Allocation News From Templeton Rye – American Whisky News
What is your 2011 supply and allocation?
Below is our Dec ’10 – Dec ’11 preliminary allocation. We will be sending these cases to each market at the beginning of each month. As you can see, we sent nearly 80% of our December allotment to Iowa and will continue to do our best to supply our home state while balancing the future growth for our company. Most people in the industry think we are crazy to allocate this much product to Iowa but it is important to us as Iowa guys and as an Iowa company. Please support us on this fact if you hear folks saying we are “sending all our product out of state.”
Why is Templeton Rye so hard to find in Iowa?
Iowa is what is known in the industry as a “Control State”, meaning the State of Iowa acts as the distributor for spirits in the State. We sell every bottle of Templeton Rye in Iowa to the Iowa Alcoholic Beverages Division or ABD.
The ABD applies a “mark-up” or tax, and sells the product to Licensees, or Spirits Retailers. Please note that despite serious pressure, we have not changed our price to the ABD. The ABD applies a set mark-up and retailers have the liberty to set the final price charged to consumers. The ABD allocates the cases we send them every month to “uniformly distribute” them amongst Licensees. The ABD decides how many cases each licensee can order every month and they begin to fill orders on a certain day. Iowa Licensees order on either Monday, Tuesday, Wednesday or Thursday with delivery the following day. Depending on what day of the week a Licensee orders and the amount of product sent in that month, they may or may not get any product that particular month.
Each party mentioned above is in a tough spot because of the supply/demand situation. We realize that and truly appreciate their efforts. What we want to make clear is that once we sell product to the ABD we do not control where it ends up or the price on the shelf. We have a lot more influence on those items in other states and quite frankly, if Iowa were not our home state we would probably allocate much less product here.
Visit Templton Rye at www.templetonrye.com