Enjoying the Opening Night reception were, right to left, Steve Pharo executive director of the Oregon Liquor Control Commission (OLCC); Brian Fleming, retail sales director for the OLCC; Lynda Webber, from Hood River Distillers; Merle Lindsay, deputy director of the OLCC; and Todd Parry, vp, sales, for Spirits West, a division of Southern Wine & Spirits.
Mike Hogan, Commissioner of the Vermont Department of Liquor Control, and his wife Mary Ellen, enjoying the opening night reception.
Seen at the opening night reception were Max Shapira (left), President of Heaven Hill Distilleries, and David Sparrow, of Republic National Distributing.
Two past NABCA Chairman: Lynn Walding of Iowa (left) and Dyke Nally of Idaho (right), with friend Joan Urresti (center).
first of which is "If it is run by the government, it has to be inefficient."
Mike Keyes, President, North American Region, for Brown-Forman, responded that control states have been improving the customer experience with cleaner stores and more professional staff. "The number one focus should be to ask customers, 'What are we doing well? And how can we improve on that?" Donn Lux, Chairman and CEO of Luxco, explained that control states do things differently than open states, but all seem to be doing them better, from inventory and SKU management to store revamps.
When asked if control state prices are too high, Simon Hunt, President of William Grant & Sons USA, said most states are under extreme financial pressure, and are doing a much better job of explaining to con-
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sumers why prices are what they are [taxes, markup, etc.]. Still, they need to continue to improve their trans- parency. The key is how to revise price structures to improve margins and offer better selection." The third myth, the perception that there are fewer products on store shelves in control states, was addressed by the panel. Lux noted that some states just don't have the money to expand their warehouse or improve their stores. Moderator Griffin pointed out that new products are sometimes more prevalent in control states than open states. Hunt added that control states often have more selection within a particular brand. Concerning private label products, Keyes said that while there is a place for private label in all markets, he believes that control states would do better by focusing on brands, due to the investment, longevity and com- mitment to driving sales and building consumer recog- nition. Hunt added that while private labels offer per- ceived value, most consumers trust established brands more and are willing to pay a premium for that.
StateWays s www.stateways.com s July/August 2012
