Cutting Edge Selections Featured in the Wall Street Journal

In the recent Wall Street Journal Article “Battered U.S. Wine Importers Brace for Higher Tariffs,” journalist Josh Zumbrun discusses the challenges facing wine companies due to existing and potential tariffs on wine.

The piece featured a lengthy interview with Eric Faber, COO of Cutting Edge Selections.

Take Eric Faber, the chief executive of Cutting Edge Selections, a Cincinnati, Ohio-based wine distributor. Ohio laws require a markup of at least 25% between wholesaler and retailer and an additional 33% between retailer and customer. That means he can’t absorb the increased cost from the tariff.

“We saw a slowdown in sales for virtually every item that took a price increase,” said Mr. Faber. Even before the pandemic hit, Mr. Faber estimates he lost between 8% and 13% of his sales.

During the pandemic, Mr. Faber took a loan from the Payroll Protection Program so that he wouldn’t have to lay off workers. But the salesmen in his business work on commission and the sales environment is difficult. 

“There’s absolutely no reason to drag in small businesses, particularly in the United States, because of a dispute between two of the largest aircraft companies in the world,” Mr. Faber said.

To read the full article (paywall) click here.