Marie Galante, The Last Sugar Cane Island of the French Caribbean's

Some details from my last trip to the island of Marie Galante in the French Caribbean’s:

Marie Galante is located south of Guadeloupe in the French Caribbean, It's a small island, about 61 square miles. To give you some proportions, it's about one tenth the size of Guadeloupe.

You can reach Marie Galante either by boat or small planes; there's a tiny airport. It takes about an hour to get there using a ferry-type boat. Depending on who you ask and when, there are between 10,000 and 15,000 people living on this little island. In contrast, Guadeloupe has about 400,000 people, and Martinique around 350,000.

Marie Galante is super flat, with no hills or mountains, unlike Guadeloupe and Martinique. The soil on Marie Galante is mostly chalk, while it tends to be clay in Guadeloupe. The sun is beaming on the island all day, everyday.

As a result Marie Galante is known as the last sugarcane island in the Caribbean because in terms of surface area planted with sugarcane relative to the total island area, it has the most sugarcane of all the Caribbean - about 20% - when Guadeloupe is at about 7% (Martinique clocks in around 3%).

Historically, Marie Galante's trade was initially cotton, coffee, and indigo, but very quickly shifted to mainly sugarcane. The soil is pristine; there's never been an extensive culture of bananas here, which on other islands often involves heavy use of fertilizers and pesticides. The locals consider their soil as close to organic as possible, comparable only to Haiti.

There are 5 distilleries on island making the island in the French Caribbean's with the most distilleries per square miles:

- Grande Anse is the large industrial facility

- Bellevue the largest artisanal players

- Bielle

- then Poisson which makes the brand Pere Labat

- and RhumRhum (micro distillery, initially operating within Bielle and since 2021 at Pere Labat).

Zooming in on the Distillerie Poisson, started in 1860, the smallest of 5 located on the island of Marie Galante:

Distillerie Poisson (Poisson = "fish" in French) makes the brand Pere Labat.

The distillery was purchased in 2007 by J.C. Brot, who was born and raised in a family with a long history in Guadeloupe and Marie Galante proper. Culturally, on these islands, making rum is seen as a high achievement and JC always dreamed of being a rhum maker.

The distillery employs 17 people and manages about 250 hectares of land, some of which is cultivated with cane that feeds the distillery, while much of the cane is bought from small planters to maintain good relationships with the local Planteurs.

Being a French territory, working hours are highly regulated (35hr/week, 5 weeks off per year).

The teams is working from 7am to 1pm Mondays to Fridays and 7am to noon on Saturdays.

Distillation occurs from Feb to July.

The facility is not large or glamorous; it's rusty, it's beat-up, it experiences a lot of daily operational challenges which causes frequent repairs and maintenance issues. Despite these conditions, the distillery continues to produce super high-quality booze, experimenting with aging in various types of casks, including ground cru white Burgundy and Mouton etc...

The fermentation process lasts 72 hours and is inoculated. The 2 "Creoles" columns, one from 1955 the other from 1977 are all copper and consist of 15 plates - 11 stripping plates and four concentrating plates. White rhum flows out of the stills at 70.7% alcohol by volume and eventually entering casks at around 63%.

The distillery makes about 1,500 liters of booze per day and sells about 40K cases a year (3/4 to the French market, the rest sold internationally).

The distillery's operation is deeply intertwined with the local community; some planteurs have scheduled appointments to deliver their cane, other randomly show up. The unpredictable supply of sugar cane from the small local planteurs reflects the totally artisanal nature of its production.

The island's hot (temp typically varies between 74 and 95 F) and humid conditions contribute to about 7+% annual evaporation in casks, more than twice the evaporation typical in the Cognac or Armagnac regions of mainland France.

Relaunch Ninjas

Relaunches are something PM Spirits is a black belt at. We're in constant conversations with brands that have already dipped their toes in the US market but feel like they're not getting it right. They're looking for that partner to FINALLY bring them this "success" the brand feels it deserves.

Brand A, seasoned yet not shining in the US, watches its nemesis, Brand B, in the spotlight. Frustrated and wanting the situation to change, Brand A come knocking at our door, hoping we can somehow orchestrate that breakthrough.

In the many tales of "Brand A" we witnessed, we often see a journey of ambition, impatience, and disappointment. The belief that sales will 3X, 5X etc... in a blink if only one could find the right importer.

Sadly believing that switching partners will make sales flow is misguided. A new importer is not the magic fix.

First, the brand may just never "make it" for a variety of reasons, some linked to timing, the brand itself, internal politics, people, change in leadership, funding... or just the fact that it "wasn't in the cards". Not every brand ends up successful in the US.

Unless the team leading Brand A can truly do a mental reset, put aside the many years of frustrations due to subpar results and have a long term approach to this US journey 2.0, here is what will happen:

2 years into the relationship, patience starts to wear thin, expectations soar higher, and the eventual realization that the anticipated quick wins are not happening settle in.

Three years pass, goals remain distant, and the honeymoon phase with the importer is over. Brand A starts losing trust in the lethal weapon of sales it thought it once had found.

This cycle of hope, frustration, and disillusionment is a recurring theme.

The impact on the importer's team's spirit and quality of life is real. Drama, as it turns out, is an energy drainer.

But there's a different path less traveled. It's about true partnership. And the shared understanding that what is being played is A VERY LONG GAME.

In our collaboration with brands, the initial 2 to 3 years are about setting the foundation. There might be dips in sales - wait, no, there WILL BE DIPS - even significant ones. But it's all part of recalibrating & finding the right rhythm.

By year four, the strategy has good chances to starts humming, stories begin to spread, and a new dynamic might emerge. This is when a brand, with our guidance, might begin to echo across the market, benefitting from the foundational work PM Spirits laid down as well as the brand's own efforts to build its narrative through powerful marketing and a solid social media presence (*).

By the fifth or sixth year, the fruits of patience, dedication, and collaborative storytelling should start to ripen.

Now sometimes nothing happens. Reasons are many. Not everyone get it right all the time. Not every brand will be succesfull.

But when it happens it's a testament to the fact that success in this industry is about true partnership, understanding, patience, ability to curb frustrations and the burning desire to succeed tomorrow. And relentless effort across many many years, not months.

(*) A brand has to understand that to have a chance at - maybe - being successfull, it is its responsibility to put it solid time, skills and effort in telling its own story and building its message. Across all social media platforms and beyond. The absence of a steady commitment to brand-building will thwart the importer's efforts.

Low Hanging Fruits of Sales

Identifying Key Accounts and Setting Sales Goals:

"I was thinking about the low-hanging fruits and how we could use those low-hanging fruits to increase our sales. As one runs one's own business, from a sales perspective, there's a need to know who your key accounts are. They may not be the people you think they are, because some of your customers require a lot of time and communication, maybe they're friends. In one's mind, an account might feel more important than the sales made to this account. Nonetheless, these are suggestions, but I think it would make sense to run one's account list by order of decreasing dollars sold and get a sense of who your top 5, 10, or 15 customers are, look at what they did in 2022 and 2023, and set a goal for yourself for 2024. One doesn't need to be a math maverick to set up a goal.

