Ep. 711 Alexi Cashen | Get US Market Ready With Italian Wine People

Thanks for tuning into my new show. Get US Market Ready with Italian wine people. I'm Steve Ray, author of the book how to get US Market Ready. And in my previous podcast, I shared some of the lessons I've learned from thirty years in the wine and spirits business helping brands enter and grow in the US market. This series will be dedicated to the personalities who have been working in the Italian wine sector in the US, their experiences, challenges, and personal stories. I'll uncover the roads that they walked shedding light on current trends, business strategies, and their unique brands. This episode is proudly sponsored by Vivino, the world's largest online wine marketplace. The Vivino app makes it easy to choose wine. Enjoy expert team support, Door or delivery and honest wine reviews to help you choose the perfect wine for every occasion. Vivino download the app on Apple or Android and discover an easier way to choose wine. Hi. This is Steve Ray, and welcome to this week's edition of Get US Market Ready with Italian wine people. This week, I'm pleased to have as a guest, Alexi Curley Caschen, who is the principal at Ellen Tenny, and I'll let Alexi to tell us about her background and the company. Thanks for having me on the show, Steve. I, look forward to chatting. Yeah. I have a long and meandering history in our industry, I started out in hospitality, love, love restaurants, love working in them, didn't love the late hours, and so spent some time, you know, looking to get into sales and wholesale And I worked for a supplier. I was living in New York City in my early twenties at the time and, you know, kinda cutting my teeth on wholesale and, you know, carrying a bag around the city and knocking on doors and and selling wine. I worked pullander selections, which is where I met Tim, Alentenney, and then we started Alentenney imports in two thousand ten. So eleven years ago, we set out to, compete in the logistics space. There are, you know, several kind of niche providers that offer really a lot of necessary services, so freight consolidation, and then as well as, you know, helping managing inventory, compliance. Customs Brook Ridge. And the like. Yeah. Yep. Exactly. So so we're we are essentially a a logistics service provider, and we do a whole myriad of things from from the freight side and importation as well as on the resale side having to do with selling stateside inventory, managing compliance, and, you know, ultimately managing inventory. So there's a category, term generally used, service importers, but you're not really well, some of the other ones in the market are like MHW Park Street but you're doing some different things. Can you clarify the difference? Sure. So we we offer very similar services to to those types of companies on the on the distribution service side and and as you say, a service importer. So So we absolutely function in that, in that same way. Couple of unique things that Elanteni does differently are that we have a very robust freight consolidation arm of the business. So we don't just import products that we are then going to sell in the US. We actually import, manage not like legally or transactionally import, but we're actually moving the freight. So we're consolidating freight for hundreds of importers across the US who, effectively send us their POs. We do everything from pick up at the winery to consolidating that shipment and then getting it to the US and then ultimately to their warehouse. So that freight consolidation service is unique because we're not just doing it for kinda in house clients, so to speak, and we're working with Like I said, hundreds of other importers across the US who have that freight only need. So speaking about that, obviously, it's an issue these days. Logistics is kind of on the front page of every newspaper and every, international government conference that happening right now. How have you guys been dealing with that? And I'll leave it at that. That's been a challenge. Getting ships, getting containers, and getting stuff onto ships, and then through ports. Absolutely. Yeah. It's it's a a tremendous challenge right now for every industry. And for the alcohol industry, what that looks like specifically is, you know, this industry is really managed based on just in time inventory, where that that just in time purchasing model of you know, hey, I have a par level of, you know, ten cases left. Great. I'm gonna, you know, kick off a PO and send that to my winery and get product in, you know, eight to to ten or twelve weeks. That demand planning is just not a viable solution currently for importers. And so they're forced to purchase instead of two to three months of inventory. They're they're purchasing five to six months of inventory in order to, alleviate those delays. And or just have the right wines in the market at the right time. So that's an enormous strain for a couple of reasons. One, the cash flow of those importers who are having to pony up and purchase more than they'll sell through in a in a, you know, ninety day cycle. And then just on the logistics side, it's putting a a tremendous strain on, well, as we're seeing you look at the port of Long Beach and, you know, the many, many, ocean vessels that are stuck outside the port and waiting, you know, waiting to to unload is a challenge and that just that ripple effect all through