THE VOICE OF AMERICA’S BEER, WINE & SPIRITS RETAILERS ABL Insider A PUBLICATION OF THE AMERICAN BEVERAGE LICENSEES | VOL. 6, NO. 3 | FALL 12

Celebrating Ten Years

Business and Product Education, Industry Perspectives and More from the 2012 ABL Convention pages 8-11

Safety and Texas Package Special Report: Security Stores Washington’s Practices for On- Association Rocky Road to Premise Sales Trade Show Privatization

page 2 page 4 page 14 ABL INSIDER | FALL 12 | 1 A PUBLICATIONABL OF THE AMERICAN BEVERAGEInsider LICENSEES | VOL. 6, NO. 3 | FALL 12 a word before

Published by: Safety and Security Practices American Beverage Protecting your business (and yourself) from civil liability due to alcohol over-service Licensees (ABL) 5101 River Rd, Editor’s Note: The Responsible Retailing Forum (RRForum) and a customer who becomes intoxicated or arrives at the Suite 108 the National Alcohol Beverage Control Association (NABCA) establishment already impaired. The plan should include Bethesda, MD 20816 worked with licensee associations, industry partners, and clear instructions that clarify when staff should involve their (301) 656-1494 training providers to produce Responsible Retailing Practices manager and when law enforcement should be contacted. www.ablusa.org for On-Premises Alcohol Serving Establishments, a report that examines the challenges faced by serving establishments Incidents are recorded in a log book. Recording editor ROSANNE FERRUGGIA and reviews basic principles of responsible retailing. This information about unusual incidents can help prove that article summarizes the report’s section on safety and security an establishment is making a reasonable effort to practice (c) 2012 American practices to prevent alcohol over-service. responsible retailing, should it become necessary to Beverage Licensees. supply such evidence. Incident logs also provide owners All rights reserved. Licensed beverage establishments play an important role with valuable information about their business operations The contents of this publication may not in their community’s social and economic life, but also face and practices, which can be used to make improvements be reproduced by any several challenges due to the unique nature of alcohol and and head off potential future problems. A log should be its effects on the human body. One of those challenges means, in whole or in maintained for several years, consistent with State dram part, without the prior is potential civil liability resulting from a customer being shop or tort law/civil responsibility laws. written consent of the over-served. This is one of many reasons why owners and publisher. managers of on-premise establishments should make Seek assistance from law enforcement. Many licensees responsible retailing a top priority. struggle with whether they should ask law enforcement executive director officials to help them develop plans for dealing with JOHN BODNOVICH There are times when a customer doesn’t “know when problematic customers. Whether or not a customer who has to say when” and a bartender, server, or manager must over-consumed has been over-served, many licensees may director, trade relations & operations intervene. It isn’t always easy, and there are pressures on fear that their request for assistance may be treated as an SUSAN DAY DUFFY staff—including financial pressures—that might make them incident report that can be held against them in the future. hesitate to do what’s right. Despite those pressures, if clear In fact, alcohol law enforcement officials indicate that they manager, policies, proper training, and management support are in would strongly prefer that licensees seek their help when communications & public relations place, staff will act in everyone’s interest—including their developing policies to prevent unlawful sales to underage ROSANNE FERRUGGIA own—and refuse alcohol service to customers who are (or or intoxicated customers and to handle customers who might become) intoxicated. have over-consumed.

