IABR What's Brewing: October 2013

OCTOBER 2013

WHAT’S BREWING

A PUBLICATION OF THE INDIANA ASSOCIATION OF BEVERAGE RETAILERS

IABR WELCOMES NEW PRESIDENT/CEO AND OFFICERS CONTRIBUTIONS MADE BY INDUSTRY LEADERS RECOGNIZED AT TRADE SHOW

New Chairmain of the Board Steve Kohrman, left with Outgoing Chairman Greg Boesch and newly elected Vice Chair John Fangman.

We recently honored the contributions of our members and leaders during the annual Beer, Wine & Spirits Trade Show. During the event, the Association welcomed a new president and CEO in addition to new officers, recognized the dedication and contributions made by our members and presented recently retired president and CEO John Livengood with a special tribute.

New President and CEO, Patrick Tamm.

The annual event marked the first trade show under the leadership of new president and CEO Patrick T. Tamm, who started on September 1, 2013 after a year–long search to fill the position. Tamm previously served as

WHAT'S BREWING, OCTOBER 2013

the government affairs director for the IABR from 2000 to 2004. After his tenure working on the Association’s behalf, Tamm went to the law firm of Ice Miller where he represented businesses, trade associations, municipalities and nonprofit organizations in addition to various utilities, technology and professional services firms in their interactions with the state. From there, Tamm moved on to work with former clients in the engineering and construction industries.

During this time, Tamm led the explosive growth of Bernardin Lochmueller & Associates in the central Indiana marketplace and an expansion into a multiple state region for construction management firm, Gilbane Building Company.

“Through his strong leadership skills and by working with us in the past, Patrick definitely has the tools needed to understand IABR’s challenges while capitalizing on our opportunities,” said Steve Kohrman, owner of Cedar Creek Carry Out in Grabil, Ind. and newly elected IABR chairman of the board. “As a second generation owner and board member, I’m honored to serve as the new chairman of IABR,” said Kohrman of his new role within the Association.

In addition to Kohrman, newly elected officers include John Fangman from Liquorland based in Indianapolis, as vice chair and John Cunningham from Kork & Keg based in Frankfort, Ind. as treasurer.

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Industry leaders recognized during the annual trade show, included retiring chairman, Greg Boesch from Bedrock Liquors based in Lafayette, Ind. for his efforts leading the Association during his two-year term as chairman of the board.

Additionally, Jon Sinder from Crown Liquors in Indianapolis was named IABR Retailer of the Year for his dedication to community service and involvement.

Sinder accepted his award saying, “I’m very proud to have been named the IABR’s Retailer of the Year and equally as proud to be engaged in a highly responsible system of retail liquor sales.

Package stores have long played an important role in keeping Indiana safe as measured by alcohol related fatalities and accidents. We make a positive difference in our community.”

The most esteemed honor, the IABR Lifetime Achievement Award, was presented to IABR past president and CEO, John Livengood. During his 23-year tenure, John was instrumental in the passage of legislation allowing sampling in package stores and defeating legislation that would have expanded access by minors to alcohol outlets. Livengood officially retired at the end of August and continues to work with IABR in a consultant capacity.

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PHOTOS FROM THE 2013 BEER, WINE & SPIRITS TRADE SHOW

MANY THANKS TO THE 2013 BEER, WINE & SPIRITS TRADE SHOW SPONSORS! WE COULDN’T DO IT WITHOUT YOU!

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MOST STOLEN PRODUCTS: ALCOHOL "One element of the cold beer lawsuit states that in compliance checks by the Indiana Excise police package liquor stores are twice as likely to sell alcohol to a minor as grocery stores.

While this narrow view is true, when it is combined with the other elements in underage acquisition of alcohol it could not be further from the truth.

Convenience stores are far more likely to sell alcohol to minor than grocery stores. Fines for convenience stores and grocery stores are approximately equal to the fines incurred by package stores, because of the graduated nature of the fines.

The reputation of an outlet in the underage acquisition of alcohol is important. While sales are one way minors get the alcohol from a store, theft is the other. The articles below would tell you that alcohol theft from grocery stores is a bigger problem than it is from liquor stores.

