Tucker Herndon Featured in Beverage Dynamics on Amazon's Whole Foods Purchase

Firm News

In an article published on July 19, 2017 in Beverage Dynamics, Tucker Herndon provides insight on the Amazon / Whole Foods merger and what to expect in the future when it comes to alcohol retail. Herndon predicts that Amazon will begin putting emphasis on alcohol distribution, telling the publication, "Now that Amazon has the logistics in place with a system of chain grocery stores in multiple states, I think you will see them move towards the ability to sell and distribute alcohol straight to the consumer." However, there is still a legal issue regarding the ability for grocers to sell high-ABV beverages, resulting in lobbying efforts from major players like Amazon and Wal-Mart. "They'll argue that if retail alcohol stores have the ability to carry high-gravity alcohol, then why shouldn't grocery stores," Herndon remarked. There are many arguments surrounding direct distribution and the point-of-sale (POS) requirement, which he believes "Any big company with the logistics like Amazon should have a turnkey operation to deliver alcohol directly to the consumer." Herndon also urges stores and small business to invest in app technology: "The cost of technology is significant, but yearly returns become much higher once the product catches on," Herndon said, reminding businesses it's crucial to learn how to market their product. Through partnering with Whole Foods, Amazon acquired the foundation to run all of its delivery services much, much quicker in metropolitan markets.

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