Our new report, Responsible Retailing Practices for On- To learn more about effective practices to prevent over- Premises Alcohol Serving Establishments, describes the service, plus other responsible retailing practices, please safety and security practices that are commonly used by visit www.rrforum.org and click on the link for Responsible responsible retailers to avoid alcohol over-service Retailing Practices for On-Premises Alcohol Serving Establishments. If you have any ideas, comments, or Staff members are trained. One of the keys to responsible examples related to responsible retailing, please send them retailing is to make sure that all staff are properly trained to [email protected]. to handle an intoxicated customer. Server training provides workers with knowledge of state alcohol laws and the Responsible Retailing Forum (RRF) licensee’s policies for ensuring compliance with those laws, Established in 2003, the Responsible Retailing Forum (RRForum) but also teaches the skills they need to engage customers is a tax-exempt, 501(c)3 organization that brings together public in a non-confrontational manner. Managers can reinforce and private stakeholders—regulatory and enforcement agencies; this training by their own example. attorneys general; public health agencies and advocates; retailers and their associations; distributors and producers; and A security plan is in place. By developing and enforcing researchers—in order to identify and promulgate best practices policies for handling intoxicated customers, beverage for preventing unlawful sales of age-restricted products, and to licensees can make great progress in avoiding over-service. examine the impact of responsible retailing policies from the diverse perspectives of these various stakeholders. To learn more Even so, they also need to have a plan in place to handle about the RRForum, visit www.rrforum.org. contents 3 5 7 12 15 where we stand dc update from the industry op-ed affiliate update In the Spirit of the (Election) Congress Passes Transportation Death and Taxes Clamping Down on Keg Theft calendar Bill, Limited Changes to Alcohol- BY CRAIG WOLF BY JOE MCCLAIN Season President & CEO, Wine and Spirits Related Policy; Tax Issues at the President, Beer Institute BY CHUCK FERRAR Wholesalers of America ABL President Forefront 16 13 associate members op-ed affiliate members On “Alcophobes” 4 6 8-11 BY GUY L. SMITH from the office from the industry convention special Executive Vice President, Diageo North Avoiding a Plunge Off the “Fiscal America Innovative Products & Brands Events and photos from the Cliff” Dominate Sold-Out Texas 2012 ABL Convention Package Stores Association BY CRAIG PURSER President / CEO, National Beer Trade Show Wholesalers Association 14 BY JOHN BODNOVICH special report ABL Executive Director Washington’s Rocky Road to Privatization 2 | ABL INSIDER | FALL 12 BY Chuck Ferrar, PRESIDENT where we stand American Beverage Licensees In the Spirit of the (Election) Season

The past few months in our nation’s capital have seen some important trying to earn your vote. Talk to these candidates, developments for independent beverage find out their histories and their interests, and let retailers. them know what is important to you as a member of their community. Some issues that you might With the surface transportation bill – commonly want to discuss: referred to as the “highway bill” – containing language addressing drunk driving policy and - Protect family-owned businesses by safety research; votes on the estate tax rate renewing maintaining the current estate tax as well as the extension of all the Bush-era tax rates. Learn more about the issue from the cuts; and the ongoing chess match between the Family Business Estate Tax Coalition at merchants and the banking/credit card industry www.estatetaxrelief.org. over “swipe fees”, this summer has reminded us that our Senators and Representatives wield an - Support small businesses that pay billions enormous amount of power over our businesses of dollars to banks through hidden swipe fees. and our bottom lines. Greater transparency of the swipe fee process is needed for merchants and consumers. But the beginning “Building a relationship of August brings a - Work with beverage retailers who are quiet to the halls committed to responsible retailing by of the Capitol, as opposing unfunded mandates that detract with your local council our members of from successful policy initiatives campaigns. Congress return Let’s build on the successes of the past twenty to their districts years to increase the decline of drunk driving members, mayor, and to reconnect with and underage access to alcohol. voters. From the state representatives beginning of August Just keep it personally relevant, keep it local, and through September always keep it polite. Grassroots advocacy is a long- 7, all Congressional term relationship, and one that requires consistent is an investment in the Members will maintenance. And likes one’s reputation, it takes be in their home years to build and just seconds to destroy. future.” states and districts for an extended While you’re out there, getting to know your current Constituent Work Period. and/or future Congressional representatives, take a look around the room for your local elected The Senate and House Representatives will likely officials, as well. As we all know, some of our return in September to address some must-pass fiercest battles are fought in state government legislation to keep the government running, but and even in City Hall. Building a relationship with little else is anticipated before they once again your local council members, mayor, and state head back to home to campaign. In an election representatives is an investment in the future. year, especially a Presidential election year such as Not only do these officials serve you now, but they this one, this is a particularly important chance to might go on to serve you for many years, in many make outreach to those serving our communities positions. at the federal level. The importance of the influence of the small I encourage you to take business, beverage licensee on public policy this opportunity to build and government cannot be understated. In our stronger relationships with country’s rich history, tavern owners and beverage your elected officials and alcohol dealers have played an important role, their district office staff. from John Hancock to Abraham Lincoln. It is a This is a great time to meet tradition that extends through the centuries to link the candidates who might us to the past, and as America’s Beer, Wine and be your next representative Spirits Retailers, one we must work to preserve. | in Congress, as they are

ABL President Chuck Ferrar addresses the industry and convention attendees at the 2012 ABL Convention in Las Vegas. For more convention coverage, go to page 6 or www.ABLUSA.org..

