choice.
*** The following is a letter I received from someone at Alaska Distributors, reprinted whole. If only this guy would write their press releases, maybe people could get the info straight. [John graciously conceded thisw point in an email.] I still stand by what I wrote, even if “segmenting” is now a bit of a digression. I talk to you all like I would my friends in the business. If you’re getting your news here, you’ve got other problems. And no one at Alaska was willing to fact check me.
And now it all makes sense. Alaska partners with Southern so they can attack our hard liquor distribution system (it all goes through the state), now that Costco’s won round one of the wine and beer distribution wars for them. I’m sure there are lovely people at Alaska, I know some of them. They carry some good stuff. They have Orval. But if you read this site regularly, you know it’s ALL about the little guy for me, and stickin it to the man. And nobody like to see two goliaths gettin cozy. But in fairness, and to return his good sportiness:
Greetings,
While I appreciate your surly, dissonant voice as stated in your mission statement, you have many of the facts of this situation wrong. Alaska Distributors and Southern have entered into a partnership for their spirits business ONLY. Wine, Beer and other beverages are a separate business. Spirits in the state of WA is almost always shipped from the producer directly to the Washington State Liquor control Board. ADCo & SWS will jointly “broker” and manage these brands in 7 NW states.
ADCo has avoided “segmenting” as you call it. and has just now added a small specialty wine division as compared with the Youngs/Columbia/Beringer/Raden/P&S/Diversified/etc. mega/multiple/merger currently with 4 wine “divisions”. ADCo has done an excellent job of delivering value to the supply chain by offering great service while working on the lowest margin in the market. Due to efficient operations and good management they continue to be successful and sound. I know I’ve been there for 20 years and am very proud of my company.
Your translation makes no sense. Surrender? ADCo is both successful and profitable and has grown from a small distributor with 5% market share to perhaps 20% today. During that time the number of wine distributors has grown from 6-7 to over 50 independent, niche wine distributors, the “ponytails distributors” are doing fine. There are more wine labels available today, with better wine at lower prices, more distributors in WA than ever, how can you say that it translates into “less choice” for the customer.
Steve Loeb is the owner of ADCo, not a higher up, and his integrity, class and stewardship is unimpeachable. He is a true gentleman and has been a compassionate, fair employer to thousands over the years. If you had the opportunity to poll the customers and employees, past and present, you would find the vast majority agrees with this point of view. Seattle Pacific University has given ADCo the “Best Family Business in WA” award due to their community service, treatment of their employees, very high non-discrimination standards, among other attributes. You mentioned Steve Loeb by name, I gave you my name, but I can’t seem to find your full name on your page, only M. Savarino [ed. note, first name Maggie, it’s all over the site dude], maybe I missed something. You can’t please everyone, and it looks like you were an unhappy customer of ADCo, that is unfortunate. Judging from all of your posts and the slant of your bolg, I’m sure you were a pleasure to work with.
I believe alternative voices are a great thing, however, it is important to know the facts so you can offer an opinion that matters.
I will be impressed and will have more respect for your point of view if I see that you post and leave up my comments.
Best Regards,
John Schultz
Key Accounts Manager
Alaska Distributors
President
WineSquire.com
April 23rd, 2006 at 1:11 am
Youse had better be careful, disrespectin’ da Boss like dat, or you’ll find yourself sleepin’ wit da fishes.
Sincerely,
SW&S
April 23rd, 2006 at 12:27 pm
Uh-oh. Bring on the Smoking Loon and Aquinas! Maybe if you buy a board of each you’ll get a 6-pack of Caymus Special Selection.
Now I’m going to drown my sorrows in a glass of Bierzo.
April 25th, 2006 at 11:20 am
You should try living in Pennsylvania, where all sales are controlled by the Liquor Control Board. I thought Gorbachev and the USSR were history; I was wrong! It still lives here!
April 26th, 2006 at 8:38 am
What a pussy. And what’s up killer? You’re being way too nice.
Why do raging capitalists always want to tell you what nice guys they all are? Notice he didn’t talk about the quality of his products.
April 26th, 2006 at 9:21 am
So you’re just another one of those “big is bad” liberals. But I bet you still enjoy an ice cold Coca Cola every now and then. You can’t avoid the big boys Missy.
April 26th, 2006 at 9:24 am
Even though Mr. Schultz has a fair rebuttal, I stand behind your right to point out: 1. Southern Wine and Spirits is an unruly behemoth; 2. giant companies that try to sell you stacks of crap to specialty stores, presumably because they’ll miss bonuses if they don’t, suck; 3, regardless of Mr. Schultz’s end of the story, “two big goliaths getting cozy” is ultimately never a good thing for the consumer. Better selection? Sure—of mass produced products with high margins. High margins is always the name of the game with the Big Boys. Tell me I’m wrong.