the logistic chain from port workers to the truck drivers that then are picking up those containers and then ultimately the warehouses that are trying to receive all that inventory. Like, right now, Elantoni imports, we have sixty percent more inventory on the floor than we did in the fall of two thousand and nineteen, which is, you know, pre pandemic, pre tariffs, right in anticipation of the holiday season. So today, we have sixty percent more inventory than than that moment in time, which is a huge challenge for warehouses. Like, they're they're running out of space. There's warehouses that are seeking emergency locations and and or they're just slow to put all the wine away. So, you know, I I have customers saying, like, my wine's in the warehouse, but when am I gonna get it? So, yeah, it's it's a it's a a big challenge. And the planning thing, I mean, working with a number of, individual wineries and feeling the complaints from customers who say, when am I gonna get my, you know, and it's almost like in this day and age, they answered it. When am I gonna give my mentors? I don't know. No. That's not the right answer to give them, but basically that's what it is because there's so many open answers. One of the points you made when we were talking initially was that you guys do slices of things as opposed to represent an alternate import source per se for new brands. And I thought that was really interesting because not everybody needs all the services that a service importer may offer, and you guys offer it in pieces. To a certain extent, we, you know, we we definitely perform the best for a brand or for a company when we are managing it, you know, sort of soup to nuts. So, you know, having the ability to help with the freight and inbounding then as that kind of translates into us then managing their inventory and compliance and sales, it is more seamless when we're able to to kinda help them throughout. But, yes, we, as I mentioned, the freight service, because we're selling that to importers who were also who were then not helping them with any of their other US sales and compliance and inventory management, we are able to to just offer that freight service to an independent importer. The kinds of clients that you get, I imagine you have a lot of, permanent clients. So just that's the way of doing business, and that's the way that they wanna work and you guys do too long term. But when you get new people coming in, either calling or however they're contacting you, how do you handle that And how do you, like, perform triage on those incoming calls? Yeah. We, you and I were had some good chuckles about this. It it's difficult because not all wine businesses are, shaped and sized alike. Even certain individuals who have a lot of industry experience, you know, are not as prepared or don't have the the acute understanding of, really everything involved in in this very nuanced and and intricate set of steps in terms of bringing a brand to the US? What is that strategy? What what resources are you gonna feed that idea resources? Meaning, you know, cash? You know, whereas, like, one of the biggest triage elements that we need to understand is kinda how solvent is the business that's calling and getting a sense of what their what their overall strategy looks like. You know, getting a sense of their experience or lack of experience. It's not that, oh, you know, if you're not experienced, you know, call us and we'll, you know, we're the experienced partner who can give you all the answers. You know, we're not a consultant firm, right, we're a logistics and distribution, you know, B2B platform. So, yes, our team and our, you know, Tim and I personally have you know, we we set out to obviously compete in this space with with lots of industry experience, but we aren't consulting or, you know, holding holding people's hands, you know, to to through every step of building their business and trying to figure out, you know, what that strategy ought to look like or or how to go to market. So, you know, we're definitely good at kinda helping them execute it once that plan has a little bit more shape. Are there other people either like me or or other consultants that specialize on the marketing side of that and the education side of that helping brands move forward. Are there any particular ones that you work with or what services do outsourced to those types of companies? Yeah. I mean, we yes. P people just like you, you know, it's great. Kinda work in tandem on helping, you know, companies form that strategy and then, you know, kinda go to market together. Well, you know, we're we're also working on a a deeper knowledge base, different tools and, you know, that people can download and and kind of self serve to learn a little bit more in terms of kinda how things work and frequently frequently asked questions and things like that. So I think, you know, that knowledge base so that people can self serve, you know, we've been building that over, over the last decade, and and we'll continue to do that You had mentioned Tim, Alan, your partner on this. Couldn't you define his role in your role and how they differ? Yeah, Tim and I, we, like I said, we worked together back in the day in New York. And, you know, I was curious about other opportunities beyond, you know, being a sales rep. And though I loved selling wine, Tim had an experience as an entrepreneur. He owned a wholesaler in