249 Acquisitions throughout the 2010s During the 2010s, the Glazers’ team kept pushing forward on its acquisition path primarily in the wine and malt categories. 2010 January - Glazer’s acquires Harbor Distributing (Arkansas) and G & G Distributing (Shreveport), MillerCoors distributors. 2010 October - Glazer’s purchases the Danny Romano Family shares in Olinger Distributing, Inc. (Indiana). 2010 December - Glazer’s purchases the assets of Prestige Wine Cellars, Inc., a Texas-based fine wine distributor and secures the Gallo line for the entire state of Texas. 2010 January - Glazer’s announces the acquisition of Rockport Holiday Company in Texas and then in March, Glazer’s acquires Gallo business in Beaumont and Galveston from Dienst and Giglio Distributors. 2010 November - Glazer’s acquires wine and spirits divisions of Lone Star Del Norte in El Paso. 2011 November - Glazer’s acquires Halo Distributing in San Antonio. 2011 December - Glazer’s enters Tennessee through purchasing the assets of Memphis-based Victor Robilio, Inc., making the company’s debut in Tennessee. 2011 January - Glazer’s acquires Bolls MillerCoors house in Texarkana and Natchitoches Beverage out of Louisiana also joins the Glazer’s family. 2012 March - Glazer’s announces the creation of two joint ventures with Charmer Sunbelt: Alliance Beverage of Mississippi, a leading wine and spirits brokerage, and Alliance Beverage of Alabama, a spirits brokerage company. 2012 March - Glazer’s purchases the assets of 55 Degrees, an Ohio-based fine wine distributor. 2012 July - Glazer’s buys Stickney and Southwest, two MillerCoors distributors in Western Kansas. 2012 Glazer’s forms a joint venture with Giglio Distributing, an East Texas MillerCoors Distributor. 2012 August - Glazer’s forms a joint venture with Caribbean-based Premier Wines and Spirits, a St. Thomas, Virgin Islands-based distributor. Glazer’s first acquisition outside of the U.S. 2013 Glazer’s purchases Cenla Beverage in Louisiana and Star Distributing in Memphis, TN. Glazer’s announces its entry into Illinois by becoming the majority owner of Stoller Wholesale Distributing. Expands into Canada by representing suppliers in selling to the Canadian Liquor Control Board of the various provinces. 2014 Glazer’s acquires Heart of America Beverage Company for the rights to certain malt brands in Missouri. Moving Up the Technology Curve
250 Chapter 25 A Day in the Life of a Glazer’s Salesperson GVN GVN
251 A brand’s best friend is a salesman’s tired feet. —Jerry Leibs Bob Schucany is polite, generous, and kind. Glazer’s has the best sales people in the industry by far. —Carolyn Huffman, Manager, I20 Liquor Depot A Day in the Life of a Glazer’s Salesperson
252 Salespeople are the unsung heroes of the Glazer’s business. They battle daily and bravely against rival firms and demanding customers. They gather vital intelligence about customers’ preferences and competitors’ moves. Forget the marketing mavens, the strategy wizards, the bean counters, and the designers. The salespeople are the feet on the street, that first critical point of contact between demand and supply, the daily intersection of the company and the customer. No one does it better than the tired feet of a Glazer’s salesperson. Glazer’s was the first U.S. distributor to field a national accounts team for on-premise business. Glazer’s has come a long way since 1981, when sales takers placed all orders from retail customers on multiple pages with separate forms for wine and spirits. Today, sales representatives use small wireless laptops for order inputting, which will soon be replaced with iPads. The Glazer’s prescription for success is relationship building. “We’re the middleman,” explains Bennett Glazer. “The product is owned by the suppliers, and they have the right to pull their brands if we don’t achieve our numbers. Keeping retailers happy is the key, and our sales personnel are the best in the business.” We have to be on our game 24/7. That’s what Glazer’s has always done, and is paramount to our company’s continuing success. —Bob Schucany, Glazer’s salesperson A Day in the Life of a Glazer’s Salesperson
A Day in the Life of a Glazer’s Salesperson 253 Let’s take a peak inside a day in the life of a Glazer’s salesperson—Bob Schucany—and observe his skills, professionalism, and relationship-friendly sales techniques. Bob has been in the spirits and wine distribution business for over forty-three years— twenty-one years with Glazer’s. Currently, he handles sales in Premier Division–Spirits promoting Jim Beam, Patrón, Tito’s, and other brands of spirits. On this Thursday, October 9, 2014, Bob’s day begins early at home reviewing his routine for the day, analyzing past orders and current inventory levels on his laptop, which is connected to Glazer’s network for updated information. He’s prepared and heads out the door at 8:00 a.m. Each daily routine comprises different customers across various parts of his territory. On days when a customer is receiving a new placement—new product—for the first time, he meets with the delivery truck in advance to ensure the right quantity has been loaded and is ready for delivery; then he arrives at that new placement store to build the promotional display. After all, that’s what good service is all about—helping the customer sell. The customer’s number one issue is mispriced product discounts, so Bob focuses his attention on this matter to ensure that every product is priced correctly when it’s delivered. What Bob enjoys most is very telling. Emblematic of the true heart of a good salesperson, it’s what makes Glazer’s stand-out: He enjoys seeing the people and building lasting relationships—associations that become friendships. It fits his lifestyle and personality. This morning, as he so often does, Bob brings the store employees breakfast tacos. Needless to say, the store owner, Latif Hakemy, the owner of twenty liquor stores in the area, is hungry and expecting Bob’s breakfast delivery.
