Turning Progress Into Profit

New Jersey’s Allied Beverage Group

Looks Ahead to Move Ahead

By Taylor Rau



Businesses that actively capitalize on present opportunities ultimately have the momentum for success, but businesses that proactively identify future opportunities and potentially missed current opportunities — well, they’re sitting in the front row of the success class.


Such is the case of Carlstadt, N.J.-based Allied Beverage Group (ABG), a multi-dimensional distributor that has learned, through targeted focus groups, comprehensive marketing programs, thorough and perpetual market analysis, enthusiastic on-premise promotional support and activity and much more, how to excel in the ranks of the industry. ABG today has become a major force in the distribution and sale of alcohol beverages in the state of New Jersey. Housed in a 500,000 square-foot facility, one that formerly was a New York Times distribution facility, ABG is headquartered with the proper setup (including a hyper-terminal) to efficiently service accounts statewide.

Additionally, though, the company maintains a satellite office in Mount Laurel, N.J. And since its formal beginning in the industry when three companies merged into one in 2000, ABG has proven that the hands-on pursuit of filling voids in the marketplace has directly translated into a biggerbottom line from state sales and a bolstered reputation in The Garden State — and beyond.


Power With Prestige


With the joining of Jaydor Corp. to Baxter Group and F&A Distributing Co. (the latter two merged in the mid-’90s), collectively the group melded its corporate philosophies and operational practices to form one powerful group. The new formation elevated ABG to the status of being the largest distributor in the state of New Jersey, and today it represents most major spirit companies in the world, not to mention a slough of beer and wine brands.


And with 800 employees, including 200-plus sales representatives and 50-plus sales managers, Allied is prepared not only to meet its customers’ expectations, but to exceed them, says Jeffrey Silverman, executive vice president and general manager of Premier On-Premise Specialists and NVus Promotions. Off-premise business generates steady revenue, definitely, but Silverman says nightclubs and bars are critical to growth.


“On-premise is a big push for us,” he says, “Our goal is not only to sell to accounts, but to partner with decision-makers for them to increase sales going out, as well.”


Early after the merger, ABG accordingly sought to facilitate this goal by creating a culture, an identity, for the new group, Silverman says. Corporate philosophy and mission statement set, Silverman says the road to revenue and customer satisfaction was paved.


“At ABG, our mission is to be the partner of choice for all our stakeholders by exceeding their expectations in terms of quality, execution, reliability, service and integrity.


“Of course, though, you never achieve your mission,” Silverman continues. “It’s an on-going quest.”


One key to ABG’s success is in honoring tradition while actively seeking progress. “We didn’t want to ignore past best practices, but just because it worked well in the past doesn’t mean it will in the future,” Silverman says. “We created a culture of improvement, and that continues today.”


Scope the future while maintaining consistent quality customer service, and the sky’s the limit, it seems. ABG takes this idea and runs with it, allocating strategic budgetary funds for several customer care departments and growth targets. As Silverman says, a company can never be good enough, but at Allied Beverage Group, they assertively and cheerfully try to prove that theory wrong.


One example of this dedication and these efforts lies in personnel. Silverman says most key managers are assigned to task forces to identify areas for growth and better operations, and they all participate in these committees outside of their normal working hours. Silverman adds another reason this activity is so important: it allows ABG to not only be large enough to identify opportunities or potential problems, but to also be nimble enough to quickly act based on gathered input and information.


Additionally, task group reconnaissance includes evaluation of the evolution of the marketplace — not simply its fluctuation. Consumption patterns, ethnic breakdowns — you name it — all are examined consistently before the next step is taken.


Allied’s A.I.M.


Allied Nations, an ethnic trend-identifying program targeting Latin, Asian and African-American demographics, is a great example of this, say Silverman and Robert Harmelin, executive vice president, on-premise. “Allied Nations is about two years old, and with New Jersey having the most diverse population in the country, it was something that was needed,” Harmelin says. “We see this as a great engine for growth.”


Suppliers have input and influence in Allied Nations, as well, and as the ethnic trend is projected to continue, so, too, will its role in assisting on-premise accounts with information for their purchases and decisions. Along with that, program like Allied Nations are beneficial for promotions.
“From an on-premise perspective, promotions are the way to catch everyone’s attention,” Harmelin says. And for this, ABG also has an answer: A.I.M.

The A.I.M. (Allied Innovative Marketing) program offers operators preset or individually catered marketing programs to better their sales. Whether for a month, holiday, theme or other on-premise-oriented push, Silverman says A.I.M. provides operators with tailored assistance for their businesses. This also works in conjunction with Allied’s promotional arm, NVus Promotions. Again, it’s as much about sales going out as it is sales going in.


“NVus and A.I.M. set us apart in terms of marketing,” Harmelin says.


The Top of the Middle


Across the board, though, Allied Beverage Group stands out for its experience and expertise in all facets of the on- and off-premise market. As the industry changes — or evolves, rather — so, too, does ABG move forward.


Solid, cost-effective operations for accounts, as well as progressive support of its programs, has propelled this middle tier distributor to the top tier of customer satisfaction.


“We believe our middle tier in the industry goes a long way in building brands in the marketplace,” Silverman says. NCB