CoolVines in the News: CEO Mark Censits discusses the new wine & spirits tax

Mark Censits, the president and CEO of Coolvines on Elm Street, said the 25 percent tax hike on wines and spirits that is part of the new state budget, will likely impact the cheaper wines. The tax is $5.50 per gallon for liquor and 87.5 cents per gallon of wine, paid by the distributor. He said the cost will not be immediately felt by consumers on any priced bottle of wine, since he and distributors are likely to raise the price on a gradual basis to reflect the new taxes.

Censits said that, given the way the tax is gauged, while all wines and spirits will see an increase, the lower-priced brands will have a larger percentage impact. With wines in his store being priced mainly between $8 and $40, he does not see much of an impact on his merchandise, except for the cheaper bottles he carries.

Distributors are already feeling the impact of the new wine tax, but are gradually raising the prices they use to stores like Coolvines. He said that it will likely be six months before he is paying distributors the new higher prices reflecting the tax. Censits said it will likely be six months before customers will also see an impact on the cost of wine they buy from him.

Read the full article here.

Wine and Spirit sales resisting recession

PRINCETON: Liquor sales resisting recession

Wednesday, December 31, 2008 4:03 PM EST

By Lauren Otis, Staff Writer

As Princeton-area residents prepared to toast the New Year with hopes for a better 2009, one group of retailers had reason to raise a thankful toast to 2008 — wine and spirits merchants.

Although many customers seemed to scale back by seeking out less expensive bottles, this holiday season and the year in general has been a good one, said area wine, beer and liquor retailers.

”We are down less than 5 percent” in 2008 sales compared to 2007, said Mark Bovenizer, proprietor of Community Liquors on Witherspoon Street. “I’m pretty happy with that. People are celebrating, just not in luxurious style, not with Dom Perignon, but with an American sparkler instead, at a quarter of the price.”

At Community Liquors, “we were doing fine up until September,” he said. After the crash of the financial markets at that point, “a lot of the larger parties, larger purchasers, became smaller purchasers,” he said.

One interesting anomaly was in sales of single malt Scotch whiskeys, Mr. Bovenizer said.

”We sold quite a lot of high-end Scotch,” he said. “I had to reorder before Christmas. It was surprising how much we sold,” particularly bottles retailing for $100 or more.

Apparently the Princeton thirst for single malt whiskey was a large one.

”We’ve never sold so many single malts for Christmas,” said Laurent Chapuis, owner of the Princeton Corkscrew Wine Shop on Hulfish Street. “It is an expensive gift that people can drink over time.

”It is not a one shot deal like a bottle of wine,” Mr. Chapuis said in speculating on one possible reason for the jump in single malt sales.

”It was a very, very good year overall,” Mr. Chapuis said.

Business from regular customers was excellent, and corporate customer business was “in the middle,” neither great nor poor, Mr. Chapuis said.

He noted seasonal champagne sales were “exceptional” with customers who might balk at purchasing a bottle of wine for $40 not having any problem shelling out the same amount for a celebratory bottle of champagne.

”The only drop we’ve seen is in the high-end wines,” Mr. Chapuis said. “We specialize in bottles from $7 to $20. We sold more than ever in that category.”

”I was very pleased with the way the year turned out,” for sales in Princeton, said Mark Censits, president and CEO of CoolVines.

Mr. Censits opened his Princeton CoolVines store, located on the corner of Nassau and Harrison Streets, in August. He already operates a CoolVines store in Westfield.

CoolVines offers a $13 blanc de blancs sparkling wine from France, which is not from the Champagne region, but is a very nice wine for the price, Mr. Censits said.

”We have sold a ton,” he said. “I think people have been really elated to say, ‘wow, you can find a great product for this price.’”

Customers searching for value in their wine and spirits purchases benefit from CoolVines’ emphasis on wine characteristics and not labels, Mr. Censits said.

”That works well for us,” he said. “That is our whole point of difference. We can find great stuff searching beyond the brand names.”

Unlike other merchants, as a wine seller, he did not have to mark down his products to sell them although he spent a lot of time and effort on other types of promotions, Mr. Censits said.

At the Westfield store, “we had just as much bottle sales, but we had an 8 percent decline in revenues,” Mr. Censits said.

At both his locations, “people were trading down from a $50 wine to a $30 wine and $20 wine to $8,” he said. “What just gets clipped off is the very high end of it” for bottles costing several hundred dollars.

”People have been buying the same amount, maybe spending a little less. Overall, it’s been a pretty strong year for us,” said Chris Sletvold, store manager at the Joe Canal’s Discount Liquor Outlet on Route 1 in Lawrence. “Instead of buying one $50 bottle, they are buying two $25 bottles.”

The poor economy “hasn’t affected beer sales; high-end liquor, yes; high-end wine, yes,” Mr. Bovenizer said.

