Stateways May-June 2013

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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E D I T O R ' S N O T E StateWays ® Executive Vice President and Group Publisher Progressive Control T Charles Forman Tel: 845-426-6072 Fax: 845-426-6423 he National Alcohol Beverage Control Association (NABCA) is about to mark its 76th Annual Conference, in Phoenix, May 15-18, and this year the organization and its member jurisdictions are focusing on the theme of "Progressive Control." In fact, many of the control states have been practicing "progressive control" for some time in their approaches to overseeing their state's beverage alcohol business. As NABCA Chairman of the Board J. Neal Insley, of Virginia, notes in his recent "Letter from the Chairman": The control systems have implemented "Progressive Control" practices over the years and they continue to modernize their regulatory and marketing operations. In an era of downsizing, control systems have outpaced private retailers in sales increases and revenue generation and at the same time, have been able to ameliorate the harms of alcohol abuse according to most peer-reviewed, scientific studies." He added that "In this era of dynamic change [within the beverage alcohol industry], the control systems and industry must be flexible and adaptable to new market and regulatory environments." This issue's cover story describes the overarching objectives of the NABCA, as well as Chairman Insley's interest in progressive control, both for the NABCA and his home state of Virginia, where he is Commission Chairman of the Virginia Department Alcohol Beverage Control. "This is a topic that I feel very strongly about," Insley told our writer Melissa Niksic. "We always need to be working to improve things and make them better, and that's what progressive control is all about." NABCA President and CEO Jim Sgueo notes that "One of the biggest challenges NABCA is facing right now concerns the discussions and debates on liberalizing the alcohol beverage laws and regulations in the control jurisdictions. It appears that policymakers are trying to better understand the specific control state models that they are dealing with and determining if deregulation or modernization will improve customer satisfaction, maintain state revenues and continue to positively impact the safety and public health of their communities." That sense of balancing the need for revenues with fostering social responsibility is paramount to Insley. While moving forward with marketplace modernization, he wants to ensure that states never lose sight of being socially responsible. "In a control state, we're responsible for generating revenue, but our focus isn't just on the bottom line," Insley says. "We are primarily focused on serving our customers, and our customers are all of our constituents. You have to remember that about 50% of all people don't drink at all, or they maybe have one or two drinks per year. Those people are still our customers even if they aren't regular consumers of alcohol, and it's important that we make sure that we protect those people as well." Insley adds, "Many police departments use the motto, 'To serve and protect.' I liken our motto at NABCA to be the reverse: 'To protect and serve.' You'll definitely see a large focus on health and wellness over the course of the next year." email: Editor- in-Chief Richard Brandes Tel: 212-353-3832 Managing Editor Jeremy Nedelka email: Art Director Adam Lane Contributing Editor Cheryl Ursin Vice President of Sales, Associate Publisher Anthony Bongiovanni Senior Regional Sales Manager Mark Marcon Senior Regional Sales Manager Debbie Rittenberg Senior Research Analyst Adam Rogers List Rental Manager Cheryl Naughton StateWays is published by The Beverage Information Group, a division of Specialty Information Media Editorial and executive offices are at 17 High St., 2nd Fl., Norwalk, CT 06851 Telephone: (203) 855-8499 Fax: (203) 855-9446 Richard Brandes, Editor-in-Chief 6 e-mail: StateWays I I May/June 2013

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