Brand Autopsy

What must Starbucks do?

Howard Schultz’s battle cry email deriding decisions the company has made in order to grow is making the rounds. If you haven’t read it, you can read it here.

He’s concerned Starbucks is in danger of losing its soul, its uniqueness—its remarkability. Howard says the romance and theater of coffee have disappeared from Starbucks stores because Baristas now use push-button machines to make espresso drinks. That stores no longer smell like coffee and that every store looks cookie-cutter.

Howard closes the email by asking his executive team to get smarter about the business and to get more innovative to once again differentiate Starbucks.

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*** I am no longer accepting ideas. ***
Thanks to everyone who submitted ideas. The WHAT MUST STARBUCKS DO ebook will be available for download in early April. More to come...

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Hmm ... since we’ve all been to Starbucks (some of us more than once-a-day), we’re more than qualified to answer the same strategic question Howard asks of his executive team.

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So, send me an email with STARBUCKS in the subject line. Tell me what Starbucks must do to reclaim its uniqueness? To better connect with customers? To become the coffee company it once was?

My plan is to compile your answers into a free ebook. (Of course that’s contingent upon receiving good answers.) So in your responses … don’t ramble. Be brief. Be smart. Be fast. I’d like to have this ebook posted by the end of March.

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BLOGGER NOTE: Blatant inspiration from Seth Godin and his What Should Google Do? ebook.

Whole Foods/Wild Oats Merger Implications

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*** This is a long post (1,250+ words). You’ve been warned. ***

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Before I express my thoughts on implications resulting from the Whole Foods/Wild Oats merger, I need to clearly express my position on the merger. As a former marketer at Whole Foods Market (WFM) and current shareholder … I’m supportive of their merger with Wild Oats.

I believe it’s a smart move for WFM to acquire real estate locations in existing and new markets which can be turned over quicker and cheaper than if they were to build those stores from scratch. I also believe WFM can use its in-store operational excellence to improve the current $459 sales per sq. ft. at Wild Oats locations to somewhere closer to the $919 per sq. ft. current WFM locations generate.

Yes, this is an aggressive and risky move for WFM. They saw a competitor in disarray with no long-term leadership in place and its troops spread way too thin to not make an aggressive move. John Mackey, WFM’s CEO, is a fierce competitor who couldn’t pass up this opportunity to acquire some Wild Oats locations in this risky game of business.

It’s important to note throughout WFM's history, they have grown by acquiring competitors. Since 1980, they have acquired 18 regional competitors. Of WFM's current 191 locations in its store base, probably 25% of them are from acquisitions. But this takeover of 100+ locations is by far the biggest percentage increase acquisition WFM has had to wrestle with.

Many times companies that are struggling to squeeze growth from existing operations will find growth through acquisitions. The thinking here is if a business cannot earn growth from within, they will need to look outside at acquisitions to grow. (Think HP & Compaq.)

But WFM isn’t struggling to find growth. Comp store sales are in the upper single-digits after years of double-digit comps. That’s very impressive, especially for a grocer. WFM is a healthy business today and because the company is healthy, it’s growing naturally.

In talking with business-minded folks, I usually refer to WFM as a business that’s in its late stages of puberty. (Stay with me here, I have a point.) The company was born in 1980. When it turned 12 years old in 1992, the company went public. At that moment it entered the adolescent phase of its life. Strange things began to happen. The company underwent a massive growth spurt. Pimples started to appear as the company made lots of little mistakes. Its brand voice began to change from only appealing to the granola crowd to now also appealing to the foodie crowd. People’s expectations of WFM were also changing. Whole Foods became a smart and respected teenager with tremendous promise. No longer was this company an ignorant and innocent child, it was maturing into a knowledgeable and trusted adult.

This merger with Wild Oats signals the final phase in WFM’s pubescent period. In two years when it fully emerges from this major acquisition, we will know if WFM can fulfill its tremendous promise. I have all the confidence Whole Foods Market will be able to fulfill its promise to be an endearing and enduring company that will change the world.

But before WFM fulfills its promise, there are a few implications I see from the merger.

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Corporate G&A Expenses
One of the selling points with any merger, as was mentioned on the WFM conference call announcement with analysts, is the reduction in corporate G&A expenses. Merged companies simply do not need two CEOs, two procurement VPs, two human resources VPs, etc. However, given the unique decentralized organizational structure at Whole Foods, the company might not realize significant reductions in corporate G&A expenses.

The organizational culture within WFM has strong Libertarian leanings. Meaning, the company believes in maximum freedom and minimum governance. WFM decentralizes nearly every business function to its 12 regions.

These 12 regions are essentially separate business units operating under the umbrella Whole Foods Market brand name. Headquarters controls very little. Instead, that control is pushed to the regions. Real Estate, Legal, and parts of Procurement and IT are controlled by WFM headquarters in Austin, TX. Nearly everything else is the responsibility of the regions to handle. This includes Marketing, Human Resources, Training, etc.

What I am getting at is WFM might not realize significant reductions in corporate G&A spend with this merger. Sure, some corporate G&A expenses at headquarters will be reduced with this merger but WFM’s 12 regions will need to beef up its corporate staff to handle the influx of new stores. WFM runs very lean at the corporate and regional levels with everyone behind-the-scenes working at full capacity. Many new regional corporate team members will be needed to make this merger work.

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Team Member Bench Strength
The good news is WFM has lots of bench strength within its team member (employee) base. From my work experience at WFM, I know there are two types of WFM team members—those that stay for 12 months and those that stay for 12 years. Because WFM treats its employees fabulously well, as evidence by its current ranking as the 5th best company to work for in America (Fortune Magazine), team members stay longer. And because team members stay longer, they are more knowledge, more competent, and more heavily-steeped in the culture/purpose/vision of the company. Filling the new positions created by this merger with knowledgeable, competent, passionate, and long-time team members will be easy to do for WFM.

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Access to New Markets
Wild Oats operates over 100 locations in the US and Canada. About 70% of Wild Oats locations are branded Wild Oats. They also operate 29 locations in California as Henry’s Farmers Market, 8 locations as Sun Harvest in Texas, and 3 locations as Capers in Vancouver, BC.

Because of the acquisition, Whole Foods will now be able to enter many new markets in states where they currently do not have stores. Such states include: Utah, Tennessee, Indiana, and Arkansas. Plus, there are states where WFM has weak store penetration that will be bolstered by this merger. States where WFM will benefit with new in-fill locations include: Oregon, Arizona, Florida, New Mexico, and Ohio.

