With so many of today’s leading liquor store businesses steeped in generational history, it’s somewhat unusual to come across a new business in the beverage retail industry that has assembled a chain of stores in just four years and has emerged as one of the largest drinks retailers in its home state. But that’s exactly what Nebraska’s Wine, Beer, and Spirits has done.
Ironically, Wine, Beer, and Spirits (WBS) isn’t the result of a long-researched business plan despite the fact that co-owners Beau Starkel—who serves as CEO—and Aaron Konen—the company’s CFO—met in business school. Rather, it was Starkel’s Plan B, as his original intention was to transform an old Toys “R” Us store in Omaha, Nebraska into an expansive events space, but that was scuttled early in the Covid-19 pandemic. With previous experience in beverage alcohol and hospitality, Starkel opened the first WBS store, a 30,000-square foot space, in April 2020. “I knew the beverage alcohol business so I decided to put up shelving and sell the products at a discount,” he says. “The plan was just to cover our rent until Covid was over.” But by the end of the year, a second location had been added in Lincoln, and in August 2021, Starkel unveiled the chain’s third and largest store in Grand Island. Late that year, Konen joined the business. A second Omaha location followed in March 2023, followed by the fifth store in Freemont about a year ago.
For an unparalleled rise in the face of a pandemic, along with his innovative ideas and commitment to ensuring a best-in-class experience for customers, Beau Starkel has been named a 2024 Market Watch Leader.
Fun Team Members
WBS, has five stores in the Cornhusker State and has already amassed annual sales of $35 million, while employing 85 workers. With stores as large as 50,000 square feet in size, the chain welcomes about 60,000 customers a month. Big numbers aside, the fast-growing chain has developed a reputation for always putting its customers first, whether due to its practice of hiring knowledgeable and fun team members, its lively on-site bars, or its extensive series of in-house events. In all cases, the company owns the buildings that house its stores.
While generic in nature, the concept’s name was actually given a lot of thought. “I wanted to have something Google-able,” Starkel says. “I didn’t want to call it ‘Bill’s’ because no one Googles ‘Bill.’ They Google wine, beer, and spirits.”
Although the units range in size from 5,000 to 50,000 square feet, layout of the stores is fairly consistent. “Every store features a beautiful, long bar, just as you walk in, where customers can try all of the new, hot products and exclusive Bourbons,” explains Starkel. “The premise is that customers will come in, slow down, relax, and enjoy themselves.” Thanks to the on-site consumption licenses, customers can also sip while they shop. Three of the locations, including the original store, feature Bourbon rooms. And in an homage to its roots, the chain employs a tongue-in-cheek giraffe as its mascot (like the original store, the Lincoln unit is also housed in a former Toys “R” Us). “We like to play on the nostalgia,” says Konen. “A lot of our customers remember going into those stores as children. They think it’s a hoot that they can go into their old toy store today and buy booze.”
Wine, Beer, and Spirits’ employees, though, are the company’s crown jewel, the pair say. “A lot of our employees were hired out of the service industry,” notes Konen. “They were bartenders, craft cocktail mixologists, restaurant servers. They’re fun and have a knack for service. We’ve been able to create an environment with our staff that’s fun so people want to hang out. That experience is what makes us different.” To further their skills, WBS team members are encouraged to partake in training offered by distributor partners, to take online courses, and to make visits out in the field, such as to distilleries for barrel picks and to wineries. Starkel adds that he’s proud of the talent they’ve retained. “Most of the people we originally hired still work for us, and they still love their jobs,” he says.
That enthusiasm hasn’t been lost on the chain’s patrons. A customer survey released earlier this year garnered 3,000 responses, Konen says, and an overall score of 4.8 on a 5.0 scale. Some 98% of the respondents said they have had an overall good experience at WBS, and 99% said they found the staff friendly and helpful. “When I’m having a bad day, I pull out the survey,” he says. “It gives me encouragement that we’re running this business the right way and are focused on the customers.”