Establishing Realistic Sales Targets:

If you did $32K with an account in 2022, and let's say you did $28K in 2023, you could decide, and these predictions or goals are just that. You say, well, let's make it $40K; it's not crazy. You're not saying, let's make it $200,000. You say, all right, let's sell another $10,000. That's an additional $800 a month or so. Then, you set that goal for yourself, and you decide to follow up, look at that goal and how you are doing compared to that goal on a monthly basis, because that's going to keep you on track.

Developing a Plan to Achieve Sales Goals:

Also, you kind of want to have a plan to reach that goal. That may mean going there once more every month because you know that when you go there, you get an order. Or it could mean trying to sell them a cask. It doesn't have to be an Armagnac cask, but if it is, that's great. We have other barrels we could sell. Or maybe they'd be interested in a batch of whatever. Having that plan will help you set and reach your goal. Then, go to the account, because having a plan for the account is good, but you might want to have the account agree with that. Suggest going to the account and saying, "This is what we did. This is what I would like to do. Are you game? What would you need from me to get there?" Discuss that. Having a plan for somebody is great, but having that person sign up on this, think it makes sense and be willing to help you get there is something powerful.

Regularly Measuring Progress Against Goals:

Measure against that goal regularly. Are you on track or not?

Remember that to reach a certain amount of sales, you have several levers, like cool products, one-offs that are coming. You have access to batches and casks. On top of that, you have in-store tastings and staff trainings that you can plan, which may increase your sales. And we have this office that we should be using to welcome people. Every time you have this interaction, you may be able to place a new product or get a reorder.

Utilizing Tools for Account Management:

If you're unsure how to run a list with your top accounts by dollar sold, let the office know, and someone will show you. But I hope by now you should all be able to run such a list. So now, there is a second way to increase your business, which is finding new business. I don't know how you guys organize yourselves to find new business. The thought that I put down is you want to open up off and on accounts. Off premise accounts increase sales quicker, and on-premise accounts play the long game. This helps with creating brand awareness. Don't forget about on-premise because this is like long-term success.

Strategies for Finding New Business:

Where to find new business? It could be around your house. There's an argument for wanting to have a bunch of PM products around where you live. If you're not doing that, it's just an idea you might want to consider.

Around a specific existing account, in a three, four, five blocks radius, what's there? Have you talked to everyone you think you could sell PM stuff to?

And get introductions. People who know you're a good person, who know you're not wasting anyone's time, you're reliable, you have

Differentiating Factor

Here is an idea that might help a French whisky brand CRUSH the market:

Some context:

Everyone is looking for THE differentiating factor, asking oneself "what do we got that others dont?".

As soon as a "competitive advantage" needs to be explained/requires some form of knowledge or understanding on the consumer part/cannot be grasped immediately by the layman, it limits the scalability of the reach.

A real such advantage is one that is obvious to most.

Mash-bill, yeast, distillation, geography, terroir: all very relevant & cool but most end-customer couldn't care less.

I believe the easiest, most straightforward argument that needs little to zero explanation is the cask. There is a reason why a Macallan bought Grupo Estevez (owner of Sherry bodegas Valdespino, La Guita etc...).

Idea:

Imagine there was only one guy in France holding the highest title in the cooperage industry of "Maitre Artisan Tonnelier", the lethal weapon of barrel making

Imagine this guy's cooperage had just celebrated its 50th anniversary in 2023.

Imagine a high-quality, well-capitalized, marketing savvy, French whisky company was to secure the exclusivity of this person's time and skills and market the f*ck out of it.

This would be a hell of a differentiating factor.

Note: i have zero skin in this game, i just know who that dude is (Jean-Noël PELLETAN 👀 )

PM Projects: what/why/how

A few toughts on how & why, in 2016, PM Spirits started to develop its own bottlings (aka the PM Projects):

The journey began with importing and bringing in the US a bunch of artisanal French spirits circa 2011. This is still the core of what we do, the reason of our existence and about 70% of our business.

But little by little we realized that as we networked more and interacted with different people, there were opportunities in the market.

Things that were not readily available, that we recognized we could come up with and knew we could sell, at least throught PM Spirits Distributing, our wholesale operation in our home NY market. It kicked-off the initial idea to collaborate with our existing suppliers and friends, creating products to fill these voids. That's the essence of the PM Projects - collabs and what we want to think are "innovations", be them in term of packaging, how the story gets told etc...

One aspect of our work involves collaborations like PM VS Overproof Armagnac, the Mic.Drop whiskies, PM Tequila, the PM Sherries or even CobraFire. These products are significant markers of our ethos.

During COVID, since we were as scared as bored AND i happened to own a small but unique collection of casks and demi-johns in a cellar in Cognac, France, i decided to release these things, leading to a larger PM Project release.

These were not just products; they were special, something that resonated with the ethos of PM - good people with good intentions making good juice.

Note that we don't care much about building brands per se or growing like crazy Casamigos tyle.

It's about keeping things fresh in an industry where novelty is really key.

In New York, being a wholesaler, we know what sells. We talk to people daily, we see gaps in the market. We have ideas and know we can make them happen.

With a great graphic designer (William Bahan) and over 12 years of experience, we've built a solid network of people distilling great stuff.

There is also, to be totally honest, a personal motivation - to keep myself entertained through the intellectual process of creating and actualizing ideas.

That's how the PM Project stuff comes/came together: by linking ideas, people, and possibilities to create what we think are unique and meaningful distillates.

There is no "Cognac Market"

Is Cognac getting more popular? No (at least, not yet). But the gloabal BRANDS that happen to be in the cognac game are.

There always has been a misunderstanding about "Cognac":

We hear the "Cognac" this, or the "Cognac market" that, read about a brand and assume it tells something about a category. I dont think this is accurate.

There is a Hennessy market and a Remy market and a Courvoisier market etc... much like there is a Ford, Supreme or Krispy Kreme market. There is a market for global cognac BRANDS, individual markets based on specific brand recognition.

The more successful/known they become, the less they tend to talk about the product and orient communication towards partnerships, experiences etc...

From labeling to wording on the companies' website the BRAND is front center while the mention "cognac" seem to take the back seat.

For every artisan distiller/brand owner/negotiant who has not achieved brand notoriety at scale, there is no "market" per se. It is an every day fight to tell a story, get anyone who accepts to taste the product to understand what is Cognac, demystify, get rid of the bagage the word comes with and do one's best to explain within that framework why one is different.

Pour that booze/modifier neat

The idea that using good artisanal spirits and/or modifiers in cocktails will boost the sales of said spirit/modifier is appealing, but I'm not entirely convinced it actually works.

What's more likely is that these dope cocktails will increase their own sales and possibly strengthen customer loyalty with the bar making them.

I think there's a more impactful way to promote the base spirit/modifier the bartender has spent time & energy sourcing to make this banging drink:

- bar factors in the cost of the drink an extra half-ounce of the base spirit or modifier.

- bartender serves the drink with that neat .5oz of spirit/modifier on the side for guests to taste

This would accomplish several things:

- educate the customers about the ingredients in their drink.