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Potential Redundancies in Store Locations
On the conference call with analysts, WFM was upfront in saying they expect to close and or relocate a number of existing Wild Oats locations. There seems to be significant redundancies in the California market. Wild Oats operates 34 locations in California with 29 of those locations branded as Henry’s Farmer Market. Whole Foods operates 21 locations in California. I’m thinking many of the Henry’s locations will be closed or relocated because these stores are smaller in size and do not fit the size specs of WFM locations.

Colorado is another state where we will probably see some closures and certainly relocations of Wild Oats locations. WFM currently operates 7 locations in Colorado compared to 13 locations for Wild Oats. Colorado is a very prime market for Whole Foods. It’s stores in Colorado do very well that I’m certain the smart addition of choice Wild Oats locations will only serve to benefit WFM.

I’m thinking the Sun Harvest locations in Texas are not going to survive. These locations are sub-prime real estate and small in square footage. However, I hope WFM looks to experiment with some of these Sun Harvest locations. Maybe WFM could development a small store concept and use the Sun Harvest locations to pilot that experiment.

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Those are just a few implications I see from a marketer’s perspective. Financial and investment types no doubt have more intricate implications. I’m just a sclhub marketer with a few HMOs—hot marketing opinions.

Thoughts on Howard Schultz’s Email

I admit, I originally the doubted the authenticity of the Howard Schultz email. (My bad.)

As a former long-time Starbucks marketer, I’ve been privy to reading and hearing impassioned and articulate direction from Howard Schultz. That is not new. He has always challenged the company to not commoditize itself. He’s also been quick to point out when and where we made mistakes in behaving like a commoditized fast food retailer.

I applaud the purpose of this memo. Starbucks does need to be careful to not lose anymore of its authenticity and soul. HOWEVER … every decision Howard derides in the memo was HIS DECISION.

Howard approved the elimination of La Marzocco machines in favor of the automated espresso machines. Howard approved the elimination of scooping whole bean coffees and instead merchandising stores with pre-packaged flavorlock bags which resulted in the loss of coffee aroma in every store. It was Howard who approved the store development kit-of-parts which allowed the build-out of new stores to happen at hyper-speed. And Howard approved the strategic forays into music, movies, and books.

Every decision Howard derides as watering down the Starbucks experience was HIS DECISION.

If I’m a Starbucks partner today ... I do not want a battle cry memo from Howard, I want an apology from him.

And as a Starbucks shareholder, I want to know why the company is just now planning for FY08. Howard starts his recently written email by expressing, “As you prepare for the FY08 strategic planning process, I want to share some of my thoughts with you.” But wait, Starbucks begins it’s 2008 financial year in October of 2007. That’s seven-months away! And the company hasn’t planned for it yet. Oh my!!!!!!!!! ... not good.

Yeah, I'm a little worked-up over this. Starbucks is a company that has meant SO MUCH to me. Without my eight-years spent at Starbucks, I shudder to think where I would be today. Shudder to think. Thanks for reading.

Howard Schultz’s Concerns Are Not New

Howard Schultz, Starbucks Chairman and chief visionary, recently sent a battle cry email to key executives warning them of how decisions the company has made in the past 10 years is resulting in the commoditization of the Starbucks experience. (Read the entire email here.)

Howard is concerned Starbucks is not the same company it once was. He fears key decisions have led to “the watering down of the Starbucks experience." And he challenged his executive team to guide Starbucks back to its core roots of being a coffee company.

As a former Starbucks marketer who worked at Starbucks from Oct. ’94 until Jan. ’03, nothing Howard says is new. Every decision Howard singles out in the memo as being damaging to the brand has sparked countless heated debates between old school Starbucks partners and new school Starbucks partners. I know. As one of the old school-minded Starbucks partners, I passionately objected to the introduction of automated espresso machines. I also was involved in intense discussions over the loss of coffee aroma in Starbucks locations.

These warning signs Howard mentions in the email of succumbing to the fast food mentality, the lost focus on coffee, and the commoditization of the Starbucks experience have been present for a long time.

In fact, there’s a vintage internal presentation from Starbucks which details the branding conundrum Howard highlights. That presentation is from February 4, 1999 and it’s just as relevant to the Starbucks brand today as it ways eight-years ago. One telling slide says:

The Howard Schultz Email is a Fake

*** UPDATE ***
The Wall Street Journal is reporting this email from Howard Schultz is 100% legitimate.

In the online article, a Starbucks spokeswoman verified the authenticity of the memo. I'm shocked. And Jim Romenesko, I apologize for calling you out for publishing this email since it seems to be verified as 100% real. Oh my. Oh, oh my ...

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If you peruse the Starbucks Gossip blog run by Jim Romenesko, you’ll notice he posted an email supposedly written by Howard Schultz, Starbucks Chairman. This email derides decisions the company has made resulting in the commoditization of the Starbucks brand experience.

It’s a FAKE. That’s the opinion of this former long-time Starbucks marketer.

The fake email begins this way …

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Read the entire FAKE email here.

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My thin-slice and thick-slice reaction tells me it’s a 100% FAKE. Why? Six reasons why …

First, the FY08 strategic planning process started in 2006, not 2007. Starbucks begins its 2008 financial year in October of 2007. Ain’t no way the company is just now starting the planning process for FY08.

Second, Howard would NEVER single-out Flavorlock packaging as being a reason for the commoditization of the Starbucks experience. Instead, he would focus on the elimination of scooping whole bean coffees from bins. Flavorlock packaging made it possible for the company to ship roasted coffee all over the world while keeping it fresh. Without Flavorlock silver bullet 5 lb. bags, Starbucks today would be the size of In-N-Out Burger.

Third, Howard would take full responsibility upfront for the decision to phase out La Marzocco espresso machines in favor of the Verisimo machines. That was his call ultimately. He would acknowledge that upfront. Also, since this is an internal email, he would use the specific Verisimo name and not the generic “automated espresso machines” name.

Fourth, this email is devoid of any aspirtational tone. Howard, no matter how critical he is, will always exude an aspirational tone.

Fifth, nowhere in this email is the mention of the “Third Place” experience. Howard would NEVER send an email harping on the commoditization of the Starbucks experience without referencing the “Third Place” customer experience. NEVER.

Sixth, when this email touches upon the encroaching competition of other coffee places and QSRs, Howard would NEVER use strong language like, “This must be eradicated.” As a company, Starbucks is extremely careful to not use such language when talking about competitors. Starbucks learned from the anti-trust proceedings with Microsoft that internal emails using strong language that mentions killing/thrashing competitors could be used against them. Trust me, Howard would NEVER use such strong language about blunting competition.