He said sales in December are likely to be down about 5 percent with sales volume affected by not just the economy, but the lack of convenient parking close to his store now that the Tulane Street surface parking lot has been closed.

Mr. Chapuis noted for the holiday season, “we got hurt by the late Thanksgiving and one less Saturday” in December this year.

One Saturday’s sales at this time of year can account for 5 to 6 percent of monthly sales, he said.

Mr. Chapuis said wine merchants shouldn’t lose sleep over outside economic forces beyond their control.

”There is nothing we can do anyhow,” he said. “We can only improve the quality and the selection. I can do only what I can control.”

Mr. Bovenizer said he already is anticipating continuing economic doldrums in 2009, having let go of one full-time employee and cut back on part-time staffing for the new year.

”If there is anything, I am holding my breath a bit as far as January is concerned,” said Mr. Censits.

Let's Try...CoolVines: U.S. 1 News - Nov 5, 2008

What's New in Princeton & Central New Jersey?
Reprinted from the November 5, 2008, edition of U.S. 1 newspaper
Let's Try...CoolVines
by E.E. Whiting

Tucked away on a cozy corner of Nassau Street and Harrison is a new shop specializing in wines and fine spirits. CoolVines is overflowing with choices and to help sort things out, the shop sponsors free wine tastings every Wednesday from 5 to 8 p.m. and Saturdays from 2 to 5 p.m.

On a brisk Wednesday night, my friend and I arrived around 6 p.m. for a tasting of Rieslings. The shop was buzzing and the wines were a revelation. As many do, I had avoided Rieslings as being too sweet for my taste. However, the beauty of a tasting is to have your preconceptions blown out the door. We started with a dry German wine with a kick of Granny Smith apple at the end that, as advertised, would be the right choice with spicy Oriental food. The other two offerings were each progressively a tad fruitier.

In addition to the wines, the range of unusual beers was entertainment in and of itself and the staff was very knowledgeable about the differences among Belgians, organics, and British and American brews. My personal favorite section was the variety of gins with botanicals to make your head spin without even opening the bottle. To complement the gin, owner Eric Mihan pointed out a specialty tonic infused with herbs. Both ended up in my shopping bag. Also intriguing were the single grower champagnes and sparkling wines. As I am a lover of all things bubbly and different, into the bag they went.

Each bottle of wine is clearly labeled with a tag that classifies the wine, for example, as light, medium or full, as well as a “style” description such as traditional, modern, or dry, and the recommended serving temperature range. Prices run the gamut, as expected, from around $20 per bottle to, well, let’s say sums similar to the cost of dinner for four.

Beyond the wines and spirits, Cool Vines offers gift items such as stemless champagne glasses, hilarious napkins, variously flavored bitters, sake sets, and snacks. A holiday tasting will be held on Wednesday, December 3, which will showcase gift baskets created with specialty chocolates and other goodies.

Other upcoming tasting events include “Hail to the Chief,” Wednesday, November 5, 5 to 8 p.m.; “Thanksgiving Wines,” Saturday, November 8, 2 to 5 p.m.; and “Holiday Gift Wines,” Wednesday, November 12, 5 to 8 p.m.

CoolVines also participates in offsite events. On Saturday, November 8, 5:30 to 8:30 p.m., the store will sponsor a wine tasting at Queenstown Gallery, 24 West Broad Street, Hopewell, at the opening reception for an exhibit of watercolors by Beatrice Bork. And on Wednesday, November 19, at 7 p.m., CoolVines will co-host a multi-course Italian wine food and wine pairing dinner with special guest Doug Salthouse of Willette Wines at Gennaro’s 47B State Road (Route 206 north). The cost is $85 per person, includes tax and gratuity.

On the evening we went to the wine tasting at the store, a steady stream of visitors came and went, some coming in for the first time, others repeat customers. Cool Vines clearly has an established coterie of clients despite having opened only in August. The conversation around the tasting wines was lively and inclusive. Some folks knew about the wines, others had never tried them and were delighted to discover a new find.

Rums of all sorts, ouzo, gins, and specialty vodkas are there in plenty. Browsing is welcome and more gift items are being unpacked daily. We left with the distinct impression that if you need a special libation, this shop is apt to have it. CoolVines is also available to host private wine tastings, wine dinners, and other events. Parking is plentiful and easily found behind the shop. Stop by for an education, a chat, and a chance to discover more in the world of wine and spirits.

— E. E. Whiting

Cool Vines, 344 Nassau Street. 609-924-0039, www.coolvines.com. Complimentary wine tastings Wednesdays, 5 to 8 p.m., and Saturdays, 2 to 5 p.m. Hours: Monday through Wednesday, 10 a.m. to 8 p.m.; Thursday through Saturday, 10 a.m. to 10 p.m.; Sunday noon to 8 p.m.