by Smoke | Jul 12, 2011 | Brand Management, New Products - Brands, News, Pelican Brands, The Paddington Corporation
Indianapolis, IN – July 12, 2011 – Paddington Brands announced today that it has launched its Agostón wine brand through Walgreens, the nation’s largest drugstore chain. Bodegas Virgen del Aguila, the Spanish wine cooperative, confirmed Paddington Brands as the exclusive U.S. importer of Agoston wines.

Agoston Tempranillo Cabernet from Spain - now available at ALL Walgreens
“When we first tasted Agostón, we knew this was a wine that would appeal to American consumers,†said J. Smoke Wallin, chairman and CEO of Paddington Brands. “Year after year Agoston has been receiving 90+ points in the Penin Wine Rating Guide, which is Spain’s equivalent to Robert Parker ratings. We have worked with Walgreens in order to bring this savory wine to the United States at an affordable price.”
In April Paddington launched both a syrah/garnacha and a tempranillo/cabernet blend in more than 4,000 Walgreens stores. The wines, priced at $5.99 a bottle in most states, have become one of the drugstore chain’s top selling imported wine brands.
“Agostón is a great addition to Walgreens wine selection as our first Spanish wine,†said Dex McCreary, Walgreens divisional merchandise manager. “We look forward to working with Paddington Brands to promote this brand and make this quality import a success.â€

Agoston Garnacha & Syrah
“We were immediately impressed with the knowledge, drive and ‘can do’ approach of the entire Paddington team,†said Jose Maria Andres, CEO of Bodegas Virgen del Aguila co-operative. “We are proud to work with Paddington to launch this wine with such an important retailer like Walgreens, a company that will advance the development of the Agostón brand.â€
About Agostón
Agostón is named after the wild Spanish boar and is made by the Bodegas Virgen del Aguila co-operative. Located in the great wine-producing area of northern Spain we´re lucky to have a climate and terroir ideal for makin
g quality wines full of character. Here we have 2,200 hectares of vines, planted with a good range of grape varieties, including the native Tempranillos and Garnachas, as well as international varieties, such as Cabernet Sauvignon and Syrah. Our oldest vines date from the year 1906 and help create wines of superb intensity, such as our Agostón range.
Our vineyards are located in the scenic foothills of the Ibérico mountain range and we have a wide variety of landscapes and eco-systems within our demarcated area. Under half of our land is taken up by vines, the rest being undisturbed areas of rocky outcrops and forested mountain slopes, dry river beds, wild-flower margins and old almond groves. This makes it and its surrounding area a zone of high biodiversity and an ideal wildlife haven, something that we’re committed to safe-guarding. The winery produces close to 10 million litres of wine a year, with a full range of styles, including young fresh whites and rosés, intense aromatic reds and complex oak-aged “Crianzas†and “Reservasâ€. The winery is modern, and fully equipped and the underground maturation cellars have 13,000 oak barrels. Â

About Paddington Brands
Paddington Brands (www.Paddingtonbrands.com) manages a portfolio of owned and agency premiere import & craft beers, artisanal spirits and fine wines. Paddington’s team and partners have extensive experience in the global beverage and consumer packaged goods industries. Paddington owns the Napa Smith Brewery & Winery and 3 Amigos Tequila. Paddington is headquartered in Metro-Indianapolis, IN, with offices in the United Kingdom and Napa, CA and a sales team covering the U.S. market and select international markets. Join us on Facebook http://www.facebook.com/pages/Paddington-Brands/220043258012149 and Follow us on Twitter @Paddingtonbrands

About Walgreens
Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2010 sales of $67 billion. The company operates 7,733 drugstores in all 50 states, the District of Columbia and Puerto Rico. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Take Care Health Systems is a Walgreens subsidiary that is the largest and most comprehensive manager of worksite health centers and in-store convenient care clinics, with more than 700 locations throughout the country.
