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
Issue link: http://read.dmtmag.com/i/42062
mantle the state system. As is the case across the country, Washington State faced another difficult budget cycle. The state budget closed a $5.1 billion shortfall, after bridging a $12 billion shortfall over the last three years. To address the shortfall without raising taxes, lawmakers made deep cuts throughout state government, includ- ing the WSCLB. Privatization In November, voters turned down two citizen's ini- tiatives that would have privatized liquor sales and dis- mantled elements of the three-tier system. The outcome indicated that voters were satisfied with the existing system and did not agree with the business interests driving the measures. The initia- tives would have had a negative impact to public safe- ty due to an increased number of alcohol outlets and a loss of liquor sales revenue to the state and local communities. A new business-driven initiative to privatize liquor sales has gathered enough valid signatures to make the November 2011 ballot. Survey and Customer Convenience At the Governor's request, in December the WSLCB conducted a survey to ask citizens their impres- sions of the current system as well as gauge their inter- est in several convenience-related ideas. Overall, survey results showed high marks for retail stores and their employees. While the largest percentage of those surveyed said the system was working well, there was also support for WSLCB-proposed conve- nience ideas. Many of the ideas were adopted by the 2011 Legislature, including: Standardized State Store Hours: Instead of varying hours, state liquor stores are now open 10 a.m. to 9 p.m. Monday through Thursday and 10 a.m. to 10 p.m. Friday and Saturday. New liquor stores: The WSLCB will open six con- tract stores and two state stores. Two High-Volume Premier Stores: These stores will be larger than typical stores and offer a standard selection plus unique and expanded premium products. The first store will open this summer in West Seattle. Online Ordering and Delivery. The agency will explore the potential for allowing licensees to place their orders online for pickup at the store as well as contracting with a third party for delivering to licensees. Outsourcing the WSLCB Distribution Center The WSLCB distributes liquor and wine to liquor stores through a highly-automated distribution center in Seattle. The 2011 Legislature passed a bill that calls for the state to conduct a competitive bid- ding process to determine if a private company can provide liquor store distribution services at a lower 30 cost to the state than the current operation. Spirits Sampling in Liquor Stores Beginning September 1, thirty state and contract liquor stores will participate in a year-long spirits sam- pling pilot authorized by the Legislature. Stores can offer one sampling event per week and only sponsors can serve samples. Conclusion In conclusion, these are truly interesting times. Despite the distraction that the ballot measure places on our employees, the agency overall is excited to imple- ment the new and innovative initiatives expected of us. West Virginia Ron Moats Commissioner, West Virginia Alcoholic Beverage Control Administration The West Virginia Alcohol Beverage Control Administration (WVABCA) continued the upward trend of strong sales for fiscal year 2011. When the year ended on June 30th, sales totaled $84,921,114.00, up 5.5 per- cent over fiscal year 2010. Nearly $85 million in whole- sale sales accounted for 669,408 cases shipped; this is up 33,164 cases from last year. The ten-year rebidding process for retail liquor stores added 13 new licenses, giving West Virginia a total of 178 privately owned stores. The Distribution Center and the main office continue to modernize the process of receiving, fill- ing and shipping orders. All retail liquor stores now place orders on-line, promoting greater accuracy and more user-friendliness. Both stores and the general public can view all products and listings on the WVABCA's website. The Distribution Center will undergo additional changes in the future. As part of a five-year plan to maintain the flow of inventory through power outages and severe weather, addition- al infrastructure will be installed. This continuous improvement enables the WVABCA to better serve their suppliers, vendors and citizens of West Virginia by ensuring efficiency and compliance with state laws. The modernization of operations and the con- tinued sales growth resulted in $15,195,350.00 trans- ferred to the General Revenue Fund in fiscal year 2011 by the WVABCA. Another exciting change for the WVABCA is work related to the relocation of their main office to the City Center West building in downtown Charleston. In preparation for this move, the WVABCA is storing documents electronically, in an effort to reduce storage space and allow easier access to these documents. The move will be complete by early 2012. WVABCA is also updating its licensing system and phone system. Currently, the WVABCA's licensing system uses seven separate legacy systems, StateWays s www.stateways.com s September/October 2011