Look at the picture of minis by the kids items in this central Indiana Walmart. How many bottles are they finding in the bathrooms and who is drinking them?"

-- Connie Vickery, IABR Director of Governmental Affairs Shoplifters reach for the highbrow champagnes or the cheap vodka, but less of everything in between.

It’s no surprise that people steal alcohol.

The temptation to acquire something that makes you feel that good -- regardless of whether you can afford it -- is hardwired into our dopamine-craving brain reward center. What’s more surprising is how few of us give in to that temptation.

At least 75% of the adult US populace are drinkers; and about 6% of the total are alcoholics.

In last year’s Global Retail Theft Barometer, specialist liquor stores suffered shrinkage rates (defined as the percentage of loss of products between manufacture and point of sale) of 0.79%.

Step out of your wholesaler and into a grocery store however, and the shrinkage rate more than doubles, shooting up to 2.42% as a percentage of sales.

Clearly liquor stores know what to look for when guarding their precious treasure against those of us temporarily in the grip of our darker angels. Mark Doyle, President of Jack Hayes International, publishers of another annual retail theft survey, explains that would-be thieves typically target high-end items “such as Grey Goose vodka and Vue champagne, which are commonly shoplifted if not

WHAT'S BREWING, OCTOBER 2013

locked up. Also 'in' beverages for young adults (i.e. flavored drinks like Mike’s Hard Lemonade, Smirnoff Ice, etc.) are frequently stolen and consumed by teenagers and young adults.”

"Then there’s also what you’d call hiphop-related items, which are Johnnie Walker Black Label and Hennessy Cognac -- that kind of thing. We have to keep them under lock and key.”

Perhaps because their brains haven’t yet fully developed, many teens, when asked, don't even consider stealing alcohol shoplifting according an admittedly casual poll run by the website Radical Parenting.

Black Label and Hennessy are easily the most stolen items at Astor Wines & Spirits, but Cristal and Moet are also popular, and there are more attempts at the bubblies via internet fraud. But there’s one truly odd method of shoplifting that may surprise you: “We get a lot of phone calls from people claiming to be hearingimpaired. They use a TDD phone operator who calls up and speaks what they type,” says Phillips. "And as soon as they say that I always know it’s an attempted fraud and terminate the call. If they were actually deaf they could just type in their order on our website. Invariably they’re after Hennessy or Cristal; I guess they’re trying to play on sympathy for the deaf.”

Rather, “Stealing alcohol is like a rite of passage,” brags one teen. “You do it to grow up. Plus we practically deserve to get alcohol for free because we CAN’T buy it. I would buy it if they would let me. I steal it because they will not let me buy it.”

But if you’re out for a five-finger discount on some hooch, they’ve probably seen you coming. At Astor Place Wines & Spirits, one of New York’s largest liquor stores and a family-run business for over 50 years, Sales Manager David Phillips breaks it down for us. There’s two main types of alcohol that get stolen; or at least, that people attempt to steal, he says.

“The very low end things people just want to grab for a quick buzz, usually cheap vodka," observes Phillips. “Often the people going for that sort of thing are already drunk.

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One other popular drink to plunder is Crystal Head Vodka, as “People like the novelty bottle," explains Phillips, which is shaped like a crystal skull.

“There’s probably bottles of wine walking out constantly too, but it’s harder to notice.”

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IPFW HOSTS DISCUSSION ON LIFELINE LAW FORT WAYNE, Ind. (WANE) - Indiana University - Purdue University Fort Wayne (IPFW) hosted an alcohol awareness event on October 21, 2013.

Merritt is an advocate of the law because of the death of Brett Finbloom, 18, of Carmel, who died of alcohol poisoning after an underage drinking situation where medical assistance was not sought in time.

The event focused on the Lifeline Law, which can protect young people against prosecution for alcohol-related offenses if they call 911 to seek assistance for an intoxicated friend suffering a medical emergency. College students from several campuses in Indiana advocated for the law, which the Indiana Legislature passed last year.