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by Smoke | Jun 23, 2011 | Brand Management, Distributors, News, Pelican Brands, The Paddington Corporation
Pleased to share this announcement – Paddington Corp Merges with Pelican Brands forming Paddington Brands, LLC

FOR RELEASE June 23, 2011
Media contact:
Heather Carden
001-317-574-6408
The Paddington Corp Announces Merger With Pelican Brands
Indianapolis, IN USA – June 23, 2011 – The Paddington Corporation today announced the completion of a merger with Pelican Brands, LLC. The combined company will be known as Paddington Brands, LLC. Paddington is based in Carmel, IN and also has offices in Napa, CA and 3rd party warehousing in NJ and CA. Paddington owns Tequila 3 Amigos, the Napa Smith Brewery & Winery, and is the exclusive Importer and U.S. sales agent for a prestigious portfolio of wine and spirit brands.
Since January, Paddington, through outside investors, has injected nearly $1 million into the business to expand Napa Smith Beer and Tequila 3 Amigos in multiple markets throughout the US. The Company is committed to rolling out both brands nationally in 2011.
J. Smoke Wallin, Chairman & CEO of Paddington Brands said, “Paddington understands what today’s consumer wants– authentic, hand crafted brands with a great taste. Our team has deep industry knowledge of the distribution and retail tiers of the business providing a rapid national route-to-market in all segments of beverage alcohol.â€
Our Brands
- Napa Smith Brewery & Winery: Napa Smith Beer, now available in 32 states, is a unique brand that brings the best of Napa Valley in quality and lifestyle to the fastest growing segment of the beverage industry, Craft Beer. Our brew master, Don Barkley, has been brewing amazing craft beers since 1979. Napa Smith Winery has produced award-winning wines in the past three years and is sold primarily in the Western U.S.
- Tequila 3 Amigos: Paddington’s partner in Tequila 3 Amigos is the Gonzalez family of Arizona and Mexico, where they have grown agave for generations. Paddington has announced partnerships for  Tequila 3 Amigos with major NASCAR venues including Talladega, Phoenix International Raceway, California’s Auto Club Speedway, Darlington Raceway, Kansas, and Michigan International Speedways. Tequila 3 Amigos has had three named races in the past year including the 3 Amigos Tequila Talladega 250 ARCA race in April. The Company expects Tequila 3 Amigos to be distributed in over 25 states by year-end.
- Chase Distillery: Paddington also imports the Herefordshire, UK-based Chase Distillery’s Chase Vodka and Elderflower Liqueur and has launched it in ten states in the U.S..
- Paddington Wines: Since January 2011, Paddington has sold Agostón Wines from Spain into 4,085 Walgreens stores in thirty-one states. Agostón has also consistently received 90+ points in the Penin Wine Rating Guide. Paddington Brands also represents: Calatrasi from Italy, award-winning Gemtree from McLaren Vale Australia, and Brent Marris’s newest venture, Marisco Wines – The Kings Series and The Ned.
Wallin continued, “The new Paddington Brands is an exciting company that aligns an extremely talented group of industry leaders with explosive growth brands. We plan to build on our momentum as a brand investor and incubator. We are also continuing to selectively and opportunistically make acquisitions providing us additional scale.â€
About Paddington
The Paddington Corp. was built upon a rich tradition of some of the industry’s greatest brands. In 1937, Charles Guttman founded the original Paddington Corporation, which became the exclusive importer of Justerini & Brooks Ltd. (J&B) scotch, and a very successful creator of brands including Bailey’s Irish Cream. Paddington was acquired by several large conglomerates in the 1960s – 1980s and eventually became a division of Diageo, the worlds largest spirits company. Diageo later folded the Paddington entity into its larger North American sales force and it has remained dormant until now. The new Paddington Brands, LLC, though a completely independent and unaffiliated company, draws on this rich tradition of building brands over the long term that Charles Guttman started so many years ago.
