With day one completed, about 250 attendees enjoyed 12 remaining sessions on day two of the conference. Summaries of some of the sessions are below.
Listing/Delisting Reviewed
Mark Mills, Republic National Distributing Company, moderated this session, providing a background of his expertise in category management and specializing in control systems. He explained that the listing and delisting procedures directly affect the consumer to create the proper product assortment, which impact the consumer’s shopping experience and in turn can help grow sales.
Brooke Rodriguez, General Manager for Commercial Operations for Bacardi, co-moderated the session and further emphasized the importance of listing and delisting procedures for suppliers as transparency is key to ensuring a fair and equitable process with the consumer in mind. He added that open communication on any changes and adequate lead time are critical for suppliers to adjust.
The session highlighted two control systems’ listing and delisting procedures.
Tony Eldeen, Business Analyst, Idaho State Liquor Division (ISLD), walked through the changes to the agency’s delisting review process, explaining that they recently switched from a points of distribution model to a straight sales data model on a rolling 12-month basis. He added they do this process three-times a year. ISLD’s listing process, where all applications, including a marketing plan, high-resolution image of product, featured recipes, samples, etc., need to be in by the 15th of the month to prepare to assess the product for listing.
Gerry O’Neil, Director of Agency Operations for the Ohio Division of Liquor Control, explained their state system is a public-private partnership between Jobs Ohio and the Division. The fundamental purpose is to create funding to draw economic development for the benefit of all Ohioans and to responsibly grow the business in a set number of agency stores that allocate space for Ohio Liquor. Their process adopts a data-driven model for delisting to bring the product to the shelf where it belongs and remove product that is not moving over time. They created a tiered delisting process by category and have a sales target that is well communicated and done collaboratively with brokers and supplies twice a year in March and September.
Both states talked about the limited space in their warehouses, driving their need to establish effective delisting and listing procedures to ensure there is adequate space. Both states also worked to develop a more sophisticated and refined reporting process to the vendors and brokers to properly manage their portfolios.
IDs Go Mobile
This session featured the Utah Department of Alcoholic Beverage Services’ (DABS) pilot program to implement mobile driver’s licenses in the state. Representatives Tim Cornia of DABS, Melinda Stephens of the American Association of Motor Vehicle Administrators (AAMVA), and Courtney Rice of GET Group presented about the platform. They addressed the various considerations taken into consideration and the development of standards around mobile identification frameworks.
Stephens described how mobile driver’s licenses work, including a framework of the authentication, validation, and verification of ID for the state, businesses, and end users. Cornia, addressed the technical, financial, and political problems that Utah faced in beginning its pilot along with suggestions for other states about how to bring a similar program into operation.
Rice demonstrated the mobile ID application and how privacy, security, and accuracy are ensured for its users. Finally, Thomas Lockwood of Secure Technology Alliance described the development of a framework to foster trust and buy in within communities while ensuring security and streamlining costs.
Flippers & Shippers—Best Practices on Thwarting the Secondary Market
Moderator Pat Gagliardi of the Michigan Liquor Control Commission welcomed attendees and noted that no matter how each state controls and regulates beverage alcohol, that the three-tier system is of value to not only businesses involved in the marketplace, but also to consumers. He noted that protecting the health and safety of citizens is the responsibility of each state, which was given that right when congress ratified the 21st Amendment. The presenters for this session addressed selling alcohol illegally from the enforcement and legal perspectives.
Ted Mahony, Massachusetts Alcoholic Beverages Control Commission, cited the numerous steps and documentation of his enforcement staff who follow-through with investigating illegal and unlawful shipping of alcohol into the state. He shared the structure of how some businesses, which are not involved in the manufacturing of a beverage alcohol product, have a complex web of practices that get alcohol directly to a consumer. This illegal process bypasses the three-tier system and chips away at the good this system was created to protect. He noted that generational gaps, e-commerce and the acceleration of e-commerce during the pandemic created a perfect storm for illegal shipping of alcohol to grow. Mahoney also suggested that attendees read, Fake Alcohol & Interstate E-commerce, which outlines the need for states to “evaluate the risks of fake alcohol in interstate e-commerce activity from alcohol retailers direct to consumer sales in the U.S.,” according to the website description.
Don McGehee, JD, Michigan Department of Attorney General, shared information from the regulatory perspective in the cases he and his staff have brought before courts to demonstrate the unquestionable value and legitimacy of alcohol regulation and the three-tier system.
Both presenters noted that documentation of findings, which requires attention to detail and numerous staff hours to report about the findings, are important to prove why this process does indeed positively influence public safety.
Control State Warehouse Solutions
Moderated by Lynn Walding of Diageo and Reed Davis of Luxco, the session kicked off with an introduction to five issues for warehouses in control states: sales and revenue growth, staffing issues, space limitations, software challenges, and miscellaneous issues that arise.
