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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Bill Newlands, president, North America, for Beam Inc., addressed attendees with his presentation, titled, "Raising the Bar." TV anchor, best-selling writer and correspondent Katty Kay presented "American Politics— From the Outside Looking In," the title of General Session II. together from among professional classical musicians in the area), actually situated throughout the audience. For example, I sat amidst several violinists, and was able to experience their passion and expertise from a once-in-alifetime perspective. Through a series of enlightening and funny exercises that he performed with the musicians (whom he had met for the first time that morning), Nierenberg explained the parallels of how the single musician interacts with the entire orchestra to how the single employee interacts with his entire company or organization. "The responsibility of leadership, or the conductor, is to unlock the strengths of individuals in the entire organization," he said. "Like an orchestra, an organization must have the capacity for adjusting as a team," he said, "and to collaborate across boundaries." He added that it is the job of the conductor, or ceo of a company, to communicate the big picture with the rest of the organization, so that everyone feels as if they are a part of the whole. Though Nierenberg was a tough act to follow, Mike Keyes, president, North American Region, for BrownForman, was up to the task in his Business Session I presentation, titled, "Building Brands and Customer Loyalty During Turbulent Times." After presenting a thumbnail history of Brown-Forman, Keyes addressed how BrownForman dealt with the recent Recession, when many consumers were trading down. His company, Keyes said, took the long-term view that the "pendulum always shifts," and did not lower prices like other companies, and did not shirk from continuing to invest in their brands. "We invested more in VAPs (value-added packaging), and we maintained our advertising presence, until the economy began shifting in a positive direction again," he said. Now, with premium and superpremium products back in favor, he noted that Brown-Forman is positioned to take advantage of the renaissance in whisky and premiumization. The company is also continuing to innovate with new products, he pointed out. 30 Ms. Kay also moderated Business Session II, entitled, "The Female Factor," with panelists, from left, Stephanie Gallo, vice president, marketing, for E&J Gallo Winery; Kate Latts, director of marketing, for Heaven Hill Distilleries; and Stacy Tank, senior vp and chief corporate relations officer, for Heineken USA. Regarding industry partnership with the control states, Keyes noted that the control states account for 25% of Brown-Forman's sales. "At their best, the control states help maintain a balance within the three-tier system," he said. At the same time, he said his company was neutral on the issue of control versus privatization for individual states. Still, Keyes underlined the progressive notion of control states modernizing, by offering improved access to products, offering faster product listings, improving efficiencies in fulfilling consumer demands, and providing for a better shipping experience for consumers. Overall, he said, control states can provide a powerful platform for brand building. Following Keyes, Bill Newlands, president, North America, for Beam Inc., addressed attendees with his presentation, titled, "Raising the Bar." Newlands noted that as the number two supplier in terms of dollar volume, Beam is committed to the notion of "Progressive Control" as a key ingredient in the control environment. With that in mind, he touched on important points the company emphasizes in its drive to be a leader in both the national and control states market. First, a major goal is to get "closer to your customer," particularly in relation to the control states; second, he noted the importance of investing in thoughtful product innovation: "In fact, 25% of long-term industry growth comes from innovation," he said. He added that Beam has recently built a 57,000-square-foot facility dedicated to research and development. Third, he stressed the occasional need for strategic acquisitions. For Beam, that relates to the recent purchases of the high-flying Skinnygirl brand as well as the fast-growing Pinnacle vodka brand. Finally, he noted that Beam's overriding concern is to "stay true to its values, which means doing business the right way." For example, he pointed to Beam's high standards when it comes to media and marketing. StateWays I www.stateways.com I July/August 2013