Speaker 1: Oh Canada, Hero Donald crashing, the economic recession looming.
Speaker 2: What happens next? Watch what happens will happen right here.
Speaker 3: On fifty five KRC, the talkstation.
Speaker 4: At six fifty five air CD talk station lighting things
Speaker 4: up on a Wednesday, which is always a wonderful thing
Speaker 4: to do. We'll get We'll hear from Judge Anabolatan at
Speaker 4: the bottom of the r as we always do every
Speaker 4: Wednesday on the fifty five Krcy Warns Show. We will
Speaker 4: hear from Rebecca Cerndorff, Ohioans for Child Protections got a
Speaker 4: horrific story about a child molester who was a priest
Speaker 4: and he wants some lenien C now that he's getting
Speaker 4: out of prison. He doesn't want to register as a
Speaker 4: sex offender or something. So I got two words for him.
Speaker 4: And it ain't happy birthday as Dad used to say.
Speaker 4: But I am pleased to welcome back into the fifty
Speaker 4: five KRC Morning Show studios. Keegan Corcoran from Ignition Wines.
Speaker 4: He is a wholesale wine distributor. If you are a
Speaker 4: wine business and you want to buy, go to Keegan
Speaker 4: ignitionwines dot com. If you're a restaurant and you want
Speaker 4: to buy go to ignitionwines dot com. He is one
Speaker 4: of the high level samers on the planet. He's just
Speaker 4: one step below the highest tier you can get. Good
Speaker 4: to see again, Keegan, you brought a friend with you
Speaker 4: from Avenia Wines located in Washington State, Thomas Woodley. Thomas,
Speaker 4: this was really fun talking with you off Aaron, and
Speaker 4: I'm glad to have you in the studio today.
Speaker 5: Yeah, thanks for having me. It's always good to be
Speaker 5: back in Cincinnati.
Speaker 4: Now, if I was able to drink in studio, I
Speaker 4: would tell my listeners that you make a fantastic wine
Speaker 4: called Lydion, which is a white blend of Sauvignon blanc
Speaker 4: and semeon. Is that if I got that right? Yeah,
Speaker 4: got it right, But Chris, wonderful refreshing Again, if I
Speaker 4: could drink it, I would know that that is the
Speaker 4: case with the wine. But I'll have to wait till
Speaker 4: after the show's over to figure that out on my own.
Speaker 4: But we'll talk a little bit more about wine. But
Speaker 4: the reason we have Keegan and Thomas and studio is
Speaker 4: to talk about what is actually really far more complicated
Speaker 4: than I was boiling it down to the proposed tariffs
Speaker 4: on wines, imported wines. Now, Donald Trump announced at one
Speaker 4: point he was going to be a two hundred percent tariffs.
Speaker 4: Now was it on all imported wines Spain and you know,
Speaker 4: yeah from Okay? Correct, Yeah, European Union wine blanket tariff
Speaker 4: two hundred percent okay. And the motivation for that, as
Speaker 4: you explained to me, is their tariff on imported whiskey
Speaker 4: from America.
Speaker 1: Yeah, fifty percent I think was the retaliation for So
Speaker 1: it was kind of a response to that, particularly Bourbon,
Speaker 1: which you know, our proximity to Bourbon country is you know,
Speaker 1: we we don't want to feel the affects home too much.
Speaker 2: So I can understand a lot of people that can bourbon.
Speaker 4: To Americans and most notedly by friends of Kentucky, although
Speaker 4: I know you can make it elsewhere. That's like champagne,
Speaker 4: and the name champagne is to French. If it ain't
Speaker 4: grown in the Champagne region, it's not champagne to be bubbly,
Speaker 4: sparkling wine. But you can't call it champagne, can do.
