Daring Confessions (Bend To My Will #10) (7 page)

Chapter 8

After the long holiday, Jacob returned to the office. The first thing he saw was Meg’s cheerful face. “Did you have a good Thanksgiving?” she said.

“Yes, it was very nice. How about you?”

“I introduced my new boyfriend to my parents.” Meg looked very pleased.

“I didn’t know you had a new boyfriend.” Jacob couldn’t keep up with all of these things.

Meg frowned. “I told you about him. Kristoph, he’s a painter.”

“Hmm, have I seen his work?”

“No, not that kind of painter,” Meg said. “He’s not a starving artist, if that’s what you’re thinking.”

“He could be the great-great-grandson of Van Gogh, for all I know.”

Meg laughed. “Not hardly. He has his own company, and they paint interiors. It’s a big deal. There’s lots of redecorating going on in this city. He does some multimillion-dollar homes, so if you ever want to update yours…”

Jacob smiled. “I’ll keep that in mind.”

The rest of his day wasn’t quite as entertaining. Jacob met with his managers on some ongoing matters, then he got a call from Walsh. “Trouble from Kenyon,” was all he said. Jacob went down to his office, where his investigator had his computer, in case he needed to access any information.

Stephen Walsh was the consummate professional. He dressed in t-shirts and cargo pants, as he didn’t have a need to see the public. But when it came to the computer and investigative resources, he was brilliant.

Jacob sat in the chair across from him. “At least he’s showing his hand. What’s he up to?”

Walsh leaned on the desk. “As you know, we work in a highly regulated market.”

Jacob knew that the New York State Liquor Authority was run by chairman Dennis Rosen, who ensured the state regulations were strictly followed. He had been quick to impose hefty fines on wholesalers and retailers for any violation.

“We’re very careful about all that,” Jacob said. “So, what’s the problem?”

“Before the new regulations were enacted, it was standard practice for wholesalers like us to offer discounted wines or rare wines to retailers who were loyal customers,” Walsh said. “The new rules forbid those kinds of favors.”

“Which is why we now post prices with the state in advance of all sales,” Jacob said. “That way all retailers have access to discounted or limited-availability wines.”

Walsh gave him a knowing look. “Well, it seems clear enough. But Kenyon has found a way to create problems for all of us.”

“The guy is a pest. What’s he doing now?”

“Let me preface by saying that the rules get to the point of ridiculous.” Walsh looked disgusted. “Say we have a client who wants ten cases of a special Chardonnay for a wedding in two weeks. We have to tell him we’re sorry that he cannot get the cases in time, because many states are limiting how much of that particular Chardonnay he can purchase.”

Jacob was aware of the guidelines, yet applying them so tightly could ruin the industry. “The authorities try to dictate too much of what goes on, which puts a crimp in the free market.”

“True, and it’s to the point that the importers are afraid of Rosen and his heavy hand. I mean, how do you not allow beer and wine in the same warehouse? They are both
alcohol
.”

“There’s no logic to it.”

“But here’s the thing: a very minor infraction can be heavily fined. And it has been.” Walsh threw up his hands. “One the larger importers was fined for having a can of beer in his wine storage unit. And it was a significant fine.”

“That’s vindictive.”

“Exactly,” Walsh said. “If you cross Rosen, he can come back at you with fines that can put you out of business…if he wants to take it that far.”

“Some say these new rules are threatening to drive business out of the state,” Jacob said.

“It has created a culture of fear; the licensees are hesitant to speak out for fear of retribution. It’s easy to feel panic-stricken about doing anything, but follow some very difficult to understand and implement regulations.”

Jacob nodded. “It’s like Big Brother is watching you. And everyone is afraid to talk, because then the regulatory body will watch you like a hawk, and for every little infraction, they’ll nab you.”

Walsh narrowed his eyes. “There is one person who is
not
afraid to talk.”

“Let me guess. Daniel Kenyon.”

“That is what he’s doing…talking,” Walsh said. “He’s in this with the rest of us. But he has seen fit to report infractions by other importers, usually minor stuff. Yet it does result in some serious fines, and it brings down the wrath of the state on his fellow importers. I believe he intends to see his competition fined and regulated out of business.”

“The man has delusions of grandeur,” Jacob said. “He is cozying up to Rosen by reporting the violations of others. So I suppose he thinks that Williamson Imports will be immune, that the chairman will favor him.”

“I wouldn’t be surprised.”

Jacob shook his head. “Kenyon is annoying, and he wouldn’t be worth bothering about, but his petty jealousy compels him to act negligently. It will end up doing damage.”

“There haven’t been any reports filed on Rinaldi Imports yet,” Walsh said. “But I’m sure Kenyon is burning the midnight oil to find something on us.”

Jacob pondered the situation. “This is disconcerting. I studied the reports you’ve been sending. Daniel Kenyon was disowned by his own father for delinquent behavior. The details made for quite interesting reading.”

“Not a guy you want as a
friend
.”

“Then when his mother remarried, the man wasn’t really accepted by Sam. I know he gave him a job out of consideration for his wife, not because he thinks much of his stepson.” Jacob paused.

“The way I see it, Kenyon gets no respect, and now he’s out to make a place for himself. He has an overblown ego, and thinks more of himself than the facts dictate, or circumstances warrant,” Jacob said. “I’m guessing he is a bit paranoid, and feels like he’s been done in, when he is really his own worst enemy.”

“And while he’s pointing the finger at the rest of us, it only makes me wonder if he has something to hide,” Walsh said.

“I’m sure he does,” Jacob said. “The question is: what is it?” He sighed. “Okay, I’ll get with my team and hash this out. It’s not enough to take measures to ensure we don’t commit even the most minor infractions, because that is just a defensive strategy.”