Paddington is headquartered in Carmel, IN, with offices in the United Kingdom and Napa, CA and a sales team covering the U.S. market and select international markets. Paddington is actively seeking acquisitions in the wine, spirits, beer and non-alcoholic beverage space.  Follow us on Facebook http://on.fb.me/afmdBU and on Twitter @paddingtonbrands and on the web at www.paddingtonbrands.com
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by Smoke | Jun 5, 2011 | 2011 Event, NASCAR, Pelican Brands, The Paddington Corporation
I’m pleased to announce two more major NASCAR sponsorships with Kansas and Chicagoland Speedways! These great venues expand our 3 Amigos Tequila footprint with Official Tequila designations at Talladega Superspeedway, Darlington Raceway, Auto Club Speedway, Phoenix International Raceway.
Look for our Trackarita Carts pouring 3 Amigos today at the Sprint Cup Race at Kansas –

Kansas Speedway Partners with 3 Amigos Tequila
6/1/2011
Kansas Speedway officials announced a partnership with 3 Amigos Tequila today.
“Both Kansas Speedway and 3 Amigos Tequila are young companies that want to provide a good time to our customers,†said Kansas Speedway President Patrick Warren. “I’m looking forward to a long partnership with the 3 Amigos Tequila brand.â€
3 Amigos Tequila was founded by Arizona resident Santiago Gonzalez and his family in 2007. The product is made from agave grown at his family’s farm in Mexico. The tequila is distilled and bottled in Mexico before being brought to the United States for distribution.
J. Smoke Wallin, Chairman & CEO of Paddington & Pelican Brands said, “3 Amigos is very excited to partner with Kansas Speedway to introduce our brand to your great fans. 3 Amigos recently won “Best of Show†at the Wine & Spirits Wholesalers of America tasting competition. 3 Amigos is above all else, great tequila.â€
Individual tickets are on sale now for remaining events at Kansas Speedway including the Oct. 8 Kansas Lottery 300 and the Oct. 9 Hollywood Casino 400 at Kansas Speedway. Tickets are available by calling 866.460.RACE (7223) or by logging onto www.kansasspeedway.com. Parking at Kansas Speedway is always free and fans may bring one 14x14x14-inch soft-sided cooler into the grandstands to enjoy their favorite food and beverages.
For those of you who watched the Nationwide race last night at Chicago – you probably caught a glimpse of our 3 Amigos Tequila sign on the inside of the track!

3 AMIGOS TEQUILA NAMED OFFICIAL TEQUILA OF CHICAGOLAND SPEEDWAY
6/1/2011
Joliet, Ill. – May 31, 2011 – Chicagoland Speedway today announced a partnership with 3 Amigos Tequila making it the official tequila of the speedway.
“We’re thrilled to partner with 3 Amigos Tequila and introduce our amazing fans to their award winning tequila,†said Scott Paddock, President of Chicagoland Speedway and Route 66 Raceway. “We look forward to working closely with 3 Amigos Tequila to bring exciting opportunities to race fans in advance of our September race weekend when we host the kick-off to the Chase for the NASCAR Sprint Cup, September 16-18.â€
“3 Amigos is very excited to partner with Chicagoland Speedway and introduce our brand to the third largest media market,†said J. Smoke Wallin, Chairman & CEO of Paddington & Pelican Brands.
Tickets are on sale now for the 2011 events at Chicagoland Speedway and Route 66 Raceway, including single-day tickets! To purchase tickets, please visit www.ChicagolandSpeedway.com or call 888-629-RACE (7223).
Chicagoland Speedway’s 2011 Schedule:
Date Event
June 4 STP 300 (NASCAR Nationwide Series)
Messina Wildlife Animal Stopper 150 presented by Menards (ARCA Racing Series)
Sept 16 NASCAR Camping World Truck Series
Sept 17 Dollar General 300 presented by Coca-Cola (NASCAR Nationwide Series)
Sept 18 NASCAR Sprint Cup Series
Route 66 Raceway’s 2011 Schedule:
Date Event
June 10-12 Burndown at Sundown!
June 23-26 NMRA NMCA Super Bowl of Street Legal Drag Racing
July 7-10 O’Reilly Auto Parts NHRA Nationals (NHRA Full Throttle Drag Racing Series)
Sept 15 *Traxxas Torc, The Off-Road Championship Series
*At the Route 66 dirt oval
For more information on Chicagoland Speedway stay connected on Twitter and Facebook .
