Market Watch, September 2018

SEPTEMBER 2018 MARKETWATCHMAG COM MARKET WATCH 81shipping weather often adds another challenge when servic ing Alaska Hilpert notes Most distributors dont have to deal with marine logistics like we do as we ship a lot of prod ucts by barge to various communities he explains If the water is a little harsh we have to deal with the delays in getting the product to our customers Odom doesnt have to contend with shipping beer by water or air in Washington or Idaho but Hilpert and Dexter both note that those markets come with their own challenges Much of the ten county area Odom serves in Idahos Panhandle is rural requir ing drivers to travel long distances The Seattle area meanwhile has ridiculous traffic issues and numerous accounts according to Dexter so precise delivery scheduling is critical That has been further aggravated by recent moves by local bars and restaurants to delay store openings until late afternoon following the citys minimum wage hike to 15 an hour two years ago But perhaps the biggest obstacle beer distributors and retailers in Washington face these days according to Hilpert is the impact that the legal ization of marijuana is having on their businesses He points to data indicating that beer sales in Washington are trending down between 3 5 this year with the likelihood that at least a portion of that loss has come at the hands of cannabis We consider ourselves fortunate to be flat to growing in this envi ronment Hilpert says Delivering ValueTo counter the challenges it faces in the markets where it oper ates Odom has crafted unique solutions over the years For example the distributor employs a warehouse and hub approach to distribution with the establishment of large warehouses in cities like Fairbanks Alaska Spokane Washington and Hayden Idaho from which transfer trucks deliver beer to smaller cross dock hubs The system affords all of our customers the ability to source beer from larger inventory Hilpert explains Odom provides value to its retail partners in other ways too We ensure that all products are delivered in a best of class fashion Ioane says We try to make the process as smooth and seamless as possible That means multiple deliveries a week convenient delivery scheduling chain authorization and merchandising support Additionally Dexter points to Odoms product category specialists who are experts on beer wine and spirits as a key differentiator for the company We bring category information and brand knowledge to our retail ODOM CORP AT A GLANCE1933CEO John Odom executive vice president Jim Odom vice chairman and executive vice president Bill Odom president and COO Adam Hilpert vice president of oper ations Jerry Dexter executive vice presi dent of sales John Ioane and CFO and executive vice president Randy HalterBellevue WashingtonAlaska Washington and IdahoUndisclosed1600Odomcorp comThe company is eyeing growth via new products and has not ruled out additional acquisition activity FoundedKey ExecutivesHeadquartersMarketsAnnual RevenueNumber of EmployeesWebsiteFuture PlansOdom uses marine transportation to deliver product to Alaska but the company relies on trucks in its other markets although it sometimes faces complications In rural Idaho drivers deal with long hours while the urban Seattle area is laden with traffic issues