Stateways Sept-Oct 2011

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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Page 13 of 55

Top control state executives discuss the latest developments within their jurisdictions The thirteenth edition of StateWays' Control States Executive Forum is anything but unlucky. Following two years of downsizing, uncertainty and challenging economies, the jurisdictions that make up the control states are more optimistic in 2011. Many have turned the corner and are experiencing record growth after years of slowing sales. Despite reduced budgets and threats of privatization across the country, the agencies continue to fulfill their missions. State officials continue to promote responsibility, embrace technology, expand their departments' role in education and compliance, and publicize new initiatives. Thank you again to the control state commissioners, chairpersons, administrators, and other officials who provided an update on their jurisdiction's progress. These comments provide colleagues and industry watchers invaluable information about the health of the industry, and a roadmap for moving forward together. Idaho Jeff Anderson Director, Idaho State Liquor Division Greetings from the Gem State! The Idaho State Liquor Division (ISLD) saw the retirement of Deputy Director for Procurement and Distribution, Bill Applegate, in May 2011 after 35 years of service to the people of Idaho. We were fortunate to find a terrific replacement in Howard Wasserstein. Howard comes to us with expe- rience in the spirits business, having spent more than two decades with Seagram Wine & Spirits, as well as holding an on-premise liquor license in Idaho for his Melting Pot restaurant. The ISLD ended FY2011 with record sales and distributions to our good causes. Sales were up over 5 percent, case shipments were up 3 percent, and profits were up over 8 percent. We've turned the corner with consumers beginning to trade up to popular and premium brands. The ISLD was able to return a record $50.1 million in distributions in addition to a one-time $8 million transfer to the people of Idaho. The Office of Performance Evaluations (OPE) completed a comprehensive report on our operations that identified a number of recommendations for divi- sion improvement, all of which had been unearthed in 14 our in-house strategic planning. Privatization was ana- lyzed in detail, the legislature determined the ISLD was well-managed as a control state enterprise, and the issue was dismissed (for the time being). During the 2011 legislative session we requested and received approval for additional spending authority to enhance hours of operation in our state stores. In a nod to better customer service, many stores will be open later on selected days and Sunday hours have been augmented or new service added as a new sales day in many counties where Sunday sales are permitted. New initiatives have been implemented or are ready to be deployed: Idaho's listing process has been streamlined with the addition of a monthly Quick List process that allows us to be nimble in meeting the market with new product innovation. Transactions are now being tracked by gender and basket size for every store down to the time of day and day of week. A new supplier representative portion of our web- site has been launched allowing reps to monitor progress of new listing sales of new brands. A new online bar ordering process is being developed to improve service to our licensee customers. The ISLD is currently testing a merchandising experiment at one of our stores in cooperation with Diageo. New concepts center on innovation and cocktail pods, a gifting section, power brands, and in-store signage in an effort to make our stores more shopper friendly. New POS and security systems are being deployed in all state stores this fiscal year. The effort will free up equip- StateWays s s September/October 2011

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