I could go on but … I won’t.

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A NOTE TO Starbucks Gossip Webmaster Jim Romenesko … I think you used very poor judgment in posting this fake letter. You have enough journalistic smarts to smell a fake. Shame on you. Someone just pulled a Howard Stern Baba Booey on ya.

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“Chainsaw John Mackey”

In Whole Foods Market lore, there’s a company campfire store about John Mackey sending the original founder/CEO of Wild Oats the board game RISK along with a feisty note. Given their recent merger announcement, it seems apropos to share this snippet of a story.

At one point in the 1990s, Whole Foods Market and Wild Oats were fierce rivals. Both were upstarts in the staid supermarket industry and both began their existence in hippie hotbeds—Whole Foods in Austin, TX and Wild Oats in Boulder, CO.

As the company campfire story goes, Mike Gilliland (founder and former CEO of Wild Oats) once referred to John Mackey as “Chainsaw Al” Dunlap, the CEO notorious for cutting cuts and slashing jobs by any means necessary. Mackey didn’t take that swipe at his character too well.

In retaliation, Mackey sent Gilliland the board game RISK, which is a game of world domination. Attached to the game was a note from Mackey that read, “Forewarned is forearmed.” The note was signed “Chainsaw John Mackey.”

Whole Foods Acquires Wild Oats

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WHAT HAPPENED:

Whole Foods Market acquired is largest competitor, Wild Oats, for $565 million along with assuming Wild Oats' existing net debt of $106 million. When the deal closes, Whole Foods will operate more than 300 locations in 31 states along with stores in Canada and in the United Kingdom.

Founded in 1987, Wild Oats operates 110 stores with annual sales of $1.2 billion. In comparison, Whole Foods was founded in 1980 and operates 193 stores with yearly sales of $5.6 billion.

Wild Oats has historically underperformed. Its sales per square foot of $450 is half what Whole Foods is able to generate and the company is currently in a major transition period operating without a CEO or CFO.

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WHY DID IT HAPPEN:
On the conference call with Wall Street analysts, Whole Foods CEO, John Mackey, called the acquisition “highly opportunistic.” Mackey went on to say the timing was right to approach Wild Oats about a merger given the “strategic gap” at Wild Oats as evidence by the lack of a CEO and lack of a clear company vision.

Wild Oats has significant penetration in the Rocky Mountains, Pacific Northwest, and Florida ... regions where Whole Foods’ penetration is weak. Whole Foods believes it can significantly improve the operations of Wild Oats locations resulting in higher sales on a per-store basis. The addition of new stores and the productivity improvement in these stores will positively impact Whole Foods’ comp sales figures.

But the real benefit, as I see it from the perspective of a former Whole Foods National Marketing Director, is this acquisition helps to solve Whole Foods Market’s greatest challenge. As I wrote in this blog post, the biggest challenge facing Whole Foods is its inability to open new locations.

In 2006, Whole Foods opened only 13 new stores yet the company proudly informs Wall Street they have 90+ stores in the development pipeline. Given their current rate of opening new stores, it will take Whole Foods at least six years to open the 90+ stores they have in the pipeline today.

By swallowing Wild Oats’ 110 stores, this immediately solves Whole Foods new store opening challenge. Sure, Whole Foods will close some of the Wild Oats locations and relocate others but the net/net will be a significant increase in the Whole Foods store base. This increase in the Whole Foods store base will have a positive impact on comp store sales.

Remember, Wild Oats locations are only able to generate $450 per square foot compared to the $900 Whole Foods is able to generate. Whole Foods is very confident they can improve store operations at these locations to drive sales. On the conference call with analysts, Whole Foods management talked about how they have been able to successfully increase sales on a store-level basis in all 18 of their previous acquisitions.

And helping to increase efficiencies to drive profits will be the reduction of corporate expenses. Massive reductions in redundant corporate G&A overhead expenses will take place as Whole Foods doesn’t need two CFOs, two CIOs, two Procurement VPs, two Human Resources VPs, etc.

On a different angle, the hope is a bigger and more expansive Whole Foods will be able to better compete against the behemoth Wal-Mart and the ever-nimble Trader Joe’s.

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IMPLICATIONS:
I’m still sorting through the myriad implications this merger will bring. Expect a post this weekend detailing my thoughts on how this big-time maneuver will impact the Whole Foods Market company culture and its future success. This merger between Whole Foods and Wild Oats came as a complete shock to me. It's something I never anticipated happening.

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No Business is Perfect

Is it unrealistic for us to expect businesses to be perfect? Are we setting ourselves up for disappointment by expecting businesses to flawlessly deliver every single time? As customers, are we expecting perfection when perfection is unattainable? Is that fair of us?

I’m not trying to make excuses for when businesses fail us. But failure happens. No business is perfect. Yet, we seem to expect businesses to be perfect all the time. One poor encounter with a company’s customer service rep sets many of us off into a rage against that business. One misstep by a company spoils everything for many of us. A series of cancelled flights and thousands of stranded customers can trigger a major backlash. (Yep, I’m talking JetBlue here.)

JetBlue messed up BIG-TIME. No doubt about it. They failed their customers in unimaginable ways. We now know JetBlue is far from perfect. But was it realistic for us to expect JetBlue to be perfect?

No business is perfect. NONE. Business is a game of progress, not perfection. No business will be perfect. It's an impossibly unattainable goal. But while that goal is unattainable, the most endearing and enduring businesses seem to always aspire to reach perfection. They always make progressive steps to improve their business and how their business connects with people. Sure, they will stumble along the way. But the true measure of a company is how they recover and forge ahead making progress along the way to overcome their mistakes.

No person is perfect. NO ONE. As people we also mess up BIG-TIME. We constantly make bad decisions that harm others. We disappoint friends. We betray people’s trust. We cannot achieve perfection. Doesn't mean we should give up and not try. The most endearing and enduring people I know make progress every day to improve themselves and their relationships with others. And when people see progress being made, they are willing to forgive mistakes.

Thank goodness people are so forgiving. Otherwise, I wouldn't have any friends. I've pissed off enough people in enough ways to not have friends. Lucky for me, people are forgiving. I still have some friends. Lost some along the way—but the ones I still have are great.

I think JetBlue can recover. I think customers have it in their hearts to forgive them for messing up BIG-TIME. It'll take time though as well as diligent focus from every JetBlue employee to make progress in earning back trust and friendship from customers.