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by Smoke | Dec 20, 2010 | Brand Management, Distributors, Pelican Brands
Pelican Brands Will Import La Piazza And Allora Brands, Crafted By The Mineo Family In Collaboration With Calatrasi
Carmel, IN, USA – November 10th, 2010 – Pelican Brands, Calatrasi, and the Mineo Family announced today the formation of a long-term strategic partnership for the U.S. market.
The Mineo Family represents the alliance between Calatrasi, a leading Italian wine producer, and 500 individual Sicilian growers. Â Italian wine is the number one imported wine category in the US.
Calatrasi produces nearly one million cases of wine annually and controls more than 1,100 hectares (2,700) acres in Sicily, Puglia and Tunisia. Over the last 10 years, Calatrasi has reinvested over $14 million on improvements to the quality and value of their wines. In 1998 Calatrasi created the D’istinto brand in co – ownership with BRL Hardy; the project achieved 300,000 cases in UK, becoming the number one Italian brand in UK.
Pelican Brands, Calatrasi and the Mineo Family announce their long-term strategic partnership with two co-owned brands, La Piazza and Allora. These wines are crafted from grapes grown in the Sicilian hills by the individual growers, who bring the harvest to Calatrasi winery to make the best wines from that region. The La Piazza brand will also be launching a Pinot Grigio from the Veneto in early 2011.
Maurizio Miccichè , Owner of Calatrasi and founder of Mineo family Vineyards said, “We have been looking for some time  at the various options for entering the U.S. market. Our patience has paid off, as we have found our long-term partner in Pelican Brands. We share Pelican Brands passion, energy, innovation spirit and long-term commitment to quality.â€
J. Smoke Wallin, Chairman & CEO of Pelican Brands said, “Maurizio and I instantly connected with our shared passion for the wine business and vision for the future. Calatrasi and Mineo are the perfect partners as we build out our wine platform in the U.S. market.â€
La Piazza wines are fresh and rich wines that go well with any dish. The range includes 2 white wines, a blend of Catarratto (an indigenous grape varietal of Sicily) and Chardonnay, a Pinot Grigio and a red wine, which is a blend of Merlot and Nero d’Avola (an indigenous grape varietal of Sicily).
The Allora wines feature full-body, solid structure, fully represent the terroir of the Mediterranean area. The Allora range includes Viognier, Grillo (indigenous grape varietal) and Nero d’Avola from Sicily and Primitivo (Zinfandel) wine from Salento.
Franco Bernabei, Chief Winemaker of Calatrasi and Mineo Family Vineyards
Franco Bernabei has 30 years of winemaking experience in Italy, as winemaker for some of Italy’s most prestigious estates in Tuscany and Veneto. Over the years he has earned major awards and high praise from Robert Parker to the Wine Spectator.  He said about the new partnership “I believe that our wines will be a success in the U.S. market because they are crafted with the U.S. wine consumer’s palate in mind.â€
“We have already tasted over 50 national chain buyers, prior to launch, on La Piazza and Allora to great acclaim. Their response has been tremendous, giving us a strong sense of urgency to get these wines into the U.S.â€Â Arthur Massolo, EVP of Business Development for Pelican Brands
In the near future, Pelican Brands, Calatrasi and Mineo Family will launch a Super Premium brand for the On and Off- trade.
Maurizio Ghiori, CEO and Managing Director of Calatrasi and creator of Mineo Family Vineyards, said, “I strongly believe in the project and I think that Pelican Brands is the ideal partner for us. I believe that Calatrasi, Mineo Family and Pelican Brands will have great success in the U.S. market with La Piazza and the Allora brands.â€
NOTE: Posted last month, we are very excited with our partnership with Maurizio and the whole Calatrasi team. These wines are an amazing value and in this market will out perform many long established brands.