- strengthen the relationship between the bar staff and the customers ("man, the team at XYZ is SO knowledgeable and skilled")

- help justify the cost of the drink, explaining why it's not just $6 (using good ingredients naturally leads to a higher price than when using mass-produced ubiquitous garbage).

- increase awareness for artisanal booze/modifiers

- might lead one who had one of those drinks to go out & seek a bottle of one of the ingredients.

An interesting side effect would be that bars currently charging high prices while using inferior booze will either be reluctant to adopt this approach or, if they did, they'd have to upgrade.

Note: I'm vastly aware this strategy is only suited to venues where it's not super busy, those places allowing for interaction between staff and guests. It also requires knowledgeable and trained staff because simply pouring the modifier neat without understanding it/knowing anything about it, wont'd do anything for any anyone.

Booze Wholesaler's Gold Standards

Below are the suggestion our Sales Director Leonardo Comercio constantly share with our NY team:

• Planning and Setting Goals:

Benefit from planning the week ahead.

Set specific goals, such as:

-Number of customers to see.

-Key products to sell.

-New accounts to open.

-Sales targets.

Social media posts to support sales.

Importance of goals for accountability and improvement.

• Product Presentation:

Present both new and existing products to customers.

Avoid the mistake of only showing new products.

Remember the commitment to brands represented for years.

Rotate showing new and old products to accounts.

Consider customers who may not be familiar with certain products.

• Genuine Connections and Self-Presentation:

Strive to make genuine connections with people.

Learn from every interaction, regardless of personal opinions about the individual.

Present oneself authentically, not just professionally.

Aim to be seen as a resource beyond just selling products.

Share knowledge and expertise, as exemplified by NP's early experiences with Calvados.

• Product Familiarity and Tasting:

Emphasize the importance of knowing and tasting the products.

Ensure that a wide range of customers are tasted on products, not just a select few.

Continuously introduce products to new and existing customers.

Document activities and outcomes for better tracking and success.

• Follow-Ups and Sales Approach:

Importance of following up on meetings and interactions.

Don’t hesitate to ask for the sale directly.

Regularly follow up on sales to check product success and offer solutions if needed.

Diversify sales to accounts by offering a wider range of products.

• Self-Awareness and Customer Relations:

Reflect on personal patterns and behaviors in sales.

Create standing appointments with key customers for regular engagement.

Plan ahead with customers for upcoming product launches.

Utilize in-store tastings as a sales opportunity and engage with all staff members.

• Proactive Account Management:

Identify accounts needing more attention.

Be proactive with reorders, rather than waiting for accounts to reach out.

Regularly review the full list of accounts to ensure none are neglected.

Seek opportunities to reconnect with older accounts.

• Utilizing Social Media:

Build a personal brand on social media to support sales.

Be proactive and creative in using social platforms like Instagram, Facebook, and LinkedIn.

Share knowledge and insights about products.

Consider creating a separate sales-focused social media profile.

• Customer Service and Communication:

Go the extra mile in customer service.

Provide direct and helpful responses, including links and detailed information.

Don’t disparage anyone, any company, any brand. Ever.

Be genuinely nice to EVERYONE (eg not only to the person who has decision power)

• Organization and Goal Tracking:

Keep a to-do list and schedule tasks on a calendar.

Regularly review performance against goals and previous year's numbers.

Understand the correlation between growth, job stability, and personal success.

Caramels / E150s

Caramel is an additive that is often used in spirits. It does not have to be disclosed on the label and the need for it can be debated. Because caramel is more or less dark it is used as a tool to adjust the color of the liquid.

What’s “caramel”?”

A “caramel” is a complex mixture of compounds produced by heating carbohydrates under controlled conditions. It is a dark brown to black liquid or solid, miscible (soluble) with water and contains colloidal aggregates that are key to their coloring properties. Now there are more than just one caramel. Each of the 4 classes of caramel color carries a different charge, impacting its use and application in food and bev products.

The different types:

Caramels are splits into four classes depending on which other “ingredients” the carbohydrates react with to produce said “caramel”. Those reactants work in the chemical reaction as catalysts, eg help speed up the process. These classes are class I, II, III & IV, corresponding respectively to E150a, 150b, 150c and 150d.

In alcoholic beverages, "caramel" typically refers to E150a or E150b.

E150a/Class I/plain caramel is carbohydrates heated without reactants, producing a range of hues from yellow to red-brown. It is used in various products like bread, spirits, dairy, beverages, and confections.

E150b/Class II/Caustic Sulphite Caramel, is carbohydrates heated in the presence of a sulfite compound. This class produces hues from very yellow to dark red-brown, has a negative colloidal charge and is commonly used in tea, whiskey, and brandy.

The other two classes:

Class III/Ammonia Caramel/E150c varies from a light brown to dark red-brown and is positively charged. It's a key ingredient in coloring soy sauce and beer.

Class IV/Sulphite Ammonia Caramel/E150d ranges from light brown to deep black-brown, has a strong negative charge over a wide pH range, and is mostly used in the soft drink industry.

Caramel coloring is widely used, though not many distilleries are really open about it.

Adding caramel to spirits can be seen as a way to return the booze to its original color post chill-filtration which inevitably removes some of the tannins from the wood that confer the booze its darker color. The thinking behind this often is that many customers might not fully understand the process, leading to confusion over why a spirit might be yellow or why the color might not be consistent from one batch to the next. Brands using caramel coloring tend it aim at maintaining a consistent appearance for their products.

Now let’s distinguish the above from using caramel coloring to introduce a color that wasn't there to begind with as a way to trick customers into thinking a product is older/spent more time aging in casks than it actually did.

This is straight up deceptive.

A Few Of The PM Tenets (In No Specific Order)

Here is what happens when one runs the content of one’s PM’s weekly staff sales meeting thru ChatGPT to create a summary of the key ideas evoked:

Emphasis on Curated Selection: Our focus is on providing a selection of spirits that stand out at events, being a bar, in a restaurant, at home or in a retail shop; we aim at not just fitting a theme/being part of a list, menu or offering but at being a highlight in categories like brandy, agave, rum, whisky etc...

Educating and Engaging: It's important to draw people in and educate them about different categories of spirits. Introducing consumers and clients to new experiences, whether new to the portfolio or just new to them, is a priority.

Customer Engagement: Constantly informing customers about the offerings is key, especially reminding them of products they may have missed or forgotten, as well as emphasizing the exclusivity of limited-stock items.

Event Participation: The desire to do more events and finding ways to engage directly with drinkers and end-consumers is paramount; it shows the work put into the brand and has the potential to slowly increase sales.

Shelf Awareness: Being aware of what's on the shelves at client locations and finding ways to help move long-standing inventory is important.

Collaborative Promotions: Establishing and maintaining relationships with industry players, being seen as a resource and a connector in the industry.

Brand Representation: Embodying the brand in a personal way, being the "face" to the brand, and ensuring consistent product availability builds trust and differentiates PM Spirits from competitors.

Quality Confidence: It's essential to communicate the consistent quality of the products, which gives PM Spirits an edge.

