Everything’s bigger in Texas, including beverage retail. The Lone Star State is home to many large off-premise drinks operators, but few have the scope and scale of Spec’s Wines, Spirits & Finer Foods. What started as a small family shop in Houston in 1962 has grown into a beverage behemoth of 216 stores and $2 billion in annual revenue in the second-largest state in the U.S. The business was started by Carroll “Spec” Jackson, and today his family’s fourth generation is joining the fold. Of course, business has changed immensely over the years, but Spec’s has shown the perseverance needed to overcome many obstacles.
Though they’re all within the borders of Texas, Spec’s stores span a huge geographical area. The company has units in the state’s major cities—Houston, Austin, Dallas, and San Antonio—and also in markets like El Paso, Killeen, and Lubbock. Some of the company’s units are hundreds of miles apart from each other, so even though Spec’s is a single state operation, traveling between locations is a big undertaking. Compounding that, Texas state laws prohibit beverage retailers from transporting products across county lines, and there are 254 counties in the Lone Star State. This requires Spec’s to have a network of distribution centers along with their off-premise stores and necessitates smart buying decisions.
“Spec started the business with the idea of giving customers a wide choice of items in all sizes and at fair prices, and he started with very little money in one small store,” says president and owner John Rydman, who married Spec Jackson’s daughter Lindy in 1971. Lindy is active in the company’s human resources department and their daughter Lisa Rydman-Lindsey manages charitable giving, marketing, and advertising; two of Lisa’s sons now work for the family business, too. “We work every day,” Rydman adds. “Now it’s just a function of geography as to where our office of the moment might be. Thanks to the internet, we can communicate quickly and even more efficiently than we did back when we had only 27 stores. We have a great team at all levels making sure that our guests get the best service possible and leave happy. We’re doing well despite the lower customer counts and smaller purchases.”
Charging Ahead
Jackson opened the first Spec’s store in April 1962. His wife Carolynn joined the business soon after, and Lindy began working for her parents’ company as a teenager. Rydman came on board in 1972 after he married Lindy, and at that time the business spanned 17 units. Their 18th location would eventually become their flagship store—a large warehouse-style retail outlet in midtown Houston that Rydman says is still the “mothership” today, though he notes the store has benefited from many remodels and additions over the years.
Under Jackson’s leadership Spec’s reached 27 units in Texas, but the patriarch of the business decided he wanted to pare down and in the 1990s he sold 20 stores. He passed away soon after and the Rydmans, with Carolynn’s approval, took Spec’s in a different direction. By 2002, Spec’s was back up to 24 stores and 475 employees in greater Houston, and in 2007 the company made its first moves outside of its homebase, adding locations in Austin, Texas. By its 60th anniversary in 2022, Spec’s reached more than 180 stores and just a few years later, that number is at 216 locations, with more on the way. Spec’s has long been recognized for its retail excellence in Texas. Market Watch named Spec Jackson a Leader in its inaugural class of 1984. John and Lindy Rydman followed as Leaders in 1994 and elevated the store’s profile by being named Retailers of the Year in 1998, and they’ve also received awards for Community Service and Best Merchandising in 2012 and 2010, respectively. Lisa Rydman-Lindsey was named a Market Watch Leader in 2016.
The stores aim to cater to their local clientele and each unit is designed to reflect its neighborhood. “Our model is not to create cookie cutter stores,” Rydman says. “Each design is affected by its local area, but they all have some of the character of the mothership.” Lead spirits buyer Chris Detmore adds that Spec’s stores range from 5,000 to 50,000 square feet and none of them are the same. “The product mix between spirits, wine, and beer changes based on the store size, demographics, and our vision for each location,” Detmore explains. Today, overall throughout the Spec’s network of 200-plus stores, spirits dominate at 70% of total sales, followed by wine at 13%, beer at 8%, and food and non-alcohol items at 9%.
Along with growth in size, Spec’s has also grown its product assortment and offerings immensely since the early days. Rydman embraced the wine industry at the beginning of his retail career, and he expanded Spec’s wine department from just 19 labels in 1972 to more than 15,000 wine offerings today. Director of operations Steve Moore says sweet whites and reds are doing well, and that Provence-style roses also have a dedicated following. Overall, he says value-priced wines for less than $10 a 750-ml. are moving fastest, and he adds that wine-based RTD cocktails like Mimosas and Margaritas are also popular.
The stores promote lesser-known labels through a Wines of the Month program, and recent selections included Conundrum Red ($18 a 750-ml.), Single Lot Estates 01 Cabernet Sauvignon ($17), and Ag Matta Sparkling Brut Rosé ($12). Overall, the company’s top-performing wine brands range from Kendall-Jackson Vintner’s Reserve Chardonnay ($11) and Oyster Bay Sauvignon Blanc ($10) to Meiomi Pinot Noir ($17) and Josh Cellars Cabernet Sauvignon ($11). In addition, La Marca Prosecco ($14), Highway 12 Cabernet Sauvignon ($17), and La Crema Sonoma Coast Chardonnay ($16) are doing well.
