Stateways

Stateways Sept-Oct 2013

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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Department. The other unit, called the State Bureau of Investigations, will include the Alabama Bureau of Investigation and law enforcement units from the ABC Board, the Forestry Commission and the Agriculture Department. This bill will go into effect January 2015. IDAHO Jeff Anderson Director Idaho State Liquor Division reetings from the Gem GThe Idaho State Liquor State! Division delivered another record performance in FY2013. Overall, sales increased 7.1% and income from operations rose 8% on a 9-liter case volume advance of 4.8%. Retail sales increased 8.8%. On-premise licensee sales gained only 0.3%, although the final fiscal quarter showed signs of on-premise recovery. Distributions totaled $60,000,000 for the benefit our stakeholders – the cities, counties, general fund, and substance abuse and treatment programs in Idaho – and allowed us to continue to remain engaged with the communities we serve in efforts to promote responsible service and consumption as well as to prevent underage and binge drinking. Washington State dismantled their model of spirits distribution in June 2012, leading to increased consumer demand for spirits in Idaho stores. The most profound impact was adjacent to the Spokane Valley in Post Falls, Idaho. We opened a new store in State Line, Idaho, to provide better customer service to Idahoans (as well as Washington residents) in the area. The combined stores finished the year up over 60% in sales due to higher taxes and fees in Washington, a more favorable pricemix, and our lower, uniform, state-wide pricing. Adjusted per capita consumption for Idahoans remained under both the USA and control state levels. Proponents of deregulation attempted to replicate the Washington experience in Idaho during the 2013 legislative session but failed to gain traction. We anticipate they will return in 2014 or 2015. We have made improvements in our stores with focused associate training in responsible service; consistency in associate customer service and appearance; consumer-friendly lighting and environments; shelf optimization efforts; controlled merchandising policies (iMOD, the Idaho Modernization Project); new branding; and for our agent stores, weekly banking sweeps. At press time, we've begun a process to add biometric scanners for associates logging into POS systems, a broker/supplier online inventory control portal, and (finally) a new consumer-centric website. In an effort to grow our ability to improve career paths for associates while adding to our effectiveness 10 at retail, the ISLD reduced our service districts from four to three. Three District Managers will now be assisted by Territory Specialists (store managers accepting added responsibility for other state stores) and Contract Specialists (select associates accepting added responsibility for managing private-sector agent stores) to ensure compliance with implementing strategies where the rubber meets the road with consumers. Going forward, we remain focused on responsible sales and service, continuing our modernization improvements (iMOD), working with NABCA in enhancing our efforts with community groups and vendors in the area of social responsibility, and vigilance in communicating our control state value proposition to our citizens, stakeholders, and policy makers. Cheers! IOWA Stephen E. Larson Administrator Iowa Alcoholic Beverages Division n fiscal year IIowa Alcoholic 2013, thea Beverages Division (IABD) had record-breaking year in sales and funds generated for the State. IABD focused on evaluating the existing and potential alternative delivery processes, facility infrastructures and technologies to find efficiencies and prepare for growth. Many resulting recommendations are being implemented to create an efficient, sustainable model for the next decade. For the third year in a row, the administration put great emphasis on education and outreach for licensees, partners, stakeholders and citizens. Revenue While the IABD spent the year focused on long term planning and infrastructure improvements, it also had a record-breaking fiscal year. Over $255 million from the wholesale of spirits broke last year's record by $13.5 million, representing a 5.6 percent increase in sales. In addition to revenue from spirits profits, funds generated by excise taxes on wine and beer, license fees and civil penalties translated into a general fund transfer of over $115 million. The majority of this money will be used as general funding to be appropriated by the legislature for a variety of state programs. A portion of the funds is earmarked for substance abuse and local programs. The remaining funds will be used for Iowa native wine and beer promotion. Master Plan Implementation Since a legislative change two years ago removed StateWays I www.stateways.com I September/October 2013

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