ABL Insider - Vol. 7 No. 3

Page 1

THE VOICE OF AMERICA’S BEER, WINE & SPIRITS RETAILERS

A PUBLICATION OF THE AMERICAN BEVERAGE LICENSEES | VOL. 7, NO. 3 | FALL 13

ABL GOES TO WASHINGTON THE 2013 ABL CONFERENCE RECAP

25 Speakers and Sponsors

ABL’s First Hill Climb

Pages 14-17

Also this issue... ABL Responds NTSB’s .05 BAC Recommendation page 8-9

Affiliate & Industry News

Credit Card Processing Alternatives

page 21-22

page 20 Fall 2013 | ABL INSIDER

1


contents

VOL. 7, NO. 3 | FALL 2013

14-17

4-5 leading

Proud to Serve BY Harry Klock ABL President

6-7 where we stand

What’s Your Local?

BY John Bodnovich ABL Executive Director

8-9 washington, dc update

NTSB recommends .05 BAC; ABL “Climbs” Capitol Hill

10-11 industry voices

Everybdy Wins: How an Independent Alcohol Distribution System Works So Well for So Many BY Craig Purser President & CEO National Beer Wholesalers Association

12-13 industry voices

Giving Back: An Industry Tradition

BY Craig Wolf President & CEO Wine & Spirits Wholesalers of America

2

ABL INSIDER

14-17 feature

ABL Members in Washington for 11th Annual Conference

19 membership memo Staying Informed with Industry News Sources

20 business builders

credit card processing alternatives

21 affiliate & state news 22 industry update 24 associate members affiliate members Published by: American Beverage Licensees 5101 River Rd, Suite 108 Bethesda, MD 20816 (301) 656-1494 www.ablusa.org

editor ROSANNE FERRUGGIA (c) 2013 American Beverage Licensees. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

AMERICAN BEVERAGE LICENSEES

executive director JOHN BODNOVICH director, trade relations & operations SUSAN DUFFY manager, communications & public relations ROSANNE FERRUGGIA


a message to our readers

Wile our print version of the ABL Insider will continue, we’re excited to be able to bring you a more interactive online version as well. By visiting www.ablusa.org/Insider, you will be able to view the magazine online or on your mobile devices. You can also sign up to receive online notifications when the newest issues are available.

hts: ■ Highlig

– pg. profile

13 ■

is honored Don Skew

pg.

16

Leader

Dakota South

EE S

M ON TH

LY

L ICE NSailers” er 2004 AG E Novemb Ret EV ER nsees e Lice & Spirits AN B everag r, Wine can B ME RIC Ameri by the T HE A “America’s Bee roved ication n app ons Publ licatio municati - 5 6 9 8 tal Com 0-406 A Continen • M a i n O f f i c e 8 0

Butte

9701 , MT 5

ai • E-m

tc l: con

om@q

west.n

suits se ipping law cases po ts e Court h Suprem e to states’ rig challeng

et

Direct sh

rs. In consume t wines to appeals cour ral specialty on ing their igan case, a fede ping prohibiti rate a sepa right of the Mich the direct ship anteed York case, ally guar distribution ruled thatal. In the New g upheld that of stitution and of court rulin t shipments was illeg The Con late the sale nce in a pair appeals regu bala court. on on direc federal states to hangs in the Supreme to the briefs 's prohibiti hol U.S. itted ght state alco the of subm before line cases, brou and alcohol. parties involved ber dead cases now s in the two Michigan a late-Octo ts will be in by All the Decision on appeal from will have farmen . 29, with t of the by Sept briefs. Oral argu sion expected high cour earlier this year,the survival sysdeci for for reply mber, with a it's really a hard ibution New Yorkimplications hol distr ibition in early DeceApril, "unless e and Spirits reaching r beverage alco Proh or end of Win Craig March three-tie e since the rding to counsel us plac case," accoers of America filed amic tem in New , es have Wholesal nted for of parti 1933. of the cases ibprese host be le side lin r f. Wol s to proh A who orting eithe eral Cait ments will s of state Oral argu Solicitor Gen, by Solicitor briefs supp lve the right hol across their state igan invo York by and for Mich Presenting argu which shipment of alco suppliers. That s y. t will be Haligan, Thomas Case of state from 34 state it direc states' laws ral from out York and General overturn the borders attorneys gene mbia who have for New five ments to Clint Bolick includes District of Colu states. Only . turn neys the Michigan over attor for to plus the s supporting ord seeking Alex Tanf 0 filed brief filed briefs . to GE 1 lenges laws N PA O . chal states have ping T t ship CON for the ners, who the direc ary impetus in l vint The prim from smal latory schemes etcomes regu mark state laws the current them from uncertain rage face an argue thatmost states keep ILERS three-tier beve e T RETA the place in At stak

rchy’

ana marks ry lawsuit st Costcooads for indu crossr MT 59701

#102, Butte,

MT Livingston,

‘Alcohol

's ington state to Wash s a profound mark challenge us Costco's bution system stry with serio and indu distri alcohol for the entire rs, wholesalers the crossroadsnces for distributo involved with conseque according to those chalretailers, in its legal er er the eds deliv furth succe to case. retailer agreed stage for of nsees ezes has rage Lice If the giant not only set the ten the stabilitysysIvan Men rican Beve the Monte n will threa it , butio CEO usly lenge ol distri Diageo at the Ame arch 1, at but serio 70 address n, Feb. 27-M litigation,-tier beverage alcohfor more than . Vegas. keynote and COO conventio Casino in Las the president the three has been in place ibition in 1933 le for ezes annual Proh d as ter not rt and responsib tem that ce the end of Ivan Men nd disas Carlo Reso previously serve where he wasfunctions of the —sin well porte rage alcohol years rica, ezes on could t beve the was l Men ibuti h Ame anizing The resul sands of smal also for the eo Nort supply and distrand Canada. He rica’s lers, but thou and reorg of Diag h Ame States only for ations, efforts, America,them and the distiluct in s ed Nort on oper eo acros Unit ibuti the distr g Diag in the retailers rs who supply create the prod dent of of sales and company ntal in simplifyin d as presi the wholesaleand brewers who ion millions ting its ezes serve the efforts of diviinstrume processes, direc tions. t to ment ted ets rica, Men vintners try place—no by them. business marketing func in North Ame Menezes direc Venture Mark tries, repthe coun says the first nt eo’s city, coun employed bership across sales and his assignme In this capa make up Diag tion," ately 123 workers of alcohol mem this litiga s that Prior to ure Markets. approxim 60 percent "The ABL troubled by of America Vice ess unit ility for Vent at risk lation and stry, ous busin t responsib ld be very Wholesalers Diageo indu popu nom really shou s is d’s direc auto at d Beer worl has umer good and has largely National Craig Purser. "Whby an 800-poun of division ent of the al cons PLC one sion. This nearly 71 perc in the globfor Guinness company. President major power grabssive. They're s to rience pe ctor resenting servings. in the here is a very aggre when it come nsive expeStrategy Dire rlpool Euro ions with ers They're beverage utive with exte gorilla. t growing retail a and Whi 1997 as ration posit s, in Indi exec eo in integ le An Diag early stage of the fastes alcohol." for Nest eting and joined School relatively worked Menezes ral global mark Kellogg beverage is still in the Menezes ersity’s company. our The case held seve ng Diageo, 1 ks tern Univ G. 1 speak at joini ON P Northwes premium drin stature Before C O N T. n. MBA from d’s leading of Mr. Menezes' an s in Mila worl hold one eo is the to have some Menezes ent. Diag red 3 AGE Managem certainly hono P N O N T. "We're

ated CEO sl Diageo ote speaker as keyn

nezes Ivan Me

I 93D At No. PPermi

DEN s. to INDEPEN l challenges states’ right ibition. Proh and SMALL lega due to system to the end of future distribution s back alcohol em that date is a syst

STD PRSRT TAGE U.S. POS

2, e #10

pub • This

W. Granite ted: 125

Granit 1 2 5 W.

