How Total Wine & More Became The Largest U.S. Wine Retailer (2024)

Robert Trone and his brother, David, grew up working on a farm in Pennsylvania tending 50,000 chickens and 600 pigs. Their parents also owned a small gas station that sold beer. When the farm went bankrupt, all they were left with was the gas station.

From that one small gas station, the brothers grew the business into a national empire which they named Total Wine & More. Today, they have 263 superstores and have recently become the largest alcohol retailer in the U.S., with revenues of $6 billion in 2023, surpassing Costco and Safeway/Albertsons in wine and spirits sales.

The big question is how did they manage to do this?

“The answer is relatively simple: when we open a store we do not open another one until the first becomes profitable….and we’ve never closed a store,” reported Robert Trone, co-owner of Total Wine & More, in a recent Zoom interview.

So what’s behind the profitability equation? It is an unrelenting focus on the customer, a strong investment in employees, and a very savvy business background that the brothers developed working their way through college.

“David got an MBA in Marketing from Wharton, and I studied law at University of Pennsylvania,” said Robert (who holds a Juris Doctor). “In this business, with so many diverse customers, intense competition, and different alcohol laws for each state, it is helpful to have both.”

This is definitely true, with many experts comparing the different alcohol advertising, distribution, and sales laws in the 50 states akin to selling alcohol in 50 unique countries. Today, Total Wine & More has stores in 28 states, with hopes to expand to others.

But why the name, Total Wine & More? “When we first started the business in 1991, there weren’t that many spirits yet, and we thought we could distinguish ourselves in the wine category. So we learned about wine and developed a passion for it. We saw how wine can add so much to social occasions,” reported Robert.

Total Wine & More Has Relentless Focus On Consumers

So how does Total Wine & More tap into the needs of wine consumers?

“We have a large selection, with over 8000 wines from around the world,” stated Robert. “And we organize our stores to be consumer friendly by putting the same varietals together, because the first wine shopping decision is varietal. We also separate New and Old world wines, so it is easier for consumers to shop.” (They also have over 2500 craft beers and 5000 spirits selections.)

The opportunity to taste the wine is also useful to consumers, because it helps them to make decisions on which wine to purchase. “We believe that consumers like tasting, so we offer it in every store where it is legal (not all states allow in-store tastings).”

But probably the most consumer friendly attraction is the low pricing. “We have the lowest prices on wine and other alcohol in each market, and we price shop other retailers, such as Costco, to make sure we have the lowest prices,” reported Robert.

But after entering the large and impressive Total Wine & More superstores with their brightly colored displays, well-lit and organized aisles, and friendly smiling employees everywhere, it is difficult for consumers to believe that such a fancy place has the lowest prices.

“In a way, it is a disadvantage to have pretty stores, because everyone assumes we are more expensive,” said Robert wryly.

Another unique aspect, which is currently rather rare in most wine stores, is the very sophisticated app, website, delivery service, and loyalty point program Total Wine & More implemented during the pandemic.

“Before Covid we were only doing 2% of our business digitally, but now it is 20%,” Robert explained.

They invested heavily in technology that assists customers in buying wine, and it appears to be paying off. Especially useful is the Total Wine & More app, which allows consumers to type in the name or style of a wine they are seeking, and the app directs them to the correct aisle and bin. Or customers can elect to pick-up their order at a drive-up location in front of the store, or to have it delivered to the home.

“We plan to open 15 to 20 new stores every year, and we look for specific neighborhoods in which to do this,” Robert continued. This includes locations where there is a density of higher income consumers, where people want a large selection of wines, and enjoy good customer service. “We are following more of a Whole Foods strategy, with real estate, but we have low prices,” Robert explained.

“In the end our strategy comes down to offering consumers a great selection, with the lowest prices within that market, and knowledgeable people to serve them.”

Investing In Employees At Total Wine & More

One interesting aspect of my interview with Robert was learning how much time and training they put into employee development at Total Wine & More.

