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The End of the Affair

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Mark Lipton

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The End of the Affair

by Mark Lipton » Wed Jul 08, 2009 11:44 pm

Since moving to the Midwest 19 years ago, I have become a fairly regular customer of Sam's Wine Warehouse in Chicago. Over those years, I would estimate that I have purchased several tens of thousands of dollars of wines from Sam's, especially during those years when Indiana was a "felony state" and shipping into IN was difficult at best. Looking at my cellar today, many of the Ridge Zins, Bordeaux and Chateauneuf were purchased at Sam's (their selection of wines from the Loire, Germany and Austria was never good).

In 2006, I decided to purchase some '05 Bdx futures through Sam's as they were offering good prices on the first tranche and I would only purchase futures through an established bricks and mortar operation. This was our first purchase of futures and I ended up buying two cases of fairly inexpensive satellite appellation and Bdx Superieur. In October of last year, I received an email informing me that one case of our futures had arrived. The fate of the remaining case of wine is a story of pain, frustration and anger.

In April of this year, I contacted Chris Durbin, Sam's internet sales representative, asking about the whereabouts of my remaining case of wine. I was already aware that there had been grumblings on Internet wine fora about problems with Sam's '05 Bdx futures fulfillment. I recieved a prompt response from Mr. Durbin that my wines had arrived and were awaiting pickup at Sam's Lincoln Park store (my usual stop). When I had occasion to go up to Chicago in June, I found that there was no trace of any wine waiting for me in Will Call. Numerous phone calls and email messages to Mr. Dubin went unanswered. Finally, last week, I received a phone call from Sam's informing me that my missing case of '05 futures had arrived and I arranged to have it delivered to my place of work where an adult would sign for it. I also explained that, should the temperatures be too high, I would rather that we not ship it ground.

Yesterday, UPS attempted to deliver those wines TO MY HOUSE despite my stated instructions to ship to my work address. Moreover, with temperatures here in the mid-80s, Sam's website states that they won't shop ground unless a waiver is signed by the recipient waiving all claims of heat damage. Needless to say, I signed no such waiver and was shocked to see the delivery notice stuck to our door. Today, I took receipt of the wines, thankfully showing no evidence of any heat damage.

The back story is that Sam's got caught by a "perfect storm." First, a dock strike in France in '08 delayed shipment of the '05 Bdx. Secondly, the financial crisis hit in Summer '08, resulting in a number of lost futures contracts for Sam's. As a result, the Rosen family -- longtime owners of Sam's -- were forced to sell the business and the new owners were saddled with numerous unmet obligations for '05 Bdx futures fulfillment. I was lucky, in a sense, in that I wasn't waiting for classed growth '05 futures. Those who are are still in some cases trying to get their futures contracts fulfilled. In Sam's case, it comes down to money, since they are buying the wines at present-day prices to fulfill futures contracts.

Nonetheless, this marks the last time that I will do business with Sam's. Their customer service and record-keeping are far below what I expect out of a business of their stature. I would much prefer to give my money to a company that diplays more concern about their customers' welfare than Sam's has recently.

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Re: The End of the Affair

by Salil » Thu Jul 09, 2009 3:53 am

A shame to read your post Mark, I've been following this mess with the futures situation on the eBob board and it's shocking to see how Sam's has been in free-fall recently. I visited them a few times in Chicago when I lived there but generally was never impressed - the stores were usually disorganized with very little correlation between their inventory on the web and in store (particularly for regions like Germany and Alsace) and customer service seemed to be going from bad to worse in contrast to the other places where I bought wine. But to hear that they're now completely ignoring the requests of customers and doing things as stupid as shipping wine in the middle of June/July is just shocking. I've not bought from them in a good while, and after hearing these stories from you and other friends in Chicago who put in futures orders with them and haven't yet received wine, I don't see myself dealing with them anytime soon.
Mark Lipton wrote:Since moving to the Midwest 19 years ago, I have become a fairly regular customer of Sam's Wine Warehouse in Chicago. Over those years, I would estimate that I have purchased several tens of thousands of dollars of wines from Sam's, especially during those years when Indiana was a "felony state" and shipping into IN was difficult at best. Looking at my cellar today, many of the Ridge Zins, Bordeaux and Chateauneuf were purchased at Sam's (their selection of wines from the Loire, Germany and Austria was never good).