Colorado, which he then sold. You know, his wife was, is a chef. And, you know, they have own several restaurants. And so, you know, he he definitely has this sort of serial entrepreneurial energy, which I was really drawn to. And so when we set out to build, our logistics business, it was like drinking from a fire hose just, you know, trying to get that that, like, you know, get the idea right, get the systems in place. And, yeah, I think, you know, I am my role has changed so dramatically over the the course of these last eleven years, and so has Tims. We have a amazing team that we're still headquartered in New York, just really, really talented and dedicated employees and managers who really lead each of the operational teams as well as, you know, our sales team. And, yeah, it feels great to be sort of on this side of ten years, like, especially during the pandemic, just seeing the the heartache of so many businesses that, you know, hadn't really built those pillars or showed up their ability to weather with an incredible storm that's just been, you know, super tough for businesses throughout the world, but, particularly within our industry. And so, yeah, I feel super proud of what Tim and I have built and and, really, really proud of our team. Good. So turn it around a little bit. One one of the things I've been talking about lately. And, obviously, I guess everybody has is the not the emergence, but the the growth of e commerce and the importance the strategic importance e commerce place in the wine and spirits industry. And that bridges everything from direct sales to consumers, which we would call DTC from, like, domestic California producers to e commerce from retailers to consumers either intra or inter state. We have the three tier system. We all know that, but there seem to be a lot of these solutions that are kinda slicing that pie a lot thinner and thinner and thinner. I'm not saying to, exclude the distributor from the equation, but capitalize on minimizing the distributor's involvement. Can you talk a little bit about those structures, e commerce structures? Sure. And and and I'll talk about them more from just like a personal passion standpoint versus like you know, Ellen Tenny's involvement, right, because the three tier system is alive and well. Ellen Tenny obviously plays in those top two tiers of both importation and distribution. So we, as a business, don't have any handling in e commerce specifically, but it's really a a hot topic. It's, you know, obviously, during the pandemic, there was a a a lot of energy around brands that were seeking that outlet, and the Congress to do it in a way that doesn't it it's not like you know, oh, don't dismantle the three tier system. I don't think that that that's necessarily the the route or that distributors should feel fearful that, you know, that there's challenging or the that some of these businesses and, and lobbying efforts to change certain regulations are in a, in a, attempt to dismantle it. I would almost say that it, like, kind of compliments or alleviates, some of the burden that a distributor feels in terms of, like, the lift Right? How do you get that brand and how do you lift it and get it into the hands and homes of more consumers? Like, at the end of the day, that's what marketers and and the point of e commerce is there for. So I think there's ways that these these different types of services, so, like, you're alluding to different kinda e commerce solutions. And I see that kind of in two different ways. There are, you know, these businesses like, you know, drizzly or reserve bar or Gopuff, you know, that are that are, like, a facilitation to, like, how do I get it from a retailer or a warehouse and then, like, deliver it to the consumer. So, like, the explosion of those types of businesses and their relevance is, I think, extremely beneficial to our industry. Our industry is notoriously slow to really adopt technology in a meaningful way. And so and I can imagine it, you know, putting ourselves in the shoes of a retailer, you know, it's like, okay. I gotta integrate with drizzly, and then then the go pump and then the reserve, like, it's a lot of work, especially for, like, a a smaller independent you know, liquor store wine shop. It's it's distracting to, like We're one person's doing everything. And if he does that, that means there's other things he's not doing that he needs to be doing or cheap. Sure. Right. And so to, you know, like, that, you know, trying to, like, integrate, or to adopt all of these platforms is is very challenging, I think, on the on the retail side of the industry. But, you know, there are also plenty of, you know, these platforms where so I use one because I have a a brand of my own Saint Hildes by Tincture tonics. And so I use one for my direct to consumer shopping cart on on our website. And it's a it's basically a software program that, you know, kind of, is the is the engine behind that shopping cart on my website, and it's integrated to retailers who are ultimately fulfilling those orders. So, you know, the fear for a brand of, like, oh, I'm taking the food out of the mouth of my retail partners and and a concern to not want to really disrupt that three tier system. I see it differently. I think there are ways that you can kind of enrich and partner with retailers to to funnel more business through them while also capitalizing on that really important marketing