Stateways

Stateways Nov-Dec 2014

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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StateWays Q www.stateways.com Q November/December 2014 12 D A T E L I N E MH: One of them would have to be modernization of the ABC system. We were one of the fi rst states to embrace technology. We developed one of the fi rst websites in the control states around 2000. We were the fi rst control state to develop an online price-quote fi ling system. Some con- trol states to this day still don't have that capacity. The other thing I'd say is that we handled the growth of the business well. We have an effi cient warehouse system run on a private contract. And we have two warehouses now in the state. We're able to control the cost of receipts, and I think we have a fair distribution system. SW: What were the parts of the job you looked for- ward to every day? MH: I just enjoyed the people. It's the relationships I de- veloped along the way and being able to help people that made me enjoy coming to work. You can look at our rules and laws and it's easy to say, 'Well, that's not authorized, therefore it's prohibited.' But if you can use a little common sense, you can help people fi nd a way to get things done that are for the betterment of the state and the businesses. SW: Do you have any insights on what you think the next hot product will be? MH: It's funny, in 1981 when I started we carried 104 SKUs of vodka. We had no fl avors, and only two were imported. Today we carry 400 SKUs of vodka with 150 imports. There's every fl avor imaginable plus fi ve lo- cally produced in North Carolina. It'll be interesting to see what becomes the next hot item out there. In the 80s the brown goods were hot, then the vodkas took over around 2000 and really grew. Now we're seeing brown goods come back, and brown goods in fl avors. The other thing that I've seen is the growth in cordials and tequila. Tequila might be the next hot item, or may- be even fl avored tequilas will become big. SW: How would you assess the outlook for control states as you step aside after 33 years? MH: I think the outlook is good business-wise. I think you'll continue to see steady growth in the industry. There's always the challenge of privatization, but I think as long as North Carolina continues to modern- ize, embrace change and operate customer friendly stores then I don't think that will be an issue here. I've always believed the control model works well. It pro- vides what the people of North Carolina want and it benefi ts them. THEN & NOW Mike Herring, as featured in StateWays' January/ February 2005 North Carolina ABC profi le. I'VE ALWAYS BELIEVED THE CONTROL MODEL WORKS WELL. IT PROVIDES WHAT THE PEOPLE OF NORTH CAROLINA WANT AND IT BENEFITS THEM. " —Mike Herring " When Mike Herring was hired by the North Carolina ABC as a fi eld auditor in November of 1981, Hall & Oates' "Private Eyes" topped the pop charts and Luke and Laura's wedding on "General Hospital" set TV ratings records. Just as times have changed since then, so has the landscape of North Carolina's ABC system. 1981 1995 2014 Herring's Hired as Sworn in Retires after ABC role fi eld as chief 33 years auditor administrator Local ABC 139 154 168 boards Liquor-by-the- 1,500 3,000 5,600 drink permits Gross sales $281M $355M $867M

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