ABL INSIDER | FALL 12 | 3 BY JOHN D. BODNOVICH, execUtive director from the office American Beverage Licensees Innovative Products & Brands Dominate Sold-Out Texas Package Stores Association Trade Show They say everything is bigger in Texas. Well whoever “they” segments and there are more Alcohol Beverage Commission are, they aren’t kidding. choices than ever before. (TABC) Administrator Sherry Cook addressed the conference about the I was invited to head down to Dallas So Many Brands, So Little Shelf trends and figures that her agency this August to attend the Texas Space tracks and how those will come Package Stores Association’s 65th In talking with Texas package into play when the state legislature Annual Convention. I jumped at the store owners, the growth of local meets in January for the first time in opportunity to see first-hand what brands, craft distilling, and product two years. ABL members in the Lone Star State innovations are helping diversify the are up to, and to present to the items they sell and provide greater To hear TPSA’s Lance Lively tell it, “It’s clear group what ABL has been working choice to their customers. But it unity and hard work will be required on at the national level. can also pose a challenge when of TPSA members come January. there is only so much shelf space Some of the issues at hand dance that those Did I mention things being big? I to go around. With the majority of around the fringes of the Texas arrived in Dallas and promptly independent package liquor stores Alcoholic Beverage Code and will brands that walked in to 40,000 square feet of checking in with less than 5,000 likely involve technical tweaks to sold-out trade show floor (they could square feet of space, retailers must its language. On the other hand, participated in have filled an additional 10,000 take a hard look at what they put on significant threats to Three-Tier square feet with vendors they had their shelves. System, which is supported by just the TPSA trade to turn away) and 100 percent about everyone in the industry, are participation by those companies One needs to look no further than also expected. show this year that had signed up. the explosion of flavored vodkas to see the issue illustrated in full. An unusually high number of According to the TPSA, there were Realistically, how many brands legislators in their first and second did themselves over 2,000 people on the trade of orange-flavored vodka, many terms adds to the potential volatility show floor with approximately similar in taste and price-point, are of the coming session, as does the a service by 140 booths, two beer hospitality worth keeping in stock? As the fact that those interested in altering rooms and a wine tasting room package store owners were telling alcohol laws have had two years to heightening with 40 wine tables. I talked to me, not every start-up brand will formulate strategies and promote TPSA Executive Director Lance make it thanks to the sheer volume their point of view. awareness of Lively about whether the show met of products. But that doesn’t expectations. mean that retailers are ignoring I remain confident that the TPSA their products opportunities to capitalize on a new and its members will work to “Every vendor I talked to had a great brand’s growing popularity. promote unity in the coming as well as day,” said Lively. “The new product session to protect a system that seminar was a roaring success.” And once you determine how many is facilitating growth and choice, brands to carry, how do they pick but like any ABL affiliate, they will highlighting As Lively noted, the diversity of the which ones to order? While more defend their members and their products and vendors in Texas this well-known brands are safe choices interests aggressively should they their stories in summer was extremely impressive for retailers, finding that diamond come under attack. and fitting for Texas’ market size. in the rough that delivers a quality a vast sea of The trade show demonstrated experience to consumers can also It’s reassuring to know that groups just how many new and exciting boost margins. like the TPSA, just as so many other competitors.” products are out there that are ABL state affiliates, are out there being produced by small companies It’s clear that those brands that fighting for locally-owned, family-run that are just breaking into the participated in the TPSA trade show businesses. For that, my hat is off business but are poised to captivate this year did themselves a service by to them. | consumers. heightening awareness of their products as well The face-to-face interaction and as highlighting their education that the show provided stories in a vast sea of for brands that have compelling competitors. Some of stories was significant. Many of these start-ups will be ABL’s affiliates put on impressive tomorrow’s national trade shows every year, and in brands and they will get the case of the Tavern League there by working with of Wisconsin, twice a year. The retailers who are the last Mississippi Hospitality Beverage to handle the industry’s Association just wrapped