exercise of reaching consumers at home via e commerce. Yeah. And and I think that's the general consensus. Most of the people that I talk to that all these things play a role, especially for new to the US or small or craft or however you wanna define them that aren't going to get that level of attention from a distributor just because they're not that big. Those are realities, and there's it's an opportunity for, I think, for the smaller brands to establish themselves, build a distribution network and create a case history of success because what I think most people are interested, especially with new brands, is how do I know it's gonna continue to sell? Why should I invest my time and energy in this? And and that's a good alternative, channel. One of the differentiators I see between them, sure there's third party facilitators that drizzly falls under and it's who owns the product and when does it get paid for by whom to whom? That's a big piece of it. No question about it. The other part when we're talking about brick and mortar retailers, which is a fundamental part I think of the three tier system and also is not going to go away is who owns the data? And my understanding is that in third party affiliates, most of the time, it's the affiliate that or that third party that owns the data on in comparison to a retailer e commerce, and a lot of them powered by city high is one example, wine fetches, another where they own the data. Now I have I know of a particular retailer who sees that as the make or break issue when it comes to using participating in and more importantly leveraging some of these e commerce services. Do you have a comment on that? It's an interesting thought. I mean, the I think, obviously, systems that allow for multiple parties to have access to that data is probably the highest and best route. So that there's some there's some shared energy there in terms of, you know, high on the brand, and I'm using this, you know, platform or this a payment facility so that I can then reach more customers and like, you know, so it's it's that kind of push from the brand that's that's pulling those customers ultimately to the retailer. So, you know, it makes sense that I would have access to that. Information. But then, of course, as the retailer who's performing the sale, right? They are the ones that actually legally purchase product and then resale to consumers is equally important. But, you know, I think they also have skin in the game in that in that scenario and, you know, who definitely benefit from from that data. A lot of what I see is from the consumer's perspective, they just want a frictionless or noiseless way. If they see a product they wanna buy, that they can just click a button and do it. And I think that's one of the things at drizzly and Mini Bar delivery and some of the others brought to the party. And that made the deliverer of the individual retailer who got the business, either very happy or very sad, and there's not all that continuity unless you can remark it to that that person. So I look at this and think, we as an industry, me, in my role, you and your role, we do have a, responsibility to support retailers and make sure that they are there to profit and compete in the face not only of, e commerce, but also things like total wine, all of which in Costco and all, you know, have a role in in the marketplace. No question about it, but it becomes more challenging for the the smaller guys to play in. On my podcast, I had a guest, Christy Frank, who's just a beloved retailer in our industry, and she just had the most wonderful things to say about, you know, small retail and how it's, you know, there's this sort of impulse of, like, you know, scale or die or automate or, you know, you've gotta, like, everyone's gotta grow to be the size of total white, you know, and that's just not true. Like, the the in in the pursuit to support retail, there are so many ways to do that. And not every retailer is gonna make sense for them to engage with, you know, a lot of these delivery platforms or, you know, even because it's the infrastructure, the, the space that you are required to purchase, you know, that much more inventory so that you do have it, you know, on hand and, and, and, on demand for consumers to to buy with that kind of point and click activity. So, you know, I think there's plenty of room for retailers to grow and, you know, stay within the silos that are important to them and the ethos of, like, why they started the business and and and where their business is headed. So I don't, you know, I also just think, you know, the the independent retailer who is just supporting a neighborhood and Right. It plays a social role, not just a a commercial role. Right. Yeah. Yeah. Foot traffic. And and I think too that, yes, there is this definite importance with consumers who want to be able to see a brand click on it, buy it. But that's something that they know they wanna buy. Or the marketing is is so great that it's it's, you know, caught their attention. But really, consumers, when they're discovering products, when they're being educated and learning about, you know, new products, that doesn't really happen online. That happens in store. And so the I think the importance of, you know, brick and mortar retail and the the relationships that a consumer kind of builds with a a shopkeeper, the education that they that they glean the that that opportunity