254 A Day in the Life of a Glazer’s Salesperson
A Day in the Life of a Glazer’s Salesperson 255 As Bob does with every stop, he first visits to catch up with his client; then he walks the store with the customer, discussing products, promotions, and discounts; and then he places orders needed to replenish depleted inventory. After this, Bob inputs new orders into his wireless laptop connected to Glazer’s order and inventory systems. At his fourth stop, store manager Carolyn Huffman is glowing with praise. “Bob is polite, generous, and kind. Glazer’s has the best sales people in the industry by far!” At the next store visit, Adrian Rodriquez, stocker/ buyer for River Liquor, is abuzz with big orders. Products have been flying off the shelves due to a large convention in town, and another convention is following on its heels. Bob and Adrian make themselves busy surveying the empty areas, placing orders, and setting up displays on products just delivered. Adrian heaps on acclaim: Glazer’s does things right. They hire the right people, manage their retail and supplier relationships superbly, are the most efficient in distribution, with outstanding customer service. —Adrian Rodriquez, Stocker/Buyer, River Liquor, Dallas, Texas By 6:00 p.m., Bob arrives back home to recheck his orders and plan for the next day. He’s at it 24/7 and is pleased to be working for such a great company, one that cares about its employees and customers.
256 Chapter 26 A Day in the Life of a Glazer’s Delivery Person
257 The people at Glazer’s are really great. You feel part of a team that cares about you and your customers. What I enjoy most is interacting with my customers. —John Whisenhunt, Glazer’s truck delivery driver A Day in the Life of a Glazer’s Delivery Person
258 “We do everything we can to accommodate the customer, to deliver the best possible service, from new climate-controlled trucks to phones in the cabs for instantaneous contact with our drivers so we can react quickly to customers’ needs and rapidly follow up on any issues that arise,” Bennett Glazer says. Considering the vast territory of Glazer’s, the infrastructure and human resources required for an efficient operation is both expansive and expensive. However, the cost of excellence is something Glazer’s has never shied away from. Glazer’s operates a fleet of more than 1,200 trucks that transit two million miles per month. Trucks roll on definite, rigidly observed schedules, for the keystone of the entire operation is getting merchandise to the retailer when he needs it. On Friday, October 10, 2014, we shadowed Glazer’s truck delivery driver John Whisenhunt, whose daily routine encompasses Glazer’s Route No. 65 around Garland, Texas. John has been employed with Glazer’s for seven years handling “off-premise” store deliveries. He enjoys his job and says, “The people at Glazer’s are really great. You feel part of a team that cares about you and your customers. What I enjoy most is interacting with my customers.” John is careful to be on time, as his customer’s main sticking point is untimeliness. Other customer concerns are breakage—breaking goods by dropping them—and taking too long to unload. Today, John is driving his usual truck, No. 482, a Peterbilt with 215,000 miles—“just broken in,” says John—that will take him on today’s journey of 100 miles. John is a man on a mission. He walks fast; he’s deliberate and focused on the job at hand. He arrives at the Dallas Warehouse at 5:00 a.m. to retrieve his daily paperwork from the dispatch office with an invoice for each customer’s stop, along with all the products listed for every location. His truck has been loaded and ready since 4:30 a.m. Cases have been carefully placed on the truck following the order of each stop, with the first stop being the cases closest to the back door. His next task is a pre-trip inspection of his truck ensuring that the vehicle’s systems are in tip-top shape: all lights working—front, back, turn signals, side marker lights, clearance lights on top, and emergency lights; and all bolts on the truck secure, tires inflated, diesel fueled. Though routine, this is critical for the safety of all. His driver safety record is outstanding—this is another key metric the company keenly tracks. A Day in the Life of a Glazer’s Delivery Person
259 Soon after John departs, a Glazer’s merchandiser will arrive at this same location to help set up displays and promote brands. This is a well-coordinated effort, with the driver, merchandiser, and salesperson all communicating throughout the day to ensure that the customers are taken care of and Glazer’s is meeting their expectations. “The key to this job is staying in contact with the merchandisers and sales personnel,” says John. If running late, John calls me in advance to advise me. That’s great service. If he delivers an item that is not on my list, he’ll go check the shelf inventory to see if it is needed. I really appreciate that. That’s going beyond what any other delivery person does. —Leann Sain, Albertsons, Store 4239, Wylie, Texas Back at the warehouse, Dustin Ragan is tasked with managing a staff that monitors the routes of each driver for time of delivery and handles any unusual circumstances that may arise. They also monitor Helpers. These are delivery assistants who tag along to expedite a large shipment’s physical demands and reduce cycle times. After fourteen delivery stops, John returns back at the warehouse dispatch network operations center, where he completes his post-trip truck inspection and then submits all the paperwork to dock personnel. It was a busy day for John, and he looks forward to another one tomorrow. A Day in the Life of a Glazer’s Delivery Person
