Stateways

Stateways July-Aug 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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NABCA President and CEO Jim Sgueo addressing the assembled conference attendees at the closing night Banquet. management team at Heineken is comprised of approximately half men and half women. As for consumers, women control 83% of purchases in the U.S., the panel noted. And Latts said that 65% of spirits purchases are made by women (though they account for 37% of spirits consumption). But in the wine segment, Gallo noted that women consume more wine than men, as well as being in the majority of wine purchasers. The panelists all agreed the that the industry is taking a much more proactive of approach these days in creating products that appeal to women. Indeed, Latts came up with the most amusing statement of the session: "In doing research for this panel," she said, "I discovered that women speak about 20,000 words a day, while men speak about 7,000 words a day." That brought laughter and knowing nods among both the men and women in the audience. Seminar III followed after lunch and the trade show. Titled, "A Close Look at Today's Alcohol," it was comoderated by George Griffin, director of the Montgomery County, MD, Department of Liquor Control, and Shauna Helfert, administrator of the Liquor Control Division of the Montana Department of Revenue. The panelists included Robert Koch, president and ceo of the Wine Institute; Peter Cressy, president and ceo of the Distilled Spirits Council of the U.S. (DISCUS); and Joe McClain, president of the Beer Institute. One issue addressed was the rise of craft products throughout the industry. McClain noted that for beer, craft is the "rediscovery" of great beer traditions. Koch added that "small family wineries are the foundation of the California wine industry," which his organization represents. There are 3,500 wineries in California, he said. In the spirits segment, Cressy explained that wholesalers and retailers have been "terrific about providing opportunities for craft distillers. It's great for innovation." He added that DISCUS has instituted an associate program for craft distillers. Seminar IV, titled, "The Washington Experience," StateWays I www.stateways.com I July/August 2013 Flanking Cristina Desmond, of Capital Wine & Spirits, were Tony Rudder and Bailey Sweet, both of E&J Gallo. addressed the initial results of recent privatization of the control system in Washington State. The session was presented in a unique fashion, reminiscent of an actual Senate hearing, with the "senators" questioning representatives from Washington. The "senators" included: Jeff Anderson, director of the Idaho State Liquor Division; Cassandra Skinner, chair of the Oregon Liquor Control Commission; Mac Gipson, administrator, Alabama Alcoholic Beverage Control Board; Andrew Deloney, chair, Michigan Liquor Control Commission; and Skip Brion, chairman of the Pennsylvania Liquor Control Board. The representatives from Washington included: Sharon Foster, chair of the Washington State Liquor Control Board; Pat Kohler, administrative director of the Washington State Liquor Control Board; Mitch Barker, executive director, Washington Association of Sheriffs and Police Chiefs; and John Guadnola, executive director, Association of Washington Spirits and Wine Distributors. The "testimony" from the panelists explained that, although there is better access to products across the state, there have been significant price increases for consumers, both on-premise and off-premise (11.0% offpremise). In addition, they concluded that the big box stores have generally benefitted, and that with the ending of uniform pricing, there is "no longer a level playing field." Approximately 1,000 jobs were lost, due to the closing of the state stores, and illlegal youth access and theft have become more prevalent. General Session III, titled, "Prohibition and Moonshine," was presented by Matt Bondurant, author of three novels and other writings. His novel, "The Wettest County in the World," was turned into the 2012 film Lawless, about moonshining during Prohibition. In addition, Shawn Walker, Virginia ABC director of the Bureau of Enforcement, along with members of his team, discussed how they try to break up and prosecute modern day moonshine operations. Next year, the annual conference will be held on May 19-22 in Marco Island, FL. 33

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