In GOOD TO GREAT, Jim Collins says one factor that determines which companies go from being good to being great is how they deal with adversity. He says that many of the good-to-great companies he studied faced a company-defining crisis. According to Collins, what separates the winners from the losers is how they confronted and responded to the crisis …

“The good-to-great companies faced just as much adversity as the comparison companies, but responded to that adversity differently. They hit the realities of their situation head-on. As a result, they emerged from adversity even stronger."

JetBlue is considered a good airline. How they confront and respond to this crisis will determine if they can ever progress to becoming a great airline. Time will tell if JetBlue can make the good-to-great leap.

Three Reads | Feb. 19

ONE | The Freakonomics blog brings us Tommy Bottoms and his Basic Economics def poetry. Sharp and smart stuff … like these business lessons from Drug Dealers.

TWO | Need a primer on Trader Joe’s? Read Barry Silverstein’s overview on Trader Joe’s from Brand Channel.

THREE | Given the Sirius/XM merger chatter seems apropos to share more radio musings from Jeff Jarvis. This time, he’s riffing on what should local radio sound like/be like.

BONUS READ ... Mark Ramsey, super-smart radio marketer/researcher, outlines 14 off-da-cuff fall-out predictions from the Sirius/XM merger.

PUNK MARKETING Fails the Starbucks Test

Whenever I give a business book the glance-over review, I ALWAYS peep the index looking for any references the author makes to Starbucks. I’ll read those Starbucks references to see if the author has an interesting, unique, and accurate take on Starbucks. If the author says something smart, interesting, and truthful about Starbucks … chances are ... s/he will say other smart, interesting, and truthful stuff. And thus, I’ll buy the book.

In the to-be-published book, PUNK MARKETING, authors, Richard Laermer and Mark Simmons, have lots of interesting and unique, verve-filled opinions on the current status of the marketing game we are involved in. (“Punk Marketing” is the name the authors use to label the so-called marketing revolution that is putting more authority/power in the hands of everyday consumers and challenging brands to communicate with a more authentic voice.)

However, the book didn’t pass my “Starbucks Test.”

On pages 51 & 52 (of the review copy), the authors say since Starbucks has become so ubiquitous and so uniform in every store they open, the company runs the risk of diluting its brand by being so one-dimensional. (That’s a fair statement.)

The authors continue by mentioning how Starbucks customers routinely talk about their Starbucks as “My Starbucks” yet the company does virtually nothing to capitalize on this …

“Customers still talk about the Starbucks they frequent as “my Starbucks,” but the company does hardly anything to promote the uniqueness of individual stores, which we cannot condone in the Punk world*. There are some variations in décor but the shop in Morristown has the same feel as the one in Malibu. Why not reflect the local surroundings and the baristas who toil there?”

* Authors’ Footnote: “We note they sell special and seasonal coffee beans, called Black Apron Exclusives, available for limited times, blah dee blah. This tactic should be used more to include beans or drinks that pop up only in a single venue. Then you can mean it when you say ‘your Starbucks.’”

The authors have totally missed the "My Starbucks" point. The "My Starbucks" bent is people-based, not product-based or decor-based.

As a former long-time Starbucks marketer, I view the "My Starbucks" angle, which customers routinely say, as illustrating the point that a customer has forged some personal connection with the Baristas behind the counter of their Starbucks.

This connection begins with customers having confidence the Baristas in their Starbucks know exactly how to customize their drink. The Baristas in their Starbucks know exactly how much room to leave in their Grande Coffee and to what temperature to steam the milk in their Grande-“Not so Hot”-Vanilla-Non-Fat-Latte, etc.

And many times, this personal connection extends to Baristas knowing the customer’s name and to customers knowing the Barista’s name.

Starbucks did try to differentiate their stores, as the authors recommend, through a store’s product mix in the early 2000s. Some Starbucks locations were heavy on music, others heavy on coffee, and others heavy on office desk stuff. (Yes, office desk stuff like staplers, pen holders, etc.)

This approach BOMBED BIG-TIME. Starbucks learned its customers expect consistency with the Starbucks they visit no matter if it is in Morristown, Malibu, Mexico City, Madrid, Moscow, etc. Starbucks customers didn't appreciate that some stores carried a very limited supply of coffee and instead carried lots of music. They wanted, and by their wallets they demanded, that Starbucks be consistent with it merchandise assortment.

The uniqueness of each Starbucks location is based on the people who work there and the customers who visit there. When customers refer to a Starbucks location as “My Starbucks” they are really talking about the PEOPLE inside that location.

Yeah, it’s become a tired (and clichéd) statement but it’s true … Starbucks is not in the coffee business but rather, the people business serving coffee.

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I'll share more about PUNK MARKETING later as the authors do have some smart things to say and they say them in smarmy and sassy ways. Learn more about PUNK MARKETING with this one-page manifesto (.pdf) and from the blog.

Three Reads | Feb. 18

ONE | Sunday's NY Times Magazine breaks down how Toyota went from making machines that weave thread to making cars that weave the road. Very informative and very well-written. READ

TWO | Last month, INC. Magazine profiled the potential brand image make-over of Dave's Gourmet, makers of Dave's Insanity Hot Sauce. Learn how Deskey, a Cincinnati-based design agency, creatively approached Dave's Gourment and all about the creative-process they went through to design a spate of new labels. You'll also learn why Dave's Gourmet ultimately decided not to pull the trigger on redesigned labels and remain a schizophrenic brand. A must-read for any brand manager. READ

THREE | Peruse PDF-Mags.com and I'm sure you'll find some creativity fuel. READ

Three Reads | Feb. 17

This marks the first in an irregular series of posts sharing links to recent writings that have captivated my attention and business imagination.

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(1) Ya gotta read the Wall Street Journal article which dissects How Steve Jobs Played Hardball In iPhone Birth (2.17.07).

(2) At the offices of National Public Radio (NPR), Cluetrain Manifesto originators and disciples recently gathered to discuss all things social and new media-related as it relates to NPR. Fascinating conversation captured by Andy Carvin in this blog posting and in these video snippets: David Weinberger; Doc Searls; montage of Jay Rosen, Euan Semple, and Jeff Jarvis; Zadi Diaz.

(3) Fans of John Coltrane will enjoy this documentary of Coltrane’s work and impact done in digestible podcast form.

Dishing Dirt on THE DIP by Seth Godin

Seth Godin has a new book coming out in May called THE DIP: A Little Book That Teaches You When to Quit (and When to Stick). Paul Williams got his mitts on a preview copy and gives us the low-down on what Seth means by advocating “strategic quitting.” Interesting stuff.