8 ■

reques

No. 9 Vol. 1,

– pg. profile Bottles!

e service

The most obvious change is a departure from a broadsheet format to one that resembles a magazine. We’re excited by the opportunities the new format will offer, but most importantly, we’re committed to delivering the same informative and meaningful content that you’ve come to expect with a focus on what’s important to beverage alcohol licensees and their businesses. That includes the latest news from ABL, our state affiliates, the industry and important information about our ongoing advocacy efforts at the federal and national levels.

has put out a print membership publication to speak directly with its members. It reaches their mailboxes and those of alcohol industry regulators, executives and elected officials across the country. We know from firsthand accounts that the ABL Insider is read regularly by ABL members, shared with package store and tavern employees and, in some instances, even amongst customers at the bar.

Chang

You might notice that this issue of the ABL Insider looks a little different than those you have received in the past. Your eyes aren’t playing tricks on you. We’re excited to present the newly re-designed ABL Insider.

CO

Whether you read the ABL Insider in print or online, behind a bar or behind a cash register, we hope you enjoy the new look. Feel free to let us know what you think by contacting the ABL office with suggestions or comments, and thanks again for your support of America’s Beer, Wine & Spirits Retailers. Cheers!

Since 2004 with the launch of the ABL Leader, American Beverage Licensees

calendar

SEPTEMBER 8–10 ILLINOIS LICENSED BEVERAGE ASSOCIATION ANNUAL MEETING AND CONVENTION KANKAKEE, IL

OCTOBER 1-3 ALASKA CHARR ANNUAL CONVENTION KODIAK, AK

OCTOBER 16 MASSACHUSETTS PACKAGE STORES ASSOCIATION ANNUAL TRADE SHOW AND CONFERENCE MARLBORO, MA

SEPTEMBER 9-12 MONTANA TAVERN ASSOCIATION 58TH ANNUAL CONVENTION & TRADE SHOW BUTTE, MT

OCTOBER 5 INDIANA ASSOCIATION OF BEVERAGE RETAILERS BEER, WINE & SPIRITS TRADE SHOW MICHIGAN CITY, IN

OCTOBER 17 NEW YORK STATE LIQUOR STORE ASSOCIATION ANNUAL HOLIDAY TRADE SHOW (BUFFALO) BUFFALO, NY

SEPTEMBER 16 COLORADO LICENSED BEVERAGE ASSOCIATION 2013 GOLF TOURNAMENT LAKEWOOD, CO

OCTOBER 7-10 TAVERN LEAGUE OF WISCONSIN CONVENTION & TRADE SHOW GREEN BAY, WI

OCTOBER 21 METROPOLITAN PACKAGE STORE ASSOCIATION ANNUAL DINNER HOWARD BEACH, NY

SEPTEMBER 24 DISITLLED SPIRITS COUNCIL OF THE U.S. MT. VERNON GALA MT. VERNON, VA

OCTOBER 10-12 BREWERS ASSOCIATION GREAT AMERICAN BEER FESTIVAL DENVER, CO

OCTOBER 26-28 AMERICAN BEVERAGE LICENSEES FALL BOARD OF DIRECTORS MEETING SAN ANTONIO, TX

SEPTEMBER 29-OCT 2 NATIONAL BEER WHOLESALERS OF AMERICA 76TH ANNUAL CONVENTION & TRADE SHOW LAS VEGAS, NV

OCTOBER 15 NEW YORK STATE LIQUOR STORE ASSOCIATION ANNUAL HOLIDAY TRADE SHOW (ALBANY) ALBANY, NY

OCTOBER 30 NEW JERSEY LIQUOR STORE ALLIANCE 8TH ANNUAL HOLIDAY PACKAGE TRADE SHOW RARITAN CENTER, NJ

Fall 2013 | ABL INSIDER

3


leading

Proud to Serve With this, my inaugural column in the ABL Insider as the newly-elected President of American Beverage Licensees, I want to first thank and congratulate those other ABL Board members who ran for office. For those who were elected, I look forward to working with you to continue ABL’s growth and to make sure it is the voice and association that its members deserve.

HARRY KLOCK President ABL

I also want to thank all of the members of the ABL Board of Directors who met this June in Washington, DC. I would not be here without you, and your participation in ABL. It has been an honor and a pleasure getting to know you all over the past fifteen years, and I look forward to meeting even more of you over the next two years. My name is Harry Klock and I’m a tavern owner. I own Stockman’s Bar in Harlowton, Montana. Harlowton is a town of about 1,000 people located in central Montana. It’s a place full of folks who know the meaning of hard work and community. I have been a member of the Montana Tavern Association (MTA) since 1991, and served as MTA President in 1995 and 1996. In Montana, the MTA fights for its members’ rights as businesspeople, and brings together fellow tavern owners with a sense of community and united purpose. I’ve been active on the national association board level for many years now, having first joined the Board of Directors of one of ABL’s predecessor organizations, the National Licensed Beverage Association (NLBA), in 1997. I remained on the ABL Board after the merger of the on-premise (NLBA) with the predominantly off-premise National Association of Beverage Retailers into

4

ABL INSIDER

one greater, stronger trade association for the interests of independent beverage retailers. After having served on the ABL Executive Committee as a Vice President, I will now serve as President of ABL for a two year term.

Stronger Members, Stronger Association

If you are receiving this, then that means that you have made the decision to protect your business interests and future by joining an ABL state affiliate. As a member of your state organization, you stand with your friends, and even your competitors, to keep your beverage business strong. As we face challenges to the very nature of our business models, and threats to the culture of American hospitality that boasts the greatest variety of beverage alcohol products in the world, we need solid state organizations to represent our interests. As a member of your local community, you work hard to make your business a reflection of your values as a small business owner. I understand the sacrifices we all make to keep our businesses alive in the current market, and look forward to working with you to keep us strong. By strengthening our members and their businesses, we will enhance our ability to advocate for ourselves and our way of life. When it comes to associations – be it at the state or national level – they are stronger and more successful when their members are stronger and more successful. ABL’s strength has always been its grassroots and its members’ presence as “Main Street” businesses. I look forward to building on that credibility as your President.


The 2013-2014 ABL Executive Committee, from left: Representative At-Large Bob Sprenger of Bubba’s in Marion, WI; Vice President Steve Morris of Jorgenson’s Restaurant & Lounge in Helena, MT; Vice President Warren Scheidt of The Cork in Columbus, IN; Vice President Don Diserens of Alton Sports Tap in Godfrey, IL; Vice President Paul Santelle of Garden State Discount Liquor in Perth Amboy, NJ; President Harry Klock of Stockman Bar in Harlowtown, IN; Former Executive Committee Member and Conference and Meetings Chairman David Jabour of Twins Liquors in Austin, TX; Immediate Past-President Chuck Ferrar of Bay Ridge Wine and Spirits in Annapolis, MD. Not pictured: Treasurer Ray Cox of Elite Beverages in Indianapolis, IN.