Communication: Emphasize the importance of CC'ing colleagues on emails to ensure follow-ups with accounts are transparent and accountable. Communication is essential. Offer constant feedback internally, share ideas and opinions, ask questions. All ideas, remarks, critics are welcomed and encouraged in order for PM to keep getting better.

Utilizing Brand Ambassadors: Consider actively how brand ambassadors can be used more effectively for promoting products and events.

Supplier Engagement: Acknowledge the positive impact of the supplier visit and of communicating out strategy to maintain momentum in building the brand.

Event Participation: Be aware of the success of recent events, share feedback and insight with PM team, plan for continued presence at events to increase brand visibility and consumer engagement.

Portfolio Management: Be aware of distribution of our products to ensure wide visibility rather than concentration in a few places.

Brand Awareness: Constantly remind yourself of the importance of maintaining and growing brand awareness so PM Spirits never stops growing its reputation in the industry.

Customer Engagement: Encourage the team to continue reaching out for new placements and to utilize events as opportunities to engage with both trade and consumers.

Humility and Brand Perception: Recognize the need to continually introduce and explain the PM Spirits brand/brands and portfolio, acknowledging that not everyone may be familiar with the company's offerings.

Maintaining Credibility: It's clear that PM Spirits is proud of its curated selection of spirits and the credibility that its portfolio brings. It's important to continue emphasizing the quality and authenticity of the products we distribute.

Educational Approach: The importance of understanding the entire production process, history of things, regions and people, who makes what/how and why and imparting this knowledge both internally and to your customers is super important. This educational aspect is a unique selling point, distinguishing PM Spirits.

Do your job: go out in the market, pour products for buyers, tell the story eloquently and with precision, build the brand, one customer at a time.

Growth Strategy: Slow and steady growth is a realistic and sustainable approach. It's crucial to continue this path, ensuring that each new product aligns with the company's values and quality standards.

Marketing and Sales: Focus on building genuine relationships. If marketing budget, it should be used reflecting this ethos, focusing on educational events, tastings, and storytelling about the products and the people behind them.

Expanding Reach: PM growth is promising. Continuing to identify and nurture new markets/area/customers will contribute to your expansion while maintaining the quality and ethos of our brand and portfolio.

People Matter: Our emphasis on working with good people "beyond the juice" is real. This is a part of the story we should tell about each product, a part of the PM ethos, making it more than just a transactional experience. We are not just logistics providers/boxes movers.

Advocating for the PM Brand: It’s essential to communicate the PM Spirits brand as a whole, not just the individual products. Sharing the company's story, ethos, and dedication to quality will help build a stronger connection with our customers.

Leveraging Media: Encouraging anyone to listen to Nicolas's interview such as the one on Agave social is a great idea. Using this as a tool to unify the message and provide insights into the company's background and values can be powerful for storytelling in sales and marketing.

Continued Learning: Stay attuned to industry trends, consumer behavior, and feedback from the market. Keep refining your approach. Keep learning. Have various center of interest and areas of expertise. Be a well rounded person. Always be curious and ask questions.

PM Spirits' core values are of transparency, genuine interaction, and passion for artisanal spirits.

We are passionate about the products we represent and the relationships we build. Continuing to focus on these strengths and effectively communicating our story and values to both new and existing customers is key to our ongoing success.

We shall not become complacent, even with established customers, and always work to build and maintain our portfolio as well as the company’s reputation and visibility in the market.

Sherry Casks And Their Potential Impact On Sherry Quality

There was a time when the Sherry triangle (province of Cadiz in Southern Spain) was producing Sherries and, as a side business, would sell sherry butts to whisky companies so their distillates could be aged or finished in sherry barrels.

The Sherry trade has seen ups and downs over the past 15 years but overall, sales have not been amazing, leading to the bankruptcy of one bodega after the other and consolidation. Meanwhile, whisky sales just keep climbing and so is the demand for sherry casks.

Combined with lower yields over the past few years, this trend might lead to a peculiar situation:

The largest customers of the cooperages in the area are whisky companies who are paying for casks that can be legally called "sherry" casks (1).

Tens of thousands of new barrels are made, typically filled up with Sherry-like wine made in the Sherry DO and stored for at least one year. Note the term "Sherry-like" as the seasoning wine does not need to have the Sherry appellation as long as said wines are made by registered companies registered in the appellation, from grapes grown in the appellation and fortified up to at least 15%.

It is intuitive that Sherry-like wines are cheaper than Sherry DO wines hence any companies offering seasoning services (coopers, some bodegas etc…) will naturally tend to purchase such liquids. Most of the sherry cask business is driven by quantity over quality, the mission being to churn out as many sherry butts as possible (some/few, I am sure, might be looking at using sherry barrels that have held old immaculate Sherry DO wines for decades, which would influence the whisky tremendously. But these barrels are rare and one won't be able to find them in any kind of volume. This is the exception, not the norm).

As alluded to above, weather has a tremendous impact on yields which recently have notably gone down. This led to the little Sherry-like wines available while the sherry cask demand was climbing. Needing liquid to season, seasoning companies started to purchase DO Sherry wines to fill up those casks.

The whisky company purchasing thousands of casks is paying per unit: the price of said unit is mostly calculated based off of cost of manufacture, cost of the seasonning Sherry/Sherry-like wine and storage time. This means that the seasoning company, after 1+ years, empties barrels of their oaky liquid - the wine having sucked up a lot of wood matter from the new barrel - and ships it out to the whisky customer. The liquid has been paid for; its cost to the seasoning company is zero.

The bigger the need for sherry casks, the more zero-cost bulk DO Sherry wines having spent 12+ months in new barrels are available.

From a financial standpoint, it would be hard for any sherry producer to not think about blending a small fraction of these seasoning Sherry DO wines into one’s regular offering as a way to increase profits.

Whether it is done or not, I do not know. But it has to have crossed minds. And if it went further than just being an idea, it means that the average quality of the less expensive sherries is likely to come down and/or taste somewhat woodier.

(1) Wine-Seasoning Technical Specifications (in English): https://www.sherry.wine/documents/183/especificacion_tecnica_de_envinado_ingles_rev_03_2.pdf

(2) Jerez-Xeres-Sherry DO (in Spanish): https://www.sherry.wine/documents/288/Pliego_Jerez_normal_consolidado_RtlY1Wr.pdf

I have a new product; How should i approach the market?

When launching a new spirit, it's not just about pushing a product or moving boxes.

Saturate your own market/state. Get your product at those retailers/bars/restaurants, the ones who understand, appreciate, and do care. This is how you build a foundation, a loyal customer base that'll follow you, possibly advocate for you.

DTC - direct-to-consumer - partnerships are a strong play. Take Barcart, for example (I have no dogs in that fight, I don’t get any money by mentioning them). They bridge the gap between you and multiple retailers across the US, boosting your product's availability big time. Suddenly you're not just stuck selling your stuff in your own state anymore while not having to have a wholesaler in those states.

