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European Stars And Stripes Newspaper Archives Apr 4 1990, Page 3

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European Stars and Stripes (Newspaper) - April 4, 1990, Darmstadt, Hesse Wednesday april 4, 1990 the stars and stripes a a a Page 3aafes fails to meet its class six goals from Page 1 a 5 million Short. Still cafes paid the full amounts dipping into other sources of Revenue where necessary. The Exchange service had promised to make the full payments in a Transfer agreement signed last year with the air Force and army. Mar guarantees for the year ahead Are to be negotiated beginning wednesday in Dallas. 9 cafes Beer sales were up slightly last year but the Sale of wine coolers hard liquors and wines were lower than those reported by the former army and air Force agencies. Ten month wine wine cooler and hard liquor sales under cafes were about $39.5 million. For the same 10 months in 1988-89, combined army and air Force sales were $41.7 million. In 1987-88, combined 10-month sales were $42.4 million. Cafes handled virtually All Beer sales through its shop Pette system even before taking control of class six. 0 prices of most wines hard liquors and cordials went up last year but Exchange service officials maintain the increases were caused by Price increases from distributors. Scotch went up by an average 15 percent and Gin and Cognac 14 percent each. French wine Rose by 11 percent Vodka by 10 percent italian wine by 9 percent rum and cordials by 7 percent and whiskey by 6 percent. The Price for German wine did not go up cafes said. A the top five class six stores for cafes were in West Germany a at the Frankfurt shopping Center Firth Rhein main a Hanau and the Vogel Weh shopping Center in Kaiserslautern. Each store had Between $1.1 million and $1.5 million in alcoholic beverage sales. # cafes made an 18 percent Overall profit on its Beer wine wine cooler and liquor sales last year. The profit was 28 percent for wine wine cooler and hard liquor sales. The army a profit margin on the Sale of alcoholic beverages typically ranged Between 30 percent and 33 percent when it ran class i stores. Profit figures for air Force stores weren to available. Despite obvious Start up problems cafes retail director Dix said he believes there were some Bright spots in the first year of operations. Cafes increased the number of alcoholic beverage items class six keeps in Stock and attempted to save Money by consolidating stores he said. Cafes took Over 127 class six stores in March 1989, and it now operates Only 98. Two stores were closed and 27 others were merged with shop Pettes or Small base exchanges to save Money. Shirley Loewy the general manager of the european distribution area for cafes said additional savings should be realized in the year ahead because a longtime class i warehouse used by the air Force in England was closed this Spring. Its operations have been merged with a nearby cafes distribution Center. That will result in reduced personnel and transportation costs that could top $280,000, she said. Dix said store hours and Days of service were expanded at a number of class six outlets to make shopping More convenient. The same goal motivated cafes to place wine in shop Pettes and at some base and Post exchanges Dix said. That move did not really help wine sales however despite Exchange Hopes that it would let them capture sales previously lost to liquor stores and supermarkets outside the Gates of . Installations. Cafes Europe officials expect to have another difficult year with wine and hard liquor sales Over the next 12 months. Dix said he expects sales to be about the same As last year in terms of total dollars but he thinks unit sales of hard liquor will decline. A if we hold our own Well be doing Good a he said. Dix said the military program aimed at reducing service members drinking and individual customers concerns about their health Are working hand in Glove to Cut liquor managers claim major mistakes made by Randy Mcclain financial writer several class i store managers who worked for the army when the Exchange service assumed control of retail liquor operations said marketing mistakes poorly planned wine purchases and inaccurate deliveries Hurt their stores. A they went Way overboard on wine. They must have bought All the wine that France had to sell a said Ken Thomas who managed the store in Hanau West Germany until quitting last fall. Thomas and two other managers who recently left cafes said the Exchange service flooded their stores with european and other foreign wines priced Between $4 and $8, even though there was Little demand for the products. Most of the wines were reds even though recent consumer trends show White wines Are More popular with american drinkers the managers said. As a result red