Mucho kudos to Paul for giving all of us the first look into Seth Godin’s THE DIP.

The DNA of Wal-Mart

I’ve already gushed about Bill Marquard’s business strategy book, WAL-SMART. In the book, this former Wal-Mart executive explains because of Wal-Mart’s unbridled success, this mega-retailer has forever changed the game of business from sourcing to distribution to pricing to inventory methods to merchandising. It’s now up to companies today (and tomorrow) to deal with doing business in the world that Wal-Mart has created and redefined.

Since Marquard spent time at Wal-Mart in the late 90s responsible for developing the company’s strategic planning processes, he has a very unique understanding of the company’s DNA. In the book, Marquard shares five key cultural underpinnings that make Wal-Mart the company it is. (Good stuff!)

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1. FOCUS
“No firm of Wal-Mart’s scale has ever applied the energies of so many people to so narrowly defined a project: discount merchandising. Unlike other large firms, Wal-Mart executes a single-business strategy and executes it across four store formats [Wal-Mart, Wal-Mart Supercenter, Sam’s Club, and Wal-Mart Neighborhood Market]. It doesn’t confuse people by launching many strategies for many businesses. Other companies hoping to succeed in the Wal-Mart economy need to develop the same genetic compulsion.” (WAL-SMART, pg. 91)

2. CORRECTION OF ERRORS
“Wal-Mart’s correction-of-errors philosophy stands in stark contrast to the habits of most corporate cultures. Correction of errors isn’t aimed at placing blame. Correction of errors focuses on the problem, not the person. Correction of errors is all about identifying ways to improve customer experiences, merchandise, processes, cost structure, and the company from within—before competitors beat Wal-Mart to it.” (pg. 92)

3. CONSTRUCTIVE PARANOIA
“This is an intentional attitude to avoid smugness and complacency. As remarkable as it seems in such a successful organization, the assumption by people at Wal-Mart is that the monster of defeat lurks just around the corner. They have good reason to make this assumption, or course. In the world today, the durability of competitive advantage is measured in months, not years. If no outside challenge shakes the complacency of Wal-Mart managers, DNA dictates that the company create its own constructive paranoia.” (pgs. 95-96)

4. THRIFT
“Frugality was one of the most enduring and unmistakable imprints Sam Walton left on Wal-Mart. The most important way that Wal-Mart perpetuates this gene is by modeling thrift from the top. In the home office, employees buy their own coffee and use both sides of sheets of paper. On the road, employees bunk two to a room. They stay in budget hotels with free breakfast buffets, not luxury accommodations. The company, not the employee, keeps frequent-flyer miles.” (pgs. 97-98)

5. A "WE CAN MAKE IT BETTER" ATTITUDE
“Whereas correction of errors focuses on Wal-Mart’s own internal performance improvement, ‘we can make it better’ focuses on other companies’ ideas—that is, imitating them and going one better. Like other companies, Wal-Mart has often succeeded through a fast-follower strategy. Believe it or not, Wal-Mart has never actually created a new store concept. It followed Kmart into discount stores, Price Club into warehouse club stores, Meijer and Carrefour into supercenters, and combo supermarket and drug stores everywhere into Neighborhood Markets. It did them all one better.

Sure, Wal-Mart innovates, too. But deep in its DNA are genetic instructions to borrow the best of everything elsewhere.” (pg. 100)

source: WAL-SMART (Bill Marquard)

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Howard Schultz’s Open Letter to Starbucks Partners

According to the Seattle Times, Starbucks Chairman, Howard Schultz, felt the need to send Starbucks employees a pep-talk letter. Seems as though Howard has been bothered by some recent, but unnamed, criticism directed at Starbucks.

In the letter Howard writes …

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“Over the last several weeks, there have been an exceptional number of comments about Starbucks in the media and online, many of which have not been positive. At times, partners have asked about my feelings when Starbucks is criticized. Given the tone of the coverage recently, I wanted to reach out to you and share my thoughts.

I don’t feel the need to address these issues specifically. We’ve done that previously and that’s not my primary concern. My focus is on you – the partners who have made Starbucks such a trusted presence around the world. And my focus is on preserving the trust that we have built with our customers and each other over the years. I want you to know that you can be proud of the company we all work for and that you can continue to trust the foundation it’s built upon.”

Access Howard's full letter here (.pdf link)

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Thanks to the Starbucks Gossip blog, we can expect to read FIRECRACKER commentary from disgruntled and happy Starbucks employees. Seriously folks … these responses will give us all an insider view into the morale of Starbucks employees.

An Experiment in Coffee Honesty

Have you heard about Terra Bite Lounge in Kirkland, WA? It’s a coffee shop that sells coffee drinks, pastries, and sandwiches based entirely on the honor system. Yep, there are no prices for anything Terra Bite Lounge serves customers. The expectation is that customers will voluntarily pay whatever amount they feel comfortable paying.

The founder of Terra Bite Lounge, Ervin Peretz, knows his coffee shop must attract enough honorable customers to offset those customers who will abuse the voluntary pay system. Currently, Terra Bite Lounge serves about 80 customers a day with each paying, on average, $3.00.

Hmm … this social experiment sounds a little familiar.

In Freakonomics we learned about Paul “Bagel Man” Feldman who setup a bagel business built totally on the honor system. Feldman would deliver bagels to offices and leave a money drop box with the expectation that people would pay for the bagels they ate.

According to Freakonomics, the honor system worked for bagels. The payment rate for Feldman’s bagels hovered at nearly 90%.

Feldman kept copious notes on bagel sales data and some of his conclusions are fascinating. For example…

• When the weather is pleasant … people pay at a higher rate.
• When the weather is cold, rainy, windy … payment declines sharply.
• During the holiday weeks of Christmas and Thanksgiving … payment is lousy.
• But, during the holiday weeks of Labor Day and 4th of July … payment is strong.

Because Feldman’s bagel customers were office workers he was able to draw interesting conclusions about how workplace morale affects payment. The more sweeping conclusion was: The better workplace morale at a business, the greater the payment rates. And more interestingly, Feldman came to believe higher-paid executives cheated the bagel honesty system more than did workers lower on the corporate ladder.

It’ll be interesting to learn if Feldman’s bagel honesty findings jibe with Terra Bite’s coffee honesty findings. And given Feldman's data that cold and rainy weather adversely affects volunteer payment, it’ll be super-interesting to know how this honesty system plays in the cold and wet Seattle-area.