On that last point; their loss when they got rid of Howard Silverman. Thank heavens he still kept providing us with some amazing picks and advice on those areas from his own store after that.
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Re: The End of the Affair

by Jenise » Thu Jul 09, 2009 6:28 am

I feel for you; hate to lose a good retailer. But I also feel for the new owners--they obviously got a lot more than they bargained for.
My wine shopping and I have never had a problem. Just a perpetual race between the bankruptcy court and Hell.--Rogov
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Re: The End of the Affair

by Tom Troiano » Thu Jul 09, 2009 9:47 am

Except for the shippping issue it sounds like the new owners "did the right thing". Why stop doing business with them? and why didn't you pick it up yourself?
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Re: The End of the Affair

by Mark Lipton » Thu Jul 09, 2009 9:53 am

Tom Troiano wrote:Except for the shippping issue it sounds like the new owners "did the right thing". Why stop doing business with them? and why didn't you pick it up yourself?


Tom,
I agree that the new owners are to be commended for fulfilling obligations. However, the customer service end of things is still appalling. Not only were none of my recent 5 phone calls and 3 emails ever returned, but I was lied to on several occasions and it was clear that the one hand doesn't know what the other is doing there from the lack of communication between Internet sales, Customer Service and Will Call. As to your last question: I live 120 mi from Chicago, have a demanding job and a 4-year-old at home. In an ideal world (or prior to 2004) I would most certainly have gone up there to get the wine; at present I have no such option.

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Re: The End of the Affair

by Oswaldo Costa » Thu Jul 09, 2009 11:17 am

Sorry to hear that, and thanks for taking the trouble to let us know.
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Re: The End of the Affair

by Mark Lipton » Thu Jul 09, 2009 2:54 pm

Salil Benegal wrote:On that last point; their loss when they got rid of Howard Silverman. Thank heavens he still kept providing us with some amazing picks and advice on those areas from his own store after that.


Indeed, Salil, I see my business going toward Howard's, Binney's, HDH and perhaps Flickinger when I'm looking for wine in Chicago. The real shame about this turn of events is that my favorite store in Indianapolis was sold off to a big commercial chain a couple of years ago and is but a shadow of its former self. Oh, well...

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Re: The End of the Affair

by Ryan M » Thu Jul 09, 2009 3:06 pm

Mark Lipton wrote:
Salil Benegal wrote:Indeed, Salil, I see my business going toward Howard's, Binney's, HDH and perhaps Flickinger when I'm looking for wine in Chicago. The real shame about this turn of events is that my favorite store in Indianapolis was sold off to a big commercial chain a couple of years ago and is but a shadow of its former self. Oh, well...


My research adviser is a big fan of Sam's, so I sent him a link to this thread, and he commented that he wasn't surprise, having noted the decline as someone who shops only in the brick-and-morter store.

I've ordered a few things from Flickinger and been very pleased. What shop in Indianapolis are you referring to?
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Re: The End of the Affair

by Mark Lipton » Thu Jul 09, 2009 5:14 pm

Ryan Maderak wrote:
Mark Lipton wrote:
Salil Benegal wrote:Indeed, Salil, I see my business going toward Howard's, Binney's, HDH and perhaps Flickinger when I'm looking for wine in Chicago. The real shame about this turn of events is that my favorite store in Indianapolis was sold off to a big commercial chain a couple of years ago and is but a shadow of its former self. Oh, well...


My research adviser is a big fan of Sam's, so I sent him a link to this thread, and he commented that he wasn't surprise, having noted the decline as someone who shops only in the brick-and-morter store.

I've ordered a few things from Flickinger and been very pleased. What shop in Indianapolis are you referring to?


Hamilton Beverages in Carmel. Now an arm of United Package Liquor which, IME, is about as interested in fine wine as the name implies.

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Re: The End of the Affair

by Dave Erickson » Thu Jul 09, 2009 5:38 pm

This is some sad news. Even a few years ago, I wouldn't have believed it, just as I wouldn't have believed GM would ever go bankrupt. "Perfect storm" or no, there is simply no excuse for lying to a customer like that. And the shipping screwup reflects sheer incompetence.