Speaker 4: They even make bourbon in France, not in France. They
Speaker 4: make it in other parts of the United States. But no, no, no,
Speaker 4: I'm talking about they can't get our bourbon. They have
Speaker 4: been posed, correct, you eve imposed attacks on something that
Speaker 4: a lot of French people might want, but it comes
Speaker 4: at a much higher cost to the French people. It's
Speaker 4: deprived them of a very wonderful option in terms of
Speaker 4: spirit or of the gods man, of course, especially if
Speaker 4: you get the right kind of bourbon. I've become a
Speaker 4: Bourbon fan of the last several years. I was always
Speaker 4: Scotch McCallum, mcalum mcalumccowen. But any event, now Thomas and Keegan.
Speaker 4: My initial reaction was, well, if the tariffs go through
Speaker 4: right or wrong, and I'm not a tariff guy, but
Speaker 4: if it's fifty percent, I can at least arguably justify
Speaker 4: a fifty percent tax on the imported wines. Going to
Speaker 4: afrom with a sledgehammer and saying two hundred percent seems arbitrary,
Speaker 4: And of course it's a divisive thing, and it creates
Speaker 4: division between our country and the European Union.
Speaker 2: We can't we don't need any more of that given
Speaker 2: the current climate.
Speaker 4: But I thought, well, won't that be good for domestic
Speaker 4: wine producers such as yourself with a viney wines. But
Speaker 4: there's it's more complicated than that I found out. Thomas
Speaker 4: explained that it.
Speaker 5: Is a bit so so a pretty like US, which
Speaker 5: is a like I would say, you know, a mid
Speaker 5: cap producer in Washington State, we do about twelve thousand
Speaker 5: cases a year.
Speaker 2: Okay, give you give you.
Speaker 5: A ballpark of what that looks like at any one time.
Speaker 5: Back in the day, Chachel Sam Michelle, which is the
Speaker 5: biggest winery in Washington State has been for years, had
Speaker 5: a standing order where they had to have I think
Speaker 5: a million cases of Chardonnay ready to bottle at any
Speaker 5: given time.
Speaker 2: Holy cow.
Speaker 3: Yeah, So it's it's we're small.
Speaker 2: We're small, right.
Speaker 3: So the distributors that we deal.
Speaker 5: With in in in the in the US, we work
Speaker 5: with twenty three different distributors. After the repeal of Prohibition
Speaker 5: three cheer system came out Nickel Tour is that if
Speaker 5: you do any interstate business, you have to appoint a
Speaker 5: distributor within that state to carry your wines if you're
Speaker 5: not from that state. Okay, So legally I can distribute
Speaker 5: my own wine within Washington State. We happen to have
Speaker 5: a distributor, but there's no law preventing me from just
Speaker 5: doing direct any distributor that I deal with, I'm trying
Speaker 5: to think if there's any that don't have some sort
Speaker 5: of import exposure.
Speaker 3: Basically all of them.
Speaker 4: Do, right, Because so if you're like keyan ignitionwines dot com,
Speaker 4: you're buying wines from Washington State, you know, from California,
Speaker 4: but you're also buying them from South America or Spain
Speaker 4: or Portugal or France, Italy. Correct, So their bottom line
Speaker 4: is impacted because of these tariffs. Now they may have
Speaker 4: a huge selection offerings of domestic wine, but their business
Speaker 4: is contingent also upon import of wines.
Speaker 5: Yeah, and the health of their businesses. Right, So if
Speaker 5: the tariffs, the first blush is that the I guess
Speaker 5: the knee jerk reaction to the two hundred percent tariffs
Speaker 5: is like, well, this is going to benefit domestic wine,
Speaker 5: and maybe in the short term it would. We're starting
Speaker 5: to see bits of pickup where distributors that have significant
Speaker 5: import exposure, which is kind of what it is at
Speaker 5: this point, have started to beef up.
Speaker 3: On their inventories of domestic wine.
Speaker 2: But the problem is for the loading up in advance
Speaker 2: of the terror, loading up in advance.