“About ten years into starting the business, David and I realized that in order to move forward and expand that we needed to develop a great team,” reported Robert. “Many entrepreneurs don’t do that.”

So they hired an outside CEO, Troy Rice, and implemented a training program with career pathing. They pay new hires a little higher than the local market, promote internally, and invite new hires to go on trips to meet with winery owners where they get to taste wine.

“We invest in training, grow our people, and make this a fun place to work. An entry-level floor employee has the opportunity to move into a supervisor role and eventually manage their own store. Some retailers used to offer this to employees, but many have stopped,” said Robert.

Today they employ more than 11,000 people, including 427 wine experts. Robert stressed that one area of training that was very important was teaching employees about the legal and compliance regulations in each state. “We are 100% compliant, and everyone receives training on never selling alcohol to a minor or intoxicated person.”

They have a very active social responsibility program, and have given more than $300 million of in-kind and monetary donations to charities. They also celebrate BIPOC and LBGQT entrepreneurs, by creating special end-cap selections within their stores to highlight them. An example is the current promotion of Black Trailblazers who make wine or spirits, as part of honoring Black History Month (see photo below).

Building Positive Relationships with Suppliers

As a wine and alcohol retailer, thousands of small family businesses around the world compete to sell their wine, spirits, or beer to a large U.S. based retailer like Total Wine & More. This can be challenging for a retailer, because they are frequently in the position of having to say, ‘no.’

At Total Wine & More they face the same challenge, but have set up a system where they buy some wine directly from wineries where legal, and also purchase through distributors and importers. Because of this, they have a large ‘Direct from Winery’ program, where they can negotiate lower prices for consumers.

Also, unlike other larger retailers, they have not developed their own store brand – referred to as private labels.

“We don’t want to do private labels. Instead, we believe in working with small family producers to market their products to our consumers. We want this to be a win-win,” stated Robert.

Robert Trone on Trends and Advice to the Wine Industry

When asked about future trends and advice to the wine industry, Robert had some stern news: “Alcohol is down and facing a tough road for the next 20 years or so. Wine volume is down 7%, spirits is flat, and beer is down 4% this past year. We need to focus on how to better connect with our customers,” he said.

He cited trends such as younger consumers drinking less alcohol in general as part of a health and moderation movement, while older consumers are moving towards wellness.

He cautioned that some wineries are raising prices, but not raising quality or doing something to improve, and that this will hurt them. “Spirits has innovated faster than wine – especially over the last 5 years. Spirits has new flavor profiles, new packaging, and new ways to use the product. Wine is hampered by tradition.”

Some of the wine varietals and regions that are selling well in their stores are cabernet sauvignon, sauvignon blanc, Bordeaux, Burgundy and French Champagne.

He also added that non-alcoholic beer, wine and spirits have been increasing about 30% year over year, although on a small base. “We expect this category to continue to grow at this rate in the upcoming year,” he stated.

His final advice to wine producers is to “get close to the customer, enhance your direct to consumer sales from the winery, build relationships with small wholesalers, and get some traction.”

What’s Next for Total Wine & More?

Despite Robert’s negative outlook on alcohol sales growth in the future, he was still surprisingly positive about the future of Total Wine & More.

“We are here for the long term. We will continue to focus on the consumer, and improve service and selection. We are private, and the family ownership of Total Wine & More will remain in place moving forward,” he stated.

In the spirit of continuous improvement, they have recently introduced a concierge program, where Total Wine & More can help consumers plan a wine cellar, a wedding event, or large party/office event. “It is what Neiman Marcus offers its best customers, or similar to the Pro Shop at the Home Depot,” he said.

“In the end, we believe we can make people feel comfortable about spending more on a better bottle of wine or spirits. People are OK spending more money for premium products to enjoy their lives better,” Robert concluded.

And if they are not, Total Wine & More also offers a large selection of affordable priced wines, starting as low as $4.99 in some markets.

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