Aug. 4, 2022

This paid piece is sponsored by JJ’s Wine, Spirits & Cigars.

At a rough estimate, there are 500,000 licenses to sell off-premise liquor in the United States.

That’s everyone from bigger chains to mom-and-pop stores in markets of all sizes.

So to be named among the top 20 of all qualifying adult-beverage businesses is, to put it directly, a big deal.

And for the second consecutive year, Sioux Falls-based JJ’s Wine, Spirits & Cigars ranked No. 15 – the only South Dakota-based store on the top 20 list and the broader top 100 list.

“To make the top 20, you really have to be impressive,” said Jeremy Nedelka, vice president of Beverage Information Group, which runs the annual competition that determines the Beverage – Top 100 Retailers.

The trade magazine publishes winners each summer – and the process to determine them is intense.

A detailed nomination form asks about business practices, community involvement, product stocking, employee programs and plans for future success.

Photo by Olivia Bertino

“We ask about 40 questions on our entry form,” Nedelka said. “Everything from how much you spend on training to what is your onboarding process, your customer service philosophy, marketing spend and challenges used, local and state associations you’re part of and how you get involved in shaping the industry.”

For JJ’s owners Tom and Jean Slattery, the award is a welcome one, but the process to apply is valuable too.

“There’s a lot that goes into it, and it’s really helpful for me to think through the last year – what we did differently, during COVID how we could pivot and maintain people’s attention, and now it’s about maintaining engagement and how we continue to connect with people,” Tom Slattery said.

“It’s introspective filling out the application because it gives me a lot of insight into what we did and what we can do moving forward.”

Nedelka saw a potential standout business in JJ’s the first time he visited the Sioux Falls store several years ago.

“I was instantly really impressed,” he said. “The picture a lot of people would have in mind when you think about a liquor store is not what you get when you walk into Tom’s store. It’s clean, well lit, modern looking; he had all these side businesses; and he clearly had a business background and knew what he was doing.”

Nedelka encouraged Slattery to begin entering the top 100 awards, and his entry was judged against the best of the industry’s best.

“When we start out judging, we look at all the entries and separate those we definitely think are top 100 and the ones we think have a chance at being top 20,” Nedelka said. “We usually end up with a few dozen that are really leaders in their markets, and they tend to be on the larger-format side. It’s not a sales contest, but we look for retailers that are innovating in their use of technology, how they deal with customers, the way they train employees. We look for companies that are diversified.”

In JJ’s case, the expansive adult-beverage business is complemented by The Bar, offering food and beverages indoors and outdoors; The Boozy Bakery; a thriving event business; and JJ’s Axes & Ales.

“When you look at the top 20 list, it’s retailers in a lot of major markets. We’re likely the smallest metro area, which we’re proud of in addition to everything else it takes to qualify,” Slattery said.

“We’ve worked toward this since the day Jean and I bought the business in 2011. We knew service and evolving our business to suit needs and develop relationships is what was going to set us apart. We always wanted to be more than an adult-beverage store. We wanted to be a service-first, relationship-building, community business that sold liquor.”

For his first entry into the top 20, Slattery detailed how JJ’s immediately shifted during the pandemic to continue connecting with customers, with curbside pickup, virtual Whiskey Wednesday events and to-go food and DIY cocktails.

“That was our 2021 narrative. I think what kept us in the top 20 this year was coming out of the pandemic how we evolved our events component and how we continue to train, engage people in customer service-based tools and techniques and learning how to engage with customers,” Slattery said.

Photo by Olivia Bertino

“We’re going to continue to do what we do, which is make people feel comfortable in our space and the spaces we occupy outside our buildings. We feel the key to success is people being happy with what we’re providing, listening to customers and figuring out what they want.”

The No. 1 retailer this year was a repeat champ: New Jersey-based Gary’s Wine & Marketplace.– which was recognized for its use of e-commerce and succession plan between generations.

But you can only win twice, which means next year will bring a new No. 1.

“And that will most likely come from the top 20 list,” Nedelka said.

Which means JJ’s has a chance to represent Sioux Falls and South Dakota in an even bigger way.

“The No. 1 spot is always in our sights,” Slattery said. “We know we have a lot of really strong retailers ahead of us, but we feel we have the right formula to reach that level.”

Learn more about the Beverage Dynamics rankings here.