Because finding a good wholesaler is key and also tricky. Like in any business, a few are great, some are good, and many don’t do their job. COVID didn’t help as it created a lot of turnover in many staffs, sometimes for the best and sometimes not. Finding a good wholesaler takes time. Hurry things up because your ego tells you you need to be in 10, 20, or 50 markets by the end of Q3, and chances are you are going to link up with the wrong people. By the time the staff has been trained, the first PO shipped out, the very first market visits under your belt, you will get a feeling that this is not going to work out. 8 months were lost. Another 6 months to make sure your last conversation did not change the dynamic. Now you are looking for a new partner. 18 to 24 months have been lost.

So build your brand, your reputation, your leverage first. Be the master of your own destiny. When you do decide to work with wholesalers, make sure it's at a time when you've already got momentum, when you've already got a story to tell. And that you picked the right partner.

Community engagement is super important. This isn't about bombarding folks with sales pitches. It's about tapping into those spirits groups, those who are passionate, those who know their stuff, those who are genuinely interested. Get into groups of like-minded individuals on Facebook, leave your ego at the door, ask if you can send out samples, and ask for people's honest feedback. When asked, a lot of enthusiasts love to share their thoughts, which are invaluable. But this is NOT about trying to sell under the covert of looking like you are not; people are not stupid, they will see you a mile away. It's about building genuine relationships with people who might get what you are doing and might want to help.

Thoughts on strategy:

• Limited releases, maybe a couple of times a year, sold exclusively through your DTC channel can create a buzz.

• Make sure you've thought about your prices. Discrepancies cause confusion. A well-thought-out pricing strategy ensures that if/when you eventually move to the three-tier system, everyone involved – retailers, wholesalers, you – makes a decent margin.

• Don’t sell through DTC the stuff you are selling via the 3 tier systems; competing with your wholesalers is just going to upset them.

• Offer some of the relevant groups and/or retailers a special single cask pick.

• Keep growing your presence on your home market.

• Network and learn about which wholesalers seem to align with your goals and values.

• Use word-of-mouth as a key growth engine.

• Be real/genuine, share the struggles, present yourself as a human with flaws and such.

French Whisky & the US market

France is renowned as a top whisky consumer and has a strong distilling tradition with Cognac, Armagnac, Calvados and such. French whisky production began in the early 1980s, and in 40 years, over 50 distilleries and 15 bottlers have emerged. It’s been getting easier and easier to make whisky in the Hexagone. For ex, laws used to restrict Cognac producers to their specific spirit, but now, stills used to make Cognac can produce gin, whisky, or other spirits when they are not in use.

But despite the steady increase in French whisky production, there's a clear lack of branding and consumer brand awareness for the stuff.

In the U.S., recognizable whisky brands like Macallan and Johnny Walker and Dewar’s do well and lesser-known brands struggle. Many independent bottlers and smaller brands (by “smaller” i mean less recognized) have little to no traction.

The market currently has little to no demand for French whisky; those bottles are very likely to remain on shelves without significant brand-building efforts.

To be successful in the U.S., I feel French whisky producers need to build their brand and create awareness, both for the category and at the individual distillery level, tell a story genuinely, humbly, in a relatable manner, using all platforms and adapting content to them.

Understanding the culture of the target audience is key, and it can't be done from afar. It requires spending time on the ground and observing/learning. It might lead to tweaking the offering a little bit as a way to adapt to the market's specificity. Not everything can sell everywhere.

Success can't happen without tasting people on the stuff, relentlessly (no importer yet? That's ok. Look for the expats working on/off-prem in the main French cities, those who care. Make friends, if the product is good, turn them into evangelists, ask them for introductions to their friends/colleagues in the U.S., go meet these people and/or welcome them at the distillery next time they travel, taste them on your stuff...)

This is a long-term effort; it needs patience and consistency. Thinking large advertising and promotional budgets are needed would be misguided. Brands have it a lot harder trying to peddle their branded message. Genuine is the way.

Be strategic, story-driven, persistent and real, make a lot of friends and super patient.

Drink the stuff, dont over intellectualize it too much

Brandy isn't about grand labels or super pricey bottles. It's first and foremost about having a good time and making social connections while drinking something that tastes good to you. Then, one can, if one feels like it, make it an exploration, a discovery.

Lots of drinkers are coming to brandy from another category (often whiskey) and might not know "where to start." I believe the answer is "just start somewhere." Don't obsess about the stuff, don't over-research, and don't freak out as to whether this first bottle of Armagnac or Calvados is good enough or if it is too cheap and you should spend more.

First off, some of the most memorable spirits I've encountered weren't the most expensive ones.

Second, it is super important to be open-minded and willing to try out several things before making an opinion for oneself: by that, I mean one would likely not decide whether one likes "red wine" based on that random "Merlot" one got poured on board of that coach flight.

So, pay attention to what you’re drinking. Does it taste good to you? Do you like it? That’s #1. If you do, can you say why? If not, it’s totally fine. But knowing why one likes a specific spirit (or not) helps in navigating the world of possibilities within that category.

One could take this a few steps further by learning what that stuff is, where it comes from, who made it, and how. Are the makers cutting corners, or is there an authentic, artisanal touch to it? Does the brandy reflect a sense of place, a tradition, a story? Understanding the 'who', 'how', and 'why' behind a spirit adds depth to your drinking experience and allows you to get a better sense of what you are drinking. Having that context allows you to understand why that stuff was $35 when that other thing in the same category that you were debating getting instead was three times as much. Maybe one was made by a négociant and bottled with additives at 40% alc when the other was made by a family, without corners cut, and at cask strength? (Again, marketing has been around for a long time; pricier does NOT necessarily mean better or older or more artisanal.)

When I am drinking anything really (besides water), the main thing I pay attention to is: "does this liquid have a personality?". I don't want to think too much about it; I don't want to contemplate the beverage for hours. I want to see if that liquid naturally made a positive impression on my brain. If the answer is "yes," often I do want to go deeper, but it is not a prerequisite.

I am just not interested in ingesting something boring.

Example: new to Calvados? Never tasted the apple stuff from Normandy? There are plenty of cheap options out there to dive into it. Take an entry-level VSOP Boulard or Pere Magloire, for instance. They are a decent introduction to Calvados, totally serviceable brandies. They might not blow your mind, but they are stepping stones in understanding what this category has to offer. Just remember not to judge the entire world of Calvados based on that one bottle you picked up, not knowing much about the stuff, and chose mostly based on its price point.

Pineau des Charentes Stuff

First, a brief definition:

Pineau des Charentes (PdC) is a French aperitif made in the Charentes region, a 60+ mn drive north from Bordeaux (SW). It is made in the region that is also known (or mostly known) for making Cognac. PdC is a blend of unfermented or slightly fermented grape must and Cognac, aged in a barrel.

The grape juice is mixed with grape distillate that might not be old enough to be called Cognac just yet (though Cognac AOC can be used, see below). The addition of the spirit stops the fermentation process by killing the yeasts that are converting the sugar of the fruit into alcohol and therefore keeps the sweetness of the grape juice. This blend is then aged in oak barrels, which adds depth and complexity.

Pineau des Charentes comes in several varieties: white, red, and rosé.