Merritt and Zoeller are visiting other university campuses throughout the month of October to speak to student leadership groups conducting alcohol awareness events to remind students of the Lifeline Law.

Speakers included State Senator Jim Merritt, who is author of the Lifeline Law, and Indiana Attorney General Greg Zoeller.

IABR has been actively supporting the Lifeline Law since passage in 2012. Package stores distribute flyers that help spread the word that buying liquor for minors and using fake IDs are a crime, and help is available for youth who make bad decisions.

"Our number one goal is to deter underage Hoosiers from drinking alcohol illegally and making unsafe decisions, however, we know mistakes can happen, especially on college campuses," Sen. Merritt said. "Tragically, more than two dozen Hoosier students under the age of 21 have lost their lives to alcohol poisoning since 2004. To help prevent such devastating and unnecessary deaths, young students must be aware of Indiana's Lifeline Law so that they do not hesitate to make a call, save a life."

SEN. MERRITT PROPOSES CHANGE TO LIFELINE LAW WITH GOAL TO SAVE MORE LIVES State Sen. Jim Merritt (R-Indianapolis) is proposing a change to Indiana's current Lifeline Law, which encourages young Hoosiers to call for help in alcohol-related emergencies. The change will broaden the law by offering immunity for certain alcohol-related offenses to Good Samaritans who seek help in all medical emergencies, not just those resulting from overconsumption of alcohol.

Merritt said the idea for the change resulted from discussions during his statewide tour promoting the Lifeline Law on college campuses this fall.

"As part of National Collegiate Alcohol Awareness Week, Attorney General Greg Zoeller and I visited numerous Indiana colleges to talk with students about how the Lifeline Law could help save lives in emergency situations, and how it could be improved," said Merritt, who authored the Lifeline Law in 2012. "Expanding the Lifeline Law to provide protections for young Hoosiers who call for help during any type of emergency is truer to our mission of removing the barriers to making life-saving calls for help."

Currently, Indiana's Lifeline Law prevents minors who are under the influence of alcohol from being prosecuted for crimes such as minor possession or consumption if they request medical attention for another person suffering from alcohol-related complications.

Merritt's proposed change would provide the same legal protections to minors who request help for someone suffering from any medical emergency, regardless of whether or not it was due to alcohol consumption. The legal immunity from alcohol-related charges still would only be available if the minors remain at the scene with the person needing medical assistance and cooperate with law enforcement.

"After visiting campuses with Senator Merritt listening to students' questions, I believe the Lifeline Law can be refined to encompass other emergencies where seeking medical attention is imperative. We don't encourage underage drinking, but the perceived fear of legal consequences should not create an obstacle to young people calling 911; so I am pleased to support Senator Merritt in his effort to carefully update the statute," Indiana Attorney General Greg Zoeller said.

Merritt will introduce this change to the Lifeline Law during the Indiana General Assembly's 2014 legislative session, which begins in January.

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STATE REPRESENTATIVE BILL DAVIS RESIGNS This Friday State Representative Bill Davis resigned from the Indiana House of Representatives to serve his state as Executive Director of the Office of Community and Rural Affairs under Lt. Governor Sue Ellsperman.

Representative Bill Davis has served the people of Indiana with integrity, displaying tremendous vision and leadership as Chairman of the Public Policy Committee of the Indiana House. He has protected our children from the risks of underage drinking. He has been a champion for small, locally-owned business. We wish Rep. Davis well as he takes on his newest challenge in public service.

-- Connie Vickery, IABR Director of Governmental Affairs

STATEHOUSE – After serving House District 33 for 9 years, State Representative Bill Davis (R-Portland) has submitted his letter of resignation effective November 3rd, 2013 in order to serve the state as the Executive Director of the Office of Community and Rural Affairs.

“I want to thank Speaker Bosma and my colleagues for all the opportunities they have given me throughout my tenure in the legislature,” said Rep. Davis. “I was able to be a part of numerous agricultural and economic initiatives, which I believe will be a real asset in my new role. Even though I will no longer be serving in the House, I look forward to continuing to work closely with House leadership to do what is best for Hoosiers.”