wine from France Portugal Chile and other countries piled up in class six storage rooms until managers were forced to Institute Steep discounts. Some stores were still attempting to unload wines for As Little As 95 cents a bottle late last month. A the wines were priced too High for our regular customers a Thomas said. A we did have a few Good bargains at $1.95, but people were a Little wary of the Don Mckenna who worked for cafes in Babenhausen West Germany said the class six store he managed also was flooded with unwanted wines. A i think cafes buyers were totally confused about what they had a he said. Another manager from West Germany who spoke on the condition that his name not be used said red wine from Chile priced near $6 a bottle sat for months without a single bottle Selling. A we give the stuff away a he said. Cafes executives at the Agency a european Headquarters in Munich West Germany acknowledged that they bought a lot of wines that did no to sell but they say the merchandise was procured in an attempt to boost Overall sales. A we Felt the class six stores greatest shortcoming was a limited availability of wines a said cafes Europe retail division chief Roger Dix. A we Felt a lot of people were going downtown to buy Dix said that Between september and november cafes bought More than 700,000 bottles of French portugese German italian Spanish and chilean wines with a value of almost $2.4 million. A we overbought a Dix said. A we bought More than the stores could he said a lot of red wine and dry White wines did no to sell very Well. A people prefer sweeter wines a he said. But Dix said cafes wont make the same mistake again. The three sex store managers said there also were problems with improper deliveries of merchandise to their stores for a number of weeks after cafes began running the class six outlets. A i once received some ladies skirts a couple of car radios and loudspeakers that should have gone to the base Exchange Thomas said. But Dix said misdirected deliveries and the accounting problems that resulted were Only minor headaches. . Army in Europe officials declined to comment on How Well cafes has handled military liquor store sales but the air forces top mar Boss. Col. Roy d. Sheetz of Randolph fab Texas gives the Exchange service pretty Good Marks. He said the Exchange service has provided Quality products at competitive prices. A a cafes managers have handled the transition Well thus far a he of Unity Bubble up at Kohl birthday Bash Bonn West Germany apr Chancellor Helmut Kohl celebrated his 60th birthday tuesday at an All Day Champagne Bash where friends and allies boosted his visions of becoming Leader of a United Germany. About 3,000 Well heeled guests a trom High ranking politicians to financial luminaries a jammed the Beetho Vonhalle concert House to Greet the portly Chancellor. Even some of Kohls staunchest opponents attended the party taking Adan Caf jabs Occas on set in some Politi i wish him Good health and an Early retirement a a Anke Fuchs a leading lawmaker with the opposition social demo Atic party said at the reception. T0 assess the Chancellor is. 5tra.tic Mer Hans Jochen germ i be 1s a High profile figure in who has certainly made in is v5 developments 0f the last sinn ars through failures and occasional eff a Chathas been the major Force behind unit a a Ward East and West German in a Asi year it. Kohl quickly Drew Clear of or nos Unity when it became Lution tier Germany a peaceful Revo Distant dream cation w3s a a l�n8er 3 Kohl s Unity plans received a boost on March 18 when a conservative East German Alliance he helped form won the most parliament seats in East Germany a first free elections. The social democrats have charged however that Kohl is More interested in getting his name in the history books than fostering East germans Well being. Kohl has denied the accusation but has made it Clear that he wants his Christian democratic Union to win the first elections for a United German government. Those will Likely occur late next year he says. At Kohls birthday party tuesday friends and allies from both sides of the German German Border lauded his efforts. A i Honor him a great Deal. I Hope he will also be Chancellor in the future a said Hans Wilhelm Eberling head of democratic Awakening one of three parties within the Alliance for Germany which won the East German elections. Lothar de Maiziere Leader of the Alliance for Germany and the East German Christian democratic Union Kohls sister party sent his Best wishes from East Berlin. De Maiziere said Kohl a is greatly responsible. For the current decisions for unification of our German the guests included Richard von Weizsacker West Germany a president. A band serenades Chancellor Helmut Kohl at his birthday party in Bonn on tuesday

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