260
261
262 Chapter 27 Operations Matters! GVN
263 The goal of Glazer’s operations is to ensure excellent customer satisfaction. We accomplish this by delivering the correct goods to customers when they need them and as efficiently as possible. Ron Flanary, Senior Vice President Operations Dallas Warehouse back then… Dallas Warehouse today Operations Matters!
264 Few can imagine the sheer magnitude of Glazer’s operations. The size of the business and the scope of its operations have reached enormous proportions. Here’s a thumbnail sketch of the immensity of Glazer’s: Cases Shipped Annually: 63 million Number of Warehouses: 33 Warehouse Space: 6 million square feet (115 football fields in size!) SKUs: 83,229 Number of Trucks in Fleet: 1,200 Truck Miles Covered: 24 million (900 times around the earth!) Length of Conveyer Belts: 56 miles This is what it takes to make sure that Glazer’s delivers the right quantity of the right product exactly when the customer expects it. Operations Matters!
265
266 Keys to Success For a company of the magnitude of Glazer’s to not only succeed, but prosper, year after year, generation after generation, the right leadership has to rise to the top to meet the ever-changing challenges that come with growth and evolution. The leadership of Glazer’s has consistently risen to the occasion, and the challenges have been many. Customer Satisfaction: The only way to ensure that customers are satisfied while maintaining a profitable operation is with talented people and exceptional technology. Consumer Demand: The key to success is to keep consumer demand in constant focus, to have the right product to deliver to the customer at the right time, and not to have stale inventory. Constant Increase in Business: The dramatic increase in the number of turns and delivery cycles to the customer requires that Glazer’s operates more efficiently and always strives to improve. Otherwise, rising costs will undermine any hope for continued success. Supply and Demand: The key is accurate and timely forecasting. To optimize the supply chain, ensure that demand and supply are equally coordinated, maintained, and continually improved, forecasting is paramount. Without proper forecasting, Glazer’s would get stuck either with goods customers don’t want or not enough goods that customers do want. Efficiency: To drive better forecasting, technology is the key. As Glazer’s continued to grow, forecasting became the single most important factor. To illustrate the extent of the continuing challenge, 63 million cases were shipped in 2014. How does Glazer’s do this with efficiency and at the same time ensure that costs don’t get out of control? Glazer’s achieves this through acquiring better technology and lowering costs, while hiring and developing the right people in the right places. Leadership: Ron Flanary, Senior Vice President Operations, a twenty-year veteran to Glazer’s, epitomizes the finest combination of intelligence, management skill, and operational excellence. Clearly focused on his team’s talent, Ron believes: The strength of our operations organization is developing field leadership and creating an environment for our people to grow from good to great. Supplier Expectations: Glazer’s exceeds expectations by being transparent in reporting the business and focusing first and foremost on “executables” (display penetration, shelf management, cold box placement, on-premise menu placement). By doing these tactical things right, Glazer’s helps suppliers build their brands. Finally, and especially today, Glazer’s focuses on building quality relationships with its suppliers. Delivery and Stocking: The driver handles the delivery and also the stocking. Invoicing and loading is all completed when the driver arrives at the warehouse. He collects all the paperwork, including the Driver Vehicle Inspection Report, makes sure the truck is operational for the day and the Sprint GPS navigation and tracking device is aboard. The exact route is predetermined, with every stop precisely scheduled, and it’s all monitored through the operations center—the time he should arrive, the time he should depart. The majority of the time, a driver is on his regular route where he knows the personnel and has built up good relationships. Glazer’s trains these drivers on interpersonal skills to improve communication and build solid relationships between Glazer’s and its customers, and instructs them on safety, truck maintenance, as well as state laws and regulations. An Electronic RoadNet device is on board each truck; Operations Matters!