up their products and make the 2nd Annual Rolling on the River “closing argument” when Wine, Spirits and Food Festival customers are making in Vicksburg that brings together their choice. retailers from across Mississippi to meet with industry partners. Facing the Future Together If there was one key takeaway from Just as with any state, the trade show – aside from how Texas has its own unique impressive and professional a job laws and regulations the TPSA did in putting it on – it when it comes to is that innovation is alive and well beverage alcohol. in the distilled spirits and wine Newly-minted Texas Texas musician-turned-politician Kinky Friedman with 4 | ABL INSIDER | FALL 12 founder of Tito’s Handmade Vodka, Tito Beveridge. washington, dc update Congress Passes Transportation Bill, Limited Changes to Alcohol-Related Policy; Tax Issues at the Forefront Following a busy first half of the summer, and as election season heats up, things in Washington are starting to simmer down. In a flurry of activity before the July a variety of merchant groups and admit are being doled out for the 4th recess, Congress passed a two- associations, elected officials and purpose of changing state and local year transportation reauthorization the media have commented on the laws and regulations. package on June 29, one day before proposed settlement as it would have the existing law was set to expire. implications for so many parties. As originally reported in The Hill on The Moving Ahead for Progress in Most merchants have rejected the July 10, “grants administered by the 21st Century Act (H.R. 4348) is settlement stating that while it the Centers for Disease Control and a 27-month, $120 billion bill that provides some compensation for Prevention (CDC) might have been reauthorizes highway, public transit the overcharges in the past, it does used for lobbying efforts — and that and other surface transportation not address future fees and in fact the CDC might have led recipients programs. Alcohol-related language prevents retailers from having any to believe lobbying was appropriate, in the bill includes: legal recourse moving forward with despite a federal ban on using grant fee issues. Additionally, retailers are money for political activism.” Minimum Penalties for Repeat troubled by the expansion of network DWI Offenders – Congress rules into mobile technologies that In an op/ed in Roll Call on July 31, Jeff tweaked the language for could retailers and consumers for Stier, Director of the National Center repeat intoxicated driver law years to come. for Public Policy Research’s Risk requirements in states but on Analysis Division, pointed out that the whole did not significantly At this time, the settlement is only a “[i]t is important here to distinguish alter current law. States are still proposal worked out by the lawyers on between arguments about the merits required to pass repeat drunk each side so the class representative of the CDC’s health policy goals driver laws that either require plaintiffs each have some time to (soda taxes, smoking bans, etc.) and the suspension of offenders decide whether to accept or reject legitimate questions about the legality driving privileges for one year or it. The agreement still requires the of how the agency hands out grants.” require offenders to install an approval of a U.S. District Court ignition interlock device for one judge. Should a significant number of Internet Sales Tax Bill Supporters year. No all-offender mandate retailers oppose the settlement, the Focused on Lame-Duck Session was included in this legislation. judge could reject it. With a public push from Senate Commerce, Science and In-Vehicle Alcohol Detection House Votes to Extend Current Transportation Committee Chairman Device Research Funding Estate Tax Rates John D. Rockefeller IV (D-WV) this – The final legislation calls The House of Representatives voted week, internet sales tax fairness for two percent of traffic to extend all of the Bush-era Tax Cuts legislation is poised to move during safety research money to be on August 1, including the estate tax the expected lame-duck session of appropriated to “National at its current levels. In a primarily Congress. Chairman Rockefeller Priority Safety Programs.” This party-line vote, the House passed H.R. joined the bipartisan ranks of Senate amounts to approximately $5.2 8, the Job Protection and Recession supporters of the Marketplace million in FY2013 and $5.4 Prevention Act of 2011. Under the bill Fairness Act (S. 1832), arguing that million in FY2014, and will likely the estate tax exemption would remain the legislation would help states be applied to Driver Alcohol at $5 million per person indexed for collect sales tax legally owed from Detection System for Safety inflation, the top rate would be 35 online purchases. Research (DADSS). percent and spousal transfer would continue. “No matter where or how the purchase “Roll Your Own” Tobacco is made, our communities need the Machine Amendment Included in The House vote comes on the heels revenue from these [online] sales to Transportation Bill of the Senate