Tag Archives: Total Wine

Trone Donations Continue to Raise Eyebrows


Apparently, David Trone can’t decide who to support for Montgomery County Council District 1. He has given money to both Andrew Friedson and Ana Sol Gutierrez. I guess he likes Andrew more since he got $750 as compared to just $150 for Ana. Or did he give to Ana to help her qualify for matching funds in order to help Andrew?

Meanwhile, his company, Total Wine, is donating to Maryland Republicans even after this became an issue in the 2016 congressional primary campaign. Total Wine donated $1000 in early 2017 to the Pat McDonough Leadership Team. McDonough (D-7) represents Baltimore and Harford Counties and is running for Baltimore County Executive.

Share

Game of Trone? David Trone Tests Waters in Eighth District

David TroneDavid Trone

David Trone of Total Wine is thinking about becoming a late entry into the Eighth Congressional District Democratic primary. Trone has never held or run for elective office previously but is wealthy and could self finance a campaign.

Trone is currently conducting a poll that tests general opinions about candidates as well as the impact of messages regarding Kathleen Matthews and Jamie Raskin. So what is Trone’s game?

Messages Tested about Trone

The positive messages tested about Trone include information that he has never been involved in politics, grew up on a farm and then grew a family business, gave millions to liberal causes, and will self-fund rather than take money from special interests.

Trone’s nascent campaign also tested concerns regarding messages that he has been involved in numerous business and private lawsuits, given money to politicians who could affect his business, and failed to vote several times. Kind of Trone to do the opposition research for his potential opponents.

Messages Tested about Matthews and Raskin

The negative messages tested about Kathleen Matthews are that she said she didn’t know anything about business and was just a PR person for Marriott. Additionally, the poll mentioned that she made the maximum allowed contribution to Missouri Sen. Blunt, who is very anti-choice and tried to remove birth control from Obamacare.

The poll looked at the effect of telling voters that Jamie Raskin once represented Ross Perot and defended Ralph Nader’s participation in the 2000 presidential debate. Additionally, Raskin was characterized as an Annapolis insider endorsed by Mike Miller and the Annapolis establishment.

Analysis

It’s very late to get into the game and build a campaign organization but Trone certainly has the money to conduct a good media campaign. I imagine Trone could also hire a bunch of people to help with the ground campaign but hired door knockers and phone callers are just never nearly as good as volunteers.

Trone appears to want to present himself as a savvy business outsider–the same appeal as Donald Trump only presumably without the outrageous racist baggage. Matthews is currently seen as the candidate with stronger business ties, so his entry might cut more into her potential support.

None of the potential attacks strike me as particularly effective. The attack on Matthews’ business skills strikes me as one that provides her with a major opportunity to come out swinging and plays to her well-honed media skills. I suspect it would rebound on Trone. Why a candidate who has made many campaign donations would want to highlight a single one by Matthews is also a bit of a mystery.

The attack on Raskin for defending debate participation is dated and arcane. Though Mike Miller has been Senate President since the time of James Monroe, I suspect few voters are truly aware of the powers he wields. Among Democrats, the Annapolis establishment hardly inspires terror in any case.

Remember that many Eighth District voters work in Washington and live inside the Beltway, so these attacks may just not resonate here. If this is the worst Trone can conjure up, both Matthews and Raskin have little to fear.

I imagine Trone hopes to be another John Delaney who comes in and sweeps more established candidates aside. The problem is that Matthews is not a long-time politician and Raskin has always run as a progressive change candidate. Kumar Barve and Ana Sol Gutiérrez have ties to voters and their own forms of outsider appeals.

Trone’s money nevertheless gives him the potential to shake up the race. If nothing else, his entry would highlight the issue of liquor control in Montgomery County. Total Wine is based in Montgomery County but cannot open one of its stores here.

Share

Adam’s Reply to Gino on Liquor Control, Part I

Guest Blogger Adam Pagnucco replies to MCGEO’s Gino Renne

Last week, MCGEO President Gino Renne, leader of the local union that represents most Montgomery County employees, responded to my post on the county’s Department of Liquor Control (DLC). President Renne has led MCGEO for more than twenty years and is an aggressive advocate for his members. I appreciate his taking the time to talk about DLC on Seventh State.

A few of his statements deserve examination. Let’s start with the one that is arguably most important to county consumers.

  1. The union claims DLC, an extra middle-man with an extra mark-up, actually has lower prices than our neighbors.

MCGEO: “Across all categories except special order beer, costs are 2-10 percent cheaper than neighboring jurisdictions.”