Steve Marks of the Oregon Liquor and Cannabis Commission spoke about securing funding for warehouse modernization and how Oregon addressed some of the trucking and capacity challenges they faced in their warehouses.
Mark Dunham of the Virginia ABC emphasized the importance of changing with the technology to meet the states needs and how Virginia faced turnover, training, and fire suppression issues that delayed the opening of its new warehouse.
Ron DeVries of Ruan Transportation discussed the options that states have in investing in their operations and how Ruan is involved in these conversations.
Risky Drinking: Compliance Tools to Intervene
Skyler Genest, Senior Director for licensing operations for Vermont Department of Liquor and Lottery (DLL) opened the session, reviewing recent data about alcohol-related crashes, and the need for public safety interventions to address the recent uptick in alcohol impaired driving. He emphasized the important role alcohol regulatory and enforcement agencies play to address this issue.
Eileen Delehanty, MPH student at the University of Minnesota’s Division of Epidemiology and Community Health, reviewed her research teams’ findings on responsible beverage service training and place of last drink data collection (POLD) as two interventions to address overservice of alcohol. She reported her team has found little effect of these interventions used in isolation, but when implemented well and in conjunction with other strategies, such as dram shop liability and enforcement, they seem to have more effect on overservice practices.
The session focused on two states’ efforts to implement these interventions and how they work in practice within an alcohol regulatory and enforcement agency. Attendees heard from Lt. Brandon King, Executive Officer for the Office of Compliance and Enforcement for the Vermont DLL and Capt. Tom Dixon of the Washington State Liquor and Cannabis Board who described how POLD has been an effective intervention for them to gain compliance from licensees. It is also used to inform allocation of enforcement resources to locations of strategic interest. They shared success stories where POLD has been instrumental in cutting down calls for service and inspection activities.
The session closed with panelists providing additional ways to bring in other stakeholders to help complement the agencies POLD efforts with coalition and public health stakeholder support.
On Premise and National Accounts in a Control System-How to Best Service the Needs
NABCA COO David Jackson participated in a discussion about National Accounts led by Joe Gigliotti, President-Control States, at Republic National Distribution Company (RNDC). They addressed the distribution of product and the supplier relationships that are fostered through the accounts they have through control states.
Megan Hooff of RNDC explained how complex the deals that states have with suppliers can be. She also talked about steps that are taken to ensure product availability, sustainability of branding, prices, and anticipation of future needs.
Lorraine Terry of the Ohio Division of Liquor Control/Jobs Ohio showed a case study of the product life cycle from supplier to server and the ways NABCA helps facilitate accounts with these suppliers in the control states.
Mobile Applications Showcase
Data tells a story and there is technology behind that storytelling that makes it possible. Amy Grollman, Sr. Director of Data Architecture and Software Engineering for NABCA, opened the session, featuring NABCA’s very own GatewayTM mobile app along with control system partners in Alabama and Maine.
Grollman walked the audience through the Gateway app, which synthesizes 750 million records into real-time data on the road for NABCA data subscribers. Key features include daily analytics, market share information by company, product tracking, gap reports, among other resources, including videos.
Mark Dokas, Director of Information Technology for the Alabama Alcoholic Beverage Control Board (Alabama ABC) featured its new mobile application, AL BOSS. Leveraging off the Utah Department of Alcoholic Beverage Services (Utah DABS), the Alabama ABC was able to create its application using the same vendor as the DABS for its mobile application. Once 21+ years of age is verified, a user sees the product locator which identifies the store nearest their location. It also brings up a search feature for specific products, provides a barcode scanner, news, quarterly price list, and general information about the Alabama ABC and its resources. It also shows where the revenues generated from the sales go in the state.
Tim Poulin, Deputy Director and Tracy Willett Operations Manager for the Maine Bureau of Alcoholic Beverages and Lottery Operations (BABLO), featured their agency’s mobile app. It was created four years ago but was recently enhanced with new features that are similar to Alabama ABC’s app. Theirs also includes a product locator with location services to identify where the product is sold. It also offers recipes for products that are developed by chefs and mixologists. The app provides creative and new ways for consumers to use the product and categorizes it by mood, such as Summer Fun, Fit Forward, and Flower Power. Newer features include “create a cocktail” that allows the user to identify a spirits-based product and other food items, tequila and cilantro as an example, to provide recipes based on these key words. Additionally, they will be using push notifications that are tied to users’ favorite products and locations to service the consumer in real time.
The ABC’s of DEI
Addressing the subject of Diversity, Equity and Inclusion (DEI) can be uncomfortable for organizations and the people within. DEI relationships can also be reflected in the partnerships an agency may have with other organizations in their respective industry. Dr. Renay Scales, National Coalition Building Institute (NCBI), addressed this topic during one of the concurrent sessions at the conference. She noted that people and organizations need to be okay with feeling uncomfortable about what may arise during discussions centering around change. She noted that open conversations can help excel an organization and its employees forward when there is an atmosphere of openness, transparency and acceptance in offering an environment where people feel okay to ask questions and express their differences.