Lessons as a Legislator

I had the privilege of representing my community in the Montana legislature from 2005 to 2013. From the other side, I saw the impact that a strong organization of likeminded people can have on the political process. By participating in the political process – as a member of an association or as an individual businessperson – you will bring commonsense and your vote to the table. I encourage all ABL members to continue to develop contacts with your state legislators and their staff,

as well as your representatives in in the U.S. Congress. Find out how you can get involved in the political process in your state, so we can work together on the alcohol policy and small business issues that are trending throughout the country.

issues that affect on-premise and off-premise licensees. Whether it is alcohol-related traffic safety policy, tax issues or other small business initiatives, by standing together as one voice, we can make the biggest difference in the debate.

As a member of American Beverage Licensees, you are a part of the loudest and strongest voice in Washington standing up for independent beverage retailers. Federal issues affect us at every level, and I am excited at the opportunity to work more closely with the ABL staff in Washington on

Thank you for your support now and throughout the next two years. I am looking forward to tackling the issues with all ABL members and proudly representing America’s Beer, Wine and Spirits Retailers. |

Did you know... Harry Klock is ABL’s 6th President. ABL Past Presidents include: 2011-2013 Chuck Ferrar Bay Ridge Wine and Spirits Annapolis, MD 2009-2011 David Jabour Twin Liquors Austin, TX 2006-2009 Kevin O’Laughlin Charlie’s Terre Haute, IN 2004-2006 Greg Wonsmos Centennial Fine Wine & Spirits Dallas, TX 2002-2004 Bob Sprenger Bubba’s Marion, WI Fall 2013 | ABL INSIDER

5


where we stand

What’s Your Local?

JOHN BODNOVICH Executive Director ABL

A few weeks ago, I met up with some friends at my neighborhood pub for a drink and to catch up. The owner of the bar, whom I happen to know, stopped by our table to say hello and welcome us to the pub. Upon learning that this was my friends’ first time at his bar, and that they lived in a different part of town, he asked them a simple but elegant question. “What’s your local?” It didn’t take more than a half second for one to respond, “Trusty’s…they’ve got the coldest beer.” Then another, “The Ugly Mug…great sliders.” And then the third, “The Raven…best juke box in town.” What my friend the pub owner had tapped into was a basic yet all too often unspoken truth. Just about anyone who enjoys a beer, glass of wine or cocktail knows exactly what their “local” is. It’s the place around the corner where you can show up in a tuxedo after a wedding or in flip flops and shorts and be treated the same way by the bartender who knows your name. It’s the neighborhood package store where the wine guy knows you and the owner donates product to local fundraisers. Every ABL member – be they onpremise or off-premise – is someone’s local. It’s the very essence of what it means to be an independent retail alcohol licensee. It means providing a comfortable place where your customers know you’ll have what they’re looking for, and might have something new worth trying. It’s about

6

ABL INSIDER

the experience of customers being in your place of business and allowing them to connect with your community. In today’s alcohol marketplace, with its increasingly global scope, local taverns and package stores are proud to sell and serve an unparalleled selection of beer, wine and spirits produced in the United States and imported from abroad. These products are made by the largest companies in the industry, as well as from some of the newest and smallest producers in the market. But it doesn’t matter what you’re ordering or purchasing at your local, be it a beer from Belgium, a wine from California or a vodka from France. It’s where you’re drinking or purchasing those products and the indelible tie that independent bricks-and mortar beverage licensees have with their communities. They’re friends and neighbors, checking your ID and completing your purchase across the bar or the across the counter. “What’s your local?” is about more than convenience. Sure, your local is most likely nearby, but it’s also about small businesses that are accountable to their communities. It’s about consumers’ desire for authenticity in the places they spend their hardearned dollars and those proprietors that welcome them into their businesses.

#Whatsyourlocal

In the coming weeks and months, you may see the more frequent use of the hashtag #whatsyourlocal in ABL publications and communications. We


want people to talk about their local and what makes its unique. Our goal is highlight what makes these places more than just businesses, and to support business and regulatory environments that allow them to grow instead of making it harder for them to simply exist. Important parts of the story are the local jobs and revenue that bars, taverns and package stores provide their communities. We know that more than 1.4 million jobs are created annually from the direct

retail sale of alcohol, but who are the faces of those jobs? They’re ABL members and their families who wait tables, manage nights, bartend weekends, ring-up sales, carry-out orders or stock the walk-in cooler. They’re part-timers, full-timers, seasonal-workers and first-timejobbers. They’re men and women, young and old, from a diverse array of backgrounds. “What’s your local?” is a sentiment that transcends on-premise and off-premise differences, and unites

independent beverage licensees behind one banner, which, just like my friend the bar owner, simply and elegantly makes people think about the community businesses that serve them and provide character, reliability and authenticity to their lives. I look forward to working with all of the ABL member “locals” as we raise aware of these American small businesses by asking friends, family and customers, “What’s your local?”|

“Every ABL member – be they on-premise or off-premise – is someone’s local. It’s the very essence of what it means to be an independent retail alcohol licensee. It’s about the experience of customers being in your place of business and allowing them to connect with your community. ” Fall 2013 | ABL INSIDER

7


dc update

ABL Opposes NTSB .05 BAC Recommendation On May 14, the National Transportation Safety Board (NTSB) voted to approve impaired driving recommendations, one of which calls for states to reduce per se BAC from .08 to .05 or lower. The .05 BAC recommendation focuses on states, and calls for state legislatures to pass .05 laws. NTSB has indicated that it plans to urge the National

Highway Safety Transportation Administration (NHTSA) to explore offering incentive grants for states to pass lower BAC laws. ABL is working with its members, affiliates, industry partners and third-parties to develop a strategy to address this importnat issue. ABL believes that this recommendation

remains an outlier that is rightly opposed by the vast majority of the American public. It could potentially make the roads less safe by the forced repurposing of already scarce resources away from where they can have the greatest impact: targeting high BAC and repeat drunk drivers. |

ABL Statement on NTSB’s recommendation to pursue a national .05 BAC or lower per se limit “Today’s recommendation by the National Transportation Safety Board to arbitrarily redefine drunk driving does not address the problem at its core and would dilute current efforts to stop repeat offenders and those who drive with high BAC.

activities of law-abiding social drinkers who, by wide majority, are responsible consumers. This recommendation also goes way beyond what public health groups – including Mothers Against Drunk Driving – call for to fight drunk driving.

If implemented, the recommendation would effectively criminalize the

Drunk driving is unacceptable. Despite the great strides we’ve made

to change our culture when it comes drunk driving, we all agree that more work needs to be done. We will continue to work with policymakers, regulators and public officials to support effective drunk driving policies while opposing those that undermine the important efforts already being made in this fight.”