“Bill is a man of strong integrity, which is precisely why I chose him to lead Public Policy throughout these years. His committee dealt regularly with gaming issues, alcohol regulation and matters relating to the sanctity of life. He had my full confidence as a leader within the General Assembly, and my confidence continues in him as he takes this new position. I have no doubt that he will continue to serve with honor and integrity,” said Speaker Brian Bosma (R-Indianapolis).

While serving on the House Ways and Means Committee, Rep. Davis was heavily involved in crafting honestly balanced budgets that included no tax increases for Hoosiers. He was a strong advocate of less taxation, more efficient and smaller government and insuring that more money reached Indiana’s classrooms.

During his early years in the state legislature, Rep. Davis encouraged and convinced House leadership to eliminate lifetime health care for legislators, a program which was instituted prior to his arrival at the Statehouse. He is also known for co-authoring legislation which created the “In God We Trust” license plate. This legislation specified that the plate would not be a special group recognition plate and therefore is not subject to additional fees.

Rep. Davis also served as Chairman of the Committee on Public Policy, where he played a significant role in issues affecting Hoosiers such as sanctity of life, alcohol, gaming and firearms. Chairman Davis worked to balance the interests of both sides of these controversial issues and, when possible, to find areas of agreement between them.

This past year, Rep. Davis also co-sponsored a bill which was fast-tracked through the House and Senate in order to provide immediate relief to Hoosier farmers. Senate Enrolled Act 319 stated that the soil productivity factors used for the March 1, 2011 assessment of agricultural land must also be used for the March 1, 2013 assessment date. Coming off of a drought season, this prevented an estimated tax increase of $57 million for farmland across the state.

“It was a difficult decision to make, but ultimately I decided to resign from my position as state legislator for another opportunity of public service,” said Rep. Davis. “I enjoyed every minute of my time in the state legislature, serving the community I love. I look forward to continuing to serve Indiana and helping Hoosiers, just in a different capacity.”

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NEW $100 BILLS TO START CIRCULATING 2

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Download an electronic version of the printable information sheet - as seen on page 7 - online at: http://tinyurl.com/n4osvnv 4

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The Federal Reserve Board announced that the redesigned $100 note will begin circulating on October 8, 2013. This note, which incorporates new security features such as a blue, 3-D security ribbon, will be easier for the public to3 authenticate but more difficult for counterfeiters to replicate.

The new design for the $100 note was unveiled in 2010, but its introduction was postponed following an unexpected production delay. To ensure a smooth transition to the redesigned note when it begins circulating in October, the U.S. Currency Education Program is reaching out to businesses and consumers around the world to raise awareness about the 5. Gold 100 design $100 note, as 1. Portrait More Watermarkinformation about the new design and inform them about how to use its security features. new Look for a large gold numeral 100 on the back Hold the note to light and look for a faint image well as training and educational materials, can be found at www.newmoney.gov. of the note. It helps those with visual impairments of Benjamin Franklin in the blank space to the right of the portrait.

distinguish the denomination.

2. Security Thread Hold the note to light to see an embedded thread running vertically to the left of the portrait.

The thread is imprinted with the letters USA and the numeral 100 in an alternating pattern and is visible from both sides of the note. The thread glows pink when illuminated by ultraviolet light.

6. Microprinting Look carefully to see the small printed words which appear on Benjamin Franklin’s jacket collar, around the blank space containing the portrait watermark, along the golden quill, and in the note borders.

Tilt the note to see the numeral 100 in the lower right corner of the front of the note shift from copper to green.

the front of the note to the right of the numeral 100.

If a note does not have an FW indicator, it was printed in Washington, D.C.

NEW FEATURES: Benjamin Franklin is still on the front and Philadelphia's Independence Hall on the back. But there is a disappearing Liberty Bell in an ink well and a bright blue three-dimensional security ribbon with images that move FW Indicator (not shown here) in the opposite direction from5the way the bill is being tilted. The $100 bill is the most commonly counterfeited note The redesigned $100 notes printed in Fort Worth, outside of the United States.