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For more on Terra Bite Lounge, listen to this NPR story and read this sum-up from Tim Manners. For more on Paul Feldman’s bagel business, read this excerpt from Freakonomics.

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Surviving and Thriving in the Wal-Mart World

In the late 90s, Bill Marquard worked deep inside Wal-Mart as a strategic thought-leader. Besides his first-hand Wal-Mart experience, Bill also spent 17 years at Ernst & Young, did a stint as the EVP/Chief Knowledge Officer at Fleming, and served eight-years as an adjunct professor of finance at Northwestern’s Kellogg School of Management. (So, he has some business chops to speak of.)

Bill has written a brilliant book, WAL-SMART, which sheds new light on Wal-Mart’s business DNA and how companies can profit in the Wal-Mart world we live in.

Marquard reasons Wal-Mart has changed the business landscape not just now — but forever. And if competing businesses fail to recognize how Wal-Mart has changed the rules of doing business, then Marquard says these businesses are choosing to lose. Businesses choose to lose because they fail to address how Wal-Mart has conditioned expectations from competing businesses, suppliers/distributors, employees, and local communities.

Wal-Mart has conditioned competing businesses to focus on executing competitive advantages besides the strategy of low prices.

Wal-Mart has conditioned suppliers/distributors to expect relentless pressure to continuously reduce costs so that lower prices can be brought to market.

Wal-Mart has conditioned employees to be content with meager wages, meager benefits, meager recognition, and meager growth opportunities.

Wal-Mart has conditioned local communities to expect the promise of new jobs and the need to give tax concessions in order to have mega-companies setup shop in their community.

To profit in this Wal-Mart world, Marquard argues, businesses must design and execute a comprehensive strategy that addresses competitive advantage, suppliers/distributors, employees, and local communities.

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Competitive Advantage
According to Marquard, businesses today must choose to differentiate, emulate, and then dominate.

Differentiate by saying “yes” to areas that the dominant player in your category says “no” to. Meaning, choose to sell more local products, deliver better customer services, find ways to be more convenient to customers, bring niche products and services to market, and enhance the in-store customer experience in ways the dominant player doesn’t.

Emulate by choosing specific areas from which to plug ‘n play from the dominant player. For example, JetBlue emulated Southwest’s low price strategy but differentiated themselves by enhancing the customer’s in-flight experience with leather seats and free Direct TV.

Dominate by establishing yourself as the obvious number two player in your category. Distance your business from every other competing business striving to take your place as the number two business behind the leading big dog business.

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Suppliers/Distributors
To thrive in the Wal-Mart world, Marquard says vendors must make specific choices on what to leverage, how to invest, and where to diversify as it relates to supplying big dog businesses.

Suppliers/distributors must decide which strengths to leverage from the dominant player. For example, the most successful vendors leverage Wal-Mart’s huge terabytes of sales data to better understand sales movement trends at store, regional, and global levels.

Marquard advises vendors to invest in building strong brands to rebalance the scales in favor of the vendor so that the big dog businesses need you more than you need them. Instead of the vendor having to “push” products through the dominant player’s pipeline, a strong brand can flip this relationship to where the giant retailer “pulls” your products through the pipeline.

Vendors must make the important decision of deciding where to diversify so they do not face the problem of relying on sales from one big dog business. Suppliers/distributors who are reliant upon any one business for a significant percentage of sales are running a major risk of placing too many eggs in one basket. To diversify, Marquard advises vendors to develop and/or acquire unique products to supply businesses in different markets and different channels.

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Employees
Marquard contends for businesses to profit in the Wal-Mart world, they must serve employees by knowing how to reward them, impassion them, and grow them.

Rewarding employees through compensation should differ depending on the go-to-market strategy of your business. If your business requires employees to have extensive product expertise and superior customer service skills, then these employees should be rewarded with higher wages. Conversely, if your business strategy requires employees to have fewer skills then their wages should be lower.

All companies wanting to succeed in the Wal-Mart world must also impassion employees by offering inspiring perks beyond strict paycheck compensation. Businesses need to go beyond fulfilling financial needs of employees to also fulfilling their emotional needs.

Growing employees is about also fulfilling their intellectual needs by offering programs that encourage education to help them during their life at work and their life away from work.

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Local Communities
Successful companies in the Wal-Mart world find ways to endear themselves to the communities they do business in by knowing where to belong, which local activities to align themselves with, and how to engage local citizens.

Belonging is about finding the right places within a community to participate in order to do the greatest good. It’s about finding the right charities and causes to align with that sync, in some meaningful way, with the values of your business. And, it’s about finding the best ways to invite citizens to join the business in making the community stronger.

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I’m guilty of overly simplifying the smart thinking of Bill Marquard’s WAL-SMART book. Hopefully the above summary intrigues you enough to wander over to the WAL-SMART website to learn more.

If you are responsible for managing business activities of any retailer or any supplier/distributor, I implore you to read WAL-SMART. It’s chock-full of smart strategy musings which will help you better compete against any big dog dominant company in your competitive set. WAL-SMART is a worthwhile read!

Would you miss Eddie Bauer?

In January, I asked you this question: If the Gap went out of business tomorrow, would any of us care? This worthwhile question was lifted directly from the Mavericks at Work book and sparked because of Gap’s sluggish sales and the recent ouster of its CEO.

This “would you care” question is a great one to ask of any business because it tells us how well they have formed relationships with customers. If a business has formed unfailing relationships with its customers, then we would truly care if that company went out of business. On the other hand, if a business hasn’t formed a meaningful bond with customers, then we wouldn’t care if that business ceased to exist.

Throughout 2007 I am going to ask this “would you care” question of other businesses. Please offer your opinions in the comments section.

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Eddie Bauer has seen better days. In recent years sales have been slow and its lost relevance. It’s CEO abruptly quit. They’ve been in a turnaround phase for years now and recently rejected two buyout offers from private equity firms.

Eddie Bauer used to be a relevant retailer. They were once a leading outdoor clothing company but in its attempt to broaden to the brand’s appeal, Bauer drifted into selling casual everyday wear and into selling linens and things for the home.

So it’s back to the drawing board for Eddie Bauer. But should Bauer even try to live for another day? Does the company still have cachet with us consumers? Do we want Eddie Bauer to live? Do we need Eddie Bauer to live? Would we care if Eddie Bauer went out of business?

The Hidden Influencers

If a posting on your blog has ever been dug by Digg or dotted by Reddit or tagged by Del.icio.us then you know how much influence social bookmarking sites have in not only driving traffic to your blog, but also in spreading the reach of your idea. A simple mention on such popular social bookmarking sites can catapult a blog and/or an idea into a new realm of awareness.