Public support for NTSB’s .05 BAC recommendation has been less than enthusiastic. Even safety groups like Mothers Against Drunk Driving (MADD) and AAA declined Tuesday to endorse NTSB’s call for a .05 threshold. The National Highway Traffic Safety Administration, which sets national safety policy, stopped also short of endorsing the board’s recommendation. - Washington Post

Lowering the legal limit would turn a lot of responsible social drinkers into criminals. More important, it probably wouldn’t do much to reduce drunken driving deaths. - USA Today

It was very difficult to get .08 in most states so lowering it again won’t be popular. The focus in the states is on high (blood alcohol content) offenders as well as repeat offenders. - Governors Highway Safety Association

Exceprts from Industry statements on NTSB’s .05 BAC recommendation We strongly encourage policymakers to direct their efforts where we know we can get results: by focusing on repeat offenders and increasing penalties on those with BAC of .15 or more. - Beer Institute

8

ABL INSIDER

Progress has been made in decreasing alcohol-related traffic fatalities. Reducing the BAC level will not be an effective strategy. - Distilled Spirits Council of the U.S.

We feel measures addressing (drunk driving) should be focused on repeat, chronic offenders who drink excessively, then drive — and not the millions of Americans that enjoy an adult beverage in a responsible manner with their meal. - National Restaurant Association


TIMELINE - How .08 BAC Became the National Standard for Drunk Driving 1980 - Mothers Against Drunk Driving (MADD) is founded in 1980 by Candy Lightner. 1982 - President Ronald Reagan establishes “The Presidential Commission on Drunk Driving”. - Congress creates the Section 408 program under which states can qualify for supplemental transportation grants by enactment of a .08 per se law. - The National Highway Traffic Safety Administration (NHTSA) begins recording alcohol-related statistics for drunk driving fatalities. 1983 - Utah and Oregon are the first states to adopt .08 per se BAC laws. 1987 - The Supreme Court upholds the constitutionality of a federal statute that withheld federal funds from states whose legal drinking age did not conform to federal policy. South Dakota v. Dole, 483 U.S. 203 (1987). This decision legitimizes Congress’ ability to place alcohol policy mandates on states under the threat of withholding federal funds. 1991 - NHTSA conducts a study of the effects of

the .08 per se BAC law in California and finds that the lower BAC level and the new ALR law combined resulted in a 12% decrease in alcohol-related fatalities - Congress passes the Intermodal Surface Transportation Efficiency Act (ISTEA), adopting the first statutory incentive grant criterion for .08 BAC. 1992 - NHTSA submits to Congress “Driving Under the Influence: A Report to Congress on Alcohol Limits.” This report declared, “states should be encouraged to enact .08 as the BAC level at and above which it is a per se criminal offense to drive.” 1997 - Sen. Frank Lautenberg and Rep. Nita Lowey introduce the Safe and Sober Streets Act (S. 412 & H.R. 981), which is the first federal legislation that would sanction states with a loss of federal highway funds should they not pass .08 BAC laws. 1998 - President Clinton calls for the promotion of a national limit, under which it would be illegal to operate a motor vehicle with a blood alcohol concentration (BAC) of .08 or higher. - President Clinton signs TEA-21 into law with incentive grants for states that pass .08 laws.

2000 - The U.S. House and Senate pass separate FY 2001 Transportation Appropriations bills. The House bill does not include a .08 BAC mandate while the Senate version does. The two bills are sent to the House/Senate conference committee. The .08 per se BAC mandate is adopted into the final bill, and the Department of Transportation’s 2001 Appropriations Act (H.R. 4475) as amended by the conference committee passes both chambers of the U.S. Congress. - On October 23, President Bill Clinton signs the Department of Transportation’s 2001 Appropriations Act into law. The Act provides that states must pass a .08 per se law by 2004 or begin losing federal highway construction funds. States that do not implement .08 BAC by 2004 will lose 2 percent of their highway money, with the penalty increasing by 2 percent each year, until it reaches 8 percent beginning in FY 2007. States that adopt the .08 limit by 2007 will get back all of the funds lost in previous years. 2005 - Minnesota becomes the last state for a .08 per se BAC law to become effective.

Estate Tax Repeal Bills Introduced; ABL Pens Letters of Support

D-DROP Act is Reintroduced in the Senate; Sen. Launtenberg Passes

Implementation of “Employer Mandate” Delayed until 2015

ABL applauded the re-introduction on June 19 of the Death Tax Repeal Act of 2013 (S. 1183, H.R. 2429). The legislation, introduced in the House and Senate, would fully repeal the federal estate tax or, as it is commonly known, the death tax, a goal that ABL and its members have long supported. Last year, ABL supported provisions in the American Taxpayer Relief Act of 2012, including a $5 million estate tax exemption, indexed for inflation, permanent lower tax rates and provisions for spousal transfer and stepped-up basis. Following the introduction of this year’s legislation, ABL sent letters of support to both Representative Kevin Brady (R-TX) and Senator John Thune (R-SD), noting that their efforts “will help multigenerational bars, taverns and package liquor stores keep their identities as truly local small businesses, and help them grow to meet their customers’ needs.”

On May 16, Senator Frank Lautenberg re-introduced the “Drunk Driving Repeat Offender Prevention Act of 2013” (S. 979), which mandates states to require an ignition interlock for a minimum of six months for all drunk driving offenders. States that fail to comply face a reduction in federal transportation funding. The Senate bill is a companion to a House version (H.R. 1665) which was introduced in April. With the death of Sen. Lautenberg on June 3, the bill will require a new champion in the Senate. The introduction of this legislation is a marker in the drafting process of the next surface transportation bill. The current highway bill expires on September 30, 2014. ABL continues to oppose federal unfunded mandates on states, and opposes one-size-fits-all drunk driving mandates that fail to take a comprehensive approach to the problem.

On July 2, the Obama Administration announced the delay for one year, until 2015, of the Affordable Care Act’s (ACA) requirement that employers with more than 50 fulltime employees provide healthcare coverage for their workers or face financial penalties. This change delays enforcement of a major provision of the law and comes after some companies have taken steps to move full-time employees to parttime positions in order to fall below the threshold for being required to provide coverage. As of January 1, 2014, most Americans will still be required to have insurance under the ACA law, or they will face tax penalties. Delaying the employer mandate raises questions about state-based marketplaces. Specifically, it may be challenging for those operating state-based marketplaces to determine who is eligible for subsidies if employers are not reporting on covered employees.

Fall 2013 | ABL INSIDER

9


industry voices Everybody Wins How an Independent Alcohol Distribution System Works So Well for So Many Main Street retailers and beer distributors face many challenges. One challenge that may seem unique to distributors also has real, negative consequences for independent retailers.

CRAIG PURSER President & CEO National Beer Wholesalers Association

There has been a great deal of industry discussion recently about brand compensation requirements, franchise laws and other state regulations that provide guidance to trading partners and work to level the playing field between brewers and distributors. These laws and regulations work to ensure that each segment of the beer industry remains independent, which benefits all marketplace participants but, more importantly, also benefits the American consumer. An editorial published this spring by the St. Louis Post-Dispatch explained the benefits of an independent three-tier distribution system stating: “It works like this: The companies that make the beer, wine, rum or vodka make deals with wholesalers to distribute their booze in the state. Those wholesalers, in turn, sell to retail outlets. The added layer of middlemen assures that one player can’t prevent its wholesaler from carrying competing products, for

Did you know...

instance, making it next to impossible for a craft beer company such as Schlafly [Beer] to get its product to market.” The editorial also states, “That system, creating separate state-based roles and responsibilities for suppliers … wholesalers … and retailers …. protects consumers from one player in the liquor business exercising too much control over price or competition.” Simply put – everybody wins with an open and independent distribution system. St. James Winery CEO Peter Hofherr also put it well when he said, “The franchise law creates a buffer between wholesaler and multinational suppliers and creates an environment where the middle-tier is healthy and can invest in local brands that don’t have more pocket power.” Three-tier, tied-house, beer franchise and other state laws that work to preserve an independent and diverse distribution system are more important and relevant today than at any other time in recent history. The U.S. beer industry has undergone

The National Beer Wholesalers Association (NBWA) represents the interests of the 3,300 licensed, independent beer distributors - with operations located in every state and congressional district across the United States.