Beginning of Alcoholic Fermentation

The foundation of any good Pineau begins with controlled fermentation. To balance acidity and alcohol while developing aromatic esters, temperatures between 20°C and 25°C are typically recommended during fermentation. Exceeding these temperatures can result in the formation of unwanted alcohols. Nutrition of the yeast is crucial thought one has to make sure alcohol fermentation is capped at a legal maximum of 2.5% alc/vol and the sugar is above the limit of 170 g/l in the must. Having the fermentation start helps with creating more complexity, stabilizes color and helps with lessening the perception of sweetness in the wine.

The use of specific kinds of yeast (like LSA) is often suggested to encourage a gradual fermentation process.

Pre-Fortification Operations

For white PdC, cold stabilizations (much like for dry white wines) help with aromatic complexity.

Red and rosé wines benefit from daily racking to avoid undesirable odors, and cold maceration to extract stable colors without producing unwanted esters. Maceration can done in different ways (cold with enzymes or hot in alcohol (for reds)) . Macerating time tends to be about 24hrs.

Controlled debourbage (lees/peeps/sediment removal aka clarification) ensures the removal of vegetal debris, conserves aromatic potential, and usually help with a successful fermentation.

Mutage (Fortification) and Post-Mutage Monitoring

Before mutage, residual sugars should be higher than 170 g/L.

Fortification is done by using an eau-de-vie de Cognac (eau-de-vie since the alcohol does not have to be 2yrs old hence does not have to qualify as Cognac AOC) with an abv of at least 60%. Some are pushing boundaries using VS, VSOP or even XO cognacs to fortify (as long as it is >60% abv).

Post-mutage requires careful homogenization for over two weeks by pumping or racking.

ABV post mutage should be between 16% and 22%.

Élevage (Aging)

A Pineau with a pH<3.5 will be better able to age as increased acidity helps to protect against bacteria. The newly distilled spirit should be stored in steel tanks.

Rose Pineau: minimum of 8 months, with 6 months in wooden casks.

Red Pineau: minimum of 12 months, with 8 months in wooden casks.

White Pineau: minimum of 18 months, with 12 months in wooden casks.

"Vieux" (old) or "Très Vieux" (very old) designations: respectively 7 years and 12 years in wooden casks as of 10/01/23

Notes:

The original text of law from 1945 is here.

My understanding is that the 2019 text of law (here) is the one that currently applies, including the modification made here which amongst other things pushed the Vieux to 7yr min and Tres Vieux to 12 years min is

Below some of the aspects of the texts that i found important/interesting:

…..

a) White fortified wines are made from musts from the following grape varieties:

main grape varieties: Colombard B, Gros Manseng B, Ugni Blanc B;

secondary grape varieties: Baroque B, Folle Blanche B, Mauzac B, Petit Manseng B, Sauvignon B, Sauvignon Gris G, Sémillon B.

b) Rosé fortified wines are made from musts from the following grape varieties:

Cabernet Franc N, Cabernet Sauvignon N, Cot N, Fer Servadou N, Merlot N, Tannat N.

…..

2° Proportion rules at the winery:

White fortified wines:

The proportion of the main grape varieties Colombard B, Ugni Blanc B, and Gros Manseng B must be no less than 70% of the grape variety composition. None of these three grape varieties can represent more than 50% of the grape variety composition.

Rosé fortified wines:

The proportion of the Tannat N grape variety must not exceed 50% of the grape variety composition.

The compliance of the grape variety composition is assessed, for the color considered, on all the plots of the winery producing juices and musts intended for the production of fortified wine of the appellation.

…..

The fortified wines with the controlled appellation of origin "Pineau des Charentes" or "Pineau charentais" must be prepared by muting the grape must with aged cognac in such a quantity that the acquired alcoholic strength of the product is at least 16% by volume and no more than 22% by volume.

During the storage period at the property, further muting with cognac is allowed. However, this additional contribution may not increase the acquired volumetric alcohol strength by more than 0.5%. This must be declared to the General Directorate of Customs and Indirect Rights and to the National Institute of Origin and Quality.

The musts to be used must present a minimum density that will be set each year by the office of the union of producers and propaganda of Pineau des Charentes, provided that this office cannot set a density lower than 1.075, corresponding to 170 grams of sugar per liter of must.

…..

The musts must be used during the harvest period without any filtration. They may have undergone the beginning of fermentation, but at the time of mutage, they must not have an unfermented sugar content lower than 170 grams per liter. The use of preserved, concentrated, or chaptalized must is prohibited.

The cognac used for mutage and surmutage must come from the property. It must have a minimum volumetric alcohol content of 60%, have been stored in oak barrels, and be mature, meaning it must come from the previous distillation campaign or an earlier one. The blending must be done thoroughly.

The fortified wines thus prepared must be stored in oak wood containers from the first racking and in any case before April 1st following their production. They cannot be approved before October 1st of the year following that of their production.

…..

PM's Philosophy to Deciding Which Potential Supplier To Have Conversations With

We are always happy to talk to new people, taste products, and have discussions. This philosophy comes from the following thoughts/facts:

• When PM was started 12 years ago, very few cared to respond to an email or a call. It leaves a bad taste in one’s mouth, one I can still taste now. The absence of a response communicates 'you’re so not worth it that I am not even going to take 7 seconds out of my busy day to write a ‘thanks for reaching out and sorry, but we are not interested’,' and it hurts. Hence, as much as we can, we want to respond, be helpful if we can, and consider a product/supplier if we feel it makes sense for both parties.

• The business is always changing: one who worked here yesterday works there now, brands get bought, distilleries find funding, someone new is hired...and because everything is constantly flowing, being set in one’s ways, not being willing to see what is out there, and being shut off to the world can only hurt the business.

That said, we are also never really looking to add any items, because our aim is to constantly do better by the people/suppliers who are entrusting us with their business. We want to grow by increasing the sales of our existing portfolio, as opposed to growing by adding a ton of brands. The latter way only results in a decline in the sales of the brands one has been working with for a long time, which does not feel like the right thing to do.

Do we manage to always grow the sales of the suppliers we have been working with for years? Of course not. We are not magic. Like any company, we will fail at stuff, we try to learn and do better. Also, the market has a say: it is not all about what the supplier and her importer/wholesalers think or want to make happen.

Now, are we putting time and energy into constantly trying to figure out how we can do better? Yes, we do, because our portfolio is actually curated, every supplier has been vetted, and we decided to represent her for a reason. Because as a team, we measure our success by the success of those who entrust us with their products.

That said, we are always open and potentially interested when a cool/good opportunity comes along.

We also aspire to be mindful of one’s time and not let one think that because we are having a meet & greet conversation or a preliminary meeting, we are signaling that we are going to do business. We want to be straightforward so as not to give false hopes as a sign of respect.

We rarely(*) say 'no' right away; doing so would mean we feel entitled and complacent.

(*): though we do in the following instances:

• It’s obvious the product is not a good fit. Our portfolio, values, and ethos are available on www.pmspirits.com; should one have done minimal research, one would have realized we are the wrong people for one’s groundbreaking 'F$CKFF' shimmering cinnamon-infused glow-in-the-dark sparkling rum or 'TequiLot,' that sensational merlot tequila liquor.