But would it surprise you to learn that of the 300,000 registered Digg users, a mere 30 users are responsible for submitting 33% of the postings which regularly land on Digg’s homepage? Would it also surprise you to learn that one of Reddit’s most influential users is a 12-year-old boy? (Sounds like another occurrence of the “1% Rule.”)

The Wall Street Journal recently dissected the underbelly of social bookmarking sites by detailing how the few impact what the many view as being popular online with a well-written and highly informative article titled, “The Wizards of Buzz.”

This article also explains how payola schemes, which pay people to plug certain websites in hopes of gaming the system, are impacting the algorithms social bookmarking sites use to filter out the most popular postings on the web. Interesting stuff!

If you subscribe to the WSJ, you can access this worthwhile article here. For free access to this article, click here.

Treat Employees Like Family

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“In a business where front-line employees represent the face of the company—where every transaction counts—it only makes sense to treat the store-level employees with the same respect (and benefits) as those in upper management.” -- John Moore | TRIBAL KNOWLEDGE

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Steven Bigari, a successful McDonald’s franchisee from Colorado Springs, understands the importance of treating front-line employees with compassion and respect. In what began as a plan to reduce employee turnover has blossomed into a business ethos where the Golden Rule of treating others like you would like to be treated became standard operating procedure at his Golden Arches McDonald’s locations.

In 1990, Steven Bigari was a struggling McDonald’s franchisee dealing with dire cash flow problems. His first plan of action was to reduce costs across the board, including the elimination of paid vacations for front-line employees. Bigari presented his cost reduction plan to a mentor of his who promptly shot down the plan by saying, “You can afford to give up your rizzing-razzing vacation, but they [front-line employees] can’t, so I hope you have a better plan than that.”

Bigari understood exactly what his mentor was saying:

TAKE CARE OF YOUR PEOPLE.

So instead of reducing employee benefits to curb costs, Bigari increased the benefits he offered to employees. He added services such as day care, transportation to/from work, and small loans to the mix of employee benefits. Bigari made the business case for adding such expensive benefits believing it would not only reduce employee turnover, but also keep employees more focused on daily customers at work than on their daily problems at home.

Bigari was right.

Employee turnover at his McDonald’s locations fell to 100% which is remarkable considering employee turnover at most fast food places is 300%. (To bring those percentages to life, Bigari’s McDonald’s locations would turnover its staff once every twelve months compared to other fast food places that change over staff three times in the same period.) Employees at Bigari’s McDonald’s said they felt motivated to work harder because of the benefits they were receiving. And in turn, profit margins increased by more than three percentage points at Bigari’s McDonald’s locations.

To add day care to his list of employee benefits, Bigari partnered with a local church to provide such services. In order to provide employees with transportation to/from work, Bigari used to buy abandoned cars from police auctions and resell them to employees at cost. Now, a local car dealership refurbishes donated cars and resells them to the employees. The short-term/no-interest micro loan program Bigari setup lent nearly $30,000 to front-line employees, which all but $960 was repaid.

Treating front-line employees as family not only changed the lives of his employees, it also changed his life. In June of 2006, Bigari sold his McDonald’s franchises and based off his experience treating employees like family, he created and now runs a non-profit group called America’s Family to offer similar services to low-wage employees at other companies.

The lesson for us all is to Practice the Golden Rule. Treat employees as you would like to be treated and the company will be ultimately rewarded. Endearing and enduring companies are those that develop meaningful relationships with its employees that go beyond being professional to being personal.

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SOURCE:
Thinks Big About the Little Guy | New York Times (Feb. 4, 2007)

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Further Learning:
McDogooder | Westword (Aug. 24, 2006)
America’s Family website | "Success Stories"

Enterprise Rent-A-Car’s Book of Lists

I’ve already shared with you Enterprise Rent-A-Car’s list of Critical Customer Service Skills their employees must have. That list was plucked verbatim from the EXCEEDING CUSTOMER EXPECTATIONS book which shares a deep-dive profile into the reasons why Enterprise has become a highly successful $9 billion dollar business.

There are many more worthwhile lists in the book which are ripe for any company to plug ‘n play into their business. Review the following lists, taken as is from the book, and determine which aspects your company should aspire to follow.

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ENTERPRISE RENT-A-CAR
12-Steps to Building Relationships with Customers
1. Acknowledge the customer’s presence with a smile or handshake.
2. Be enthusiastic.
3. Always make eye contact.
4. Speak in a friendly manner.
5. If you know the customer’s name, use it in your greeting.
6. Listen actively and carefully without interrupting or allowing yourself to be distracted.
7. Offer solutions.
8. Provide unsolicited help (directions, maps, etc.)
9. Be positive in your comments [to customers].
10. Remember: It’s the customer’s perception that matters.
11. Try to anticipate the needs of customers. Always hurry to help.
12. Never use industry slang or terminology [with customers].
[source | EXCEEDING CUSTOMER EXPECTATIONS, pgs. 98-99]

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ENTERPRISE RENT-A-CAR
8-Steps to Dealing with Angry Customers
1. Actively listen with an understanding attitude.
2. Record what the customer tells you.
3. Apologize.
4. Find out what the customer wants.
5. Propose a solution and attempt to get the customer’s buy-in.
6. If the customer doesn’t like your solution, ask them what a fair resolution would be.
7. Follow-up by calling your customer to ensure satisfaction.
8. Never let the customer lose face.
[source | EXCEEDING CUSTOMER EXPECTATIONS, pg. 100]

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ENTERPRISE RENT-A-CAR
Eight Core Values
1. Our brand is the most valuable thing we own.
2. Personal honesty and integrity are the foundation of our success.
3. Customer service is our way of life.
4. Enterprise is a fun and friendly place, where teamwork rules.
5. We work hard … and we reward hard work.
6. Great things happen when we listen … to our customers and to one another.
7. We strengthen our communities one neighborhood at a time.
8. Our doors are open.
[source | EXCEEDING CUSTOMER EXPECTATIONS, pg. 199]

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Top Reasons Employees Choose to Work at Enterprise
1. The opportunity for growth and promotion.
2. The company’s excellent reputation.
3. Enterprise’s customer-friendly focus.
4. Promotions based on performance rather than seniority.
5. The fact that Enterprise is a growing company and an industry leader.
6. Enterprise’s commitment to leadership.
7. The strength of Enterprise’s friendly, highly motivated workforce.
8. The company’s policy of promoting from within.
[source | EXCEEDING CUSTOMER EXPECTATIONS, pg. 90]

A Thought About Second Life

I’m one of those who doesn’t get Second Life (SL). Gave it a shot though … spent a few days last month creating my avatar and snooping around SL. I got bored. Haven’t been back.