10

ABL INSIDER


NBWA President & CEO Craig Purser addresses attendees during the 2013 ABL Conference’s Industry Leaders Panel. He is joined on stage by WSWA President & CEO Craig Wolf; DISCUS President & CEO Dr. Peter Cressy; and Beer Institute President Joe McClain.

dramatic changes. Consolidation is occurring at the brewer and retail tier at a rapid pace. And marketplace pressures from global retailers continue to challenge state laws that provide a level playing field for the nation’s independent retailers. The effort to squeeze out local distributors also threatens the current alcohol regulatory system, which depends upon the viability, accountability and amenability to enforcement of many local distribution and retail businesses like NBWA and American Beverage Licensees (ABL) members. These local businesses are highly responsive to the host communities they serve. Franchise laws provide beer distributors with independence and work to prevent chain accounts from dictating terms, often at the

expense of small retailers. State laws, including franchise, allow independent distributors to better serve independent retailers. Thanks to state alcohol laws that promote competition and help beer distributors remain independent by allowing them to take on and invest in growing new brands, there are more than 2,400 breweries in operation across America today – and more are opening every day! A strong, independent three-tier system is a primary reason for this gr owth. We have great, American brands that haven’t even been around for 20 years – brands that will no doubt become iconic soon because of this great system. And while our system can always be improved, much of this growth is because of the independent distribution system and

a state-based regulatory system that supports it, not in spite of it. Independent beer distributors are proud to work with brewers to provide the infrastructure they need to reach a wide network of retailers, and distributors are proud to partner with independent retailers to help introduce new beer brands and thousands of labels of beer to markets across the country for consumers to enjoy. NBWA looks forward to working with you to continue to educate policymakers, the media and the public about the economic, commercial and regulatory benefits of the independent distribution system that has proven to work so well for so many. |

Fall 2013 | ABL INSIDER

11


industry voices

Giving Back: An Industry Tradition How the Beverage Alcohol Industry Supports Our Families and Our Communities.

CRAIG WOLF President & CEO Wine & Spirits Wholesalers of America

Earlier this summer, I joined many of you, along with your families and other industry supporters during your annual conference.

a legacy for the next generation, and of building a business of which you as well as the community at large can be proud.

I met with ABL’s leadership to discuss a number of shared legislative and policy agenda items and outlined many ways that our organizations can work together in the year ahead on both policy goals and social responsibility campaigns.

Unlike other sectors of the economy, within our industry corporate responsibility and civic engagement are not PR buzzwords or part of a quick marketing campaign. To the men and women of our industry, philanthropic leadership is a central component of their businesses, and it has been so since day one.

Later, we gathered at your annual gala where I was honored to accept ABL’s “Top Shelf Award” and shared with conference attendees the story of one of my most meaningful jobs: working in my uncle’s Baltimore liquor store. Back then, I had no way of knowing that I was later destined to return to the beverage alcohol industry. But what I learned in that job has stuck with me for nearly three decades: the importance of starting at the bottom to learn from the ground up, working with effort and persistence under difficult conditions, and the value of always giving back to employees, family and community. From that job, I gained a sense of the importance of helping customers and the community, but I know that I’m not alone in learning from this experience— many of you had similar experiences too, as did many of the wholesalers for whom I work today. In their world and in yours, there is a shared goal of building

12

ABL INSIDER

I put together a list of some of these efforts in order to publish later this year an annual report showcasing how wholesalers have led by example. I am certain a similar list could be created by industry firms in the other two tiers. Let me share with you some of the highlights—not because the firms or leaders need wider recognition, but because the size and scope of their investment is significant and exemplifies the character and integrity of those that comprise our industry. Southern Wine & Spirits’ Larry Ruvo established a neurological health center at the Cleveland clinic and has raised millions of dollars to help fund research into neurological diseases. Republic National Distributing Company provides scholarships to the child of every RNDC employee who attends college.


WSWA President & CEO Craig Wolf with members of the WSWA staff at the 2013 Top Shelf Award Banquet. Wolf was presented with the Top Shelf Award by ABL President Chuck Ferrar, with remarks by wholesaler Richard Leventhal, earlier in the evening.

WSWA’s incoming Chairman Doug Hertz of United Distributors in Atlanta took philanthropy to a whole new level by launching Camp Twin Lakes, a facility for ill or seriously injured children to enjoy a summer camp experience.

Heidelberg Distributing, led by former WSWA Chairman Al Vontz, helped establish the multi-million dollar Vontz Center for Molecular studies at the University of Cincinnati Medical School, a state of the art neuroscience and cancer research facility.

Vern Underwood of Young’s Market Company is on the board of the Christermon Foundation that provides scholarships to students of industry employees from all tiers— among other boards and charitable efforts.

And the Henry A. Fox Sales Company and its founding family have been strong supporters of many Michigan charities including the Mary Free Bed Rehabilitation Hospital, one of the nation’s premiere trauma recovery facilities.

This is not a comprehensive list; it is just a few of the shining lights that proliferate throughout the wholesale tier. Giving back to their communities is not an option to them - it is an essential and integral part of their operations. And the same holds true for the hometown retailers that are their partners. This commitment to philanthropy and community makes me proud to be part of such a great industry and I look forward to our continuing partnership in the years ahead. |

Did you know...

The Wine & Spirits Wholesalers Association (WSWA) has over 350 member companies in 50 states and the District of Columbia. Members distribute more than 70 percent of all wines and spirits sold at wholesale in the United States. Fall 2013 | ABL INSIDER

13


2013 ABL CONFERENCE

14

ABL INSIDER

Where the Industry Comes Together Retailers meet with industry leaders, issues experts and Congressional leadership at the 2013 ABL Conference in Washington, DC This June, beer, wine and spirits retailers and members of the alcohol industry from across the country gathered at the American Beverage Licensees Annual Conference. They heard from public officials, industry leaders, and experts on a wide variety of policy and business issues facing on- and off-premise beverage retailers. The keynote speaker was Congressman Tom Petri (R-WI), the Chairman of the Subcommittee for Highways and Transit of

the House Transportation and Infrastructure Committee. As a part of his subcommittee’s jurisdiction, he oversees highway safety policy. He addressed an array of topics that would affect retailers including the costs involved with transportation reauthorization and new technologies being developed for use in automobiles. He also discussed the general state of politics in Washington and the importance of participation from small business owners.

Top left: Conference attendees in sessions. Above: Congressman Tom Petri delivers the keynote. Left: Bill Earle, John Bodnovich, and Chuck Ferrar at the NABI opening reception.


