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Getting Their
ARMS Around It
Wirtz Beverage Group's Combination of Wisdom, Vision and Specialization Drives Sales On-Premise
When
operators from across the country “Rock the Block” as part of “The
Show” in Las Vegas, they’ll tour some of the city’s top nightclubs. So,
the tour’s sponsor, DeLuca Liquor & Wine Ltd., is perfectly
fitting. After all, it’s a division of a nationwide system of
distributors that has rocked the national block for decades.
But that system’s magic touch for boosting operator
sales is the result not only of its national strength but also its eye
for detail in each small market, right down to each venue.
The Wirtz Beverage Group began doing business in Las
Vegas, in June 1977 under the DeLuca name, selling only premium and
regional brands through a highly trained sales staff and specialized
marketing organization. DeLuca’s business philosophy is to increase
sales volume and profitability by continuing to improve its
distribution and market penetration, while paying special attention to
cultivating stellar service to accounts.
Wisdom and Vision
Its strong history in the industry gives the Wirtz
Beverage Group a distinct advantage that benefits its accounts — an
edge forged by a combination of accrued wisdom from years in the field,
the resultant financial wherewithal and the vision to use those factors
as a motor for seizing new opportunities. Though the divisions have
different company names, they’re all regional parts of the lean, mean
machine that is Wirtz Beverage Group.
“(The experience of the Wirtz Beverage Group)
provides us with a great foundation of historical information and
things to grow upon,” says Don Pydo, senior vice president of Judge
& Dolph Ltd., another division of Wirtz, which operates in
Minnesota, Wisconsin and Nevada.
The Wirtz family is “futuristic in analyzing the
different businesses they’re in,” Pydo says. “All the companies
(divisions) have seen significant organic growth and growth in their
specific areas or space, through acquisitions of other distributors and
things of that nature along the way.”
Security and Change
The two-pronged strategy of utilizing established
wisdom and relationships as well as taking control of the future,
indeed, is a running, integral force for Wirtz Beverage Group.
“The Wirtz family enjoys and cherishes long-term
relationships with suppliers,” Pydo says, but notes, “Part of our
mission statement is to expect change. Wholesalers are parked right in
the middle of the three-tier system. Part of the change occurs when the
supplier network changes through consolidation or the loss of agency
brands — things of that nature. So, all of our people are very well
versed to (react to) change. We embrace it and really try to drive
change.”
A potent weapon in the Wirtz bag of tricks is its ability to introduce, develop and grow new brands.
“A lot of what we do, the key is to maintain and grow brand equity,” Pydo says, citing Ketel One as
a case study. “When Ketel One was very small, we took that brand under
our wing and nurtured it and grew it. Now it’s a 100,000-case brand in
Illinois right now, and that goes on throughout the rest of the
network. There’s another product called Effen Vodka, which is a great
example. The Wirtz Beverage Group is driving that thing like crazy.”
Training Salespeople, Training Accounts
Each division of Wirtz, Pydo says, spends an
incredible amount of time, money and resources on training — training
its sales representatives not only to sell but to train their accounts
how to sell to the consumer.
It’s all about the channel, Pydo says, and
specializing for each channel is absolutely critical. Pydo offers as an
example the effect training had on expanding one brand into another
channel some might think impossible.
“Jägermeister was typically an on-premise, youthful
type of brand,” he says. “Our people saw opportunity for growth beyond
that, and we were cutting edge in taking it to the white tablecloth
restaurants and reformulating a strategy that we jokingly call ‘Frat
Boys Grow Up.’ Sure enough, for example, at Morton’s Steak House, it’s
the No. 1 called-for after-dinner drink now. Those are the types of
things we do throughout the entire Wirtz Beverage Group.”
Within each channel and market, the group pays personalized attention to the small segments.
“You take this big market and break it down into
small pieces so you can get your arms around it,” Pydo says. “Once you
get your arms around it, you can control and dominate it.”
Reaching Patrons
“We’re very big with doing drink cards and drink
menus for the on-premise accounts,” says Fred Cooper, vice chairman of
Judge & Dolph. “Sometimes you become so sophisticated that you
(have to) go back to the basics,”
“So much of (success with operators) is based upon
knowledge of the salesperson and the confidence that the bar owner or
retailer has in your salesperso (and his or her) knowledge of the
account and tailoring it toward that account,” Pydo says.
Opportunities Into the Future
“The key today is the youthful consumer, from legal drinking age to 30 or 35,” Pydo says.
“They’re looking for things that are different ...
but at the same time, they’ll go back to a core, base-type vodka ...
depending on their situation or how they are entertaining or being
entertained.” NCB
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