for discovery is really in discussion. It's In discussion. I mean, that that's a big thing as opposed to just one-sided communication. It's one thing to research. It's another to discuss whether or not that fits your palate or not, and somebody you know, knowledgeable has to interpret. So we're not talking about saute gooseberries, but, you know, things that people can understand in that matter. Yeah. So I think there's room for both. Let's shift gears a little bit and you had mentioned, podcast. You have a podcast. What motivated you to start a podcast on on your own and how if you dealt with the challenges and exigencies of running a podcast on your own? Sure. I it's funny. I I have a, dear friend in an organization that I'm a part of called Entrepreneurs Organization, EO. I've been in part of the organization for eight or nine years, and it's a wonderful community of entrepreneurs who face doesn't matter what our business is. We face a lot of the same struggles. And so that, that support of that community has been one of the most enriching things I've ever taken part of in my career. And I met a guy named Don Corcoran, who has a company called RISE Twenty five, which is done for you podcasting. And just the more I got to learn about his business, you know, their take is you know, this is another platform, a new medium, right, for people to create content. So, you know, we could look into the future ten years from three years from now, five years from now. And it might it look like that most businesses have a podcast you know, the way that you have a LinkedIn page for your business or a Facebook page or an Instagram account, it is a like, podcasting is is another medium that is, obviously, video or audio derived. And for me, it was less about, oh, I wanna create this, like, incredible podcasts where I have x amount of downloads each time. And, you know, like, that's not the point. I'm not I'm it's not it's not my end goal. The end goal was to create this, you know, a podcast that was, in many ways, a calling card. It's it's so much more powerful and just cool and fun to reach out to somebody and say, hey, you know, you you're somebody in the in the drinks industry that, you know, seems like you have a a a neat story to tell. Would you like to come to my podcast? It's just such a, a more unique way to engage with somebody to get someone's attention. You know, some of the people that I've had on my podcast that, you know, are a wave of my caliber that it's, like, what a gift that that, you know, certain people have said yes. And, like, yeah, no. It's it's it's a gift. And I, like, I pinch myself some times. Like, I really am talking to, you know, the the CEO of Crew. Like, she's just incredible, Maggie Enrique. So, yeah, I just it's been, it's been a lot of fun. I've been doing it for almost two years. And, yeah, I just think it's a great way to create content both for the person on my show as well as for me. And, and like I said, an incredibly unique and engaging way to connect with people. How frequently do you do it? Is it on a schedule? Sort of. I try to get at least two episodes a month. I I do, one series a year. So, last year, I did sort of from the perspective of the sales rep on the street, like, what's what's, you know, you're in we're in the middle of a pandemic. You know, this is all pre vaccine and, you know, going into the holidays where, like, cities are closing down. And so I did a a really cool series talking to sales reps about. Like, you're you're on the street. Tell us what's going on in Chicago in Miami and That's awesome. Yeah. San Francisco and, you know, Denver, like, that was a a really neat series. And then this fall, I'm just wrapping up a series of female founded brands. Which has also been really great. So where can what's the name of the podcast and where can people listen to it? It's the Alexi Cashhen podcast because I was brainstorming all these kitschy names and was agonizing over it, and I just couldn't forget it. And you can, you can listen in the Alexis Cash and podcast. It's elexy cash in dot com or on, Ellen Tenny, imports website, you can, listen in. You mentioned St. Holdy's, I I got into the, import business myself because I thought it was a good idea, and it didn't take me long to figure out it was not a good idea. It was a bad idea for a whole lot of reasons. Tell me what St. Iildes is and why you're doing it. I know. I know, creating a consumer product is, not something I've ever done before, which is why I so madamingly jumped into it. No. I I created Saint Hildes with two, other female co founders. One of whom was my college roommate, from back freshman year in the dorms of c u and Boulder, and then her sister-in-law, and so the three of us created Saint Hildes because I love this category, which the industry is really calling the fourth category of alcohol. Right? It's not beer. It's not wine. It's not spirits. What is it? It's often in a can. There's a million of them. And so I I love this moment in time where it feels truly innovative, disruptive, even where, you know, there's there's all these kind of unique things coming out obviously seltzer is a huge boom, and moving force within this kind of fourth category, because seltzer's technically categorized in tax as a beer, but it's, you know, hard seltzer, which now people are very clear what that is. And, you know, but there's, like, all these other creative, more craft, spin