In the day-and-a-half long program, conference attendees heard from more voices than ever before: 25 speakers and sponsors addressed the group. A series of panel discussions allowed for more opinions and information to be shared, including new perspectives and longtime industry friends. Familiar faces on the alcohol industry leaders panel included Dr. Peter Cressy, President & CEO of the Distilled Spirits Council of the United States; Joe McClain, President of the Beer Institute; Craig Purser, President & CEO of the National Beer Wholesalers Association; and Craig Wolf, President & CEO of the Wine & Spirits Wholesalers of America. This year, they focused on Washington, addressing how the three tiers could cooperate on shared issues at the federal level. A panel of political reporters

gave attendees insight into the world of those who report on the newsmakers that ABL members came to visit. The panel featured four journalists, all covering politics and government in Washington, DC. Moderated by Mike Melia, Senior Broadcast Producer of the PBS NewsHour, it featured Tory Newmyer of Fortune, Anna Palmer of Politico and Pete Schroeder of The Hill. They talked about current issues before Congress and in the media. Craft producers were also invited to share their experiences in their businesses, stressing the importance of their relationships with small retailers and the direction they see the industry taking in the years to come. Bill Butcher, Founder of Port City Brewing; Rob Deford, President of Boordy Vineyards; and Wes Henderson, COO of Angel’s Envy Bourbon, were candid about facing challenges establishing and

Above: John Bodnovich questions the craft producers panel during the conference.

growing their businesses. They also spoke about the opportunities they see for growth, regional definitions for American wines, and trends like session beers and retro spirits recipes. Complementing the panel discussions were individual issue experts who conducted educational seminars throughout conference. Following the National Transportation Safety Board’s May recommendation to lower the legal blood alcohol content limit to .05%, attendees heard from former law enforcement officer Bill Georges. He provided facts and his perspective on the effective prevention and prosecution of impaired driving. Another former law enforcement officer spoke to the group. Martin Johnson, a retired detective and Department of Homeland Security

John Bodnovich introduces the Political Reporters Roundtable discussion.

Left: Wes Henderson shows his Angel’s Envy Bourbon.

Bill Georges discusses effective drunk driving policy, including .05 BAC. John Bodnovich and members of the Tavern League of Wisconsin with Congressman Tom Petri.

continued Fall 2013 | ABL INSIDER

15


Members of the Illinois Licensed Beverage Association toast at the NABI opening reception.

Neil Trautwein spoke about the American Healthcare Act.

Chuck Ferrar and Bill Young, of MillerCoors, at the MillerCoors Annual Luncheon.

Chuck Ferrar and Beverage Media’s Bill Slone at the Beverage Media Breakfast.

educator, advised licensees on prevention of the successful use of false identification within their establishments. In a presentation about the Affordable Care Act, Neil Trautwein, Vice President and Employee Benefits Policy Council at the National Retail Federation, discussed its potential impact on small business owners and beverage retailers. This presentation is available on the ABL website’s Member’s Only site.

16

ABL INSIDER

Turning its eyes toward the nearby Capitol, the ABL conference focused much of Sunday on federal issues and effective lobbying. An update on ABL’s federal affairs effort by ABL Executive Director John Bodnovich informed the group, while a seminar on grassroots lobbying by Adrian Hunte of the Hunte Law Group prepared attendees for later meetings. A comprehensive presentation of the 2012 Economic Impact

Martin Johnson, a retired detective, spoke on preventing fake ID.

Newly-elected ABL President Harry J. Klock and wife Sharyn at the NABI opening reception.

Study of America’s Beer, Wine and Spirits Retailers by its author, John Dunham of John Dunham & Associates, explained the economic impact of direct retail alcohol sales and the tools used to gain the information needed at the national, state, and congressional levels. ABL members and conference attendees brought the information and knowledge gained through the conference to Capitol Hill, focusing on the positive aspects of the beverage alcohol industry. Over forty


Dr. Peter Cressy of DISCUS opens the Top Shelf Banquet.

Top Left: WSWA’s Craig Wolf received the Top Shelf Award from ABL’s Chuck Ferrar. ABL’s Executive Director John D. Bodnovich toasts sponsors at the 2013 Top Shelf Award Banquet.

Bottom Left: Richard Leventhal, of Fedway Associates, spoke about Wolf.

Bill Hunter receives the President’s Award from Chuck Ferrar.

meetings with Congressional staff and members took place, and the day concluded with a reception on Capitol Hill. The conference’s opening reception, sponsored by the National Association of Beverage Importers, breakfasts sponsored by Beverage Media and Proximo Spirits, and the MillerCoors annual luncheon offered conference attendees the chance to learn about products and network with other retailers and members of the industry. This year,

bottled water was also provided by the International Bottled Water Association. Honored for their excellence in retailing, ABL was proud to present the Brown-Forman Retailers of the Year awards during the conference general session. The Retailer of the Year awards recognize those dedicated small business owners who serve as the face of the industry to millions of Americans, and are nominated by ABL’s state affiliates.

Members of the Tavern League of Wisconsin with Congressman Reid Ribble (second from left).

The ABL Top Shelf Award Banquet concluded the event on Monday night. Once again sponsored by the Distilled Spirits Council of the United States, the event featured a pre-dinner reception, as over two dozen craft distillers from across the country conducted a tasting of their products. The 2013 ABL Top Shelf Award was presented to Craig Wolf, President and CEO of the Wine & Spirits Wholesalers Association, for both his outstanding work in the industry and his service in the United States Army Reserve. |

Fall 2013 | ABL INSIDER

17


Brown-Forman Congratulates the following 2013 ABL Retailers of the Year Wilbur’s Total Beverage Boluldercrest Package Store Crehan’s Irish Pub Grand & Western Liquors Bedrock Liquors Liquor Barn B.K. Miller Meats & Liquors Frank’s Den Debucas Wine & Liquors Doc’s Eastside Discount Wine & Liquor The Office Lounge & Liquor Store Joe Canal’s Newkirk Station Liquors & Wines The Vineyards Wine & Spirits Bottles Beverage Superstore Kings Liquor The Village Supper Club Four Winds Liquor & Lounge

18

ABL INSIDER

Fort Collins, CO Atlanta, GA Belleville, IL Chicago, IL Lafayette, IN Lexington, KY Clinton, MD Glen Burnie, MD Raynham, MA Laurel, MS Livingston, MT Bellmawr, NJ Brooklyn, NY Middletown, NY Mt. Pleasant, SC Fort Worth, TX Delavan, WI Cheyenne, WY


membership memo

Bringing the News to You There are more ways than ever to get news about the alcohol industry, legislative developments, and products and trends that will help you stay on top of your business. But a cluttered email inbox is the last thing you want to see after a busy night at the bar, or when you’re finally done processing orders and just want to lock up for the night. What industry news sources will deliver the news you need? Start with the ABL Weekly & Legislative Updates

ABL keeps track of the news surrounding the beverage industry from politics to product. Each week, ABL combs through dozens of newsletters, magazines, updates and other information, for news that is retailer-centric and sends a single email – the ABL Weekly – with a roundup every Friday. Similarly, the ABL Washington, DC Update comes out once a month and provides a summary of ABL’s lobbying efforts on Capitol Hill and legislative news from Congress. If you’re not already receiving these e-newsbriefs, visit www.ablusa.org to sign up.

