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 6 NOTE e d i t o r ' s EDITOR JEREMY NEDELKA Tel: 203-855-8499 x2213 jnedelka@epgmediallc.com ASSOCIATE EDITOR KYLE SWARTZ Tel: 203-855-8499 x2225 kswartz@epgmediallc.com ASSOCIATE ART DIRECTOR ANDREA SCHNEIDER CONTRIBUTING EDITORS MAURA KELLER, JONATHAN NEWMAN, MARNIE OLD, ROBERT PLOTKIN, JACK ROBERTIELLO, THOMAS HENRY STRENK SR. REGIONAL SALES MANAGERS BRUCE KOSTIC Tel: 203-855-8499 x2215 bkostic@epgmediallc.com MARK MARCON Tel: 248-761-6231 mmarcon@epgmediallc.com DEBBIE RITTENBERG Tel: 215-431-8787 drittenberg@epgmediallc.com SENIOR RESEARCH ANALYST MARINA VELEZ mvelez@epgmediallc.com VICE PRESIDENT, BEVERAGE AMY COLLINS acollins@epgmediallc.com PRODUCTION DIRECTOR CHERRI PERSCHMANN Tel: 763-383-4425 cperschmann@epgmediallc.com REPRINTS Circulation and Audience Development Manager ROBIN COOPER rcooper@epgmediallc.com LIST RENTAL JIM SCOVA Tel: 914-368-1012 jscova@MeritDirect.com StateWays is published by Beverage Information Group, a division of EPG Media & Specialty Information EDITORIAL OFFICES 17 High St., 2nd Fl., Norwalk, CT 06851 Tel: 203-855-8499 | Fax: 203-855-9446 EXECUTIVE OFFICES 10405 Sixth Ave. N., Suite 210, Minneapolis, MN 55441 Tel: 763-383-4400 | Fax: 763-383-4499 NEW AND IMPROVED THE STATE OF MAINE WAS VIRTUALLY off our radar for a decade when the state leased out its warehousing and distributing operations to a private company. Until 2014, it operated under a hybrid system unlike any in the control state sys- tem before – or since. After realizing the amount of revenue it was losing due to the structure of that contract, the state "took back the business," as Bureau of Alcoholic Beverages and Lottery Oper- ations Gregg Mineo likes to say. Mineo, along with Deputy Director Tim Poulin and Governor Paul LePage, have been instrumen- tal in changing the state's control structure from a lease to a fee for services system (see page 10). Under its current ten-year contract with Pine State Trading, the state has realized record revenue and expects to net nearly $300 million more than it did during its pre- vious agreement. The turnaround wasn't easy, but it's already paying dividends. Maine's story should serve as a cau- tionary tale for other control states considering the privatization of their middle tier. UPDATED LOOK FOR STATEWAYS Like the Maine BABLO, this magazine recently underwent a major renovation. You'll notice our updated, modern redesign on the following pages. We've also made slight changes to the StateWays logo, and will soon be unveiling an updated Best Practices Awards logo. We're still accepting entries for the Best Practices Awards – if your control state agency recently updated its technology, retail stores, warehouse or other aspect of the business, be sure to visit www.StateWays.com/bestpractices. Entries are due August 12. • JEREMY NEDELKA, EDITOR

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