Market Watch, April 2016

102 MARKET WATCH MARKETWATCHMAG COM APRIL 2016Palo Santo Marron Craft brews have emerged as the largest contributor accounting for more than half of the chains beer sales Top selling brands include California based Lagunitas Brewing Co Lost Coast Brewery North Coast Brewing Co and Sierra Nevada Brewing Co Were looking at the opportunity to expand our imported beers Mann notes He adds that Raleys might begin to set some of its beer shelves by style rather than brand Were doing some experimentation with IPA sets to drive customers to try other IPAs he explains While the grocer cant sell growlers in California Mann says Raleys is looking into the possibility at its Nevada stores Raleys carries 500 to 800 spirits SKUs generally priced from 7 a 750 ml bottle for VIP vodka to 100 for Hakushu 12 year old single malt Japanese whisky Overall whisk e y and Tequila are showing the greatest strength at the grocery chain Craft spirits such as No 209 gin from San Francisco 3499 are gaining traction A lot of customers want to recreate craft cocktails at home so were offering some inter esting cordials and bitters Mann says noting that Raleys showcases such products in special cocktail displays Masterful MerchandiserRaleys stays innovative when it comes to cross merchandising Beer with cheese is our big push this year Mann explains A lot of the very hoppy IPAs go great with cheese especially pungent cheeses Were trying to tell our customers that story and its working He also notes success with cross pairing Chardonnay with turkey and Pinot Noir with pork in the meat department Additional merchandising maneuvers include Raleys successful in store tastings which are typically hosted by the wine stewards We taste rosé in the summer and Zinfandel in the winter Mann says The events are held weekly along with beer tastings California stores charge a small fee for the events In Nevada Raleys holds occa sional spirits tastings as well Raleys also supports its beverage alcohol department with advertising Radio ads run throughout the year and Mann makes frequent appearances in wine related segments on local TV programs The stores weekly circulars highlight featured brands along with Manns recommendations The chains in house magazine which includes cocktail recipes and wine and beer pairing suggestions is distributed to members of its Something Extra loyalty program and is also available for purchase in store The pace of growth at Raleys doesnt appear to be slowing down The company plans to open three new stores in California in the next 12 months and is exploring other locations according to Knopf He doesnt rule out expansion into new markets saying Were always looking for opportunities that make sense But wherever Raleys decides to build the beverage alcohol category will be an important contributor I believe it will continue to be a meaningful and significant part of how we serve the customer and differentiate ourselves from the competition Knopf says mw Craft spirits like San Francisco based No 209 gin sell well at Raleys especially in dedicated cocktail focused displays 1935CEO Michael Teel COO Keith Knopf and director of wine beer and spirits Curtis MannWest Sacramento California 122California and Nevada 35 billion but the share from beverage alcohol is undisclosedWine is the largest category followed by beer and spirits Raleys comRaleys will open three new stores in California in the next 12 months Expansion beyond its current markets hasnt been ruled out FoundedKey ExecutivesHeadquartersNumber of StoresLocationsAnnual RevenueSales BreakdownWebsiteFuture PlansRALEYS FAMILY OF FINE STORES AT A GLANCEMW0416_