I hope, sincerely, that Mr. Schultz is on target when he claims that the number of independent distributors are growing and doing fine. My experience is quite the opposite, especially in the retail arena where backdoor deals are made between the big company reps and the store managers because they have more time to kiss ass and more representation on the shelves, while the little guys struggle to keep their slot on the rack.
Bigger is always better for the top brass. The bigger the company, the farther away from the product and the people. That’s just a fact. I have no doubt that Mr. Schultz admires his company and has reason to, but we’re on the side of the elephant where the end product comes out.
Taj
The Cork and Demon
April 26th, 2006 at 11:10 am
I just wonder why they care so much about a wee little blogger.
Gee Em - actually, between their poaching of water rights in poor nations and the fucking fiasco that is TAB energy, Coke is on my shit list too!
Taj - I agree on the indie point. It’s typical republican “screw everyone else, they could choose our path” drivel. It’s kinda like your computer coming with Windows. It’s a crappy product, but you have no choice. That pretty much describes most major supermarkets across America. In this case bigger may PROPEL bigger still. But it does not mean better.
April 27th, 2006 at 10:19 pm
Maybe I’m just naive, but if Alaska/Southern pisses me off, can’t I just buy from Dieter or XYZ niche player? - In fact, if the worst fears are realized about MEGA-WINE, doesn’t that just secure the place of the niche-ista??
The niche player should only fear if the big boys start offering great wines with personality at good prices. - Probably ain’t gonna happen, but if it does, we win! Yes?
April 28th, 2006 at 8:15 am
Schultzy, pack it the hell up man. You’re about as effective as Scott McLellan, and driving around in your moronic convertible with your handsfree headset on, the wind caressing your fine fine hair while you convince Ro and Gorman to write another imbecilic review for some crapass Zinfandel for Squire Guide makes me want to puke…
April 30th, 2006 at 11:13 am
A note to “ponytail distributor” who is too much of a pussy to leave his real name: Obviously Schultz has kicked your ass up one side of the street and down the other. Otherwise you wouldn’t leave that sniveling anonymous post. My real name is at the top of this post…look me up.
April 30th, 2006 at 11:36 am
Did. Tom Allan worked for Alaska for a while. Wine Squire and Alaska (may)have an inbred relationship, hence pissy-ness at comment #9.
The way I see it? To dominate, is to make yourself a target. The Yankees, Wal-Mart, etecetera and whatever. As I state above, pure David and Goliath. And if you’re going to be or work for a Goliath, you better get used to the feel of stones bouncing off your pelt.
An integrity towards quality is the best armor.
Force field. No backs.
April 30th, 2006 at 8:43 pm
You know you’re cool when people start leaving such huge comments. I think they all secretly want to be you, and not be worried about what anyone thinks. And have boobies. (ha ha)
April 30th, 2006 at 10:38 pm
Hey Ponytail distributor guy, you have used this medium to be personally insulting to me, why is that? I stated my arguments to this blog and gave a rational discussion of my viewpoint - and my name. Your contribution is just plain hateful, I’m sorry that you are in a position to consider this acceptable behavior as an adult. In a world with so much anger, why do you add to it? I believe that no one is in a position to judge another.
Anyways,
For the other readers benefit:
WineSquire is a no-profit organization that is open to all respected wine industry professionals in the Seattle area. We provide a gratis opportunity for local people to publish their wine recommendation and wine related articles, giving them a local voice to consumers that competes with the giant publishers. A good thing I believe. Most of our contributors work for, or own “ponytail” distributors. Small distributors benefit the most from my SquireGuide, without it they would lose business, just ask any wine shop owner for their opinion on that! I created WineSquire.com and gave a voice to “any and many” of my competitors. I believe our contributors are conscientious well-respected professionals, and they’re nice too, please don’t insult them. In my time in this profession I have made most of my competitors my friends, realizing that my own success is within me and not dependent on stepping down on others. I’ve helped many people get jobs, given helpful career advice, worked hard at worthwhile charities to the benefit of many. I’ve done my best to be a thoughtful, kind, person, sorry that did not come across to you.
Yes I do enjoy the ragtop, it is a luxury I afford myself due to lots of driving. But as for the hands-free cell use, I submit that it is much safer than holding the phone in your hand. I certainly hope you respect the safety of your fellow man and use one while you’re driving.
Now start being nicer!
April 12th, 2007 at 10:37 pm
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June 27th, 2008 at 8:37 pm
Dont think this will work as the last message is over 1 year old!
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