Is Total Wine the great Satan...

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sleepy
King of Koffee
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Is Total Wine the great Satan...

Post by sleepy »

or the hope for quality rums?

Through their wholly owned subsidiary, Total owns the entire US distribution of Four Square products. As we all know, Four Square and Robert Seale make many outstanding pure rums on the modern market.

I always question monopolies, but maybe this is a good thing, or not. I love that I can drive 50 miles and buy 3 bottles of Seale's 10, a bottle of Doorly's XO and a handle of Doorly's 5 for $106 - the greatest bargain I've ever seen in booze.

I also hate that my neighborhood stores can't touch these products - in unambiguous violation of Georgia liquor regulations. Sure Quality reps will say "Sure we carry that, let me see if I can special order it for you." never to be heard from again.

I can't help but guess that the very low prices mean that Four Square is earning less than it could. On the other hand, they also have guaranteed sales with minimum overhead. If you ever get the chance, Jimbo, ask Robert what his thoughts are.

Until then, thoughts: good, bad, or "shut up and pour the booze"?
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Capn Jimbo
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Post by Capn Jimbo »

The problem with monopolies is power...



When a single vendor handles most of your product, be it Total or Wallyworld, with such a significant part of your sales tied up by a large buyer simply means that buyer has inordinate control over you.

Take Walmart. Their modus operandi is to develop new and smaller suppliers, and if successful then to noticeably inrease their buys causing you invest heavily and expand your manufacturing to meet Wally's demand. At this point, they'll finally play their trump card.

Walmart will then demand you move your operations to China, often to manufacturers already working with/for Walmart, so as for you to be able to lower your costs and accordingly the wholesale price, and accordingly for Walmart's increased prices. In effect, you become a sharecropper.

Refuse, and they walk. Like the Godfather you've been given an offer you can't refuse. Now I'm not whether or how this applies to Seales - that remains to be seen. However Total can certainly demand lower costs, something that has already likely happened. Sleepy, you are right on the money that it is amazing that we can buy great and pure rums for as little as they sell for.

It is truly amazing. Time will tell.
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