Jacob stood up. “We also need to go on the offensive, and knock Kenyon off his game. He’s not the tough guy he wants us all to believe. We just need to find his Achilles heel.”

When Jacob left, he returned to his office and organized a meeting with his team. He met them in the conference room. He invited his president, the general manager, and his tech division supervisor, as they comprised senior management.

Zack, Grayson, and Trace sat around the table, notepads handy and phones off. “I called this meeting to go over a new development, because I think there is the possibility that it will affect business,” Jacob said. He proceeded to fill them in, then asked for Grayson’s assurance that the state regulations would be followed to the letter.

“And you, Zack, I’d like your input. What do you see in all of this?”

His president drummed his fingers on the table. “I don’t like it. The state regulatory system is unfair, and it puts us at a disadvantage.” He furrowed his brow. “I’m thinking we need to join forces with the other importers—a show of strength, so to speak.”

“I agree,” Jacob said. “And here are some of my initial thoughts. The chairman is spearheading a crackdown on interstate retailer shipping, as well as scouting for other offenses. Since it’s illegal for a New York resident to order wine directly from an out-of-state retailer, he patrols that.”

Jacob had their attention. “But New York retailers may legally sell wine to customers
in other states
that allow such sales.”

Trace joined in. “Yet many states have liquor control boards that forbid or restrict retailers from offering any wine, except for what the state brings in. It’s a pain for the consumer.”

Jacob had an idea that he thought might actually work. “That brings me to a way to use all of that to our advantage, as well as to assist our allies in the industry.”

“What do you have in mind?” Trace said.

The strategy had already worked in Vivienne’s perfume business. Selling online had become a bigger deal, and he’d seen the expansion that could result from it. Now that Jacob’s staff was involved in managing Vee’s Scents, it was clear what a huge market there was for online purchases.

“Buying wine online has become a huge industry,” Jacob said. “While several states do not allow direct shipping, many do. Selling over the internet has the potential of providing the consumer with greater access to wines at lower prices.”

“I can envision Rinaldi setting up wholesale purchasing online. I could oversee the technology aspects, set up the website structure, and run the back office stuff,” Trace said.

“That’s one of the reasons I wanted you at this meeting,” Jacob said. “To embark on a venture driven by technology on such a large scale, I’d have to open up a new division. I’d need you to supervise that.”

Trace nodded. “Sure, I’m up for it.”

“This is very timely,” Jacob said. “Actually, I’ve been looking into the industry statistics on all of this. There is a growing trend for independent importers to create their own online merchant sites to sell direct to customers.”

Jacob looked at Zach. “For an importer like us, such an operation requires several sub-licenses that pay taxes for every step of the process, from obtaining wine from the grape growers, importing the product, selling, and the eventual shipment to the customer or retailer.”

Zach made notes. “I can handle that.”

“The upside is that our overall costs and margins will be lower, a savings we can pass along to the end consumer. That means lower retail prices,” Jacob said. “I have a hunch this is going to be very popular.”

“And how does that work against Kenyon?”

“Good question, Grayson. I was getting to that,” Jacob said. “While Kenyon is busy making enemies of the other importers, we’ll be making friends. I’d like to create an alliance, a group that supports these efforts. As long as Kenyon is calling the shots at Williamson, we’re forced to cut them out of the action.”

“That makes sense,” Grayson said.

“And to kick things off, I’ll set up a meeting with the other importers in the city. Once I fill them in on the advantages, I’m sure we’ll have their support.” Jacob could tell his staff liked the idea.

“So instead of cowering because Kenyon is on the attack, we unite and grow stronger,” Trace said. “Sales and profitability will be up, so any advantage that Kenyon thought he’d achieve with his dirty tactics will be overshadowed.”

“That’s the plan,” Jacob said. “I’m still a bit lost on exactly what Kenyon’s aim was in pointing the finger at other importers, and siding with the state agency. But then, the man is mean and vindictive. His actions aren’t rational. But they are destructive.”

“Okay, let’s take some wind out of his sails, then,” Zach said.

All present agreed, and Jacob ended the meeting to begin the process of setting up the new alliance. Kenyon would regret embarking upon his poorly thought out strategy. He functioned on an us-against-them mentality.
Us
was Williamson Imports and
them
was all the other importers in New York.

Such a view was pure folly. It made all others in the industry Williamson’s enemies, which was a dangerous formula. It was likely to backfire on Kenyon, and Jacob intended to make certain that it did.

His calls to the other importers went well. After a description of the situation, and quick details of the plan, one by one they joined forces with Rinaldi to become founding members of the new importer group. The alliance had a lot of potential, and each of his friends in the industry saw that. And as a show of good faith, Jacob spearheaded the new operation.

He scheduled a trip to San Francisco to meet with some of the larger retailers there. Of the top twenty metropolitan areas in the country rated for the highest consumption of table wine that year, San Francisco was third, after New York and Los Angeles.

A visit to some owners of restaurant chains and major retail outlets could be very lucrative. While Trace worked to set up the technology of the new online business, and Zach worked on the tax aspect, Jacob would secure some of their first large-volume customer accounts.

There was a risk implicit in Jacob’s plan, although it didn’t deter him. Kenyon would learn of it soon enough, and realize that he’d been excluded. He would also see that the importers had united. As a result, they were stronger, instead of weakened and cowed, as Kenyon had intended.

Jacob was aware that a desperate man like Kenyon was prone to desperate acts. This new development with the importers would be maddening to him. And when he found out that Jacob was behind it, the knowledge would incite Kenyon to seek further revenge. Annoyed at having his attempt to intimidate thwarted, he would see Jacob’s actions as a direct attack.