Listening. Genuinely listening to another person’s point of view, and to be okay with your own feelings of discomfort such that you can tune in and listen to what another person is saying can generate greater understanding in communication as it relates to DEI.
NABCA board member and moderator for this session, Pat Gagliardi of the Michigan Liquor Commission (MLCC) opened the session by talking about the actions of Governor Gretchen Whitmer, who has issued directives to improve equity across the state. The first included a centralized procedure for tracking across all agencies. The second was implicit bias training for employees, including contractors. Gagliardi noted that within the Department of Revenue, there is a stand-alone position of a DEI officer.
The Impact of Inflation
Eddie Wirt, Chief Financial Officer of NABCA, opened the session and reviewed recent statistics and headlines regarding inflation impacting beverage alcohol with a specific focus on spirits. Looking at shopping patterns, average purchases, price mix, ratios, and what is driving the beverage alcohol business, and how these aspects of the market impact consumers’ buying patterns. He cited Drizly, which found that inflation is impacting one-third of its users’ alcohol purchases and that the older consumers tend to be more price sensitive compared to other age groups.
Tim Davis, Director of Strategic Collaboration for E&J Gallo reviewed supply chain issues, such as glass shortages and inflationary pressures, including gas prices and labor shortages impacting transportation, both land and ocean freight. He also highlighted how they are working to mitigate risk due to inflation and the delicate balance on using price and cost without impacting consumers too significantly and sacrificing quality of product.
James Melucci, Director of Shopper Insights for Beam Suntory, shared a detailed report about how to manage inflationary pressures, drive growth in a quickly shifting market and target today to future-proof strategies. He encouraged looking to outside categories for clues regarding growth and suggested looking at segmenting young shoppers and at macro forces, which impact purchasing power for these shoppers. He added that their power will grow overtime and that capturing these shoppers early will establish brand loyalty while also diversifying the retail mix to find them where they shop.
TTB Update
NABCA CEO Neal Insley moderated a panel that addressed Alcohol & Tobacco Tax and Trade Bureau (TTB) updates. On the panel were TTB Deputy Administrator David Wulf and Assistant Administrator of Field Operations Carrie May. Wulf spoke about the TTB history and mission, as well as its new latest priorities, including the implementation of the Craft Beverage Modernization Act, President Biden’s executive order on competition, Permit & Tax simplification, the TTB Customer Experience, and anticipated changes in the future, such as cannabis policy reform.
May expanded with information about how TTB is supporting information sharing, enforcement activity, advertising review for products, and its approach regarding ready-to-drink beverages and similar new products.
Communicating the Value and Impact of Control Systems
NABCA’s Administrators Conference’s final session was a panel about the value of the control system. This session was moderated by Montana Alcohol Beverage Control Division Administrator Becky Schlauch. Steve Schmidt, SVP of Communications and Public Policy at NABCA, opened with an overview of focus group research with recommendations about how to communicate the value of the system to stakeholders and the public.
He was followed by Dean Argo, Governmental Relations Manager of the Alabama ABC Board, who described the ways Alabama updated their communications about agency operations to better convey the benefits it produces to the public and stakeholders. The agency uses NABCA Awards to put on conferences and participates in alcohol awareness programs throughout the state. It has strengthened relationships with law enforcement, news agencies, and district attorneys, and has restructured its website for a more user-friendly experience.
Shawn Kelly, Press Secretary of the Pennsylvania Liquor Control Board, talked about ways to improve communication, stressing the importance of creating resources to showcase the impact of the agency and the control system. He emphasized keeping ahead of the curve on messaging with continual updates. He added reorganizing publications to better serve the audience and making the community, public health, and accessibility impacts of the control model available to legislators, media, and the public at large.
Best Practices Awards Presentations
The Administrator’s Conference concluded with the recipients of the StateWays Best Practices Awards being recognized and claiming their recognition plaques. The list of winners follow:
MONTGOMERY COUNTY ALCOHOL BEVERAGE SERVICES
- Overall Winner
- Best of the Best
- Director Kathie Durbin
PENNSYLVANIA LIQUOR CONTROL BOARD
- Best Distribution Innovation and
- Best Retail Innovation
- Chairman Tim Holden
OHIO DIVISION OF LIQUOR / OHLQ
- Best Trade Partnership Program and
- Best Licensee Education Program
- Superintendent Jim Canepa
NEW HAMPSHIRE LIQUOR COMMISSION
- Best Stakeholder Outreach and
- Best Technology Innovation
- Chairman Joseph Mollica
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Stay tuned for details regarding the 29th NABCA Administrator’s Conference, which will take place in the fall of 2023.