Chicago Wine Retailer Sam's Changes Hands
For Immediate Release
Former MarketWatch Retailer of the Year now poised to expand its stores–and wine education programs–beyond Illinois.
Chicago retailer Sam’s Wine & Spirits, which has long had a loyal following of wine lovers in Chicago and beyond (due its strong direct-shipping business), has been sold by its founders, the Rosen family. Over the next five years, the company plans to open several new stores outside of Illinois.
“After 65 years being a family business, it was time for us to push nationally,” said president and CEO Brian Rosen. “We needed the capital to do so, so we went out to seek a source of expansion capital.”
The buyer, as confirmed by Rosen, is Arbor Private Investment Company, which invests exclusively in the food-and-beverage sector. According to the Chicago Tribune, which first reported the story, Arbor took an 80 percent stake, but Rosen said that figure is inaccurate. Arbor refused comment when contacted, and Rosen would not say what the exact breakdown is–only that Arbor, which has offices in Chicago and Atlanta, is now the controlling shareholder in Sam’s and that Rosen will stay on as president and CEO.
“[Arbor] commissioned a study that said Sam’s was the most recognizable brand in the very fragmented wine-and-spirits space,” explained Rosen, “so it’s a natural push for the Sam’s brand to begin to grow outside of Illinois.” Though he wouldn’t say where new stores are slated to open, the first five will be in states that Sam’s already does at least $1 million per year in business. “10 percent of gross sales come from out of state,” Rosen said. “So we already have a strong customer base.”
Part of Sam’s appeal is its vast selection and competitive prices, but particularly its focus on wine education through a program it calls Sam’s Academy. Sam’s has long offered classes on everything from specific regions and wine varieties to food-and-wine pairings, as well as a tasting lounge. The new stores will be no exception, said Rosen, so customers who haven’t been able to visit the bricks-and-mortar Sam’s stores in the past stand to benefit from the expansion. “Everything that we do, every concept we’ve created, is all going to travel.”
Selling the controlling stake in Sam’s, Rosen insisted, was not a defensive move. “[It’s] more because we think people around the country need a top-notch specialty retailer in this space. It’s not a response to Costco or whomever,” he said. “It’s more to bring education, knowledge and selection to people around the country.”
Sam’s was named 1996 Retailer of the Year by beverage-industry trade publication MarketWatch (which is published by Wine Spectator’s parent company, M. Shanken Communications). Sam’s had revenues of nearly $60 million from its store on Chicago’s north side in 2003 and opened its first branch store in suburban Downers Grove, Ill. around the same time. But the company has had its ups and downs, the latter of which was a 15-count citation from the Illinois Liquor Control Board alleging that Sam’s was accepting kickbacks from wholesalers and operating a warehouse illegally. The case was settled after Sam’s paid a fine and closed the store for three days.
For more information, please contact Joseph Campolo (312-981-3781) or Gregory Purcell (312-981-3780).