ABL Annual Report 2012-2013 by ABLUSA

ABL Annual Report Beverage Licensees ABL American 2012-2013 Annual Report

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Innovate A

We stand at a crossroads when it comes to how beverage alcohol is bought, sold and consumed in the United States.

Chuck Ferrar President

Growing efforts to discourage alcohol consumption are often accompanied by attempts to expand the public’s access to it. Such conflicting messages can equate to a negative situation for America’s beer, wine and spirits retailers and their customers. As the last people in our industry to handle beverage alcohol products before they reach American consumers, beverage licensees can have a tremendous impact on this evolving marketplace and defining the future environment of our beverage alcohol culture. Fortunately, beverage licensees are wellpositioned to make a case for smart regulation, responsible enjoyment of the industry’s products and public policies that empower small business to invest and grow.

John Bodnovich Executive Director

Beverage licensees’ role in the economy cannot be understated. With nearly 1.4 million Americans employed because of the direct retail sale of alcohol

and the generation of over $184 billion in overall economic impact on the economy, few industries have a greater impact on the U.S. economy than the hospitality industry. Local bars, taverns, pubs, and package stores can help the economy grow when they are properly regulated. This allows them to provide well-paying jobs and invest in their communities, just as their communities rely on them for social settings, products and services. And beverage licensees are doing it the right way. Less than ten percent of youth obtain alcohol from a store or bar that does not check I.D. Server and seller training programs are now the norm, not the exception, and retailers join in numerous public/ private partnerships with local government and law enforcement to prevent underage access. Despite all that beverage licensees do, there are storm clouds on the horizon. Efforts to lower BAC limits to “.05 or lower” could have

a devastating effect not only on hospitality businesses, but also on our ongoing collective efforts to stop drunk driving. We all agree that there are too many drunk driving deaths each year, which is why ABL members will continue to ask their customers, communities and civic leaders to stand against drunk driving and stand up for hospitality businesses by supporting effective policies that address this problem. As an association, ABL has grown in prominence and credibility since its creation in 2002. We’re working across the industry and the retail tier; advocating for bars, taverns and package stores in Washington, DC; and connecting leading beverage licensees to share information and strategies that will help them grow their businesses. As we move toward 2014, we’re ready to take the next step to address the challenges that await. We hope you’re ready to take it with us.

Advocate A

ABL is the face of retail beverage licensees in Washington, D.C. and fights for their independent businesses. In 2012, ABL continued its advocacy in Washington on behalf of its members. ABL addressed drunk driving before the National Transportation Safety Board and worked with others in the alcohol industry to ensure that federal unfunded mandates were not added to the surface transportation reauthorization bill. In addition to creating awareness and educating decision-makers on retail alcohol issues, ABL worked in coalition to protect swipe fee reforms and take a step closer to repealing the estate tax. The agenda in Washington for 2013 thus far has included comprehensive tax reform and the impact of new healthcare laws on small business. But the most significant development has been the National Transportation Safety Board’s recommendation that states adopt .05 BAC or lower per se drunk driving laws, which could have dangerous consequences. Addressing the National Transportation Safety Board on Drunk Driving

Urging Congress to Focus on Comprehensive Drunk Driving Policy

Securing Estate Tax Relief & Moving Closer to Repeal

Celebrating One-Year Swipe Fee Reform Anniversary

In May 2012, ABL Executive Director John Bodnovich spoke as part of a panel on impaired driving before the National Transportation Safety Board. Bodnovich shared beverage licensees’ call to stand against drunk driving by recommending comprehensive drunk driving policies that address recidivism, include assessment and treatment, and do no rely on one-sizefits-all, unfunded federal mandates. He explained ABL’s efforts to address drunk driving, reiterating ABL’s position in support of interlocks for high BAC and repeat offenders.

Through outreach to members and activating its grassroots, ABL was part of a successful effort to prevent Congress from adopting an alloffender ignition interlock mandate in the surface transportation bill. These efforts are consistent with ABL’s long-held position of support for states’ ability to address drunk driving with comprehensive approaches. The bill also included research funding for the Driver Alcohol Detection System for Safety Research (DADSS), though less than half of the amount initially requested.