Beverage Alcohol Industry Sources There’s a lot of good content being produced and archived by others in the beverage alcohol industry. Let’s take a look at a few of these resources. Alcohol Law Review - Alcohol Law Review is an innovative discussion board which allows users to quickly and easily gather information about many of the most pertinent developments in alcohol regulation and litigation. It facilitates dialogue about current alcohol law cases, legal challenges and issues around the country. Learn more and subscribe to new posts at www.alcohollawreview.com. The Daily Brew – This daily email from the National Beer Wholesalers Association (NBWA) captures state and local news stories – as well as NBWA news – from a beer wholesalers’ point of view. In existence for a number of years now, it’s put together by the talented communications team at NBWA and always features good information. Subscribe at www.nbwa.org/the-daily-brew. WSWA SmartBrief – The Wine & Spirits Wholesalers of America (WSWA) recently launched the WSWA SmartBrief, a daily collection state and national beverage alcohol industry news stories. SmartBriefs are a popular e-newsletter platform used by some of the most successful organizations and draw from a pool of stories that often transcend a single industry. Visit www.smartbrief.com/wswa to sign up for the daily email.

Other Sources

Beverage Media Group (www.beveragemedia.com) remains a go-to source for retail pricing information and is expanding its online and electronic presence… Shanken News Daily (www.shankennewsdaily.com) covers the business side of the alcohol industry with a daily e-newsbrief…

Fall 2013 | ABL INSIDER

19


business builders

The New Point of Sale

How credit card readers are changing with technology, and how that could affect your bottom line. As a merchant, you know better than anyone the costs associated with accepting credit and debit cards, deciphering confusing monthly bills, and hidden fees and variable amounts that rack up with each swipe. Like many small business owners, you are probably approached every couple months by a company that claims it will save you hundreds of dollars on credit card processing.

Credit card readers can be hooked to mobile devices – smartphones, tablets, etc. – and used in conjunction with an online app to complete transactions.

Whatever your choices, new opportunities have become available over the past few years that allow for a less traditional processing agreement and point of sale equipment.

Let’s takle a look at the three largest mobile processors: Intuit GoPayment, Square and PayPal Here.

These companies rarely have sales teams, so comparison shopping must be done through their websites, with new companies starting up all the time.

COMPARISON SHOPPING Intuit GoPayment Created by the makers of QuickBooks, Intuit GoPayment has been an option since 2011. Pricing 1.75% per swipe with $12.95 monthly fee. 2.75% per swipe with no monthly fee. Equipment Free card reader works with iPhone, iPad and iPod Touch devices running iOS 5.0 and higher, and Android devices 2.2 and higher. Does not support Windows devices or Blackberry. Special Features Integrates with Quickbooks accounting software. Can allow up to 50 staff members with additional free readers. Setbacks Additional $0.15 fee for American Express and other “Non-Qualified” payments. Best For Quickbooks users who swipe more than $1,300 per month and want to be able to process larger transactions. www.intuit.com

Square Square was established in 2010 by one of the founders of Twitter. The vanguard of mobile payment options, Square is the “oldest” of the processors reviewed and focus their marketing directly on small business owners.

PayPal Here Online retail juggernaut PayPal is the newest entrant to the mobile processing marketplace. Customers do not need Paypal accounts to make purchases.

Pricing 2.75% for any card swiped. Offers a $275 flat monthly fee for up to $250,000 annually.

Pricing 2.7% transaction fee. Online payment fees and other forms of transactions have different fees.

Equipment Free readers are sent when accounts are created. Square Register and Square Wallet are compatible with most Apple iOS devices running 5.0 or higher and Google Android devices running 2.2 or higher. They do not support BlackBerry, Windows, laptop or desktop computers, or Android tablets. Special Features Staff can be invited to process payment without sharing information like passwords or access to profile information.

Equipment Free reader is compatible with all Apple devices 5.0 or higher and Google Android devices running 2.3.3 or higher. Multiuser access allows for selective access to accounts. Special Features App has more capabilities, such as invoicing, and integrates with all of PayPal’s product suite.

Setbacks Can accept only $400 per swipe. Online help center with e-mail support, but no phone support.

Setbacks Website support and information is limited, so calling phone support is probably the best bet for questions.

Best For Those who process more than $10,000 per month in credit card fees and like Apple devices.

Best For Those who already use PayPal or want to accept online payments.

www.squareup.com

www.PayPal.com

Note: All three of these services charge different fees for manual transactions entered without a credit card present.

20

ABL INSIDER


affiliate & state news WISCONSIN Brown Jug Bill Passes Assembly; SafeRide Funding Increased The Wisconsin State Assembly has passed a bill that would let tavern and store owners file $1,000 small-claims actions against underage drinkers who misrepresent their ages. Supported by the Tavern League of Wisconsin (TLW), the bill was modeled after the Alaska “brown jug” bill that allows for licensees to pursue civil suits against underage people who use false identification in a licensed establishment. The original Alaska bill was supported by ABL members Alaska CHARR and Anchorage CHARR. The bill now goes to the Senate for discussion and vote. In addition to the Brown Jug bill, the state assembly has approved a budget provision that will increase funding for the TLW SafeRide Program. The measure will add $64,000 in FY 2013 and $128,000 in FY 2014-15.

PENNSYLVANIA Privatization Attempts Fail

Several attempts to privatize Pennsylvania’s state-controlled wholesale operations and retail liquor sales failed in the legislature in June following a blitz of activity and lobbying in Harrisburg. Championed by Pennsylvania Governor Tom Corbett (R), privatization efforts gained momentum in March when the Pennsylvania House passed a privatization bill. Subsequent attempts to pass a bill in the Senate were hampered by unified Democratic opposition, multiple privatization plans and lack of consensus amongst interested parties as whether to privatize at all. Democrats in the Senate stated their preference to “Modernize…not privatize” the control-state’s policies. Unions representing Pennsylvania Liquor Control Board employees lobbied against the bill, as did the Malt Beverage Distributors Association of Pennsylvania. The Lancaster’s Intelligencer-Journal reported that over $900,000 was

spent by lobbyists in favor of passing privatization bills through the legislature. The largest contributions were from Wegmans, Sheetz, and Giant Eagle, all of which spent over $50,000 leading up to the budget deadline.

INDIANA Cold Beer Fight Heats Up with Lawsuit

Legislation to sell cold beer in gas stations in Indiana was defeated this spring, but a lawsuit has been filed by convenience store and gas station corporations challenging the state’s current laws for cold beer sales. In an equal protection clause argument, the gas stations have claimed that the states laws unfairly discriminate against them. Currently, gas stations and convenience stores can only sell warm beer. “This looks to me kind of like a Hail Mary pass, trying to get done in the courts what they couldn’t get done at the legislature,” said John Livengood, from the Indiana Association of Beverage Retailers. The state of Indiana filed their response to the lawsuit in July, denying any wrongdoing and claiming that the rights of convenience store owners have not been violated by restricting the sale of cold beer to package liquor stores.

ROUNDUP

New Jersey: A group of 13 TGI Friday’s was fined $500,000 for charging customers for top shelf brands but instead serving them economy brands. Ohio: A police unit of plainclothes officers who enforce liquor, tobacco and food-stamp laws are targeting and holding responsible those who serve alcohol to inviduals involved in car crashes. Oregon: The Northwest Grocery Association is considering launching a ballot initiative effort to privatize liquor sales in the Beaver State. Tennessee: Wine-in-grocery supporters are championing a new study that argues that if the total amount of alcohol consumed remains constant, a higher percentage of wine consumption would result in fewer traffic deaths. Texas: A bill passed in the state legislature will tax “mixed drinks” 8.25 percent, the same rate that currently applies to on-premise beer and wine drinks. Utah: Bars and taverns are grappling with new regulations that state that a customer must order food in order to be served a drink. Washington: An epidemic of liquor theft is plaguing Washington State since the state privatized in 2011. Local police estimate a 175 percent increase in liquor shoplifting.