• The people and/or values behind the product(s) do not align with ours. We thrive to work with honest, genuine, and good people that we feel good being the spokespersons for.

Yves & Jean-Noel Pelletan: How These Influential Coopers Shaped My understanding of Cognac

I first met Jean-Noel Pelletan (JNP) randomly in a small bookstore in Jarnac as I was looking for a notebook. Sitting at a table, he was signing his book "Le Cognac: Les aspects juridiques de son élaboration" (“The Cognac: The legal aspects of its elaboration”). It had just been released, it was 2008 and I had just discovered I had a genuine interest in Cognac.

I bought a copy, JNP signed it. It became the first non-touristy Cognac-related document I spent time on.

In my mind, because of the circumstances, the dude was an authority.

I had started to “network” on a tiny level, asking a family friend in the region if he wouldn’t mind introducing me to a few people he knew. I crossed paths with Olivier Laurichesse, then working for his family estate, the great but now sort of defunct Cognac Paul Beau. One eau-de-vie particularly impressed me then: their Borderies Extra Vieille in its crooked bottle, from a vineyard they were not farming anymore (my memory eludes me as to why, they might have sold it). The quality was obvious. The wine must have been of great quality, the distillation on point (Olivier was running it with his uncle) and the aging precise.

Over our conversations, Olivier kindly mentioned that I should meet someone, a friend of his, a man of many talents and with an encyclopedic knowledge linked to the impact of the wood on aging cognac: Jean-Noel, the guy from the library.

I drove to Mainxe and entered the small cooperage Jean-Noel, his dad and a single worker were working out of. Each appellation tends to have its top artisanal cooper, the dude who works on his own or close to it, takes more time, pays more attention, puts out fewer barrels than the bigger outfits and is naturally supplying a lot of the small distillers who put a lot of care in all aspects of their work.

(Armagnac has Gilles Bartholomo, Cognac has/had Yves and Jean-Noel Pelletan.)

The name itself is fitting for such a family, as per the translation from the “Dictionnaire des noms de familles de P.Lagneau et J.Arbuleau, 1980”:

Étymologie PELLETAN : Ecorce-tan (oc) Surnom d’écorceur de chênes which roughly translates to Etymology PELLETAN: Bark-tan (oc) Nickname for oak bark stripper.

Yves Pelletan, born 3/18/48 started working as a cooper at age 14. When he turned 25, he created his own small business, a one-man cooperage operation, a few kilometers from the capital of Grande Champagne (aka Segonzac).

On June 1st, 1992 he became one of France’s very very few Maître Artisan Tonnelier(*). The emphasis here is on “Master/Maitre”; while any cooper could call herself “Artisan Tonnelier” to my knowledge, only three coopers in France have obtained the title of "Master Craftsmen Cooper" in past 4 decades: the deceased Denis Devienne and Yves Pelletan as well as Yves’ son Jean-Noel Pelletan.

Yves was a very friendly man, soft-spoken and extremely hard working, at his shop 7 days a week. The contrast between his kind demeanor and his grip (shaking his hand was akin to placing one’s hand in between two cinder blocks) was startling.

His cooperage had gained the reputation in the cognac region of being the Rolls-Royce of hand-made casks, producing 4(*) barrels a day on the best days while larger companies produce up to 200.

Woods was be hand-picked in the forest, Yves selecting the trees he wanted to be cut.

Pelletan quickly became a name that was desired by the best bouilleurs de crus (artisanal distillers, the cognac equivalent of the Récoltant Manipulant - RM - in Champagne) who were looking for barrels of utmost quality. Uncompromising distillers who aimed at making the best possible Cognac were customers of Pelletan.

The waiting list was long. The cost of a barrel high. But Pelletan was making true art.

Jean-Noel (12/20/79) unofficially started working with his dad when he turned 15 and became a full-time employee at 22.

Coached by his father, he became a Master Craftsman Cooper on Nov 2nd, 2006.

Jean-Noel has been one of the most influential figures in my early career when it comes to Cognac and aging.

He also introduced me to his customers who were all looking for excellent barriques.

Imagine a chef who is truly passionate and has a vision: she will want to work with the best tomato producers, and the best cheese mongers etc... always in search for like-minded people who are putting their hearts into their products. A good number of bouilleurs de crus who put their pride in putting out the best cognacs they could were customers of the Pelletan. The first person JNP drove me to was no other than Jacky Navarre.

The world of the best artisanal distiller in cognac opened up along with extremely insightful conversations with these people who all share the same passion and a tremendous amount of experience.

JNP is an avid book reader. But not any book. He is particularly fond of the old texts from mid 19th century on, related to wine, vineyard, cooperage, eaux-de-vie in general and cognac in particular. His library was imposing. He had been looking for old books for over a decade, online and in specialized bookstores across France. Recipes for making cognac without cognac (rum+walnut+...). I got hooked.

When I was looking to find a place I could make my own cellar to put the casks and demi-johns I had sourced, Yves and Jean-Noel kindly offered a small barn they owned; there was never a question of money. Trust was mutual, they were true to their word and I was just thankful to have crossed paths with such people. I remember having started to use the space to lay some barrels. I came back a few weeks later to check on the stuff and found a new wooden door and new wooden shutters, each made of three layers of heavy planks, the door boasting no less than 8 locks. Yves had decided that if old and rare cognacs were to be stored there, they might as well be very safe and he used his weekends to make the room impenetrable to intruders. He never asked for anything in return, just felt it was the right thing.

I have been back to Cognac several times a year every year since 2010 and each time spent days with the Pelletan. Part of the French National Guard, Jean-Noel would pack up French military rations so we could optimize the day and not “waste time with lunch”. Some of the weirdest yet most awesome memories i have from that time were around survival food in cold cellars.

Yves started feeling ill sometime in 2018 and passed away late 2019. Inhaling wood dust for over 50 years cut his life short. He is dearly missed.

Nowadays Jean-Noel divides his time between the shop and his consulting business, assisting small makers in optimizing the overall quality of their cognacs.

(*) https://www.artisanat.fr/metiers/labels-qualifications/titre-maitre-artisan

The title of "Maître Artisan," which translates to "Master Craftsman," is the highest distinction in the field of craftsmanship in France. It is a testament to the holder's acquired skills and their commitment to promoting craftsmanship. To obtain this title, one must meet very precise regulatory requirements. Typically, "Maître Artisans" are business owners who have honed their craft and business over several years, often training apprentices. There are three ways to obtain this title: holding a Mastery Certificate in the practiced trade, holding a diploma of at least equivalent level with qualifications in management and psychopedagogy, or being registered in the Crafts Directory for at least 10 years with recognized expertise in promoting craftsmanship or participating in training actions.

(*) Jean-Noel now operates his business without using any sanding tools which are ubiquitous in regular cooperages; this policy makes adjusting wood staves even more complicated and has slowed the output from 4 to 2 barrels per day. This decision was made after Yves passed, his sickness having been largely causes by the exposure to wood-dust for decades.

