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/707334
StateWays | www.stateways.com | July/August 2016 12 "I haven't had any suggestions for privatization coming from within Maine," he says. "I'm a big believer in the control system, both because of the enforce- ment aspect and because I believe in delivering profi t to the state each year. I'm a business man, and I know there's no better way to do that than the system we have right now. I would never advise a governor or legislature to go in any other direction." Maine's hybrid system isn't the only thing that makes it unique – it's also the only control state that doesn't share a border with an open state. Canadian provinces surround it to the north and New Hampshire runs along the rest of its land border. "We have a model we like a lot," Mineo says. "There's a long history of Maine consumers going to New Hampshire to buy products, but we're striving with our new way forward to encourage people who consume a product in Maine to buy it in Maine." BRANDING, OUTREACH AND A NEW PRICING STRUCTURE In order to enhance the agency's business model and the customer experience, BABLO's new way forward also includes promoting the Maine Spirits brand. It's a two-pronged approach: educating retailers, and reaching out to consumers. "We're educating agents about brand equity, quality of brands, profi table brands and shelf schematics," Mineo says. "We had Pine State gather learnings from suppliers and brokers, and Southern Wine & Spirits was an especially great help. Now we have standard 12-, 16-, and 24-foot sets that retail trade can use in stores. The retailers have been amazed at the turn and the increased profi ts they're seeing as a result." On the consumer front, the agency now has an offi cial pricing formula for the fi rst time in two decades, which normalizes markups with spirits categories. "It didn't make strategic sense before to price the way we were," Mineo says. "Now vodka has a markup, rum has a markup, and it posi- tions us to discount products on a monthly basis." The agency had two choices: lower prices and reduce margins across the board to compete with New Hampshire, or strategically lower prices with a monthly discount on key brands. It took the latter approach, with the top 50 SKUs coming up as monthly specials on a reg- ular basis. "We're getting our prices closer to our neighbor's, and encouraging Maine consumers to stay in the state," Mineo says. Another challenge for the agency was consumer perception – or mispercep- tions. Many Maine residents don't realize that prices are consistent across the agency agency profile Longtime Spirits Operation Manager Johnnie Meehl retired from BABLO in June. A regular at NABCA events known throughout the control state industry, Meehl was praised by her co-workers for her dedication to the agency. "Her position is the nerve center of Maine Spirits, and is pivotal to our op- erations," says BABLO Director Gregg Mineo. "Everything concerning pricing, inventory management, compliance and responsibility goes through that offi ce. We've been lucky to have the pleasure of working with her." Meehl's replacement, Tracy Willet, began training in the job a few months ago so Johnnie could show her the ropes. Willet previously worked for the Secretary of State's offi ce in Maine in the elections division. "You can teach someone about the spirits business, but we needed someone who's focused, detail-oriented and has analytical skills," Mineo says. Johnnie had all of those things, and we saw them in Tracy." Although the department will move forward without her, Meehl will be missed. "After only two years, I'm going to miss her tremendously," Mineo adds. "It didn't take long for me to realize she's the center of this offi ce. She can never be replaced, but we have a lot of confi dence in Tracy coming on board." "I haven't had any suggestions for privatization coming from within Maine," "We have a model we like a lot," Mineo says. "There's a long history of Maine consumers going to New Hampshire to buy products, but we're striving with our new way forward to encourage people who consume a product in Maine to SAYING GOODBYE THE AGENCY HAD TWO CHOICES: LOWER PRICES AND REDUCE MARGINS ACROSS THE BOARD TO COMPETE WITH NEW HAMP- SHIRE, OR STRATEGI- CALLY LOWER PRICES WITH A MONTHLY DISCOUNT ON KEY BRANDS. IT TOOK THE LATTER APPROACH, WITH THE TOP 50 SKUS COMING UP AS MONTHLY SPECIALS ON A REGULAR BASIS. MAINE'S NEW WAY FORWARD