KANE'S BEVERAGE NEWS DAILY

The King of Vodka:  The Story of Pyotr Smirnov and the Upheaval of an Empire
By Linda Himelstein

            To get right to the point:  This is the book of the year.  Are you a marketer?  You'll benefit tremendously from understanding how the Smirnoff brand was built -- not once, but twice -- using viral marketing techniques. 
            Are you a public health advocate who wants to increase bev/al taxes -- or tax soft drinks -- to pay for health care?  You'll benefit from reading how dependence on alcohol taxes turns government into a promoter of intemperance.
            Are you a business strategist?  You'll profit from reading Pyotr Smirnoff's Unique Selling Proposition:  "He sold high-quality vodka at exceptionally low prices."
            Is yours a family business?  Read how, following Smirnov's death, his sons appointed ousted some outside advisors and named their wives to an oversight committee with authority to verify financial reports and "investigate any questionable or suspicious actions by management or the board."  "Having the Smirnoff women in charge of an oversight was an easy, efficient way to consolidate information and influence within the bounds of the family."
            What makes this book so valuable is that it does not look at the Smirnoff business just in terms of the company itself, but rather it puts it the context of what happened in Russia in general.
            This book is of value not just to people in the beverage business, or business in general -- although anyone interested in business will benefit by reading it.  Those interested in defense matters can learn again the lesson of the American Civil War -- a brave and valiant army will always lose when confronted by a better equipped, better led, better trained opponent.
            It has been 50 years since a book detailed the horrors of Stalin's Soviet Union.  If you've forgotten -- or never learned -- the horrors of the Russian Revolution, you can learn them in this book.
            By the mid-1920s, the Smirnov brand had virtually ceased to exist.  All the production facilities had been nationalized by the Soviets, the brand no longer existed in the Soviet Union, and Pytor Smirnov's descendents were scattered, powerless and, with one of two exceptions, penniless.
            What happened next is as improbable as Pyotr's rise from serfdom to the top of Russian society.  One of his sons, who had been a playboy and horsebreeder, found himself in Paris facing starvation.
            "The Smirnovs and the vodka heritage were on their way to obscurity," the author notes.  "Then, in a bizarre twist of fate, an enterprising Russian-born American, living thousands of miles across the ATlantic Ocean."
            That Russian-born American was Rudolph P. Kunett.  He had arrived penniless in New York at the age of 27.  Before the Russian Revolution, his father had owned  a large plantation and distillery that was believed (in 1912) to be the largest rectifer and blender of liquor in the world.  Much of the grain harvested by his family had supplied the Smirnovs.
            He worked as a salesman for Standard Oil Co., then got a job with Helena Rubenstein Inc., the cosmetics firm, where he rose to become general manager.
            Kunett heard the Smirnov name was for sale, and, just as prohibition ended, negotiated a license to produce and market the vodka in the U.S.
            He opened the first U.S. vodka plant in Bethel, Conn., in March 1934.  But success didn't come easily.  In his first year, Kunett sold just 1,200 12-bottle cases.  By the fifth year, sales amounted to just 5,000 cases.
            By 1939, he was on the verge of bankruptcy.  He shopped the brand around, sold it to G.F. Heublein & Bros., a family business best known for A-1 Steak Sauce.  Within two years, sales rose to 22,600 cases, and Kunett was president of Heublein's Smirnoff subsidiary, getting a 5% override on every case sold.
            Present-day bev/al marketers will do well to read how viral marketing, including the Moscow Mule, followed by getting Smirnoff into the first James Bond movie, where it was "shaken, not stirred," built Smirnoff into America's No. 1 spirits brand, surpassing gin and whisky in American sales.  In 2008, the Smirnoff brand was valued at $4.7 billion.
            This is an exceptional book.  It's more than just the history of a brand,  It's a meticulously researched history of a family, of a business -- and most importantly of the social and political environment in which that brand developed, nearly disappeared, and rose again.

            You can buy it through our online book store.

Katherine Strange built her business from a one-woman wine brokerage to one that uses 10 sales representatives to sell and distribute boutique and imported wines.

And yet, it could have ended in a forest fire last Thanksgiving weekend.

It didn't, and, in fact, while its office was destroyed, its customers and winery suppliers never missed a beat.

Learn what Strange Wine did -- and what steps you need to take to insure your business isn't damaged by fire or other disaster.  Just click the button to the right.

Move prospects UP or out with 3x48:How to Tele-Prospect Effectively
By Nathan Jamail

These days, many companies are coming to the same conclusion: In order to make their sales numbers, the sales team cannot rely merely on existing databases, but must go out and get new business -- in some cases, a lot of new business.  Over the past couple years, many businesses have gotten comfortable seeing sales growth from current customers and good, old fashioned word-of-mouth.  And because of this success, many sales leaders are discovering just how out of commission their sales teams really are -- discipline and practice must be re-instilled.