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by Smoke | Dec 20, 2010 | Brand Management, Distributors, New Products - Brands, Pelican Brands
Pelican Brands will Import and Drive the National Rollout of Barking Sheep Wines from Argentina, the first Brand to be Launched Under this Agreement
Carmel, IN, USA – December 20, 2010 – Pelican Brands and Schwartz Olcott Imports, LLC (SOI Wines) jointly announced today the formation of a long term strategic agreement to launch Barking Sheep wines from Argentina following a successful limited test market in 19 states.
Barking Sheep wines are produced in Mendoza, Argentina, and are styled for the U.S. market. The launch will include a beautiful classic Malbec and a fresh clean fruity Chardonnay.
Barking Sheep wines are produced at Las Perdices by chief winemaker Carlos Muñoz, from high altitude vineyards 1,000 meters above sea level towards the Andes Mountains producing full bodied classical fruit.
During a one year limited test market at a major national chain Barking Sheep was the #1 red wine of all new featured red wines.
Norman Schwartz, Co-Founder & Chairman of SOI Wines said, “There are many fine importers who do a great job with established brands; however, without brand builders like Smoke Wallin and the Pelican team it’s impossible to build a national brand franchise. With Pelican sharing our enthusiasm for Barking Sheep we are well positioned to rollout nationally and to launch other brands togetherâ€
J. Smoke Wallin, Chairman & CEO of Pelican Brands said “The Barking Sheep brand further expands the Pelican Brands wine platform to Argentina. These wines offer the consumer great value with a fun attitude. We have high expectations for their national rollout.â€Â Wallin continued, “Norman has created some incredible brands over the years. We are very excited to begin our long term strategic partnership with The Barking Sheep brand.â€

NOTE: I’m very excited to be working with Norman and the team. Look for more exciting developments as we pool our resources!… Smoke
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by Smoke | Aug 3, 2010 | Brand Management, Distributors, New Products - Brands, News, Pelican Brands
The Beeradvocate published this fine update the other day about Craft beer sales being up 12% in dollars and outpacing last year’s impressive growth. Â Also showing the 10 year growth in numbers of breweries. Â 
This is perfectly consistent with what we are seeing on Napa Smith Beer as we are rolling out the 4 packs of Organic IPA and Lost Dog Red Ale along with the traditional lines. Â We got authorized in all the Bay area Whole Foods and just got authorized in Safeway as well. Â We are currently launching Indiana, Kentucky, Georgia, Alabama, Tennessee, Texas and Florida to name a few markets. Â Should have Napa Smith in 50 states by this time next year as well as select European and Asian markets. Â Very exciting stuff.
Here is a shot of the new four packs…

Organic IPA 4-pack

Lost Dog 4-Pk
I was hanging with Don Barkley who is one of the most respected and earliest craft brewers in the US having done New Albian in the 1970s and then going on to co-found Mendocino Brewing and Red Tale Ale (which btw, is not what it used to be if you ask me). Â He is great to drink beer with and has more great stories around beer than a week of sitting drinking beers could allow. Â Anyway, discussing the amazing growth in the business and the numbers of new brewers, I mentioned our latest beer brand, Flat 12 Beirwerks founded in Indianapolis this year and launching this Fall… Â its a cool project and the guys behind it are successful entrepreneurs in other industries with a ton of enthusiasm and drive.
I think they have a great shot based on the early buzz around the brand and the liquid itself. Â Pelican will manage their brand launch and grow it when appropriate to surrounding markets.
Will update soon on new spirits brands and some other exciting news on the Pelican front…
Until next time, Kind Regards,
Smoke
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by Smoke | Apr 12, 2010 | Brand Management, Distributors, E-commerce, News, Pelican Brands
I’m posting the Kane’s article from Fall 2009 tracking some of my activities and discussing the launch of Pelican Brands… now that we have begun adding a strong platform of brands, I thought it was relevant to share this as we articulated our strategy well here.
