In business since 1946, Supreme Beverage Co., Inc. has grown to become one of Alabama’s leading beer wholesalers handling 5.5 million cases and operating five warehouses across the North Central region of the state.

With that kind of history, the family-owned company must have a secret or two up its sleeve when it comes to becoming one of the best.

But the secret isn’t anything more than the company’s mission statement: “To be the best in providing quality products and quality service to our valued customers.”

Supreme Vice President/General Manager Michael Schilleci says, “I think once you do that you will satisfy all aspects (of the business).”

The mission statement was established with Schilleci’s grandfather, Joe Schilleci Sr., who founded the company more than 60 years ago. Now, the president of Supreme is Charles Schilleci, father to Michael, and the initial mission statement has remained the same.

It’s Supreme’s 270 or so employees—some of which have been with the wholesaler for more than 20 years—who help generate more than $80 million a year in company revenue, recounts Schilleci, and with the average case price at about $15, that requires a lot of manpower.

A Miller distributor, carrying just over 300 SKUs in import, craft, FMB, domestic and non-alcoholic beverages, Supreme’s footprint continues to grow. It consolidated Peroni into its system within the past few months, which Schilleci believes to be a promising venture. It also recently launched Leinenkugel Sunset Wheat and Miller Chill from Miller Brewing and Smithwicks’s Irish Ale from Diageo-Guinness in addition to several craft beers, including brands from Terrapin Beer Co. (Athens, GA) and Brooklyn Brewery products.

In 2003, Supreme passed the five million case mark and looks to exceed 400,000 cases of Red Bull yearly by the end of 2007. Last year, the company also invested in a separate sales staff for its Red Bull distribution.

But, Schilleci admits that Supreme isn’t the most technologically advanced distributor—over the past three years the company has gone from the ’70s to the ’90s, he says, in terms of IT upgrades.

But the company has moved to take advantage of some advances that can make day-to-day operations more efficient.
It centralized its corporate headquarters in Birmingham with its four other warehouses—Alexandria, Huntsville, Tuscaloosa and Muscle Shoals. By implementing autorouting software the company can route sales to the general ledger almost immediately, and provide its employees with more information of the street level, i.e., route book information and sales history, from all five locations. 

Over the past two years, Supreme has upgraded its cart delivery system and route accounting software to enhance its abilities within the market, enabling its sales people to have handheld computers dispensing valuable information on site at a retail establishment, explains Schilleci.

“We are not anywhere where we need to be,” he says. “(But) we are trying to do just about everything we can do to be more efficient and more economical from an operational standpoint.”

In an effort to work efficiently, Supreme adjusts its SKUs twice a year, Schilleci explains, adding that the company is more likely to hang on to a SKU longer than other wholesalers outside of Alabama because of state limitations—Alabama is the only state in the United States that has a limit on both the alcohol content of a beer (it can’t be more than 6 percent alcohol by volume for a malt beverage) and the package size (it can’t be served in a container more than 16 ounces, unless it’s a draft beer). The laws, however, do present a challenge. “We are limited in what we can do from an innovation standpoint to compete against wine and spirits,” says Schilleci.

Other challenges are trying to maintain and control costs when it comes to the execution of operational functions. With the cost of business increasing each day, says Schilleci, Supreme is looking to streamline its infrastructure through the possible consolidation of warehouses and evaluating how to better manage its territories. For example, in Huntsville, the company is experiencing a “huge amount of growth” already exceeding its warehouse capacity.

The company also is putting thought into how it is spending money on its fleet, which is comprised mostly of small-duty vehicles. It currently owns its fleet, but is moving towards leasing.

In the end, though, saving money isn’t all that puts a smile on Schilleci’s face. Knowing that he delivers a product he loves, does too. “What’s more fun than selling beer on a hot summer day? I just think there’s nothing like it,” he says.

VITAL STATS
SUPREME BEVERAGE CO., INC.
PRESIDENT: Charles Schilleci
HEADQUARTERS: Birmingham, AL
ANNUAL CO. REVENUE: $80 million
EMPLOYEES: About 270
GOALS: To be the best in providing quality products
and quality service to its valued customers.

From Beverage World July 15, 2007