We finished delivering our '05s to customers just a few weeks ago. Can't remember right now who the laggards were, but I fully understand the irritation of some customers who felt that four years was an awfully long time to wait. (Of course, there were a few, bless their hearts, who had forgotten entirely that they'd ordered anything.)
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Re: The End of the Affair

by Hoke » Thu Jul 09, 2009 8:11 pm

This is all a shame, Mark, as I remember Sam's in its golden years---when it looked like a warehouse, because that's what it was, and all they had was stacks of boxes on a concrete floor, and if you wanted anything they had to send it down from the upper floor on the conveyor system.

Sad to see old institutions die sometimes.
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Re: The End of the Affair

by Mark Lipton » Thu Jul 09, 2009 10:44 pm

Hoke wrote:This is all a shame, Mark, as I remember Sam's in its golden years---when it looked like a warehouse, because that's what it was, and all they had was stacks of boxes on a concrete floor, and if you wanted anything they had to send it down from the upper floor on the conveyor system.


Yup, I feel the same, Hoke. I started shopping at Sam's when there was only one location, before their Marcey St. move (and boy, did I get some nice wines during their moving sale -- I just drank a bottle of Jadot Ursules '93 that I bagged then) and it was just as you describe: vast, sepulchral and cramped for space. But all good things must come to an end. I survived the demise of the Berkeley Co-Op, long may it rest, the loss of Cody's Books from Telegraph Ave. and the loss of Rather Ripped Records, too. I'll find a way to survive this as well.

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Re: The End of the Affair

by Salil » Tue Aug 04, 2009 10:59 am

Hope you don't mind me bringing this up again Mark, but it seems Sam's really is struggling right now - the new store they opened in the South Loop at Roosevelt has just been closed down.
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Re: The End of the Affair

by Steve Kirsch » Tue Aug 04, 2009 12:18 pm

Mark Lipton wrote:I just drank a bottle of Jadot Ursules '93 that I bagged then

Mark, what was your take on the '93 Ursules? I have a pair of bottles in the cellar--time to try one?
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Re: The End of the Affair

by Dan Donahue » Tue Aug 04, 2009 1:05 pm

I also did a lot of business there in year's past. There were some great deals, but the storage conditions were not always optimal. Some of the warehouse sale "bargains" that I've tried over the years seemed heat damaged.


BTW I have three bottles of the '93 Ursules and just assumed they would need a few more years. I'd be happy to hear they are ready to go.
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Re: The End of the Affair

by ChefJCarey » Tue Aug 04, 2009 2:27 pm

But all good things must come to an end. I survived the demise of the Berkeley Co-Op, long may it rest, the loss of Cody's Books from Telegraph Ave. and the loss of Rather Ripped Records, too. I'll find a way to survive this as well.


All of which were flourishing when I lived in Berkeley. The Co-Op credit union actually made me a cash flow loan at one of my restaurants.
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Re: The End of the Affair

by Mark Lipton » Tue Aug 04, 2009 2:38 pm

ChefJCarey wrote:
But all good things must come to an end. I survived the demise of the Berkeley Co-Op, long may it rest, the loss of Cody's Books from Telegraph Ave. and the loss of Rather Ripped Records, too. I'll find a way to survive this as well.


All of which were flourishing when I lived in Berkeley. The Co-Op credit union actually made me a cash flow loan at one of my restaurants.


Well, that pretty well brackets the years, now, doesn't it? When the Co-Op folded, it was literally the end of a dream for so many ideologically committed Co-Op members who had devoted time and effort to making it a viable effort. I vividly recall bringing dirt from our garden in a coffee can to "help" with the groundbreaking ceremony for the El Cerrito store when I was about 8 and our membership number (4341) will be in my memory until death or Alzheimer's takes it. We also banked at the Credit Union until that went under, too.

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Re: The End of the Affair

by Mark Lipton » Tue Aug 04, 2009 2:44 pm

Steve Kirsch wrote:
Mark Lipton wrote:I just drank a bottle of Jadot Ursules '93 that I bagged then

Mark, what was your take on the '93 Ursules? I have a pair of bottles in the cellar--time to try one?


I couldn't find a post from me about it -- strange. My recollection is of a very good, but young and primary wine. I'd not be in any hurry to open one.

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Re: The End of the Affair

by Mark Lipton » Tue Aug 04, 2009 2:45 pm

Salil Benegal wrote:Hope you don't mind me bringing this up again Mark, but it seems Sam's really is struggling right now - the new store they opened in the South Loop at Roosevelt has just been closed down.


Wow. This may be for the best, though, Salil, if it allows the new owners to concentrate on their core business. I'm always leery of rapid expansions of businesses that I like.