267 this is a computer that manages the routing schedule for all deliveries. This information is supplied to sales and merchandising personnel so everyone can determine which accounts to call on for stocking and merchandising needs, and when. Merchandising: Shortly after the delivery person has departed a location, a Glazer’s merchandiser will arrive. Attention-getting displays and informative signage that showcase and sell product are placed strategically. Wine customers benefit from signage designed to educate them about the wine’s taste and suggest food pairings. The Dallas/Fort Worth Warehouse Massive and Efficient are the perfect words to describe Glazer’s Dallas/Fort Worth warehouse. With 425,000 square feet, it stores spirits, wines, and beer for Glazer’s second-largest branch office by revenue (with Houston being the largest). By the Numbers: Stops per Day: 1,200 Trucks: 65 Warehouse Personnel: 105 Number of SKUs: 35,823 Monthly Cases Shipped: 510,000 Shrinkage: Down 75% over the last five years Safety Incidents: Down 80% over the past five years Operations Matters!
268 The Warehouse Operation The real action at the warehouse begins in the waning hours of the day. At 8:00 p.m. the warehouse staff begins loading the trucks, and the automated computerized conveyers are kept speeding along. It’s a flurry of activity, a blur. Another torrent of activity commences at 4:30 a.m. when all the trucks have been loaded and the drivers arrive to collect their paperwork, complete their routine truck inspection, and then depart on their delivery routes. The action in this warehouse is the domain of Donnis Broussard, Director of Plant Operations, Dallas/Fort Worth warehousing and transportation lead. Broussard is by no means the exception; rather, he’s one of the many standard bearers of Glazer’s warehousing managers pressing the cause of excellence to ensure a smooth day for everyone, every day. Operations Matters!
269
270 In the past five years, the efficiencies implemented throughout Glazer’s operations have increased deliveries by 100 percent. During this same period, it has been necessary to increase personnel by only 25 percent and the number of trucks by only 58 percent. Broussard attributes these efficiencies to: • Increased volume from counties voting to approve sales of adult beverages. • Hiring the right people. • Improved training. “If you learn, teach!” is a favorite saying of Broussard. Broussard attributes the improvements in transparency, communication, and management’s ability not only to listening to employees, but to taking action with a sense of urgency, and to the new Donnis Broussard, Dallas Warehouse Director of Plant Operations
271 leadership team at Glazer’s. It’s a real team effort, and everyone is rowing the boat in unison. On the demand side, customer orders are inputted by the salesperson on an SFA Electronic Device and automatically updated in SAP. The inventory management system, order tracking, delivery scheduling, and route determination feed into RoadNet, where all customer orders are aligned to specific trucks and routes for that day’s deliveries. Back at operations, Richard Torres manages a team that observes and communicates instructions on necessary modifications or problems that might occur, discussing all matters with warehouse staff, drivers, merchandise personnel, and sales representatives. As Torres proudly states, “We keep it flowing.” Keeping the trucks and goods flowing! Operations Matters!
