Cheers July/August 2012

Cheers is dedicated to delivering hospitality professionals the information, insights and data necessary to drive their beverage business by covering trends and innovations in operations, merchandising, service and training.

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FIRST SIP ® Privatization Mean for the On-Premise? What Does W and most lucrative control states has privatized the sale of spirits as of June 1st. Oregon and Idaho are expected to follow suit and there are rumblings in Pennsylvania. Wine was previously available in privately ith the passage of the largely Costco- driven I-1183 bill in Washington State, one of the country's largest owned shops but the move to privatization will also change the wine lineup on the shelves. Large stores, with more than 10,000 square feet, are the only ones in Washington that will be able to carry spirits, so they may dedicate more space to drinks brands over wine. Smaller shops may specialize even more in esoteric and local wines. Th e changeover has been off to a bumpy start July/August 2012 Vol. 23 No. 6 Executive Vice President, Group Publisher Charles Forman Tel (845) 426-6072 Editor-in-Chief Liza B. Zimmerman Tel (415) 994-0130 Managing Editor Jeremy Nedelka (203) 855-8499 ext. 213 Art Director Kathleen Sage Production Director Mary Jo Tomei Tel (760) 318-7000 ext. 220 Kelly Magyarics, Todd Price, Thomas Henry Strenk, Carolyn Walkup Michelle Paolillo Lockett, Contributing Editors Jason H. Barker, Andrew Freeman, Vice President of Sales, Associate Publisher Anthony Bongiovanni Tel (248) 253-0108 Senior Regional Sales Managers Mark Marcon wanted—and what consumers in other states desire as well—however the long-term implications are yet to be seen for both the on- and off -premise arenas. Cheers! Liza B. Zimmerman Editor-in-Chief premise arena. Higher costs off -premise could make drinking and dinning out more appealing and aff ordable. Restaurants may become the true in-state wine specialists featuring greater depth in brands and vintages than most large stores. Th ere could be a decline in unusual cocktail consumption at bars as consumers have access to a wider variety of brands and have a better opportunity to mix it up at home. Th ere's little doubt that privatization is what the consumers of Washington State with mass runs on state stores in the last days of May prompting a few employees to express concern about "going dry." Prices are also higher, surprising some consumers. Few in the business seem to have yet refl ected how these changes will aff ect the on- Tel (248) 761-6231 Debbie Rittenberg Tel (215) 860-0306 List Rental & Reprints Cheryl Naughton Tel (678) 292-6054 M2MEDIA360 President/CEO Marion Minor Vice President, Finance and Operations Gerald Winkel Vice President, Circulation and Collateral Services Joanne Juda-Prainito Tel (630) 543-0552 Corporate Conference Director Cheers Beverage Conference Katie Smith Tel (440) 625-0597 Production & Operations Director Mary Jo Tomei Cheers® Information Group, a division of M2MEDIA360 is published by The Beverage Tel (203) 855-8499 • Fax (203) 855-9446 Editorial and executive offices at 17 High Street, 2nd Floor Norwalk, CT 06851 6 | JULY/AUGUST 2012 CRISTINA TACCONE

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