Market Watch, January 2020
48 MARKET WATCH MARKETWATCHMAG COM JANUARY FEBRUARY 2020and then grab a 6 pack of Bells Oberon ale at 10 he explains Theyre crossing back and forth from craft to the big domestic brands As for spirits Lebamoff says that 20 has become a key price point in categories like whiskey Hell order 500 cases of Jack Daniels and qualify for a wholesale price of 18 a 750 ml Then hell price it at 20 down from the everyday price of 25 and watch it fly out the front door For Jim Beam if hes willing to commit to 1000 cases per order he can lower his retail pricing from 34 to 26 a 175 liter Volume soars as a result Lebamoff notices that he gets good move ment in single malt Scotches priced under 40 including Glenfiddich 12 year old at 35 Theres some demand for local products as well like Starlight Distillerys 1794 gin priced at 28 a 750 ml The company isnt afraid to stock a wide pricing spectrum with Redbreast 21 year old Irish whiskey priced at 312 a 750 ml and Rich Rare Cana dian whisky priced at 15 a 175 liter Cap n Cork offered more than two dozen exclusive single barrels from a variety of Kentucky based Bourbon distilleries in 2019 As the grandson of the founder of the business Lebamoff claims he got his start at the age of four sweeping floors by age 12 he was helping drivers unload semi trailers full of prod ucts in searing summer heat Since then hes developed a serious palate which accounts for a well chosen wine depart ment that ranges in price from the 2017 Kendall Jackson Vintners Reserve Chardonnay 14 a 750 ml to the 2015 Opus One regularly priced at 315 although it was on special recently at a bargain of 215 A summertime flyer promoted the 2017 Man Vintners Sauvignon Blanc from South Africa at 9 and the 2017 Caymus Conundrum White blend from California at 17 A perennial bestseller is the Joel Gott 815 Cabernet Sauvignon at 16 If Cap n Cork is someday going to expand its selling terri tory it will need crackerjack marketing Management hired advertising veteran Rachel Burkholder who has steadily shifted communications beyond weekly newspaper ads to television and three minute video spots that run on YouTube with a presence on Twitter and Instagram as well We have to diversify here beyond newspapers Burkholder says People get their information from so many channels now We have to try to reach them everywhere As Cap n Cork expands its reach Lebamoff and Doust have no plans to retire despite grueling seven day workweeks Lebamoffs three grown children havent shown interest in running the business which may leave the stores future in the hands of Joes son Joseph Doust III whos working at the company as an accountant I T specialist and store supervi sor If and when he ever inherits the operations of the busi ness the two current co owners hope that theyll be selling far beyond Indiana Meanwhile theyre each spending much of their spare time in courtrooms trying to break down old beverage alcohol laws mwthat doesnt allow retailers to ship out of the state Doust is hiring lobbyists to try and get that law overturned in the statehouse Eventually well challenge the Indiana law that forbids shipping says Epstein We have to take one step at a time Those steps require investment in legal fees by the owners of Cap n Cork of course but the owners vow that theyre will ing to go the distance If we go all the way to the U S Supreme Court Ill look forward to meeting Chief Justice John Roberts Lebamoff says Wide AssortmentIn Cap n Corks beer department the vast assortment runs the gamut from the cheapest SKU Natty Daddy 2 a 2 pack of 25 ounce cans to the most expensive Boulevard Brett saison 14 a 750 ml The top selling import is Corona Extra at 15 a 12 pack of 12 ounce bottles while the leading domestic beer is Bud Light at 16 an 18 pack of 16 ounce cans just 150 above wholesale Margins are better for local craft products like Mad Anthony Brewing Co s Good Karma IPA 9 a 6 pack of 12 ounce bottles Parker says craft beer sales are still growing at a 5 annual clip though he notices more customer overlap People will come in and buy a 24 pack of Coors cans for 20 Cap n Cork stocks 4700 beer SKUs and the category makes up 40 of its sales The stores beer department beer coolers top comprises craft brands above and mainstream names
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