Stateways

StateWays - September/October 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 | September/October 2016 17 avid Morgan understands the unique relationship between control state agencies and on-premise bars and restaurants. From granting and renewing licenses to putting restrictions in place to control beverage alcohol sales and consumption, as vice president of food and beverage at Omni Hotels, Mor- gan works hard to effectively meet the established regulations in place in the three control states— Pennsylvania, New Hampshire and Virginia—in which Omni Hotels operates. Likewise, control state agencies are trying to make it easier for "chain" restaurants and bars to do business in their states—while ensuring requirements are being met. SUPPORT REQUIRED As of 2016, there are 17 control states that oversee the wholesaling or retailing of some or all categories of alcoholic beverages, such as beer, wine and distilled spirits. As a result, CONTROL STATE AGENCIES AND CHAIN RESTAURANTS WORK TOGETHER FOR MUTUAL BENEFIT. Partners in Progress BY MAURA KELLER the on-premise bars and restaurants within control states face a myriad of regulations that similar businesses in other states do not. For chain bars and restaurants that do business across the country, working with control and non-control states offers a unique set of challenges. For instance, within the jurisdic- tions where Omni Hotels operates, the challenges that the company faces are dependent on the specifi c state. "For example, we create a corpo- rate 'wine by the glass' program and, due to the taxes on the wines by the state in Pennsylvania, we are forced to create a separate offering for the ho- tels in this state," Morgan says. "Penn- sylvania is the one where we have two hotels and poses the most opportunity due to the cost of wine through the state system. We work with suppliers that have a separate label." So what suggestions does Mor- gan offer for control state leadership when working with on-premise bars and restaurants? "They need to understand that we work directly with suppliers and they make doing business in the control states harder," Morgan says. In Pennsylvania, there are about 15,000 retail liquor licensees, includ- ing about 10,000 restaurant licens- ees. Elizabeth Brassell, director of communications at the Pennsylva- nia Liquor Control Board (PLCB) in Harrisburg, PA deals with a num- ber of restaurant chains that have multiple licensed premises and she points out the efforts that her state As of 2016, there are 17 control states that oversee the wholesaling or retailing of some or all categories of alcoholic beverages, such as beer, wine and distilled spirits.

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