Stateways

StateWays-July/August 2016

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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StateWays | www.stateways.com | July/August 2016 11 ernor Paul LePage's administration used to repay $183 million in debt owed to Maine's hospitals. The state planned to use its next ten-year contract to repay that money, and provide additional funds to other state agencies. Just prior to the end of the contract with Maine Beverage, the state put out a fee for services contract proposal (not a lease) and awarded the contract to Pine State Trading. Pine State has previously managed the warehouse and distribution services for Maine Beverage, so the company was very familiar with the agency's guidelines. "We wanted two components: spirits administration, which includes fi nancial and product management, warehousing and distribution; and trade marketing services," Mineo says. "Ulti- mately we split those components into two separate RFPs, and Pine State won both ten-year contracts." In terms of distribution services, BABLO wanted a stand- alone, web-based system that all industry members (agency personnel, brokers, retailers and suppliers) could use. The sys- tem needed to handle inventory management, pricing changes and listings. "We're 95 percent there right now," Poulin says. "Most of what we do is web-based and we've eliminated a lot of paper. There are also fewer people touching data as it's entered into the system, which means fewer problems." The agreement also mandates that retailers receive at least two deliveries per week, so long as they meet minimum ordering thresholds. In terms of trade marketing, the agency believed it was essential for the "Maine Spirits" brand to grow by commu- nicating with consumers and interacting with retailers. "We needed a partner who would help retailers understand what their set should look like, help them reset, offer the right products and have a scientifi c view of the business," Poulin says. "Pine State does a great job with that." NEW LEADERSHIP In May of 2014, Mineo was appointed by Commissioner Richard Rosen, following more than three decades in the private sector working in beverage alcohol. He began his career at Seagram's in 1978, working his way up to regional director of communica- tions, managing advertising, before the company was sold. Later he worked for the Absolut Spirits Company, managing the con- trol state territories, then left to become a consultant in 2009. "I felt semi-retired, but I realized consulting wasn't enough to satisfy me," Mineo says. "I got a call saying the job at BABLO was open, and I knew the agency from my previous experience, so I was very interested." Mineo reports to the commissioner of the Department of Ad- ministrative and Financial Services, and regularly keeps in contact with the governor, the legislature, suppliers, brokers and retailers. He also oversees the state's lottery business, and the licensing and enforcement of all beverage alcohol in the state. Each year, the bureau issues or renews approximately 8,000 licenses and permits per year, which includes catered events, tastings, on-premise loca- tions and the state's 516 agency stores. Maine's on-premise licens- ees must also buy from about 200 agency stores (at the same price as consumers, minus tax), which are licensed as "re-sellers." Some of those stores are so large that they offer delivery service to the restaurants and bars in the region. Despite the challenges of wearing many hats, one common control state issue hasn't impacted Mineo. IN SEPTEMBER 2013, MAINE PLEDGED ITS FUTURE PROFITS FROM THE SALE OF LIQUOR AS COLLATERAL FOR A $220 MILLION REVENUE BOND THAT GOVERNOR PAUL LEPAGE'S ADMINISTRATION USED TO REPAY $183 MILLION IN DEBT OWED TO MAINE'S HOSPITALS. PHOTOGRAPHY COURTESY OF KARRY & ALEXANDER STUDIO "I'm a big believer in the control system, both because of the enforcement aspect and because I believe in delivering profi t to the state each year." —GREGG MINEO, BABLO DIRECTOR

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