Kane’s Beverage News Daily
Volume 5, No. 184 The National Beverage Dailyâ„¢ Monday, October 26, 2009
In Today’s Issue:
- Meet Smoke Wallin: Former Amway Salesman Thinks This is a Great Time to Get U.S. Rights to Singha Beer, Expects to Grow Its Sales Five or Six Fold
- Only 4 States Had Increased Beer Shipments in September
- How Europeans Drink Differs from Country to Country
- F.Y.I. — Voters Trust Republicans More Than Dems on 10 Key Issues: Rasmussen
Meet Smoke Wallin: Former Amway Salesman Thinks This is a Great Time
To Get U.S. Rights to Singha Beer, Expects to Grow Its Sales Five or Six Fold
Why in the world would anyone launch a new company in this economy? Even more to the point, why would anyone take a small, ethnic beer and confidently expect to grow its sales five or six fold in just a few years?
That’s exactly what J. Smoke Wallin is doing. And he’ll tell you this is a great time to do it.
Wallin has been around the alcohol beverage industry long enough that nearly everybody knows of him.
But if you don’t know he grew up on Longboat Key, the nicest place in all Sarasota to live,  or if you don’t know that while in the seventh grade he won second prize in a science competition for a writing a computer program in BASIC on a Commodore 64 that took the user through a series of questions about the solar system and then scored them on a test, well, you just don’t know Smoke Wallin.
And you won’t understand why he thinks his new company, Pelican Brands, a national sales and marketing company set up to manage beverage brands throughout the U.S. and Europe, will do well.
First Client: Singha, Thailand’s No. 1 Beer Export
Pelican’s first client: Singha, the No. 1 exported beer from Thailand. Wallin thinks he can grow Singha’s sales to five or six times their present level. And that technology will let one person do what it used to require five people to accomplish.
“The appointment of Pelican Brands represents a very important step for Singha in the U.S. market. We expect Pelican Brands to have an immediate impact on our brand distribution and to position Singha as a leading growth import for the coming years,†said Theera Vongpatanasin, Managing Director of Boon Rawd Trading International.
Says Wallin, “Singha is an incredible brand which deserves focused attention from distributors, retailers and national accounts. It has all the right characteristics which, when properly promoted, will drive excitement and ultimately, consumer demand, in the better beer market.â€
Adds Mark Smith, Pelican Brands vp-marketing, a marketing veteran of the global beer industry:  “Singha is an incredible beer — both its flavor profile and rich traditions capture the exotic and beautiful country of Thailand. This makes it well positioned to appeal broadly to the U.S. consumer well beyond the Thai channel. The growth of Asian fusion restaurants across the U.S. creates a compelling platform for the expansion of Singha.â€
Peddling Amway
Wallin’s first entrepreneurial venture was far from alcohol beverages. While a youth on Longboat Key he and his brother, Clay, who’s now at Vintank a Wine Industry Strategic Consultancy, sold Amway products.
“I learned that Clay is a better street sales person than me as he basically cornered the market in our neighborhood,†says Wallin. “I was always better at looking at the bigger picture,†he adds.
Soaps and detergents lost their appeal by the time he went to Cornell University where he shuffled between the university’s famed School of Hotel Administration, engineering and the School of Agriculture & Life Sciences with a degree in Agricultural Economics.
While studying hospitality management, he worked during summers at Longboat Key’s famed Colony Beach & Tennis Resort, the Tropicana in Atlantic City and did an nine-month internship at the Ritz-Carlton Hotel in Boston while also taking classes at Harvard before returning to Cornell.
When he got out of college, he was torn between working in the hospitality industry and the consumer packaged goods industry.
Resetting Wine Sales
As luck would have it, he was dating Karen LaCrosse, daughter of Jim LaCrosse, owner of National Wine & Spirits in Indianapolis. That may have helped him land a job with Joseph E. Seagram & Sons as a retail account manager. He spent the summer driving around Indiana in vans, putting up posters for various Seagram products.
That led to two job offers: one from Seagram and another from National Wine to be a salesman selling wine to groceries. Wine wasn’t big in those days. Wine sections were shrinking and the business – or at least the grocery segment – was controlled by E&J Gallo Winery.