Speaker 5: Doing it cautiously and doing it mindfully, but that But
Speaker 5: what ends up happening is is all that that money
Speaker 5: that's going to eventually pay me is gonna is gonna
Speaker 5: dwindle because it's reliant upon import wines. So all the
Speaker 5: money comes out of the same, the same bowl I
Speaker 5: get you. So and if there's not money in that bowl,
Speaker 5: then they can't buy my wine. So they need they
Speaker 5: need the import business as a measure of keeping their
Speaker 5: lights on and doing and doing, you know, keeping their
Speaker 5: revenues where they need to be in order to be
Speaker 5: a properly functioning company.
Speaker 4: In terms of business operation. Now there's a little wine
Speaker 4: store up the street from us. I like to support them.
Speaker 4: The tough couple of terrific guys run and they're always
Speaker 4: making great selections and great recommendations. They do not raise
Speaker 4: the price of the wine they've already acquired if the
Speaker 4: new acquisition cost has gone up. So if my favorite wine, Dulce,
Speaker 4: at one point it was still sitting on the shelves
Speaker 4: at seventy five dollars for the three hundred and fifty
Speaker 4: millli liter bottle, and I had seen it at other
Speaker 4: stores for one hundred and ten or twenty. The price
Speaker 4: has gone up, sure, And I asked them about that.
Speaker 4: I said, well, you aren't jacking the price up on
Speaker 4: that adults. She said, no, we got it at a
Speaker 4: certain cost, and we have our margins and we're happy
Speaker 4: to just let it go until it's sold. And when
Speaker 4: we buy new wine, we'll have to raise the price
Speaker 4: because we have new acquisition costs. Is that typically what
Speaker 4: most wholesalers or but most retailers do.
Speaker 3: Yeah, So it would start with the winery.
Speaker 5: So on this what we call the supplier side, which
Speaker 5: is any winery supplying a distributor who eventually sells the
Speaker 5: product to restaurants or bottle shops or whatever.
Speaker 3: You establish a price with with a given vintage.
Speaker 5: So, for example, the one of the wines that we're
Speaker 5: tasting today is the twenty twenty.
Speaker 2: Three Spo theoretically tasting.
Speaker 5: Theoretically tasting, yeah, sniffing well, hypothetically tasting at the end
Speaker 5: of the show, whenever you want to do it.
Speaker 3: We set the price.
Speaker 5: We set the price every year to our distributors, and
Speaker 5: we say this is going to cost you this much
Speaker 5: a case.
Speaker 2: It generally isn't a.
Speaker 3: Great idea to jerk around your prices.
Speaker 5: Kind of figure out your cost of good sold on
Speaker 5: the winery level, and you say, okay, let's hold this price.
Speaker 5: But when there would be a price change would be
Speaker 5: a new vintage follows. So sure, with the twenty twenty four,
Speaker 5: let's say that fruit costs more or whatever, the price
Speaker 5: might go up modestly, but generally you try to really
Speaker 5: avoid large swings in prices to your wholesalers because that
Speaker 5: puts them in a bad spot and it kind of
Speaker 5: makes the winery look greedy.
Speaker 3: So avoid that.
Speaker 1: And there's an issue right now what they say they
Speaker 1: call the premium these premiumization of wine right now, where
Speaker 1: a lot of these wineries, particularly some of the higher ends,
Speaker 1: more classic producers and whatnot, they're prices of skyrocketed, increased exponentially, and.
Speaker 4: Just because of the name and the quality. Yeah, it's
Speaker 4: just an interesting trend. I mean, there's multiple factors as
Speaker 4: to like why that's happening. But then we're seeing a
Speaker 4: die off on some of the sub ten dollars you know,
Speaker 4: cost bottles a lot, and so like it's actually a
Speaker 4: little bit better because it's driving the consumer to you know,
Speaker 4: the more you know, ten to twenty dollars bottle of
Speaker 4: wines or twenty to thirty bottle, you know, dollar bottle
Speaker 4: of wines.
Speaker 2: So in some respects that good. That's good.
Speaker 1: But for you know, for your case, for Dulce Man,
Speaker 1: that's uh oh, it's insane.
Speaker 2: Yeah, well that that's why the bottle.
