Stateways

Stateways July-Aug 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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said, adding that "my pol- icy is the adoption of more progressive control and modernization poli- cies for the control states. We will not support incremental taxes and markups when we believe they will have a detrimen- tal impact." Past NABCA Chairman Eben Marsh, of Maine, with friend Cindy Hopkins. Visiting the Brown- Forman lanai, StateWays got this photo of Mike Keyes, President of the North American Region, Brown-Forman. McDonnell described how "DISCUS' focus in this time of business tran- sitions is to help fellow distillers to have an influ- ential voice in policy and legislation. Tax policy is one such area where DIS- CUS is helping." He explained how supporting value and product innova- tion are major goals for DISCUS. Also, as DISCUS Chairman he will "encourage our industry to demonstrate responsibility in everything we do." Finally, Merinoff, as a representative of the whole- Tony Bongiovanni (left), associate publisher of StateWays, and Steve Bellini, executive vice president, sales, for Sidney Frank Importing. Finally, Lux pointed out that "there is an intense dissatisfaction with government-delivered services that is unwarranted…the more accessibility to products and good service, the more customer satisfaction will increase." Hunt continued, "the more the control states train their staffs and invest in customer focus, the more relevant they will become." Dealing with Uncertainty B usiness Session III, titled, "Transitions," discussed the uncertainty that the industry and the control states may face in the year ahead. The panel included the new NABCA Chairman Mark Bodi; John McDonnell, Chief Operating Officer of Patron Spirits, and the new Chairman of the Board for DISCUS; and Charles Merinoff, Chairman and CEO of the Charmer Sunbelt Group and incoming Chairman of the Board of the WSWA. NABCA Chairman Bodi explained that states can- not exist in isolation: "We have to work together," he StateWays s www.stateways.com s July/August 2012 sale tier, noted that "consolidation of suppliers has had a major impact on distributors. In 1996 the top four spir- its suppliers had a 35% share of market; today that's 55%. And among wholesalers, smaller distributors still do 60% of the business. For example, in metro New York, there are 80 distributors." Merinoff pointed out that "the value of distributors is not defined by state law and not limited to logistics. Today much value is in taking brands to market." Indeed, he continued, "You cannot get away from using a distributor — a consolidator — there's no other way to order from so many suppliers by so many retailers and restaurants." In evaluating the moves toward deregulation, Merinoff declared, "I am terrified of industry regulation being left wide open. When there's an opportunity to counterfeit, people will do it. One concern about this kind of legislation (privatization coupled with direct dis- tribution) is the breakdown in visibility of the product in the system. I've been fighting for 30 years for regula- tion," he stated. Merinoff concluded by saying, "The critical thing for all of us is coming together, ensuring the continued education of stakeholders, and that con- trols guarantee the continued collection of taxes and consumer protection. Together we must drive social responsibility." SW 35

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