Gallo had convinced grocers to set their shelves by brand, which helped Gallo. But with wine sales slipping, Wallin argued grocers would get better results if they set their shelves by varietal rather than by brand. “I reset my entire territory from a brand set to a varietal set in a year,†he recalled.
It was the first of a series of entrepreneurial moves Wallin made while at National Wine.
$10 Million Sales from $1.5 Million
LaCrosse won the right to distribute Perrier and a couple of mixers. National was using a brand management strategy, one of the few wine and spirits wholesalers to do so back then. “I had the opportunity to be the first brand manager for the nonalcohol division,†he recalled. He added a number of other products, including Clearly Canadian waters, created a home and office delivery company and took the unit to $10 million in sales from $1.5 million. It was sold to Nestle after 10 years.
Wallin went to Vanderbilt University for an MBA. Meanwhile, back in Indianapolis, LaCrosse had acquired Union Beverage Co., gaining entry into the Chicago market.
“My second year of business school, I was actively managing the category management efforts and MIS group at Union Beverage from school.â€Â Many weekends classes would end on Thursday, and he’d fly to Chicago, where he would work on revamping Union’s technology before heading back to Nashville Sunday night.
National Wine acquired Federated Industries in 1993, two years after acquiring Union Beverage. It had become clear to LaCrosse that the wine and spirits distribution industry was entering a period of consolidation – first at the state level, then regionally and ultimately nationally.
Jumping Right In
Coming out of Vanderbilt’s Owens School of Management, Wallin was considering two job opportunities: One with Boston Consulting Group (BCG’s founder, Bruce Henderson, was a professor at Vanderbilt at the time) and the other with National, where he would head NWS’s Corporate Group and deal with the Federated acquisition.
“BCS was very appealing to me because of the level of intellect among the team and the type of business issues they worked on,†Wallin recalled. But he had the opportunity to “jump right in and deal with a several hundred million dollar acquisition of Federated.â€
Over cocktails in Chicago, he discussed his dilemma with Phillip Kotler, a well-known marketing professor at Northwestern University’s Kellogg School of Management. He knew Kotler because of his work with Union. Should he be a consultant with Boston Consulting or jump right back into National Wine?
“Smoke, a lot of guys with five to eight years at BCG would love the opportunity to do what you’re able to do now,†Kotler said.
Backing a Startup
Meanwhile, National was backing Joe Fisch, who was starting U.S. Beverage in Connecticut. “Joe had a clear vision of what he wanted to do with USB that was quite similar to what he had done at the Seagram Beverage Co. National was the capital behind this effort, and I led that investment.
“We worked with Joe to set up the back of house, systems and financial infrastructure in place. We placed two of my corporate team members – who were also classmates from business school – into USB to manage this aspect,†Wallin recalled.
Critically for his future, Wallin spent a lot of time with Fisch, going to Europe when USB got the rights to Staropramen and Tennents and, later, Hooper’s Hooch from Bass Brewers.
Eventually Wallin became chief financial officer of National Wine. When Michigan privatized its state liquor wholesale operation, Wallin was able to put together the deal that led to NWS Michigan, which today ships about $400 million of product a year.
Talking to Wall Street
National had been using its bank lines of credit to expand its business, and in 1999 it hit the limit. Wallin worked with Donaldson Lufkin & Jenrette, a Wall Street investment banker, to put together a bond offering that raised $110 million. The banks were paid back, and National had cash that it could use to buy some more distributorships.
But Jim LaCrosse decided he wasn’t interested in expanding, Wallin said.
“I was always about building things,†Wallin said.  Disappointed, Wallin stayed involved with National Wine, and continued to rise in the Wine & Spirits Wholesalers Association becoming president in 2002-2003 and chairman of the board in 2003-2004.
But his next move had its roots in that seventh-grade science project in Longboat Key. Wallin raised $60 million from various investors, including National Wine and created eSkye Solutions, which became the leading provider of wine and spirits software and Web-based solutions for the beverage industry.