Speaker 4: I got two bottles, and I know where I got them,
Speaker 4: and there's still a land on their side. I haven't
Speaker 4: opened them because it's got to be a damn special
Speaker 4: occasion for me to crack a bottle of north of
Speaker 4: one hundred dollars bottle, a hundred doll of wine. Sure,
Speaker 4: I still have that the gift that I got that
Speaker 4: chateau moved on Rothschild. Oh yeah, it was a gift
Speaker 4: from a deer, a very very nice lady, Linda. Thank
Speaker 4: you so much for that. But you know, I'm gonna
Speaker 4: need something, uber outrageously a special occasion to open that thing,
Speaker 4: because I found out how much that bottle's worth, Lord Almighty.
Speaker 4: And see I'm not even a cab guy that much.
Speaker 4: So anyhow, we'll pause, we'll bring it back. We'll talk
Speaker 4: a little bit more about tariffs and the realities. Though
Speaker 4: it's eight sixteen right now. If you have Karcity Talk station,
Speaker 4: don't go.
Speaker 1: This is fifty five KRC and iHeartRadio station Andy.
Speaker 4: Andy, Hi, there's your nine first forecast. Channel Line says
Speaker 4: today a sun and cloud mix with the little spotty
Speaker 4: rain possible fifty two for the high down to thirty
Speaker 4: five overnight, maybe patsy frost, clear skies. Game day four ten,
Speaker 4: first pitch, We're gonna have clouds increasing throughout the day,
Speaker 4: maybe a little scattered rain showing up around two, high
Speaker 4: a fifty eight, and then around eight there's gonna be
Speaker 4: steady rain showing up in the area, which is supposed
Speaker 4: to last overnight. Lee says what the forecast says over
Speaker 4: night forty nine, start with rain tomorrow morning and or
Speaker 4: Friday morning. We'll go up to seventy seven thirty five degrees.
Speaker 4: Right now, it's time for a traffic update.
Speaker 2: Chuck from the.
Speaker 6: UC up Triumphon Center. For National Doctors Day, we honor
Speaker 6: the UC health physicians who are leading breakthroughs for better
Speaker 6: Tomorrow's learn more at you see how dot com North
Speaker 6: Bend seventy five continues to run over a fifteen minute
Speaker 6: delay between Burlington Piking Downtown in Bend seventy four slows
Speaker 6: to Montana found four seventy one break mites off and
Speaker 6: on after you get pastscranmed and slow traffic. E's found
Speaker 6: two seventy five between Coleraine and Hamilton Avenue into the fog.
Speaker 6: Chuck Ingram on fifty five Tara scene the talk station.
Speaker 4: Because he just got popped for I know, say eight
Speaker 4: nineteen fifty about here see talk station talking off air,
Speaker 4: talking on air, talking with Thomas Woodley.
Speaker 2: From Avennio Wines.
Speaker 4: They make an outstanding wine at Washington State and we've
Speaker 4: got them in studio along with Keegan Corcoran from Ignition Wines,
Speaker 4: the wholesale distributor of wines, including of Vennyo Wines. Because
Speaker 4: we're talking tariffs now, this this creates some some logistical
Speaker 4: business issues for the the the purchasers the acquired the whole,
Speaker 4: the distributors of wine because now they got to pay.
Speaker 4: The crapshoot game of wondering whether Donald Trump's really going
Speaker 4: to actually implement it or this is just one of those.
Speaker 4: We need to get the French to fill in the blank.
Speaker 4: We need to get the Italians of the European Union
Speaker 4: generally speaking, to do something we want, like get rid
Speaker 4: of the whiskey tariff or maybe go ahead and take
Speaker 4: over the fighting in Ukraine. I don't know, but if
Speaker 4: he gets something that will justify him taking this threat
Speaker 4: off the books, that doesn't unring the bell that many
Speaker 4: distributors have already rung by acquiring a bunch of soon
Speaker 4: to be more expensive imported wines. Correct, they sink a
Speaker 4: lot of money into this, they.