As a member of the Family Business Estate Tax Coalition, ABL was part of a successful effort to provide family-owned businesses with some relief from the estate tax and move one step closer to the full repeal of the estate tax. The bipartisan tax compromise package that passed in December 2012 included language to cap the maximum rate at 40%, which is sharply lower than the 55% rate that was set to take effect in 2013; permanently maintains the $5 million exemption amount, indexed to inflation; and allows spousal transfer.

In October 2012, ABL celebrated the oneyear anniversary of the implementation of debit card swipe fee reforms that have caused consumers to see savings as merchants hold down prices. These reforms have successfully introduced transparency into a broken system, and tens of thousands of independent beverage retailers have seen a real impact on their bottom line and the ability to pass savings on to their customers. In addition to maintaining the current law, ABL and its partners remain committed to similar reforms for credit cards. 3

Create A

JOBS. TAXES. GROWTH. Direct retail alcohol sales create more than 1.4 million jobs and $184 billion in economic impact. Last October saw the release of “2012 Economic Impact Study of America’s Beer, Wine and Spirits Retailers”, an economic impact report that quantified the economic importance of beverage alcohol retailers and hospitality industry.

charitable organizations. These local businesspeople take seriously their roles as employers

The study, which was prepared by John Dunham & Associates, an economic research firm, revealed the overwhelmingly positive economic impact that beer, wine and spirits retailers have on jobs, taxes and the overall economy.

•Establishments that sell alcohol in the United States employ as many as 1,449,850 people across the U.S. and generate an additional 761,670 jobs in supplier and ancillary industries.

Beverage licensees play a significant role in the national, state and local economies by providing nearly 1.45 million direct jobs, and making a total economic impact of more than $184 billion. America’s bars, taverns and package liquor stores are doing their part to contribute to the economy by creating well-paying jobs. In addition to their economic impact, jobs created, and taxes paid, many beverage retailers sponsor numerous civic programs and 4

Key findings of the “2012 Economic Impact Study of America’s Beer, Wine and Spirits Retailers” include:

•These well-paying jobs average $32,170 in wages and benefits. •In 2011 the industry was responsible for as much as $184.71 billion in total economic activity throughout the country. •Nationally, the industry and its employees pay over $16.30 billion in federal taxes, and $14.71 billion in state and local taxes. In addition to general economic impact, the study also considers the impact of policy changes – in

particular those concerning de jure or de facto changes to blood alcohol content laws – on beverage retail jobs, businesses and economic output. As the debate over legal BAC levels for driving begins and beverage licensees’ are faced with the potential criminalization of their responsible customers, ABL is well-positioned to demonstrate the unintended consequences of misguided recommendations. What these jobs figures demonstrate is that with a well-regulated alcohol marketplace and policies that support local small business and the responsible consumption of beverage alcohol, entrepreneurs and family business owners can realize their dreams while continuing to serve their communities. The economic impact study’s data is hosted on an interactive section of the ABL website that can be sorted nationally, by state, and by congressional and state legisaltive district.

Communicate A

ABL now provides more ways than ever for its members to stay informed about the the industry and issues. ABL INSIDER

The ABL Insider continues to serve as ABL’s membership magazine, reaching the mailboxes of all of ABL’s members and much of the alcohol industry four times a year. Each issue contains content tailored to the specific needs of licensed beverage retailers. Feature articles focus on regulatory and legislative updates, industry news and information on the top product and service suppliers to the industry. The ABL Insider also provides news and updates on ABL’s programs and the industry in longerform articles and columns from those who shape the industry. It is often shared with licensees’ staff and customers.

ABL WEEKLY

Created with an eye toward an audience that doesn’t have hours to sift through dozens of emails to glean industry news, the ABL Weekly is a collection of the most relevant news of the week to beverage retailers. Released Friday afternoons, the publication includes news on: Public Policy, State Alcohol

News, the Alcohol Industry, Trends and Business. It is emailed directly to beverage licensees, managers and executives of licensed beverage retailers nationwide and also reaches some of the most prominent associations and companies on the industry, including organizations in the producer and distributor tiers and other industry nonprofit/advocacy groups. With growing distribution and above industry average open-rates, the ABL Weekly is a can’t-miss “download” of information for shrewd beverage retailers.

