Stateways

Stateways May-June 2012

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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BCA NABCA retail price, advertising, promotions and merchandising can either have positive or negative impacts on brand equity or overall brand health. In the Control jurisdic- tions, the predictability or "guard rails" provided by the states help brand owners position their brands with degrees of certainty and predictably that other states cannot assure. As Beam continues to seek ways to build on its Social Responsibility platform, we know that our Control jurisdiction partners value those efforts. Too often, how responsibly a brand presents itself or pro- motes in a market is not a deciding factor for the key decision makers in Open market customers. But in the Control States, we know that irresponsible new product introductions, that either seem to coax in underage drinkers or just tarnish the image of the spirits industry in general, are frowned upon or just blocked from doing business in the state. We believe that this extra layer of protection for the consumer, and subsequently the industry, is a good thing. A highly debated benefit of the Control system is that it levels the playing field for suppliers. Meaning, the game does not necessarily go to the supplier who spends the most money. Creative, responsible and inno- vative ways of building brands can be rewarded in the Control States if things are done smartly, regardless of a supplier's size. SATTERTHWAITE Vice President, MARC Control States and Canada Brown-Forman C Additionally, commitments made through long-term relationship building with the states have real value in the Control system. Both the states and suppliers know that if they invest of themselves in a real partnership, that the overall health of their mutual business will benefit. This certainly happens in the Open markets, but we seem to see it more prevalent and enduring in our Control markets. Administrations and interactions with them seem to be longer range in nature rather than just year to year. Lastly, because of organizations like NABCA, we have a common forum to have dialog across the supplier community with the Control jurisdiction decision makers.While all of the Control States are monopolies, they are all indeed very different. Having an organization such as the NABCA Industry Steering Committee and venues provided by NABCA offer us opportunities to improve the business across many states for the benefit of the industry. Even though NABCA is centered around the representation of the state employed alcoholic beverage control personnel, the suppliers are very much incorporated into the events and dialogs that take place. This collection of 18 control jurisdictions or customers in one place, figuratively and literally, is a significant benefit for us as suppliers as we look to improve our business in what amounts to over a quarter of the U.S. spirits market. StateWays s www.stateways.com s May/June 2012 ongratulations! Everyone can place another candle on their proverbial birthday cake since last year's NABCA meeting in Arizona. Here at Brown-Forman, besides being one year older as a company, we are one year closer — 142 of them and counting — to our celebration of 150 years of business in the year 2020. And, what happens after 2020 you ask? We just buy a larger cake and stock up on more candles! The company's overarching view of excellence in perpetual brand building is at the heart of how we approach the business. Recently, we added more clarity and dimension to our strategy that resulted in the strengthening of our behaviors around the concept of innovation. Three of the behaviors dovetail especially well with navigating the waters of change successfully through time. Those behaviors are Be Curious, Be Creative and Be Courageous. For many outside of our industry, a new product introduction such as Jack Daniel's Tennessee Honey would be seen as evidence of innovation (400,000 cases and still has not earned its one-year candle yet!). Innovation, however, takes on many forms beyond just new products. By its own twofold definition of "intro- ducing something new," or "making changes in anything established," it has applications far and wide within all of our operations. There were numerous examples of changes made within some of the Control States to better meet their consumers (constituents) wants or needs over the past year. It could be classified as innovation just as easily as it might be called modernization. Either way, the wide ranging efforts included: Increasing the number of retail outlets, improving warehouse capabilities, updat- ing stores, adding Sunday sale days, lengthening hours of operation during the week, improving service to the on-premise, legalizing tastings and samplings at retail, and experimenting with new concept stores. Several states also continued to improve their communication 45

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