Stateways

Stateways May-June 2012

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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NAB NABCA behind responsible programming in the on-premise. Long-term perspective and investment. We are known for applying the long-term perspective, as one would expect from a company founded upon the Scotch whisky tradition and the habit of laying down whisky stocks (assets) for a minimum of 12 years. While having a longer-term view when building brands, I must add that the company also prides itself on being able to act nimbly and take calculated, entrepreneurial risks. Collaborative approach with our broker and distributor partners.We spend great amounts of time and energy to collaboratively plan our programming and investment with our First Choice partners: Charmer-Sunbelt Group, Wirtz Beverage Group, Young's Market Company, Republic National Distributing Company, Martignetti Companies and Great Lakes Wine & Spirits. A collaborative process has been built so that all Control State initiatives are agreed to months before the plans are presented to the market. With these partners, we are leveraging all the opportu- nities the Control States present for our portfolio. Structure to succeed in the Control States environment. Further, we've developed a role in our organization to establish best practice for our brands and business in Control States. Kurt Knop heads this up for us and has implemented some winning strategies that are shared across the William Grant & Sons Control States team. His role is to establish Best Practices throughout our Control States business. In summary, William Grant & Sons is committed to building our brands with our Control States partners. I am looking forward to even closer ties as a member of the Industry Steering Committee. PRZEDIEDA Sales Manager, RICK Control States and Canada Luxco the very least, 2012 will be a year of twist, turns and unforeseen challenges facing each of the Control States and the Industry. A 50 s the old saying goes, "Change is Constant." For the Control States and Luxco, there may be no better way to describe the prospects for 2012. At As in past years, each Control States will make their normal adjustments to the "business as usual" environ- ment to improve operations and sustainability. Working together, the Control Sates and Industry will all adapt to those changes and business will move forward. But there is no denying that 2012 will be a year of significant change unlike any other we have experienced in the past. In 2012, all eyes will be on Washington State in partic- ular. With last year's passage of Initiative 1183, the citi- zens of a Control jurisdiction have expressed their desire for a different way of managing access to beverage alco- hol. Since 1183's certification, the Washington State Liquor Control Board has worked diligently to imple- ment the desires of the voters. Working without the aid of a blueprint to follow, the WSLCB has had to manage this change while trying to keep all of its internal and external partners informed every step of the way and to the best of their ability. As we have all followed the twists and turns 1183 has taken and will continue to take on the way to implementation, we all recognize that this has been no easy undertaking. While their task has been daunting, we believe everyone at the Board and their staff should be recognized for their efforts as they, in essence, are working themselves out of a job. As for whether 1183 will succeed or fail, time will be the for- tune-teller. Washington is sailing in uncharted waters. We at Luxco have always been and will continue to be supporters of the Control States system. In the months and years ahead, Washingtonians will reap what they have sown. We can only hope that the benefits will be many; the unintended consequences will be painless and few; and that the high standards of limiting access of beverage alcohol to minors and the responsible market access to beverage alcohol as established by the Washington State Liquor Control System will continue. But change isn't limited to Washington; at Luxco "Change is Constant" as well. 2012 marks the first fiscal year that we will sail on without the Admiral Nelson Spiced Rums in our portfolio. As we see it at Luxco, with every change comes opportunity. This is evident in the continued steady growth of established brands like Juarez tequila, our commitment to growing brands like El Mayor and Rebel Yell and the double-digit growth of Pearl Vodka. As a 2011 StateWays "Fast Track Growth Brand," Pearl's growth has been driven by innovative packaging and the introduction of new and exciting flavors like Cucumber, Red Berry and, of course, Wedding Cake. In addition to the excitement building around the Luxco portfolio, in September of 2011, Luxco was very excited to add Cleveland-based Paramount StateWays s www.stateways.com s May/June 2012

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