WASHINGTON UPDATE Keeping beverage licensees connected to Washington and the policy arena is part of the ABL mission. ABL members are focused on running their businesses. That’s why ABL is advocating on their behalf and educating key decision-makers about retail beverage licensees. The ABL Washington Update provides a review of legislative, regulatory and legal news with a focus on the Congress, federal government and national legal issues concerning

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beverage alcohol. The monthly e-publication also reports on the ABL’s work in Washington, the association’s position on retail alcohol issues, and a broader picture of issues affecting the larger beverage industry.

WEB, TABLET, MOBILE In addition to print and email, ABL is getting the word out on multiple communications platforms, including on its easy-tonavigate website and on social media. As ABL members and the next

generation of business owners, their customers and the public in general increasingly use tablets and mobile devices as their primary means of communicating, doing business and checking the news, ABL is carving a toehold in this important communications niche. These platforms direct users to ABL’s website which has interactive capabilities for members and an progressively rich library of information for retailers and their state associations. 5

Celebrate A

Beverage licensees are proud of what they do and the role they play in their communities. ABL celebrates its members and their businesses. MAY - Tavern Month This May, for the 60th consecutive year, tavern owners across the country celebrated Tavern Month, raising their glasses and public awareness of the “Friendliest Place in Town.” American bars and taverns represent the best of social culture and the community spirit that is at the core of

the country’s civil fabric. They provide thousands of dollars to charities, generate hundreds of thousands of jobs and entertain tens of millions of patrons each year. Today’s bars and taverns reveal the changing cultural norms of the country while still reflecting the fiercely independent

spirit of bar and tavern owners. These small businesspeople continue to place a strong emphasis on responsible service by training employees and incorporating programs to prevent drunk driving, sales to intoxicated individuals and underage access to alcohol.

JUNE - Annual Conference In June 2013, ABL will host its Annual Conference and host retail beverage alcohol licensees in the nation’s capital. The conference will feature alcohol industry executives, political leaders and government officials

who will discuss the economic and political state of the industry and country. The annual conference also offers an opportunity for beverage licensees to network with other members of the retail tier and share

best practices. Attendees will also have the chance to “climb” Capitol Hill to meet with members of Congress as grassroots advocates, and raise awareness of retail alcohol and small business issues.

NOVEMBER - Package Liquor Store Month

Package Liquor Store Month November

Each November, ABL and its members celebrate Package Liquor Store Month by saluting independent off-premise beverage licensees who provide choice, service and value to their customers and communities. America’s independent package liquor stores continue to have a positive impact by creating jobs, offering unparalleled product choices to millions

of customers and leading the way when it comes to selling beverage alcohol responsibly. Some of the last remaining independent businesses on Main Street, package liquor stores, which in most cases also sell beer and wine, train their employees to conduct safe and responsible face-to-face sales to adult consumers, thus leading by example when it comes

to preventing underage access to alcohol. As consumers embrace craft products, organic alternatives and local producers, independent package store owners provide an environment where a knowledgeable staff can educate customers on the thousands of options they have when it comes to picking the beverage that’s right for them.

Collaborate A

ABL connects with its state affiliates and industry partners to collaborate on issues of shared interest and create a stronger industry. The beverage alcohol industry is not immune to the increasingly interconnected society in which we live. Despite a unique array of laws governing beverage alcohol a little bit differently in each of the 50 states, beverage retailers are increasingly coming together to talk about the challenges they face and share their stories so that others can learn from their experiences. As one of its core competencies, ABL continues to provide a network of engaged retail beverage leaders who are resources to their peers in other states. Just as ABL takes steps to move its federal lobbying efforts forward, it is also committed to enhancing its communications and information-sharing capabilities amongst its members. ABL is always

investigating new platforms where it can provide and catalogue information as a service to its members. Resources available to ABL members extend beyond other retailers. ABL works with representatives from all corners of the industry and the country. Whether at the federal or state level, a policy initiative or an educational opportunity, ABL connects with the rest of the industry. That includes inviting industry sponsors and speakers to share their perspective on the retail tier, identifying trends and showcasing new products. ABL and its industry partners work for a better beverage alcohol industry that serves American consumers. ABL and its leaders are engaged in industry affairs, formally meeting with the

leaders of industry trade groups at least once a year as part of ABL’s Industry Advisory Board, and informally much more frequently. By giving retailers a seat at the table in intra-industry meetings, ABL is looking out for the interests of its members in the increasingly consolidated beverage alcohol industry. As is also evident from the sponsors of the ABL Conference, numerous other industry companies and organizations show their support for ABL and its members. They recognize the value of a strong and organized retail tier. ABL members are some of the last local businesses on America’s Main Streets, and ABL will continue to work with its supporters and allies to make sure that doesn’t change.