272 Chapter 28 The Board of Directors and The Advisory Board
273 If we are taking care of our employees, our suppliers, and our customers, then we are taking care of our shareholders. —Bennett Glazer
274 The most important element in the history of Glazer’s is not that they are still around after 106 years, but that they are going strong. The odds have always been stacked against family businesses. Statistics show that less than ten percent of the family businesses that reach into the third generation do so successfully. So not only is Glazer’s beating the odds—they are doing so with gusto! And the reason that family businesses don’t often succeed in that third generation is because by then they have so many shareholders and the ownership is so fragmented that there’s no way to satisfy everybody. That’s just how life works. But it’s not how life works at Glazer’s. Bennett Glazer stands proud that the business has had a relatively smooth ride, compared to other family-owned companies. “If you have a family business, to keep all of the family happy you need to perform well,” he says. “That is the key to a healthy family business. You don’t do well fighting.” How does Glazer’s take care of their employees, suppliers, and customers? The Glazer’s Board of Directors is mindful that they work for the shareholders. “If we are taking care of our employees, our suppliers, and our customers, then we are taking care of our shareholders. If we aren’t efficient, we won’t have a business,” states Bennett Glazer. The four very engaged family members are tightly aligned, and there is minimal conflict. Certainly, they have had to work through serious matters, and opinions vary. However, as Bennett Glazer mentions, “If there is real dissension within the board, then we just don’t do it.” Bennett continues, “All you need is one unhappy shareholder, and he or she can make life miserable for everybody. The fact is we’ve been able to keep everybody happy.” The Glazer’s Board of Directors is comprised of four family members: Bennett Glazer, Mike Glazer, Betty Glazer Silverman, and Barkley Stuart. Barkley Stuart explains another key to their success: “The culture at Glazer’s emanates from the board, with the core company value being to inspire leadership with high expectations of performance based on integrity, trust, and pride.” The fact that the Glazers have been around so long provides a real continuity of ownership and leadership. They’ve always endowed their businesses with a healthy family atmosphere. That gives them an excellent foundation for making good decisions and driving efficiency. Everyone is on the same page, and that’s so important. Glazer’s Board of Directors (Left to Right): Mike Glazer, Bennett Glazer, Betty Glazer Silverman, Barkley Stuart The Board of Directors and The Advisory Board
275 Glazer’s Board of Advisors (Left to Right): Jim Turner, Alan Questrom and Jim Bareuther The key areas of focus for the board include: • Acquisitions • Bank financing • Hiring and firing of leadership • Strategy for the future The Advisory Board Helping the family board members is Glazer’s Advisory Board. Shelly Stein instituted this group of advisors as a sounding board, bringing in key industry leaders: Jim Turner, former CEO, Dr Pepper; Alan Questrom, retired CEO, JC Penney; and Jim Bareuther, former COO, Brown-Forman. The Glazer’s Advisory Board discusses vision and strategy on a regular basis. With more supplier consolidation, both suppliers and customers are increasing in size, so Glazer’s has to be better, with improved efficiency throughout the organization by driving lower costs and continuing to drive innovation and excellence. The Board of Directors and The Advisory Board
276 Chapter 29 What Does Glazer’s Mean to You? Here are the words that Glazers’ employees mentioned when asked: What does Glazer’s mean to you?
277
278 Chapter 30 Conclusion
279 I am enormously confident in our future, and proud of the character of our people. We have grown and matured, developed best practices, and advanced Glazer’s on all fronts. Our future potential is unlimited. —Bennett Glazer Conclusion
280 After 106 years of helping thousands of suppliers, retailers, and employees achieve their goals, Glazer’s tradition of strong leadership and excellence inspires us to reach even higher. —Bennett Glazer, Chairman of the Board Looking into the Future As the family of Glazer’s employees looks into the future, they have every reason to be hopeful and excited. Today, Glazer’s maintains a strong culture, has outstanding leadership, is on solid financial ground, and owns a long history of success upon which to build and expand. The future promises to be exceedingly bright for Glazer’s. Now, the challenge is to keep the momentum going. Bennett Glazer, reflecting on the current state of affairs, says that he is pleased with “Who we are and who we have become. Some companies can do what we do, but no company has people with such collaborative and innovative passion as we do.” The success of any enterprise is only as strong as the character and diligence of the people who strive to deliver exceptional products and services to its customers. If there has been a consistent theme throughout this story, it’s that Glazer’s has built its business and reputation around talented and dedicated employees who passionately respond to their customers’ needs as only they can. There’s no doubt, however, that to keep building on this success, everyone must continue to abide by the culture and values that have served them and their customers for over one hundred and six years. There are no guarantees for continued success in the years to come, but what the stakeholders and customers can count on is that the company will be forward-looking, continue developing innovative solutions, adapt to change in a timely and responsive manner, and seek to excel through continuous, aggressive improvements. The company looks forward to the challenging and exciting times ahead. And, one day—far into the future—long-serving employees will relate the rest of the story. Conclusion
281 Epilogue When Bennett Glazer began as a salesman in 1968 there were seventeen distributors in Texas. Glazer’s was ranked in the middle of the pack. The competition was brutal as the company wasn’t fortunate enough to represent the top premium brands in the market. Conclusion A day when Glazer’s… Would be selling premium brands of spirits, wine and beer… Would become a regional distributor powerhouse… Would be recognized as a leader in their industry… That dream has all come true! All because of the Glazer family and their loyal and dedicated employees who have maintained a culture of integrity, commitment, excellence, and success. Bennett dreamed one day Glazer’s would represent those brands. Bennett dreamt about one day in the future . . .
282 As a young kid, Bennett would ride out with Max and Nolan when they would visit the family plot at the cemetery. Bennett once inquired as to who determines who goes where with the unused space. Nolan smiled and responded, “first come first served.” Today Max and Nolan Glazer are resting peacefully…. and smiling. They started a dream in 1934 and now 81 years later we all at Glazer’s continue to live that dream.