Stateways

Beam always seek to ensure the right guardrails are applied to the controlled substance that is beverage alcohol. We are encouraged by how many state ABCs are increasingly seeking to tap into the fact that consumers see our brands as much more than commodities. Our brands have deep heritage and ties to families, places and traditions. We also view the creation of our brands as a craft and not just manufacturing. Thus, it is important for us to engage consumers around the stories and authenticity that are integral to how a brand is created and ultimately sold. A progressive attitude in the states affords us new opportunities to make that happen. Our brands are also an affordable luxury for many, but this luxury has many competitors beyond alcohol vying for that consumer's discretionary dollar. One should never take it for granted that any brand or even the beverage alcohol industry will have guaranteed sales. We like to think that our brands are a part of people's lives, but again, there are so many other choices to attract the consumer's favor and dollars. By creating a more progressive environment in the state to bring people closer to our brands through things such as in-store tastings, trade shows, crossmerchandising of cocktail solutions, introductory couponing, etc., we find that the understanding, trial and appreciation for the brands grows. Additionally, more expansive thinking around listing and delisting policies to improve selection as well as opening access through Sunday sales, expanding store locations and more inviting store environments all create a healthier business with broader appeal to consumers. Beam continues to raise its game when it comes to striving to be a consultative sales and marketing resource to the control states. We believe that we offer best-in-class liquids that seek to bring new drinkers into a category or drinking occasion. Additionally, we look to build categories for the states rather than cannibalize existing items that the state carries. We also work to help enhance communication with the states either with the NABCA Industry Steering Committee, DISCUS or the President's Forum to bring about greater understanding and provide resources. Beam is also a strong believer that the states need local supplier coalitions that provide thought leadership and timely, reliable input to the state ABC on what direction the industry is heading. Beam is proud to be a longstanding supporter of the control states with our dedicated sales, marketing and finance organizations. Our engagement with NABCA's various functions and committees have been a prime focus for us. We feel the control states system of distribution and sales has a vital place in our go-to market strategy and are excited about the role we are playing in bringing progressive partnerships to the state ABCs and NABCA. 40 MARC SATTERTHWAITE Vice President, Director Sales Operations, North America Brown-Forman W hat happens if you take a powerful adjective and position it to describe or support a noun that actually is derived from a verb? You create a dynamic and timely theme for our 2013 NABCA Conference – Progressive Control. Additionally, you build the underpinnings of a strategic platform for the future that is durable and becomes a strong "rallying cry" through periods of tumult that many of our state ABC partners are experiencing. From Maine to Alabama and over to Oregon and back, there seems to be no state control models that have completely escaped questions from consumers, activists, the local press, retailers, trade organizations, or their respective legislators and governors. Many seem to desire change of some type or another — large and small. Some want to start all over again, believing there is little to no merit to the system that has been in place for years. Others are wary about altering any retail model that has served them well for decades and provided a steady stream of precious tax revenues for the state and local municipalities. But what do these words, "Progressive Control," really mean to a single control state? The answer is, "It depends…" Try using this response throughout the day to questions and your audience will quickly disappear! "It depends…" always has the appearance of being coy or evasive to those outside of our industry. Unfortunately, it is the best answer that we have because "it depends" which state we are referencing. The retailing segment, alone, of beverage alcohol in control states varies widely from state-owned stores to private retailers to chain warehouse, grocery, and convenience stores. Product listings, pricing, taxation, hours of operation, licensing, delivery, on-trade differences, and many other aspects only seek to provide more fodder for the "it depends" answer. "Progressive" means something different to each state or jurisdiction but, most importantly, it allows latitude for all of these models to evolve over time to meet the changing needs of its consumers. Whether a control state can improve its services through extending hours, increasing retail locations, or providing greater product selection depends from where they are starting today. This is exactly why I believe "Progressive StateWays I www.stateways.com I May/June 2013

• Cover
• Table of Contents
• From the Editor
• Dateline
• Profile: NABCA Chairman J. Neal Insley
• Vodka's Sweet Success
• NABCA Industry Steering Committee Roundtable
• Tequila All Around
• Products & Packaging
• Advertisers' Index