After the dot-com bubble burst in 2000, he was able to buy several companies that made software for wineries. Some 250 wineries were using eSkye’s software to run their business.
In 2007, he sold the software business to Constellation Software Inc., Toronto, Canada. But he kept eSkye and the National Account Price Manager software. It turned out to be a smart move: National Account Price Manager handles all the pricing and product synchronization between six of the largest brand owners in beer, wine and spirits, their distributors and Wal-Mart.
Meanwhile, eSkye is working to expand its footprint to on-premise so suppliers can manage pricing for accounts like Darden Restaurants, Brinker and Outback.
Becoming a Supplier
Meanwhile, that hankering to be involved in consumer packaged goods, which Wallin put aside after graduating from college, kept gnawing at Wallin. He conceived “a different kind of platform – a sales and marketing company that understood wholesale distribution, that would be good for brand owners and wholesalers.â€
What Wallin wanted was to pick up some smaller brands from major spirits companies – brands that were too small for top tier suppliers but which could be profitably grown by smart management.
“We bought Red Eye Bloody Mary Mix opportunistically. But before we could do the next couple of deals, the financial system melted down,†Wallin recalls.
Meanwhile, Wallin was consulting with several suppliers, including Boon Rawd Brewery.  A family business, Boon Rawd was the first Thai-owned brewery in Thailand, and it had a solid niche in Thai restaurants in the U.S. Boon Rawd’s owners wanted to expand beyond that niche to get into national accounts in the U.S.
‘Great Beer from Exotic Location’
“I told them, ‘Your beer is a great beer from an exotic location’,: Wallin said. And he thought expanding beyond Thai restaurants should be doable. “After all, you don’t go to a Dutch restaurant to drink Heineken in the U.S.,†he said.
One reason for his optimism: Thai food, and Thai-influenced food, is popular in the U.S. “We feel strongly we can grow Singha’s business to five or six times their base,†Wallin told us
Wallins is announcing the creation of Pelican Brands this morning. Pelican is using independent brokers – including Anheuser-Busch and MillerCoors houses. It has 60 brokers and is in all 50 states.
Meanwhile, Pelican’s sales team, led by Don Hammond, president, is calling on national accounts. Hammond began his career with Procter & Gamble and Gallo, and ran several major beer wholesalers. Already Pelican has secured placements in 446 accounts, including 26 cruise ships operated by Royal Caribbean Cruise Lines as well as Mongolian Beef, Ghengis Grill, Studio Movie Grip and World of Wings restaurants.
Pelican is focused on building Singha as quickly as possible. In addition to Wallin and Hammond, the team includes Stan Mace, director of sales, who helped build Bavaria, and Carlos Barone, director of national accounts, who worked with Wallin at eSkye. “We’re looking to fill in the team as we go along,†Wallin said.
Self-Funding a Start-Up
Where eSkye involved significant outside capital, Pelican is completely self-funded. “I’m being very cautious about adding overhead. I believe by using smart technology we can do with one person what would have taken five people only a few years ago,†Wallin said.
For example, when visiting a distributor, Pelican’s staff knows the 50 top accounts in the territory. This lets Pelican sales people be very focused, rather than going in randomly.
Wallin noted that his first 14 years were spent on the distributor side of the business. “I know these people very well, and relationships matter a lot. But it’s much more powerful if you’re informed by technology.
“Technology makes it easier to do business. As an industry, we’re still way behind other industries.â€
Today it’s all about Singha, which Wallin describes as “a great family company with a great brand. It’s not like we’re dealing with a startup. You’ve got to be able to support the brand,†he says, “and we’ve got that resource in hand.â€
Wallin and Karen were divorced a few years ago. Wallin’s new wife, Anitra, owned Michael’s of Cherry Creek, a fine dining restaurant in Denver.  She won a Wine Spectator Award for her wine list and “is a total wine/food person,†Wallin says.  An accomplished singer/songwriter, she also runs Wallin’s Wine 2.0 (www.winetwo.net) events, including next month’s Wine 2.0 New York.
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