A Data Analytics Revolution for Smaller Businesses with AI

For a company that’s not too big, not too small - call it "small medium-sized" - data analysis is super important. But in reality too often, we’re all running head-down and don't dedicate the time needed.

We looked at a few options, played around with them; below is a short recap.

Chat GPT: Looked like a game-changer. The potential is massive for sure. But it's not there yet when it comes to crunching big numbers (or a large amount of them). It’s cool for language stuff but doesn’t quite seem to add up when you need the numbers to tally up. Not the lethal weapon right now, but soon might as it is constantly getting better.

Microsoft BI: the powerhouse for sure. You don’t need a black-belt data wizard to start making sense of it - or at list to get it to spit out some good insight - which is a plus. But if you’re in the Mac camp, like with most Microsoft stuff, that's an issue.

Tableau: got that modern edge, no question. Packs a punch and if you've got the time & brains to dive in, it’s likely a treasure trove of insights. Requires a lot of work/time.

If lean on staff and not up for an 18 months course in data analytics Julius.ai, so far, seems like one potential solution to consider. Good visuals, intuitive, cleans up csv without issue before providing insight. Perfect? Prob not. But a solid player that ends up being useful after the first 15mn using it.

And, oh wait….today OpenAI released it’s GPTs (https://openai.com/blog/introducing-gpts), custom versions of ChatGPT - or GPTs -that allow anyone to tailor an AI to one;s specific needs and share it with others. And a GPT Store is soon coming, the Apple store version but for AI models .

This tech is going to change (it already has) the way any business operates and tremendously even out the playfield between smaller businesses and larger ones.

I am no tech wizard but gonna keep on exploring, using AI, possibly looking at playing around with a PM GPT.

These times are genuinely extremely exciting.

Some Thoughts On Launching a New Artisanal Spirit SKU in the U.S.

Disclaimer:

The following thoughts are valid, in my opinion, for a US made artisanal product of high quality that is not intended to be sold en masse and is the creation of a real person.

Basic Premises:

First, your product has to be good—ideally, it’s very good. Second, it’s better if it looks good too. If you're pushing something average, it’s going to be a long and expensive battle that is likely to fail (honestly, it should fail; the market is already filled with sub-par products).

Price Setting:

Profits: Figure out the profit per bottle you need to make; it will be the key of your strategy. Obviously, it should be aligned with the type of product, its quality/packaging, and how it is intended to be used. From there, have a solid 30-40% margin built in for both wholesale and retail. This way, people will have an incentive to help you out should you need them to. You could consider adding a few extra $/btl as a marketing cushion (might come in handy; if not, that’s just more profit).

Suggested Retail Price (SRP): I wouldn’t necessarily be too stuck up about it. Sure, a price point like $9.99, $19.99 or $99.99 can make a difference in a volume game, but this is not what is being discussed here. I think that not hitting an exact SRP is not the end of the world. I believe it is not worth the time debating endlessly if your product should be $105, $115, or $145. Outside of some key SRPs, whatever choice you make, be it $5 or say $25 around the original idea of what that SRP should be won't make or break you. Yes, $600 instead of $110 is vastly different. But i feel the difference between $165 and $125 is not that much of a deal.

DTC:

When it comes to going Direct-to-Consumer (DTC), the aim is obviously to be able to ship to as many states as possible. Your marketing strategy should make that 'Buy Now' button the epicenter of anything you put out, everything linking to that one page. Build up your social media outreach on as many social media platforms as you can. Don’t try to sell all the time. Provide content that has no call to action and every so often, ask for the sale. Collect all data you can gather from the analytical tools those platforms provide. Have patience. A lot of it. Nobody is waiting for you.

If DTC doesn't work out, you always have the three-tier system to fall back on, and luckily your pricing aligns. Have a backup: even if you're committed to DTC, and while pursuing that route, it wouldn’t be stupid to familiarize yourself with the key wholesalers in essential states. Start making some friends. Have a plan B.

Say this product is part of line of other skus: think that one sku could go DTC while the other could go through the traditional system. Learn DTC, get to know your end customer, have wholesalers build your brand/tell your story. Don’t compete with your wholesalers by selling DTC the same stuff they peddle, it will piss people off.

Regardless of the distribution path, your personal brand is your most valuable asset. Build it relentlessly.

From On/Off Premise To Wine/Spirits Wholesale: What To Be Prepared for (REAL TALK)

In the wine and booze game, going from on/off prem to wholesale isn't as easy a transition as it might seem. The dynamics differ greatly, and if you think that the skills you’ve honed selling drinks or bottles will directly translate, reality might hurt.

It often looks like this: maybe there comes a point in many hospitality careers when the late nights start to lose their allure. Maybe coming home at 3 a.m. is straining your relationship with a significant other who works a 9-to-5. Maybe your body is sending you signals that it’s tired of the grind. Or it might simply be that you've hit a ceiling in your current role, realizing there’s little room to move up the ladder. That’s when one starts thinking about "going to the other side."

Below are a few thoughts about how real life might look for the first 12 to 18 months of a fresh wholesale rep’s life, unless one manages to land (and/or is willing to land) a job selling brands that sell themselves, for which education/story-telling/carrying bottles in the bag are not really a thing, products that can be sold using only a laptop and discounts on deep buys (a game i know nothing about as I have never practiced it).

1- The Sales Game Is Different

First off: selling or upselling to a guest in one’s venue is vastly different from doing the same with on/off prem accounts as a wholesale rep. When you’re wholesale, you're not dealing with people who've already decided to invest their time and money; you're dealing with people who have no idea who you are, don't want to work with yet another company, and don’t want to bother making the effort to get to know you or your book. Imagine trying to pull people walking by on the street to not only enter your venue but also to sit down and spend money. Rejection is a thing. This is when you really sees whether your skin is as tough as you thinks it is.

2- Your Social Circle Will Shrink

When you thinks about wholesale and how successful you can be, a way to reassure yourself is to count your friends, look at that social network, and think the first thing you’ll do is leverage it. Reality is this: the moment you start selling to friends, you’ll find that your circle is way smaller than you thought. People might not get back to you as quickly as you are used to; some won't get back to you at all.

3- Ego Is The Enemy

If you’re known for having a prominent ego or are self-aware enough to know you have one, understand that in wholesale, ego can get in the way of sales big time. Wholesaling demands humility, and a willingness to listen and learn. You're also representing a brand and building relationships. Humility will go a long way, helping in opening doors that would otherwise remain closed and creating genuine, solid relationships.

4- Gotta Be Willing to Embrace the Suck

It will be a grind. You might need to hustle for a solid 12 or 18+ months before you start to see tangible results. Nobody is waiting for you, the market is filled with portfolios, products and fellow sales people all calling on more or less the same accounts. Success comes to those who are okay with following the tougher path, have patience, create a game-plan for themselves, have discipline, organization and do what they said they would. The road will be hard, the rejections numerous, and the challenges plentiful. One will be working for days and weeks and months without seeing immediate rewards. So keep pushing.

The work is challenging, but it does offer real opportunities for who hustled enough to earn them. The people you meet, the relationships you create, the places you go to, the experience you live are hard to match.