Stateways

StateWays - November/December 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 | November/December 2016 16 OVERALL WINNER — PENNSYLVANIA LIQUOR CONTROL BOARD Above all, the changes were designed to create better oppor- tunities for customers, retailers and the system itself - and to modernize and streamline antiquated processing systems. As the PLCB said in its winning retail entry, "The store rebranding effort is intended to improve the in-store shopping experience for consumers, build brand loyalty among our customers and deliver short- and long-term returns on the investment." Says PLCB chairman Tim Holden, "I'm very proud of this team, and am so impressed with everyone who is working at the PLCB for their commitment to this job serving the citizens of the commonwealth. I'm so grateful to the team and these awards are proof of their hard work." "We take our mission very seriously, and it's a multi-task- ing job," he continues. "We're in wholesale business, the re- tail business; we're charged with helping create a responsible consumption attitude, and act as alcohol education across the commonwealth. They are all really important tasks and we're embracing them all." FINE WINE & GOOD SPIRITS The most obvious innovation has been the process of rebrand- ing many of the state stores. Thirty-fi ve of the rebranded outlets opened during fi scal year 2015-16, bringing the total to 135 re- branded units, with 45 coming up within the current fi scal year. "Rebranding well over 100 of our stores gives a whole new and great shopping experience to the consumer," Holden says. Chief Operating Offi cer and Executive Director Charlie Mooney was director of retail operations during the start of the rebranding efforts to create the Fine Wine & Good Spirits stores. "Our increases have been in volume and value, as well as average price point, as we emphasize more premium and ultra premium - and basket size is up as well," Mooney says. "Overall, it's a really positive trend and an increase in the value proposi- tion that customers see." As an example, the PLCB closed an existing store and opened a new Fine Wine & Good Spirits Premium Collection Store in Homestead, Allegheny County, in August 2015. "We had a very antiquated store downtown and relocated in what would be considered Pittsburgh's most commercialized retail center, which was an opportunity to get next to a Giant Eagle supermarket, a Costco and other stores," Mooney says. Sales at the new premium store were up almost 221 percent over those at the old standard store during the same time pe- riod (August 2015 to March 2016 versus August 2014 to March 2015). While two other stores nearby the Waterfront store expe- rienced decreases after the new store opened, another saw sales increase, and the regional market together grew 34.3 percent. Notes current Director of Marketing and Merchandising Dale Horst, during the last fi ve years, the PLCB stores' overall sales growth has been between 3.5 and 5 percent, at a time when the state's population is stagnant. "We're averaging a 5.5 percent total market lift when you look at all the surrounding stores in the affected markets," Mooney says. "The overall market lift is positive and we're very happy about that." SUPPLY AND DEMAND Another winning example of the PLCB evolution is the result from its work on supply issues. The Offi ce of Supply Chain spent much of the year developing and refi ning LOOP - the new Licensee Online Order Portal, an Internet-based system that allows 15,000 retail licensees to order wine and spirits at any time from home or offi ce. LOOP brings a new level of functionality and convenience The PLCB has made large investments in new technology. "I'm very proud of this team, and am so impressed with everyone who is working at the PLCB for their commitment to this job serving the citizens of the commonwealth." —Tim Holden, PLCB chairman

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