Spirits sales are also following national trends. Detmore says boutique Bourbons, premium Tequilas, and spirits-based RTDs are dominant at Spec’s. Rising Tequila brands include El Tequileño, Don Julio, and Lalo, while Buffalo Trace is showing significant growth for Bourbon, and spirits-based RTDs like High Noon Sun Sips, Finnish Long Drink, and Jack & Coca Cola remain robust. Of course, national powerhouses like Tito’s vodka ($32 a 1.75-liter; $18 a 750-ml.) and Svedka vodka ($17 a 1.75-liter) are strong performers, as are such whiskies as Jack Daniel’s Black label ($39), Jim Beam ($23), Jameson ($26 a 750-ml.; $49 a 1.75-liter), and Crown Royal ($24-$27 a 750-ml., depending on the flavor). Spec’s highlights Spirits of the Month too, and Le Prince d’Orange liqueur ($16 a 700-ml.), Cherry Orchard Maraschino liqueur ($31 a 750-ml.), and Dos Hombres Joven mezcal ($55 a 750-ml.) were recently featured.
“There have been some shifts from super-premium Tequilas to more affordable brands in the additive-free space, as well as a surge in reposado Tequilas,” Detmore says. “Bourbons, especially established well-known brands, are pickup up steam and holding their own. The Buzzballz line has also become very popular, and another category doing well is flavored whiskey.” Detmore adds that THC seltzers, while still new in Texas, are also showing promise, and he expects flavored Tequilas to be an up-and-coming growth category.
Expanded Selection
For beer, big-name domestics are leading sales, and some seltzers and hard teas are also holding steady. Beer frontrunners include Miller Lite, Coors Light, and Bud Light (each $26 a 24-pack of 12-ounce cans), as well as Mexican imports by Dos Equis and Modelo. New Belgium’s Voodoo Ranger line ($12-$13 a 6-pack of 12-ounce cans and bottles; $20 a 12-pack of 12-ounce cans) is popular, too. In seltzers, White Claw ($19 a 12-pack of 12-ounce cans) is a category leader and Twisted Tea hard iced tea is also strong ($3 a 24-ounce can; $16-$17 a 12-pack of 12-ounce cans). Craft labels and niche imports get attention from the Beers of the Month program, which recently highlighted Octoberfest brews by Warsteiner ($11 a 4-pack of 16.9-ounce cans) and Shiner ($10 a 6-pack of 12-ounce bottles).
While beverages are the primary driver for Spec’s, the finer foods portion of the company’s name is important. Store locations offer a wide variety of upscale snacks to complement drinks, including cheeses and meats, nuts, jams and jellies, salsas, and candy. The selection varies by type of store, as Spec’s operates both neighborhood units that have a local focus and market stores that are larger and aim to draw guests from wider metro areas.
“There is absolutely an aspect of convenience to shopping at our neighborhood locations, as we intentionally offer a blend of items and prices that make our stores a priority destination for guests,” Moore says. “We position ourselves to be the place people think of first when shopping for products in our core categories.”
He adds that first-time shoppers at Spec’s stores are usually wowed by the size and selection within each location. “The majority of our stores have a clean warehouse look with a friendly service feel,” Moore explains. “We categorize spirits by type and wine by country and variety. Our layout is similar for all our product categories and intuitive for the shopper. Our stores are bright, open, and staffed with help, and you’ll find deals and specials all over.”
Service Oriented
Customer service is integral to the Spec’s model, and the stores are active in their local communities all over Texas. “We focus on being where our customers are, whether that be in curbside pickup, in-state delivery, or in-store,” says Lisa Rydman-Lindsey, third generation family member, executive vice president, and director of marketing. “Being involved with our communities is of the utmost importance. We’re not just bystanders, but active participants in what’s happening in our communities.”
Rydman-Lindsey notes that her family’s business prioritizes charity involvement, explaining that Spec’s has raised significant funds for a variety of Lone Star groups, from food banks to the Adaptive Training Foundation to the Autism Society. In addition, the company promotes a Charity of the Month on its website and accepts donations on each charity’s behalf. Last fall, the company highlighted Sky High, a group that supports the families of children undergoing treatment for cancer and other life-threatening conditions.
Spec’s executives work hard to stay abreast of new technologies to further engage customers. This includes having an active social media presence across many platforms and making sure the company’s website and mobile technologies are efficient and consumer friendly. Of course, family is also paramount. Rydman-Lindsey’s sons have started working for the company, ushering in the fourth generation of successors, which is a source of pride for Rydman. “Spec’s has been and still is a family company,” he says. “Even though we now have stock held by some of our team members, they’re family too.” Rydman adds that the company’s evolution as its grown has helped it stay nimble and adjust to changing consumer habits.
Ultimately, the consumer is the most important piece. “We’re very lucky and thankful to have so many loyal customers across the state” Rydman-Lindsey says. “Our goal is to keep strong in our core values—to put people first, have enthusiastic determination to do our best, and have courageous integrity, showing humility and respecting all. Our main focus is to keep our stores looking great, staffed well, and stocked with what customers ask for.”