Large Selection
Spirits are the big seller at WBS, accounting for 60% of sales. Beer follows at 20%, wine at 15%, and miscellaneous items at 5%. WBS stocks about 6,000 spirits SKUs, priced as high as $4,000-plus for a 750-ml. of Louis XIII Cognac. Top-selling brands include Tito’s vodka ($20 a 750-ml.), Bacardi rum ($14), and Four Roses ($25) and Woodford Reserve ($35) Bourbons. “Bourbon is the hot topic,” says Konen, and as a result the chain offers about 100 store picks a year. Most recently, Konen says he’s seeing “a lot of traditional whisk(e)y drinkers converting to Tequila, including additive-free Tequila.” As in other markets, the retailer adds that ready-to-drink cocktails have been “exploding” in Nebraska.
About 2,500 beer SKUs are featured at WBS. This summer, the chain was seeing “a movement back toward major domestic beers, and away from crafts, due to inflation,” Konen notes. “People aren’t feeling as firm in their pocketbooks, and a 4-pack of craft beer is $13.” Rather, items such as 30-packs of Busch Light ($24) are performing well at the chain. When customers are splurging on beer, brands like Corona Extra ($16 a 12-pack at the Lincoln store this summer) are popular, Konen says. Consolidation is impacting the craft beer segment, the retailer adds, but WBS continues to support local breweries like Kinkaider and Thunderhead. “They’ve got some great products and we like to shine a light on them,” he says.
The chain stocks about 3,000 wine SKUs priced as high as $1,000-plus for some first growths from France. “Mid-tier prices—$10-$25 a 750-ml.—are hot right now,” Konen says. “Wine has been an interesting department for us,” adds his partner, pointing to the “commoditization” of the category in Nebraska, where virtually any class of trade can sell all forms of beverage alcohol. In addition to competition from other retailers, Starkel points to competition from wineries that sell direct to consumers. While WBS doesn’t yet offer any private-label or control wines, it recently joined the Wine & Spirits Guild and will have access to unique wines as a result. Boxed wines, meanwhile, are a bright spot for the chain, Konen says, and more space is being devoted to the packages.
Standout Customer Experience
With a strong commitment to ensuring that customers have a standout experience at Wine, Beer, and Spirits, it makes sense that on-site events and tastings are a big part of its marketing program. “We do about five events a week at all stores,” says Starkel, ranging from complimentary new product samplings to sit-down Scotch tastings ($45 a
person). The on-site bars are perfect for events like the recent Empyrean Brewing tap takeover and frequent new Bourbon releases. Outdoor patios help extend the hospitality experience, and visits from local food trucks and bands are common.
Advertising support is generally comprised of social media platforms like Facebook and Instagram, but when a new store opens, traditional formats including billboards and print ads are utilized. WBS also frequently supports local community groups in their fundraising efforts and through donations.
Wine, Beer, and Spirits’ unique focus on the customer experience is helping it to stand out in a tough competitive market. “It’s amazing how many competitors we have,” says Starkel. “Alcohol is sold on every corner, and there are no stipulations on separating beer from wine or spirits.” Konen adds that even though there are only 2 million residents in Nebraska, the “intense competition” has prompted the chain to create a niche for itself. “We had to consider what would drive customers in because we’re not a grocery store and we’re not a convenience store. The customer experience has been at the forefront from the beginning.”
The quick rise and success of WBS hasn’t gone unnoticed by large beverage alcohol players, and competition within the Cornhusker State is expected to heat up further. Grocer Hy-Vee launched its Wall to Wall Wine and Spirits division in 2021, and three of its four stores are located in Nebraska. Powerhouse Total Wine & More, meanwhile, reportedly has plans to open at least one store in Nebraska. As a result, the team at WBS will “hunker down,” Starkel says, and has no plans for new stores at this time.
In the meantime, other beverage alcohol retailers will need to play catch-up. “To build five stores in four years and grow the way we have in this business isn’t normal,” says Konen. “We’ve come to realize how different we are. Other operators in this business are third-generation businesses. We’ve broken the mold, and now we’re the leader in the state.”