Texas, will have a small FW in the top left corner on 3. Color-Shifting 100 OLD BILLS ARE STILL GOOD: Officials say that the $900 billion worth of $100 bills currently in circulation remain 4. Raised Printing good and will only be gradually phased out as worn-out bills are returned to Federal Reserve facilities.

The New $100 Note

Move your finger up and down Benjamin Franklin’s shoulder on the left side of the note. It should feel rough to the touch, a result of the enhanced intaglio printing process used to create the image. Traditional raised printing can be felt throughout the $100 note, and gives genuine U.S. currency its distinctive texture.

Questions? Contact Debra Scott, IABR Director of Operations at 317.684.7580 ext. 123.

Know Its Features. Know It’s Real.

It only takes a few seconds to check the new $100 note and know it’s real. Learn how to identify and use the two advanced security features: the 3-D Security Ribbon and the Bell in the Inkwell.

It is not necessary to trade in your ServSafe Alcohol Classes old-design notes for new 1701 ones.EAll U.S. currency remains 52nd St legal tender, regardless of when it IN was issued.

Indianapolis, 46205

UPCOMING IABR EVENTS IABR Board Meeting November 7, 2013

November 18, 2013 12:00 NOON

For educational use only. Item not for resale.

Item #405 • 04/2010

December 16, 2013 12:00 NOON

SAVE THE DATE:

Contact Emily Waldron, IABR Dir. of First Impressions ewaldron@tammcapitalgroup.com 317.684.7580

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www.newmoney.gov

IABR Golf Outing June 18, 2014 Eagle Creek Golf Course

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3-D Security Ribbon

Bell in the Inkwell

Tilt the note back and forth while focusing on the blue ribbon. You will see the bells change to 100s as they move. The ribbon is woven into the paper, not printed on it.

Tilt the note to see the color-shifting bell in the copper inkwell change from copper to green.

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1

4

6 3

5

1. Portrait Watermark Hold the note to light and look for a faint image of Benjamin Franklin in the blank space to the right of the portrait.

5. Gold 100 Look for a large gold numeral 100 on the back of the note. It helps those with visual impairments distinguish the denomination.

2. Security Thread Hold the note to light to see an embedded thread running vertically to the left of the portrait.

The thread is imprinted with the letters USA and the numeral 100 in an alternating pattern and is visible from both sides of the note. The thread glows pink when illuminated by ultraviolet light.

6. Microprinting Look carefully to see the small printed words which appear on Benjamin Franklin’s jacket collar, around the blank space containing the portrait watermark, along the golden quill, and in the note borders.

3. Color-Shifting 100 Tilt the note to see the numeral 100 in the lower right corner of the front of the note shift from copper to green.

The New $100 Note Know Its Features. Know It’s Real.

FW Indicator (not shown here) The redesigned $100 notes printed in Fort Worth, Texas, will have a small FW in the top left corner on the front of the note to the right of the numeral 100.

If a note does not have an FW indicator, it was printed in Washington, D.C.

4. Raised Printing Move your finger up and down Benjamin Franklin’s shoulder on the left side of the note. It should feel rough to the touch, a result of the enhanced intaglio printing process used to create the image. Traditional raised printing can be felt throughout the $100 note, and gives genuine U.S. currency its distinctive texture.

It only takes a few seconds to check the new $100 note and know it’s real. Learn how to identify and use the two advanced security features: the 3-D Security Ribbon and the Bell in the Inkwell. It is not necessary to trade in your old-design notes for new ones. All U.S. currency remains legal tender, regardless of when it was issued. www.newmoney.gov For educational use only. Item not for resale.

Item #405 • 04/2010

WHAT'S BREWING, OCTOBER 2013

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WWW.SERVSAFE.COM FOR MORE INFORMATION CONTACT: Indiana Assoication of Beverage Retailers 200 S. Meridian Street, Suite 350 Indianapolis, Indiana 46225 (317) 684-7580 or (888)-838-IABR info@indianabeverageretailers.org