Purpose of Practice
To provide a means for new products to be considered for sale in Idaho.
Description of Practice
Idaho considers new products usually 3 times per year: Febreuary, June and September. We use an ad hoc committee comprised of 2 store managers, to district managers, 2 purchasing staff and the deputy director. The Director observes. The committee makes recommendations to the Director. The Director can affirm or override the committee’s recoommendations. Suppliers are limited to 2 items per Listing Meeting. There are no limits on how many times a product may be presented. Size extensions or packaging extensions of listed products may be presented and don’t count against the limit. Multiple sizes of the same new product are allowed and don’t count agains the limit. Once products are selected for listing, an allocation process follows. Allocations are based on price of product and may be as much as a full case to most all state stores, down to 2 or 3 bottles to a select group of state stores. 2 sleeves of miniatures are allocated initially. Store managers are required to keep newly listed products available for 12 months. After that, they may discontinue offering the product in their store. Low cost, one-time 50 ml’s are encouraged to help with the introduction of new items. Idaho commits to offer these Introductory 50 ml’s for 6 months or less depending on price and supplier’s ability to support. When the supply is exhausted, or the 6 month is reached the Intro 50 ml will be discontinued, unless selected for full listing by the Director.
Evaluation of the Practice
We like the process since it involves all aspects of the business, retail, district management, purchasing/ordering and administration. We feel that the selections are more market-oriented and we gain a feel for the acceptance for new products, from staff who are closest to the consumer. Most products produce sufficient gross profit to move from New status to Regular status. Those products that don’t produce suffcient gross profit are discontinued.
Name: Bill Applegate, Product General Manager
Agency: Idaho State Liquor Division
Address: 1349 East Beechcraft Court, Boise, ID 83716