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Beer or Wine?

If you stop in at the local mom-and-pop store to pick up a six-pack for Saturday’s tailgate or if you order a glass of fine wine in an upscale restaurant, it isn’t likely that you think about the complex and interdependent web of producers, suppliers and distributors that make your purchase possible. And you probably aren’t even aware of the complicated maze of restrictions, regulations and rules that govern the beer and wine industry.
For businesses like M & M Distributing and Spadafore Distributing and for the Michigan Beer & Wine Wholesalers Association, navigating through the system is what they do on a daily basis, and one they do so well that the rest of us don’t even have to think about it.Michael Lashbrook is president of the Michigan Beer & Wine Wholesalers Association. He explained his organization this way: “We are a full-service, professional trade association representing 75 corporate members throughout the state. The state association is a member of two national organizations, the Beer Wholesalers of America and the Wine and Spirits Wholesalers of America. Our primary function is to advocate for our members in the legislative, regulatory, legal and public policy arenas. We’ve existed as an association since the end of Prohibition, although beer and wine started out as separate organizations and didn’t come together in one association until 1948.”
“We hold a yearly fall meeting of all our members and are in constant communication with them through our newsletters and local meetings,” he added. “We offer a wide range of benefits for member companies and also actively champion the role of wholesalers as responsible corporate citizens by promoting the responsible use of the products they sell. Some of these efforts include providing motivational speakers for high schools, promoting designated driver programs and running holiday campaigns to foster rational and responsible behavior.”
In August of 2003, the association moved into a new building on the same site as their previous home (Townsend Street) but with twice the space. They had occupied a converted private home on that site since 1980.
Michigan’s distribution system for alcoholic beverages is what is called a three-tier system. Under this system, anyone who wants to manufacture, distribute, deliver, merchandise or promote alcohol must be licensed to do that, and every licensee must fall into one and only one of the three tiers (retailer, wholesaler and manufacturer). Based on the history of the industry, it is felt that control can best be maintained if no single entity can perform all three functions. Michigan is one of 17 states (called control states) that not only regulate but also sell alcohol. Before 1996, the Michigan Liquor Control commission warehoused and distributed the spirits to retail licensees, but in 1996 the commission privatized warehousing and distribution but retained control over the sales and revenue.
M & M Distributors has been a presence in the community since its founding in 1946 by John MacMillan when they started business as a Frankenmuth distributor. They had two trucks, two drivers who also functioned as the sales force, and 360 accounts in a time when beer was still being rationed. A.D. MacMillan, current CEO, joined his uncle in 1948. In the mid-’50s, M & M aligned itself with the Anheuser-Busch franchise and the product line expanded. Andy MacMillan remembers a time when there were eight beer distributors in the Lansing area; now there are two.
Their first warehouse, a 4,000-square-foot facility on St. Joseph, was added onto over the years until it reached 46,000 square feet. M & M moved into their current location on Creyts Road in 1988 and now occupy a 114,000-square-foot building.
The M & M main product line is beer, although they do sell a few other products. M & M functions as the middleman between the brewer and the retailer. Beer is delivered to their immaculately clean facility, loaded on trucks and delivered to local sellers. With 525 customers in Ingham, Eaton, Clinton and Livingston counties, they now have 61 full-time and 10 part-time employees. MacMillan said, “We’ve been part of this community for over 50 years, and we’ve provided good jobs for lots of good people. We have very low turnover; our employees seem to find a home here. We put a lot of effort into training our people, and it pays off.”
According to Michael Lasher, vice president of administration, “Anheuser-Busch accounts for about 99 percent of our volume, but we also carry other products like Corona, a few Japanese beers, Moosehead from Canada and some microbrewed beers.”
Doug Barr, vice president of marketing, explained, “We piggyback our marketing onto the brewery marketing and follow their lead for a seamless look. Our drivers not only deliver the product, but they also stock the shelves and set up any marketing displays.”
MacMillan remembers a time when there were only four premium beers available and the price difference amounted to a nickel a bottle. Those times are long gone, and now there’s a dizzying array of products available. Light beers hit the market in the mid-’70s and now dominate the scene. Said Barr, “New products come on the market all the time. There’s now a low-carb beer in addition to dry beer, ice beer, (which has a higher alcohol content), flavored beers and the list goes on.”

A look around the warehouse reveals not only pristine surroundings but also a reliance on the latest technologies, advances that have transformed the industry. Quality control is more than just a catch phrase; every employee is dedicated to maintaining the highest standards of cleanliness and service. The business is fully recyclable and there are areas throughout the facility for reclaiming materials. Said MacMillan, “We often receive compliments from our customers on our building, our employees, the image of our fleet and our high standards.”
Chuck Spadafore, vice president of Spadafore Distributing, has known the business all his life. The company, founded by his father, Andrew Spadafore (who is now semi-retired), in 1957 began life as a wholesale distributor of beers but began offering wine in 1981 and sold its beer franchise in 1986 to concentrate solely on wine. Now selling wine, juice and mixes in four counties, Spadafore’s customer base includes not only retailers but also restaurants and bars. And it’s still a family business with Chuck’s brother Nicholas serving as secretary/treasurer and Chuck’s son, Charley, in sales.
“We sell wine from all over the world including such well-known lines as Almaden, Arbor Mist and Paul Masson,” said Chuck Spadafore. “We also carry products from St. Julian, Michigan’s largest winery. I’ve been in the business since 1971 and trends come and go. Right now, there seems to be a preference for slightly sweeter wines. It also seems that consumers are becoming more sophisticated in their wine consumption, which is good for the business.”
So next time you quaff a cold beer on a hot day or celebrate a festive occasion with a special wine, take a minute to toast those in our community who make it possible for you to enjoy your favorite beverage!
Author: Jane Whittington
Photography: Terri Shaver
Michigan Beer & Wine Wholesalers Association
Michael Lashbrook, President
332 Townsend Street
Lansing, MI
517-482-5555
www.mbwwa.org
M & M Distributors, Inc.
Andy MacMillan, CEO
Michael Lasher, VP Administration
Doug Barr, VP Marketing and Corporate Affairs
3901 Creyts Rd.
Lansing, MI
517-322-9010
Spadafore Distributing
Andrew Spadafore, President
Charles Spadafore, Vice-President
635 Filley
Lansing, MI
517-485-4300
Michael Lashbrook, President
332 Townsend Street
Lansing, MI
517-482-5555
www.mbwwa.org
M & M Distributors, Inc.
Andy MacMillan, CEO
Michael Lasher, VP Administration
Doug Barr, VP Marketing and Corporate Affairs
3901 Creyts Rd.
Lansing, MI
517-322-9010
Spadafore Distributing
Andrew Spadafore, President
Charles Spadafore, Vice-President
635 Filley
Lansing, MI
517-485-4300
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