2012-2013 Associate Members

DIAMOND Beer Institute Diageo NBWA WSWA PLATINUM Bacardi USA Beam, Inc DISCUS GOLD Brown Forman Castle Brands Charmer-Sunbelt Group Glazer’s Inc Pernod Ricard USA Republic National Distributing Co. SILVER Constellation Brands Moet Hennessy USA Monarch Beverage Company Patron Spirits Company Remy Cointreau USA BRONZE ATM Network Campari America Florida Caribbean Distillers Luxco Sidney Frank Importing Co. Suntory

2012-2013 Conference Sponsors Anheuser-Busch Beam, Inc Beverage Media Group Brown-Forman Distilled Spirits Council of the United States House Band Wines International Botteld Water Assoc. MillerCoors National Assoc. of Bev. Importers Proximo Spirits RumChata Southern Wine & Spirits of Nevada

Officers & Affiliates

ABL Officers PRESIDENT Chuck Ferrar Bay Ridge Wine & Spirits Annapolis, MD VICE PRESIDENT Victor Pittman Silver Leaf Wine & Spirits Ridgeland, MS VICE PRESIDENT Steve Morris Jorgenson’s Restaurant & Lounge Helena, MT

VICE PRESIDENT Warren Scheidt Cork Liquors Columbus, IN VICE PRESIDENT Robert Sprenger Bubba’s Marion, WI TREASURER Raymond Cox Elite Beverages Indianapolis, IN

AT-LARGE Don Diserens Alton Sports Tap Godfrey, IL AT-LARGE Rob Swearingen Al-Gen Dinner Club Rhinelander, WI PAST PRESIDENT David Jabour Twin Liquors Austin, TX

Affiliate Members Alabama Bev. Licensees Assn Alaska CHARR Anchorage CHARR Arkansas Beverage Retailers Assn Colorado Licensed Beverage Assn Connecticut Package Stores Assn Retail Bev Council of FL Retail Fed. Georgia Alcohol Dealers Assn Bev. Retailers Alliance of Illinois Illinois Licensed Beverage Assn Indiana Assn of Bev. Retailers

Indiana Licensed Beverage Assn Kansas Licensed Beverage Assn Kentucky Assn of Bev. Retailers Maryland State Licensed Bev Assn Mass. Package Stores Assn Tavern League of Minnesota Mississippi Hospitality & Bev Assn Montana Tavern Association Nevada Tavern Owners Assn New Jersey Liquor Store Alliance New York State Liquor Stores Assn

Empire St. Rest. & Tavern Assn Metropolitan Package Store Assn Retail Liquor Assn of Oklahoma Rhode Island Liquor Stores Assn ABC Stores of South Carolina Licensed Bev. Dealers of S.D. Texas Package Stores Association Virginia Licensed Beverage Assn Tavern League of Wisconsin Wyoming State Liquor Assn Wine and Spirits Guild of America

America’s Beer, Wine & Spirits Retailers

To initiate, promote, and support laws, regulations and rules that preserve and protect the right of responsible on and off premise retailers of beverage alcohol to operate legitimate and lawful businesses without burdensome intrusion.

To encourage and promote closer relations among all entities engaged in the responsible sale of beverage alcohol through effective communications, innovative services, and education and training opportunities.

To educate the public to a higher level of awareness regarding the scope of the licensed beverage alcohol industry. For more information visit www.ablusa.org.

ABL Staff

John D. Bodnovich | Executive Director Susan Day Duffy | Director of Trade Relations and Operations Rosanne M. Ferruggia | Manager, Communications & Public Relations Chadd Smith | Intern

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