Stateways

StateWays-July/August 2016

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 | www.stateways.com | July/August 2016 16 WHAT: The 2017 NABCA Annual Conference WHEN: May 15-18 WHERE: Marco Island, Florida WE HOPE TO SEE YOU THERE! Collaboration Creates Opportunity Following the event, the role of Chairman passed to Stephanie O'Brien of Vermont, who chose "Taking Advan- tage of Change" as her theme for the next year. Andrew Deloney of Mich- igan, who was chosen as Chair-Elect, will assume the Chairmanship at next year's Annual Conference. This year's event, which brought together members of the control state industry, beverage alcohol trade groups and supplier companies, included a number of educational sessions and panel discussions. T he theme of this year's NABCA Annual Conference, held at the Hilton Orlando, was "Collaboration Creates Opportunity." Chosen by NABCA Chairman and Iowa Alcoholic Beverages Division Administra- tor, Steve Larson, the theme focused on working together with all aspects of the industry – con- sumers, retailers, distributors and suppliers. CAN BIG AND SMALL CO-EXIST? A panel of industry experts discussed the recent wave of consolidation in the top two tiers, debating whether it was good for consumers and whether smaller and larger companies can com- pete in today's market. Moderators Lar- son and O'Brien began the discussion by talking about craft. "Ultimately, there will be a consoli- dation in the craft spirits industry," said Heaven Hill President, Max Shapira. "All these brands cannot survive inde- pendently. But Millennials share values with these brands, so that's why the trend overall is here to stay." The changing perception of alcohol is also driving the industry forward. "The more products we create, the more demand there seems to be," said Beam Suntory's Chief Commercial Of- ficer, Julious Grant. "There's a much broader acceptance of beverage alcohol as part of society – it's growing jobs and tax revenue." "A lot of people who are skeptical of the three-tier system probably don't understand the system and its purpose," added Young's Market Company CEO, Chris Underwood. "It's there to create a level playing field for all products." Shapira offered a word of warning if consolidation continues in the retail tier. "Making alcohol a commodity is the worst of all possible worlds," he said. "It's very detrimental to the entire industry, and that's a danger with the growth of big box stores." IS OUR MODEL THE BEST? On day two, previous NABCA Chairmen Shauna Helfert and Jeffrey Anderson moderated a panel discussion about the future of the three-tier system. "Entrepreneurs are trying to gain access to the industry, but I don't see SEE YOU NEXT YEAR! by JEREMY NEDELKA

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