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 15 Top: Deputy Director Tim Poulin and Director Gregg Mineo. Bottom: Former Liquor Operations Manager Johnnie Meehl and current Liquor Operations Manager Tracy Willet. While the increased commissions reduce the percentage of sales sent to the state as profi t, they refl ect a larger pot of reve- nue overall. Sales continue to rise at record levels, and profi ts are rising by nearly the same amount. EMPHASIS ON RESPONSIBILITY Like its fellow control state agencies, BABLO has a dual mandate of increasing sales while also emphasizing respon- sible consumption. "Responsible sales and service have been important long be- fore this new business model," Mineo says. "A lot of what we do is a benefi t of our partnership with NABCA." The department has received a number of grants from NABCA for its education work, including a recent $10,000 grant for an underage drinking media campaign. High school students from across Maine were invited to submit a video detailing their concerns with underage drinking. The fi nalists were chosen, and the winner was announced during an assem- bly at their school. "It was great to see the work these kids did on that proj- ect, and how sincere and genuine they were," Mineo says. "It told us that the students understand the dangers and con- cerns associated with underage drinking, and that no one took it lightly." BABLO also partners with more than 100 local law enforce- ment agencies to conduct compliance checks on licensees and permit holders. "My litmus test for every idea or program we come up with is to ask, 'is it systematic and responsible?'" Mineo says. "We need to market products and deliver distilled spirits to retailers and consumers in a responsible and systematic way. It's not just about delivering profi t – we need to make sure it's done cor- rectly and responsibly." BREAKING RECORDS For the fi scal year that just ended, BABLO contributed $47 million in profi t to the state, which broke last year's $46 mil- lion record. When money is sent to the state's bond bank, the profi ts are used to satisfy the debt service fi rst. Then there's a cascade, whereby other state agencies and commissions are given a share of the remainder. When all those organizations are satisfi ed, the rest goes into the general fund – which in the fi scal year that ended June 2015 was $9.7 million. "We expect that over the ten years of the Pine State contract, the state will receive more than $450 million in profi t," Mineo says. "That's more than double what it received under the previ- ous ten-year contract with Maine Beverage." Looking back at the work done since 2014, Mineo credits his predecessors with laying a foundation that the team could build on. "I was the benefi ciary of some great work that was done during the two years before I got here," he says. "This new busi- ness model was the brainchild of Governor LePage, and with the support of the legislature we were able to really take the business back. When I took this job, I knew it could end up being a six- month appointment, but I was willing to take it anyway because I believed in what this agency is about, and I'm a strong advocate of leading teams." He also credits the National Alcohol Beverage Control Asso- ciation for the state's recent success. "The other reason I took this job is NABCA – having worked with them on the supplier side, I know what they're about and how strong a partner they are for the control states. I knew I would have their full backing and support, and that was a deter- mining factor for me. Without their involvement, I might not be where I am today." •