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Re: The End of the Affair

by Covert » Tue Aug 04, 2009 5:20 pm

Mark Lipton wrote:Today, I took receipt of the wines, thankfully showing no evidence of any heat damage.


That's a sad but quite typical story regarding wine shipping.

I have found that bottles can suffer fatal heat damage without any visual signs of bubbling around the cork, etc. And it takes a while sometimes for the symptoms to appear. It's insidious.
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Re: The End of the Affair

by MikeH » Tue Aug 04, 2009 7:00 pm

Mark Lipton wrote:
Salil Benegal wrote:Hope you don't mind me bringing this up again Mark, but it seems Sam's really is struggling right now - the new store they opened in the South Loop at Roosevelt has just been closed down.


Wow. This may be for the best, though, Salil, if it allows the new owners to concentrate on their core business. I'm always leery of rapid expansions of businesses that I like.

Mark Lipton


Hhhhmmmmm......wouldn't that South Loop store be very near the redeveloped area known as Printers' Row? And wouldn't that be a prime location for a wine store? If so, that would not be a good sign.
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Re: The End of the Affair

by Salil » Tue Aug 04, 2009 10:54 pm

Dan Donahue wrote:I also did a lot of business there in year's past. There were some great deals, but the storage conditions were not always optimal. Some of the warehouse sale "bargains" that I've tried over the years seemed heat damaged.

Yeah, storage there was pathetic (even more than the original Sam's), although I do remember buying a couple of bottles of '04 Weil Grafenberg Spatlese at around $30 - leaky bottles dumped in the bargain bin that turned out to just be overfilled (and very, very tasty). :D

And Mike, it was close - right on the Roosevelt/Michigan intersection (so a lot of traffic in that area, especially with a ton of new housing/businesses going up there, and a few colleges very close by), which makes it all the more surprising that it closed.
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Re: The End of the Affair

by David Lole » Wed Aug 05, 2009 6:47 am

I once dumped a retailer for an entirely different reason.

A very good customer (cars), colleague (wine), and all-round nice guy, asked me if I could help him dispose of a reasonably large segment of his (very good) underground wine cellar (temperature- and humidity-controlled). I had a very good retail contact in the wine trade, I, like Mark, had also given tens of thousands of dollars for wine purchases over a long period. I produced a cellar list of wine to the retailer that "might be available" for his consideration. He gladly furnished prices that we all considered fair and reasonable. I informed him I would "assemble the wine my vendor wanted to sell from the list" and deliver the wine to his store for an exchange of cash. The retailer agreed to my offer.

After several after hours visits to my customer's cellar, we assembled something approaching 400 bottles of premium Australian wine which we sorted, packed, catalogued and then, that night, I belatedly shifted the consignment to my cellar - I wasn't happy leaving the wine in the back of my station wagon overnight with the temperature much warmer than would be regarded as optimal.

The next morning I called the retailer who, most unusually, was in a decidedly foul mood. I told him the wine was ready to be delivered and he asked me to bring him the list of wine as he had "lost the original list". I did as he asked. When I took the list to him a little later, he took one cursory look and, angrily, threw the list back at me, stating this was not the same list he had priced some weeks earlier and I had "picked the eyes out of it". I replied this was not the case, I had not taken a single bottle from what was picked from the cellar and asked him what he wanted me to do with this gentleman's wine sitting in my cellar. He told me to do with it as it pleased me! I explained to him the circumstances of the original list and the wine we dragged from the cellar and then asked him to reconsider. He repeated what he had just said to me, in no uncertain terms. Calmly, I walked from the shop and have never been or will be back. That was something like 10 years ago!

Eventually, the wine was sold off in various sized lots to various retailers who, in the end, paid slightly more than our original source offered, the considerable extra time and trouble was not really a problem as I was determined to make good my original offer and fulfill my obligation to my colleague.
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Re: The End of the Affair

by Mark Lipton » Wed Aug 05, 2009 10:46 am

David Lole wrote:I once dumped a retailer for an entirely different reason.
<snip>


Wow, David, that is a shocking story. One almost wonders if that retailer was in his right mind when dealing with you, given the abrupt and drastic change in demeanor. As dissatisfied with my treatment as I was, I never got the sense of malicious behavior by Sam's; rather, they just seemed painfully incompetent, uncoordinated and, sad to say, unable to deal honestly with their customers.

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