Speaker 1: Certainly do, And there's some distributors that have even gone
Speaker 1: so far as to stock up on two years worth
Speaker 1: of supply in anticipation of this. I think a lot
Speaker 1: of us are hoping that, you know, the tariffs and
Speaker 1: the threats thereof are just a device, as we were
Speaker 1: talking about a second ago of hopefully bringing somebody to
Speaker 1: the negotiation table and or you know, resending previously levied tariffs.
Speaker 1: But that said, you still have a lot of people
Speaker 1: that are tying up their capital so they have less
Speaker 1: operating money to work off here in the United States.
Speaker 1: And the way it works typically is, or not typically
Speaker 1: how it works is you know, for for me, I
Speaker 1: have standing orders in Italy, Spain and France that are
Speaker 1: on indefinite hold that that means you paid for it already,
Speaker 1: not yet, okay, but you got I served ten cases
Speaker 1: of UFKLCO and it's they've they've allocated you that you
Speaker 1: just need to buy it and pick it up. And
Speaker 1: that's the problem, correct, Yeah, but you don't know when
Speaker 1: the tariff's going to kick in. Right, So if if
Speaker 1: I were to place that order, i'd pay for it.
Speaker 1: It would be shipped, and let's say, you know, but
Speaker 1: I'm avoiding that or trying to avoid having that wine
Speaker 1: be you know, on a shipping on a vessel in
Speaker 1: the Atlantic, and then these tariffs hit and then once
Speaker 1: it lands the United States, I have to pay two
Speaker 1: hundred percent to the General Fund for the Treasury effectively
Speaker 1: of the United States, just to get my own property back.
Speaker 4: Okay, So it's like a flight to uh to to
Speaker 4: take illegal immigrants out of the country, and it's already
Speaker 4: on the way and you can't turn it. You can't
Speaker 4: turn it around. Now, you can't turn it around. I'm
Speaker 4: just trying to draw humorous parallel if what Trump did. Yeah,
Speaker 4: it's too late to turn it around in spite of
Speaker 4: the court order. So well, right, that means when it
Speaker 4: lands on our shore, you're gonna have to pay the
Speaker 4: two hundred percent TERRIFFRCT but maybe not because you don't
Speaker 4: know the specifics of how that's going to work. There's
Speaker 4: a whole lot of uncertainty built into this, right.
Speaker 1: Which, as we all know, you know, uncertainty is never
Speaker 1: a good word that this operations with. You know, it's
Speaker 1: like and and and one of my favorite you know sayings,
Speaker 1: and I guess adages, you know, hope is not a plan.
Speaker 1: So it's it's so I can't I can't be like, well,
Speaker 1: you know, I'm gonna place this order and hope that
Speaker 1: this doesn't go through. And and and there's a lot
Speaker 1: of a lot of other distributors that are in the
Speaker 1: same mind frame that it's like, okay, we we can't
Speaker 1: take you know, this gargantuan risk of putting all this money,
Speaker 1: some of which I mean and in the wine game,
Speaker 1: I mean it sounds glamorous. And and even on the
Speaker 1: restaurant side too, you know, it's it's it's the profit
Speaker 1: margins are are not as grand as a lot of
Speaker 1: people think. So so just like with any business of
Speaker 1: any size, you have to, you know, stay on top
Speaker 1: of your your working capital. You have to stay on
Speaker 1: top of all of your expenses to make sure that
Speaker 1: you can keep the lights on and the the particularly
Speaker 1: European wines of the world are a big part of
Speaker 1: a lot of distributors portfolios that allow them access to,
Speaker 1: you know, other restaurants and other bars and whatnot.
Speaker 2: See.
Speaker 4: And that's the business element that that's very complicating to
Speaker 4: someone who doesn't is engaged in it. If you want
Speaker 4: to get into a relationship, a long standing relationship with
Speaker 4: say a Jeff Ruby's where you used to be the
Speaker 4: prosoma for more than a decade, you could better have
Speaker 4: a good broad availability. You better have French wines, you
Speaker 4: better have Spanish wines, you better have South America or
Speaker 4: Australian wines.
