Purpose of Practice
This practice determines how products are listed and delisted in the state of Montana. It identifies which products will be maintained in the state’s bailed warehouse and which products will be treated on a case‐by‐case basis.
Description of Practice
The Montana Liquor Control Division operates a centrally located warehouse that delivers product to 98 agency liquor stores across the state of Montana. The Montana Liquor Control Division believes the best way to determine products availability should be based on performance. In order to do so, the division has three classifications for products. These include: 1. Regular List 2. Warehouse Supply 3. Special Order All new products introduced into the State of Montana start off as Special Order. These products are ordered from vendors on a case‐by‐case basis as orders are turned into the division. Products will remain at a Special Order status until the product is either discontinued by the vendor or until sales increase enough to constantly maintain it at the warehouse. In order to move up to the next classification, Warehouse Supply, the product must have sold 24 cases or more in the 12 months leading up to the department’s review. The highest classification a product can achieve is Regular List status. These products are the most popular ordered items from our agency liquor stores. Our division determines the number of Regular List products based on the number of available locators at the state liquor warehouse. Currently this is 870 locators; therefore, the top 870 products based on sales in the past 12 months leading up to our review would fall into the Regular List classification. These products are constantly maintained at the warehouse As mentioned above, the other classification we use is Warehouse Supply. This classification falls in between the Special Order status and Regular List status. These items have sold more than 24 cases in the past 12 month period; however, have not sold enough to be classified as Regular List. These items are also constantly maintained at the warehouse, but in smaller on‐hand quantities. In January and July of each year, the division conducts a review of the products performance. A report is generated from our warehouse management system that lists each product and its corresponding 12 month sales figure. This figure will determine the classification of the product into one of the three categories listed above. Classification changes coincide with the printing of our quarterly price book. Results from our January review are made effective May 1 and results of the July review are made effective November 1. Immediately after the review, electronic notification is given to industry members. In summary, the listing and delisting of a product is determined by the success of the product. A product will be listed in a classification commensurate with its sales volume. A product will continue to be offered, so long as it is available from the vendor.
Name: Steve Swanson, Distilled Spirits & Program Manager
Agency: Montana Liquor Control Division
Address: Mitchell Bldg. RM 455, 125 N. Roberts, Helena, MT 59601