Just because sales in your industry might be down 25%, it doesn't mean your company has to be down 25%.  A company can increase sales in any economy by increasing their share of the market. And keeping in mind that a sales leader's goal is to capture more of the marketplace, it is important your team reaches as many people as possible. For that, we have tele-prospecting.  Unfortunately many salespeople don't like tele-prospecting, but the truth is, in order to grow the business your sales team will not only need to do it, but be effective at it!

Here's the scenario: How many times do salespeople in your organization leave the same voicemail for a prospective client over, and over, and over again?  It's common practice for many sales reps to make a call, leave a message and then schedule a follow-up call in their calendars for the following month or so. While this process creates activity, it very rarely creates results.

First, the prospect receives hundreds of calls every month, so by the time your sales rep calls back two months later, he doesn't remember the first call. 

Second, the calls are so infrequent that the prospect is easily able to ignore the call and hope it goes away. 

Third, while most people hate getting rejected, they hate rejecting others even more. Compare it to your personal life. How many times have you known someone who wants to break up with her significant other, but doesn't want to do the rejecting, so she tries to make him mad so that he breaks up with her? Business is no different.  A prospect would rather ignore the salesperson than reject him.

Here's where tele-prospecting comes in. The 3x48 program will not only put an end to the scenario above, but it will move the process along and allow a salesperson to move the prospect up -- to a possible client -- or out of the call rotation altogether. This is referred to the "move them up or out" program.    Here is how it works: 

The salesperson will make three calls, each one 48 hours apart. For example:  The first call Monday, the second Wednesday and the third Friday.  Each call has a different goal, and each is a step to get the prospect to return the call.

Call Number One:

The goal of the first call is to introduce yourself to the prospective client and ask him or her to call you back. Here's an example:

"Hello my name is John Smith and I'm with ABC Company.  The reason for my call is to introduce myself to you and to offer you a free business analysis of your 2009 sales plans.  We have helped many clients increase their profits in difficult and changing markets. I would greatly appreciate it if you would call me back at 972-555-0000.   Thanks and have a wonderful day."

Call Number Two:

The goal of the second call is to let the prospect know you are following up to the call you left a couple days ago.

"Hello Mr. Prospect my name is John Smith with ABC Company. I left you a message a couple days ago and wanted to follow up with you regarding your free business analysis.   Again my phone number is 972-555-0000.   Thanks again and I look forward to hearing from you soon."

Call Number Three:

The goal of the third call is to let the prospect know you are not trying to pester him, and give him permission to reject you (this call is key).

"Hello Mr. Prospect, this is John Smith with ABC Company. I know I left you a couple messages this week and don't mean to be overbearing, but I want to make sure I do a good job following up and let you know that I would love the opportunity to visit for few minutes.   I was hoping you would do me a favor and let me know if either (A) you would like to talk to me but you have just been too busy, or (B) you don't feel it would be a good time for us to meet and would prefer I don't call again.  I know your time is valuable and I would appreciate your direction as to how to proceed next.  Thanks again and have a wonderful day."

This method is successful because:

·        The calls are close enough to each other that the prospects remember you (after the third call, they definitely know who you are).

·        The prospects start to think that if they don't call you back you may never stop calling.

·        You gave the prospects permission to reject you, so they feel more comfortable calling you back.

·        You are assertive but not aggressive. Your calls are consistent and direct, but not generic or too "salesy."

Prospecting is the worst part of any sales position; you might compare it to the bar exam for lawyers or spring training for baseball teams.  But much like in baseball, to have spring training is not good enough to win; the coach and team must work hard every day, just as salespeople must continuously tele-prospect to increase their business. The companies that play to win will get new customers and take the market share. 

Nathan Jamail, president of the Jamail Development Group and author of "The Sales Leaders Playbook," is a motivational speaker, entrepreneur and corporate coach. As a former Executive Director for Sprint, and business owner of several small businesses, Nathan travels the country helping individuals and organizations achieve maximum success. His clients include Radio Shack, Nationwide Insurance, Metro PCS, and Century 21. To book Nathan, visit www.NathanJamail.com or contact 972-377-0030.

Luck and key decisions have enabled Click Wholesale Distributing to grow from a six person Seattle, Wash., start-up with first year revenue of just $2 million to what is expected to be a $20 million operation next year with 64 employees.

Just a few weeks ago, it was named the Craft Beer Distributor of the Year by the National Beer Wholesalers Association and the Brewers Association.

To hear Rick Steckler, president, tell how the company did it, click the button to the right.