But as we know, many people are enjoying being residents of SL and brands are setting up SL enclaves. We’d expect brands like music labels to be there (and they are) but an unexpected brand that has setup shop in Second Life is Sears.

Yep, 120+ year-old Sears is getting down with the younger generation by having a virtual showroom where Second Life residents can play house by arranging and organizing a virtual kitchen with cabinets, countertops, and colors. (Hmm... okay.)

So I was curious to read opinions about how the virtual Sears is doing. I couldn’t find many comments about the virtual Sears. However, I did run across an astute remark about brands and Second Life from Darryl Ohrt (Brand Flakes for Breakfast Blog)

“Lots of brands are entering Second Life, and getting real world press for it. Obviously, the people who are writing the articles about Sears in Second Life, and the people who are reading the articles about Sears in Second Life, will never actually go into Sears in Second Life.” [SOURCE]

Darryl is right. I bet 90% of the journalists writing about brands in Second Life haven’t been in Second Life, much less visited the virtual storefront setup by these brands. And, I’d be interested to know how many marketers from brands in Second Life have actually been in Second Life.

I know far too many marketers for brands in the real world that rarely visit/tour/shop the stores they are managing marketing programs for that I’d be shocked to learn that if these marketers are actually spending time in the virtual world visiting, touring, and/or shopping their brand’s Second Life presence.

Super Bowl Ad Chatter

Yeah, I’m agnostic about advertising. I also think brands that advertise during the Super Bowl have a lot in common with singles looking for a one-night hook-up at a cheesy meat market dance club. Despite all that, I , along with a few others, shared some HMOS (hot marketing opinions) on the Super Bowl ads with Angus Lotun of Inc. Magazine. READ IF YOU WISH.

Eight Critical Customer Service Skills

Here I go again … sharing more worthwhile advice/opinion on the importance of employees in how a company delivers great customer experiences. This time I’m sharing the criteria Enterprise Rent-A-Car uses when deciding whom to hire.

For those unaware, Enterprise Rent-A-Car is the largest rental car company in the United States. It’s a privately owned business which recorded $9.0 billion dollars in sales for 2006. They are renowned for delivering great customer experiences in the highly-commodified rental car business.

Part of the reason Enterprise is viewed as strong customer service-focused business is they hire well. According to the recently published book, EXCEEDING CUSTOMER EXPECTATIONS, when it comes to hiring employees, Enterprise “… doesn’t want people who merely seek to be behind the rental counter. It wants every candidate to aspire to greatness.”

For the most part, new hires at Enterprise are eager, career-driven college graduates who are given the opportunity to quickly advance through the organization based off of their ability to deliver great customer service. As a result of their desire to hire candidates that aspire to greatness, Enterprise is able to retain 70% of its full-time employee base every year and have a ready pipeline of qualified candidates to promote as the company grows.

To help identify high potential candidates, Enterprise uses an eight-point Critical Customer Service Skills checklist to determine which candidates are mostly likely to be Enterprise employee material. It’s a worthwhile list for any customer service-focused business to plug ‘n play into their hiring practices.

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ENTERPRISE RENT-A-CAR
Critical Customer Service Skills

1. A passion for taking care of customers.
2. A willingness to be flexible.
3. A work ethic based on dedication to the company and its mission.
4. An eagerness to learn a new business and work their way up.
5. Self-motivation and goal-orientation.
6. Persuasive sales skills.
7. Excellent communication skills.
8. Leadership ability.

Source | EXCEEDING CUSTOMER EXPECTATIONS (Kirk Kazanjian)

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Me Loves the “Wine That Loves” Labels

UPDATED (April 5th):
The Wine That Loves website is now online. And, BusinessWeek (SmallBiz edition) has an interesting piece on Wine That Loves.

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For many of us, it’s intimidating to buy wine. Why? Come on, we know the reasons why. Most labels are obtuse. Styles are ill-defined. Pairing wine with food is utter guesswork. And prices can get super-spendy.

It takes an educated person to understand the information on wine labels from the appellation of origin to the grape varietal to its quality designation. Most of us cannot begin to articulate the differences between a Cabernet Sauvignon, Merlot, Sirah, Pinot Noir, or Zinfindel. Pairing wine with food beyond knowing that white goes with fish and red goes with steak is a mystery for many. And most of us shudder to think of spending $60+ on a bottle of wine we’ve never heard of at a restaurant.

That’s the problem and the Amazing Food Wine Co. thinks they have the answer—easy to understand wine labels.

According to BrandWeek, the Amazing Food Wine Co. is launching a new wine brand called, Wine That Loves. This new wine brand “…takes the guesswork out of pairing wine with food. Thus, Wine That Loves Pizza, Wine That Loves Pasta, Wine That Loves Roasted Chicken, and so on."

Yep, it’s a wine marketing effort designed to make pairing wines with food a no-brainer. Serving Roasted Chicken with a Caribbean-style Mango Glaze... pair the dish with the "Wine That Loves Roasted Chicken" bottle. Very simple, very easy, and quite interesting, eh? Take a gander at the creatively straight-forward label design:

Wine geeks do not like these labels because details like grape varietal, vintage year, and growing region are not included and those details matter greatly to wine geeks. But this wine isn’t being made for wine geeks. It’s for all those folks who are either intimidated by selecting wines or unable to decipher the language intricacies of wine labels. And ya know what, there are more wine neophytes than there are wine geeks.

While these wine labels take a whimsical approach to communicating wine and refuse to get caught up in granular grape details, it's not like they are absent of information. On the back-side of each bottle is information which will help wine newbies gain a basic tasting vocabulary (tannins, acidity levels, etc.) from which to better describe the wine they are drinking.

So maybe, just maybe, after being introduced to wine with the “Wines That Loves” labels, these wine neophytes will begin their journey to understanding/appreciating wine and ultimately graduate to wine geek status.

Now, let’s hope the Amazing Food Wine Co. took as much time crafting the wine inside the bottle as they did in crafting the label on the outside of the bottle.

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BTW … my Dad is a total wine geek. I’m curious to see if he is reading my blog and if he is, he’s sure to have an opinion on this post about wine. After all, he’s the guy with the know-it-all gene which was genetically bequeathed to me. John Moore calling Al Moore, come in Al...

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