Speaker 2: You got to have it all, yep.
Speaker 5: Yeah, now, And in to Keegan's point, you know that
Speaker 5: at the end of the day, with with whether the
Speaker 5: teriffs come through or not, and certainty, it certainly affects
Speaker 5: the wholesaler business. But we're we're really, we're the rubber
Speaker 5: really meets the road is in terms of what consumers
Speaker 5: have available to them, right, yeah, and and and and
Speaker 5: whether you for domestic wines to import wines. The whole
Speaker 5: swath is healthier when there's certainty and tariffs are fine,
Speaker 5: you know, but it would be, but it benefits. The
Speaker 5: ultimate beneficiary to having a healthy wine market is the
Speaker 5: end consumer. Yeah, because prices stay down, choice stays up,
Speaker 5: and the playing field is as even as it can be.
Speaker 4: Yeah, and that's what we're all I think hoping for,
Speaker 4: is just even the playing field. You know why in
Speaker 4: the hell? For examples, British Columbia have been imposing a
Speaker 4: heavy levey on domestically produced wines. Well because British Columbia
Speaker 4: has its own vennors, its own wineries, and they're trying
Speaker 4: to protect that turf to the detriment of the British
Speaker 4: Columbians who are deprived of choices of wines because they're
Speaker 4: so damn expensive getting them in from the United States.
Speaker 4: So it's just bad for everybody.
Speaker 2: Guys.
Speaker 4: It has been wonderful Thomas Woodley from of any of wines,
Speaker 4: which also makes another I hear outstanding wins, which is
Speaker 4: the Columbia Valley rose a blend. Let's keep I can
Speaker 4: get this right. Seventy five percent and twenty five percent.
Speaker 4: I learned a new word today.
Speaker 5: Nice well moved. Yeah, I mean that's the American Washingtonian
Speaker 5: slang for maved. But yeah, both Grenache and maved are
Speaker 5: traditional ritals grown from the southern.
Speaker 3: Rhwan region in France.
Speaker 5: But we really and and a lot of times they're
Speaker 5: both used for still red wines and for rose. We
Speaker 5: love we we vinify this. H we make a I
Speaker 5: should say, a still red wine version of grenash. We
Speaker 5: work with some grenache, but it's terrific for rose. Its
Speaker 5: pizza too, yeah, it is.
Speaker 2: You know what.
Speaker 4: A shout out to Wayfarer Tavern. Keegan brought me a
Speaker 4: Wayfairer Tavern pizza and it is awesome. Gentlemen, It's been
Speaker 4: a really fun conversation today, Thomas, A pleasure to meet you.
Speaker 4: Congratulations on the success for your winery. Again, I'd look
Speaker 4: forward out there of any wines wholesale distributed by Ignition Wines,
Speaker 4: which you can find a lot of ignition wise dot com.
Speaker 4: You get free clogs for you, Keegan, my dear friend.
Speaker 4: You know I love you and I love your mom,
Speaker 4: Claenn hang out.
Speaker 2: You know your mom and.
Speaker 4: Dad, Clara and Jeff. You guys out there, Uh good.
Speaker 4: I can't thank you enough for bringing Keegan into this world.
Speaker 4: It's been a great time. I look forward to having
Speaker 4: you in again. And you know Thomas. If you're ever
Speaker 4: in the area, you're always welcome to come on in
Speaker 4: and talk wine during the morning.
Speaker 3: Sure, I appreciate it.
Speaker 2: Thanks for having me, folks.
Speaker 4: It is Wednesday, Judge Enda Polaitano waiting in the wings.
Speaker 4: Today we're talking history of free speech, going back to
Speaker 4: the very important Brandenburg case. You might not want to
Speaker 4: hear it, but you're allowed to say it.
Speaker 2: Judge Enda Polaitano up next, fifty five KR