off versions with, you know, summers spiked with, you know, a fermented alcohol like a, like a seltzer or distilled like a spirit, and that has different tax implications and different distribution, avenues, which I find fascinating because, like, that's the part that feels, like, disruptive to me where, you know, like, St. Hildes, for example, is, is made with fermented cane sugar. We also use real juices and herbal tinctures. So there's a herbal boost, within the beverages, and they're made with real ingredients. Nothing fake, no flavors. So we're very much in the craft. Portion of this fourth category or or alternate beverage. And so it's it's great. It's a it's a wonderful opportunity to capitalize on this moment in time in our industry. Like, I haven't in my twenty years in this industry seen anything quite like this, occur, you know, within the industry in terms of, like, pushing boundaries and categorization. Like, the last kind of real thing that really sort of, pushed some some kind of regulations and boundaries was was hard was, ciders you know, where ciders came on the scene of, you know, are they beers, or are they wine? And, you know, each state kinda had to, like, reregulate and categorize and figure out tax, implications for that category. And now it's just like, it's just they're popping up, like left and right. So it feels feels like a really creative time and a burgeoning time within the industry. God bless you. So where what states are you in distribution now? So we just launched a few months ago. St. Hildes is distributed in California. We are launching our direct to consumer website this week. So you can learn more about St. Hildes at drinkahildey dot com and follow us on Instagram, same handle. Drinkahildey. And can shop at retailers in California or, soon to be online. There you go. So and the name St. Hilda comes from Hildegard of Bingen. Right? That's correct. Yes. It's been an interesting subject. I've I've actually been in Bingen. So Saint Hildegard was, you know, obviously a real person. She was a twelfth century mystic. She was known as the mother of plant medicine. She was amazing. She was a polymath. So she was, you know, studied cosmology and science, botany, of course, she composed her own music. She brewed her own beer, just a really, incredibly inspiring woman in history. A Renaissance lady before the Renaissance. Yes. Exactly. Exactly. And we call her Hildey for short. There you go. I I like the name. Okay. We're coming to the end of, the interview. I I use I like to end all my interviews by asking, question about key takeaways. So if somebody had been listening to this, is there something they couldn't put to use immediately? Take, a lesson, word of advice or a suggestion and put to work immediately for their business based on what they just heard. Sure. So we're in the midst of this really challenging, time with global shipping and supply chain. So I think that that changing the way in which a business, has kind of a mindset or or, you know, thinks about their planning both from, like, cash resources as well as just the time it takes to to get inventory to the US. There's a shift, and it's it's gonna be here to stay for quite a while. Like, I think, you know, all the industry experts indicate that we're in this mess, at least through the half of of next year, if not, you know, the entire year or, you know, our price is gonna go down. The answer is no, And so I think that one thing that if I could ask our industry to sort of retool is there's this, our industry has is notorious for, you know, not wanting to pass all of the costs down to the end consumer, right, that consumers at the end of the day, like, you know, they wanna pay no more than, you know, ten, ten to twelve bucks for a glass of Persecco. Well, they might need to pay more. And and, like, I think this fear of, oh, if I, you know, if I increase my prices too much, then I'll lose that Persecco placement. But, like, everybody across the industry. Like, we all we we've get the yeah. The the costs need to go all the way down to the end consumer. The consumer needs to feel these price increases. So if there's any takeaway that I can offer or, a plea to the, to the industry, it's that, you know, we've gotta You gotta shift our mindset, and some of the expectations that we, you know, ultimately have, set out for the industry. Great. Good advice. Okay. But, we'll wrap it up now, but, why don't you tell us if somebody wants to reach out to you, where they can reach out to you and, what what social media sites you participate in? Great. Yes. So please reach out to us, alentany imports, dot com. Elantoni imports is our Instagram handle, and you can, you know, call us anytime, reach out to us. We're, we're here to help with any freight needs, compliance needs. A big thank you to Alexi Caschen of Ellantoni imports for joining us today and giving her perspective on, changes facing the industry. Alexis, thank you very much for your sharing your time. And, look forward to seeing you around. You weren't in in verona, but maybe the next next time we're all in verona, you'll be there. Yes. Okay. Thank you very much. And thank you all for joining us on this week's edition of Get US Market Ready with Italian wine people. This is Steve Ray until next week. This is Steve Ray. Thanks again for listening on behalf of the Italian wine podcast. 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