Skip Boise, owner of The Tavern in Cortland, NY and National Director for the Empire State Restaurant & Tavern Association, meets with U.S. Rep. Richard Hanna (R-NY) during the Congressman’s business tour of downtown Cortland this July.

Fall 2013 | ABL INSIDER

21


industry update Campari America Chief Elected Chairman of the Distilled Spirits Council

Gerard (Gerry) Ruvo, Chairman and CEO of Campari America has been elected Chairman of the Distilled Spirits Council of the United States (DISCUS), the industry trade group reported. His term began June 30, 2013. Ruvo has more than 35 years of experience in the beverage alcohol business and has held a variety of important leadership positions in the U.S. distilled spirits industry. He joined Campari America (formerly Skyy Spirits) in 1998, building a comprehensive sales and marketing structure, while directing the company’s rapid expansion through organic growth and brand acquisitions. Prior to joining Campari America, Ruvo held high level sales positions with Diageo, The Paddington Corporation, and Pepsi Wine and Spirits. He began his career with Gallo. Ruvo succeeds John McDonnell of Patron. “I look forward to working with the Board and staff to continue DISCUS’ leadership in the fight against higher taxes; to expand market access and modernization; and to promote responsibility and moderation,” said Ruvo. “I also want to thank John McDonnell for his invaluable service to DISCUS and the industry.”

Nutrition Labels Approved for Beverage Alcohol

The Associated Press has reported that the Treasury Department, which regulates alcohol, said in early June that beer, wine and spirits companies can place labels on packages that include serving size, servings per container, calories, carbohydrates, protein and fat per serving. Such labels have never before been approved. Use of labeling is voluntary, and the decision is a temporary first step while the Alcohol and Tobacco Trade and Tax Bureau, or TTB, continues to consider

22

ABL INSIDER

final rules on alcohol labels. The ruling would allow the labels to declare alcohol content as a percentage of alcohol by volume, and was applauded by industry trrade groups.

Homebrewing Officially Legal in All 50 States

Homebrewers can legally brew in every state in the country, according to the American Homebrewers Association (AHA).

& spirits ditributor, won a court case against Diageo concerning a franchise agreement with the spirits company. Despite the ruling Diageo’s wine and spirits labels will now be distrbitued by Glazer’s. | On June 19, BeverageMedia. com processed its one millionth electronic order placed on the website | The British government, trying to cut the cost to society of excessive drinking, will ban the sale of drinks at a loss but has abandoned plans to introduce a minimum alcohol price. |

Though homebrewing was federally legalized in 1978 for the first time since Prohibition, it was only this year that Mississippi and Alabama — the last two states remaining with laws against homebrewing — passed legislation to permit beer brewing at home. Alabama’s law went into effect on May 9. The recently-passed homebrewing legislation in Mississippi took effect July 1. While homebrewing is now legal in all states, existing statutes in somes states prevent homebrewers from removing homebrewed beer from their houses. The hobby of homebrewing in the U.S. has seen exponential growth in recent years. With more than 38,000 members, the AHA estimates that more than one million Americans brew beer or make wine at home at least once a year.

Last sips...

Deborah Hersman has been nominated by President Obama for a third twoyear term as NTSB Chair. | On June 4, AB InBev successfully completed its combination with Grupo Modelo in a transaction valued at $20.1 billion. | Wine blogger Tom Wark has created the American Wine Consumer Coalition, which he says will represent the interests of US wine consumers and their ability to purchase alcohol. | According to a report by the National Governors Association and the National Conference of State Legislatures, states could realize $23 billion in uncollected taxes if Congress approves the Marketplace Fairness Act. | In June, Major Brands, a Missouri wine

Bar, tavern and package stores owners’ presence was felt at the Beer Institute’s Annual Meeting this July in Chicago as ABL Executive Director John Bodnovich addressed the meeting’s general session. Bodnovich shared independent beverage licensees’ perspectives on the beer market, reviewed ABL’s policy agenda and discussed joint initiatives with the Beer Institute and its members. Leading executives from AB-InBev, MillerCoors, Heineken USA, Crown Imports, Boston Beer Company and many others were in attendance.


Support Local

Business TELL CONGRESS TO SUPPORT SALES TAX FAIRNESS Take action at 21stcenturyretail.org

FOLLOW US ON TWITTER: @EFAIRNESS

Fall 2013 | ABL INSIDER

23


American Beverage Licensees 5101 River Rd Suite 108 Bethesda, MD 20816 (888) 656-3241 www.ablusa.org

American Beverage Licensees is the preeminent national trade association for retail alcohol beverage license holders across the United

States. Its members, who number nearly 20,000, are comprised of on-premise and off-premise retailers who annually help infuse billions of dollars into the American economy. ABL represents the interests of American small business owners and a historical part of the American way of life. Many members are independent, family owned operators who assure that beverage alcohol is sold and consumed responsibly by adults. |

DIAMOND Beer Institute Diageo National Beer Wholesalers Association Wine & Spirits Wholesalers of America

associate members

PLATINUM Bacardi USA Beam, Inc. Distilled Spirits Council of the United States

ALABAMA Alabama Beverage Licensees Association ALASKA Alaska CHARR Anchorage CHARR ARKANSAS Arkansas Beverage Retailers Association COLORADO Colorado Licensed Beverage Association CONNECTICUT Connecticut Package Stores Association FLORIDA Retail Beverage Council of the Florida Retail Federation GEORGIA Georgia Alcohol Dealers Association

GOLD Brown Forman Castle Brands Charmer-Sunbelt Group Glazer’s, Inc. Pernod Ricard USA Republic National Distributing Company

SILVER Constellation Brands Moet Hennessy USA Monarch Beverage Company Patron Spirits Company Remy Cointreau USA

affiliate members

ILLINOIS Beverage Retailers Alliance of Illinois Illinois Licensed Beverage Association INDIANA Indiana Association of Beverage Retailers Indiana Licensed Beverage Association KANSAS Kansas Licensed Beverage Association KENTUCKY Kentucky Association of Beverage Retailers MARYLAND Maryland State Licensed Beverage Association MASSACHUSETTS Massachusetts Package Stores Association

MINNESOTA Tavern League of Minnesota MISSISSIPPI Mississippi Hospitality Beverage Association MONTANA Montana Tavern Association NEVADA Nevada Tavern Owners Association NEW JERSEY New Jersey Liquor Stores Alliance NEW YORK Empire State Restaurant & Tavern Association Metropolitan Package Store Association New York State Liquor Stores Association OKLAHOMA Retail Liquor Association of Oklahoma

BRONZE CardTronics Luxco Sidney Frank Importing Co.

RHODE ISLAND Rhode Island Liquor Stores Association SOUTH CAROLINA ABC Stores of South Carolina SOUTH DAKOTA Licensed Beverage Dealers of South Dakota TEXAS Texas Package Stores Association VIRGINIA Virginia Licensed Beverage Association WISCONSIN Tavern League of Wisconsin WYOMING Wyoming State Liquor Association WINE & SPIRITS GUILD OF AMERICA

Interested in advertising in the ABL Insider? Request advertising specs by emailing 24 ABL INSIDER Rosanne Ferruggia at ferruggia@ablusa.org.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.