Stateways Sept-Oct 2014

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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23 StateWays Q Q September/October 2014 +++++++++++++++++++++ CONTROL STATES EXECUTIVE FORUM Oregon is now home to more than 50 craft distillers and more than 30 companies producing cider. Retail Innovation OLCC continues to modernize the retail shopping experience for Oregonians. The OLCC Commissioners voted in favor of expanding the options available to allow corporations to apply for a liquor store contract with the state. Existing liquor stores can apply to add beer and wine sales to their selection of spirits. Many private liquor store owners have taken the op- portunity to make improvements to their business by in- vesting in store upgrades or extending their hours. Some businesses have seen up to 30 percent increase in spirits sales following a remodel or relocation. A recent expansion to the online tool, OregonLi-, now features product pictures in ad- dition to helping customers locate in-stock products at their local liquor store. PENNSYLVANIA Joseph "Skip" Brion Chairman, Liquor Control Board T he Pennsylvania Liquor Control Board (PLCB) continued its focus on im- proving the retail experi- ence for consumers shop- ping in Fine Wine & Good Spirits stores in 2013-14, and that had an impact on agency sales. Overall, wine and spirits sales totaled $1.78 billion in FY2013-14, a 3.18 percent increase over the previous fiscal year. For the third year in row, the PLCB made more than $100 million in net profit after provid- ing more than $40 million to other state agencies. During the last fiscal year, Pennsylvania consumers continued to experiment with high-end wine products, which resulted in double-digit growth in the luxury wine segment. The most significant reason for the sales in- crease was our efforts to provide consumers with more product information through our retail wine specialist program. Now, nearly every Premium Collection store has a wine specialist to conduct product tastings, provide recommendations and highlight new arrivals in stores. The specialists develop relationships with consumers to assist them in making wine more approachable. In addi- tion, we have continued to develop more product train- ing options for both retail wine specialists and store staff. Our Training, Management and Development team held more than 45 different classes in 2013-14, reaching more than 5,500 employees. We expanded our store merchan- dising plan and started an end-cap program to draw at- tention to special deals and unique products. While sales were strong, Pennsylvania licensee sales grew only marginally in 2013-14. Understanding that licensee sales are an important part of our business, we continue to look for ways to support bars and restaurants by making the system easier to use and more cost-effi- cient for them. For example, we began work on improv- ing the Licensee Order Portal to encourage licensees to use the online ordering system instead of contacting stores directly, and we initiated work on a project to de- liver product to the largest licensees in the state. We ex- pect both projects to be completed in the coming year. In 2013-14, the Pennsylvania Legislature gave the PLCB the authority to approve a new Tavern Gaming License for certain liquor licensees interested in small games of chance. While the response to the new law has been slow, the PLCB collaborated with three other agen- cies to create an application process and roll it out in 60 days, which was an effort of gigantic proportions. Overall, the 2013-14 fiscal year was another very strong year. While the discussion about the agency's future continues to evolve in the Legislature, our focus is not on what could be, but what currently is. We will continue to look for ways to improve the consumer and licensee experiences, improve efficiencies and educate the public about responsible alcohol use. Our mission remains clear. UTAH Salvador Petilos Executive Director, Department of Alcoholic Beverage Control T he Utah Department of Alcoholic Beverage Control had a successful FY 2014. Annual retail sales grew 5.88% from $346.8M in FY 2013 to $367.2 M in FY 2014. Case sales also in- creased 4.3% over the previous fiscal year. Continued growth in retail sales is reflective of the state's sustained economic growth. The department continues its efforts to modernize and upgrade systems. Foremost among these initiatives is upgrad- ing the warehouse management system (WMS). Upgrading the WMS will allow the department to more easily update ancillary systems, provide the department with improved

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