By James Atkinson
Most retail liquor stores are over-represented on wine, according to Tim Salt, managing director of spirits supplier Diageo Australia.
In comments that may raise hackles among wine suppliers, Salt said the excessive amount of facings devoted to wine are "confusing" consumers.
"And I think the capital that's tied up in that stock is massive," he said.
"I think they [retailers] can do more to change their mix of products in store – our job is to try and help create a story which allows them to understand what we want to do and why and get them to want to shift in that way," he said.
"Unless their business grows, our business won't grow. Our job is to try and unlock growth for them and have them feel that Diageo can actually create opportunities for them ahead of any other supplier."
See the November edition of National Liquor News for a full interview with Tim Salt.
Tim needs to get a grip on reality,what should i do increase my Diagoe facing with a average GP of 7% or wine where im making a GP of a average of 40%.This is one wholesaler that needs a wake up call to the GP they are expecting from retailers when to cost of running a liquor store is going through the roof
Would Diageo be making such a ridiculous comment if they were in the wine business?
I haven’t had a store visit by a Diageo rep for almost 3 years now, so how they know what is in the best interest of my store. I also no longer stock Johnnie Walker, Bundy,Gordons because Diageo are more interested in supporting the Multi Nationals and have no time for small Independants, so they only have themselves to blame if they are noticing a shift on focus from Spirits to wine on retailers shelves. We have a business no run, we need to stock what gives us the best margins.
Nice one Mr Salt. Maybe if one of your reps ever turns up I’ll get them to help me move out some of my wine stock to make room for Diageo products.
Had you ever thought that the wine I stock is a point of difference for my store? Everyone in this game has Diageo’s products. Selling them just comes back to price. I’m working with some great local producers to create a unique offering. That’s why people come to my store. If you’re lucky they’ll grab a bottle of Gordons on the way out…if they haven’t seen it advertised cheaper somewhere else. Give us a break!!
I’m not in retail but even I can see this for what it is; a self-serving, hypocritical, ill-informed missive from a company too full of its own importance…Want to talk about confusing consumers? have a look at the ridiculous number of variants available for Bundy Rum!
http://www.bundabergrum.com.au/Products
I agree wholeheartedly with DG’s comment regarding their reps, never see them!
Considering you need a whole shelf just to range Bundaberg Rum and it’s 12 cousins I think Tim would be the LAST person who should be banging on about “tying up capital”. If people aren’t confused by Bundy Red, Bundy Red 100 proof, Bundy Distillers choice, Bundy Select Vat, Bundy OP and the like I’m sure they can negotiate a wine fridge.