David Lublin put this argument to shame through his price comparison of DLC and Total Wine, which refuses to open a store in MoCo. Now let’s be fair: Total Wine not only blows away DLC, they beat almost everyone on price. How do they do it? The company explains:

We are committed to having the best wine selection with an emphasis on fine wines. This differentiates us from many retailers in the United States who specialize in one geographic area or price category. Our typical store carries more than 8,000 different wines from every wine-producing region in the world.

In addition to a world-class selection of fine wines, the typical Total Wine & More also carries more than 2,500 beers, from America‘s most popular beers to hard-to-find microbrews and imports, and more than 3,000 different spirits from every price range and category.

Total Wine & More is committed to having the lowest prices on wine, spirits and beer every day. Our tremendous buying power and special relationships with producers, importers, and wholesalers offers us considerable savings, which we pass on to our customers.

This business model is very difficult to implement with an extra middle-man interfering with the supply chain, especially one like DLC that is notorious for botching orders of specialty beer and wine. And so Total Wine will not open a store here even though its headquarters is in MoCo and its founders live here. MoCo customers are forced to drive long distances to access the company’s selection and low prices, and they do. Total Wine estimates that MoCo residents account for more than 20% of sales at its McLean, Virginia store and almost 25% of sales at its Laurel store.

But let’s set aside Total Wine for a moment and examine MCGEO’s assertion further. If DLC offers lower prices as they contend, that would be great news. Non-residents would be flocking into MoCo to get deals. We might even expect a proliferation of MoCo stores close to the county’s borders ready to lure non-residents in.

In fact, the opposite is true. There at least seven D.C. liquor stores within four blocks of the MoCo border. See the map below. The one DLC store near the border is in Friendship Heights and it is the only DLC store that is losing money. How is it possible for DLC to lose hundreds of thousands of dollars a year by selling alcohol to rich people? Perhaps one reason is that the District’s Paul’s Wine and Spirits is just three blocks away.

DC liquor stores

Alcohol sales data collected by the Maryland Comptroller’s office suggests substantial flight of customers away from MoCo. Both the U.S. Department of Health and Human Services and Gallup find positive correlations between alcohol consumption and education level, while Gallup finds an additional correlation with high incomes. Since MoCo is one of the highest-income and most-educated counties in the state, it should be a mecca for alcohol sales. But that is far from the truth. In terms of per capita sales deliveries to retail licensees inside each county, MoCo ranks 13th of 24 jurisdictions in wine, tied for 23rd in spirits and dead last (by far) in beer. Among the counties out-ranking MoCo in per capita wine sales are Calvert, Carroll, Cecil, Garrett, Harford and Kent, all mostly rural jurisdictions with far less disposable income than MoCo. Comptroller Peter Franchot, the principal enforcer of state alcohol laws and himself a MoCo resident, says of DLC, “Most people in Montgomery County go to Prince George’s, the District or Virginia to buy their alcohol because it’s such a disgrace.”

I will have more tomorrow.

 

Share

MCGEO’s Ridiculous Claim that the Department of Liquor Control Saves Consumers Money

Yesterday, I published a reply by MCGEO’s Gino Renne to Adam Pagnucco’s guest blog on Montgomery’s Liquor Control Regime. In his reply, Renne attacks Pagnucco’s claim that the Department of Liquor Control (DLC) raises prices:

In his first false claim, Mr. Pagnucco claims that DLC’s operations increase costs for the consumer. Across all categories except special order beer, costs are 2-10 percent cheaper than neighboring jurisdictions.

This claim struck me as incredible, so I decided to do a sampling of wine prices at a Montgomery County Liquor Store and Total Wine in McLean, Virginia. I focused on comparatively affordable wines and picked out some first at the DLC store and others from Total Wine, and did not know the price of the wine at the other store when I selected it (i.e. no cherry picking).

The results are presented in the following table:

wine

Among the 26 wines, DLC doesn’t carry seven–I checked with the cashier who searched the computer. Only one wine was cheaper at the DLC store and another at the same price, and these two bottles were on sale.

Looking only at the 12 wines currently offered at a discount at Montgomery DLC stores revealed that even their sales tend to be lousy deals. The discounted prices on these wines were an average of 21.9% higher than at Total Wine. When this same set of wines is not on sale, the difference rises to 44.0%.

Examining the larger basket of 19 wines available at both stores shows that regular prices in DLC stores average 36.4% higher that at Total Wine across the river. Put another way, it would cost you an extra $89.04 (plus tax) to buy them in Maryland.

If Gino Renne begins his argument for maintaining the status quo with an obvious, easily disproved falsehood, why should anyone believe anything else he or MCGEO has to say on the subject?

Here is the real capper: Total Wine has its headquarters in Montgomery County but it cannot open one of its (nicer than DLC) stores and offer the same prices here. If you want to know why, look no further than MCGEO and the County Council.

Share