passing a bill (S. 3412) fund basic functions of government,” The transportation reauthorization last week to extend tax rates for those Rockefeller, a former governor, was also contained language amending earning up to $200,000 a year and quoted as saying in Congressional the federal definition of a households making up to $250,000 a Quarterly. “If Congress does nothing, “manufacturer of tobacco products.” year, but with no estate tax language. we’ll end up with states forced to raise The new definition includes “persons President Obama has supported the income or property taxes to offset the who, for business purposes, make Senate approach. growing loss of sales tax revenue.” available to consumers a machine that is capable of making cigarettes, ABL has signed on to two letters – Since a Supreme Court ruling in 1992, cigars or other tobacco products.” one to the Senate and the other to online retailers have taken advantage Operators of commercial roll-your-own the House – urging the extension of of the fact that they are not required machines will need to comply with current estate tax rates for another to collect sales taxes in states where the applicable federal laws pertaining year. they lack a physical presence. Thanks to cigarette manufacturers. Most to a mixture of state and local laws, significantly, commercial roll-your- Think Tank Calls for Congressional internet sales tax collection today is own machine operators must now pay Investigation of Illegal Federal spotty and few customers pay taxes the federal cigarette tax of $1.01 per Lobbying Grants on online purchases. But with state pack on manufactured cigarettes and Following reports last month that coffers depleted and tax revenues must apply to the TTB for a permit to federal government healthcare grants down, states have been seeking engage in such business. may have been improperly used to Congressional assistance to access fund political lobbying, a government this untapped revenue. Responses Mixed on Announcement watchdog organization has called for of Proposed Credit Card Settlement Congressional oversight hearings to Brick-and-mortar retailers have rallied On July 13, a proposed settlement investigate whether the “hundreds to support the bipartisan Marketplace was announced in private antitrust of millions of dollars in federal slush Fairness Act in the Senate and litigation in the U.S. District Court funds” were “being handed out to its counterpart in the House, the for the Eastern District of New York. activists to lobby local governments.” Marketplace Equity Act (H.R. 3179). The $7.25 billion settlement is on Despite that support, some legislators behalf of a class of approximately The National Center for Public Policy continue to express concern about seven million merchants in the Research (NCPPR) has called on the burden they believe these United States who accept Visa and Congress to investigate Obama requirements would place on online MasterCard credit cards and debit administration grants that it claims retailers. | cards. Since the announcement, the Administration’s own agencies ABL INSIDER | FALL 12 | 5 BY CRAIG PURSER, PRESIDENT / CEO from the industry NATIONAL BEER WHOLESALERS ASSOCIATION Avoiding a Plunge Off the “Fiscal Cliff” As local businesses in communities across the NBWA beer distributor members LIFO without a phase out would country, independent alcohol are closely-held companies. have an immediate adverse retailers and licensed beer Tax reform is an opportunity impact on the cash flow of NBWA distributors are in a great to improve the tax law by members. As a result of LIFO position to educate members of simplifying the rules and reducing repeal, affected beer distributors Congress and local leaders about unnecessarily high tax rates. would owe significantly more your businesses and the quality However, NBWA members are in current taxes without having jobs you provide. Independent concerned that some of the any additional business receipts retailers and beer distributors incomplete tax reform proposals out of which to pay those taxes. work together to create a level that have been discussed on NBWA encourages Congress to playing field for beer brands of all Capitol Hill thus far could result oppose proposals that would sizes, ensuring that consumers in significantly higher taxes on end the use of LIFO inventory have access to incredible choice business income. accounting. and variety. It is expected that many of the Additionally, NBWA is working proposals will generally involve with key congressional leaders “NBWA opposes any effort to a reduction in tax rates coupled to ensure that current estate with the reduction or elimination tax law is made permanent. increase the tax burden on of various current beneficial tax The top rate of 35 percent and rules to offset the cost of the rate exemption of $5 million are set flow-through businesses and reduction. Along with others in to expire at the end of this year. the small business community, Without congressional action, encourages Congress to pass NBWA is working hard to educate the estate tax will increase to Congress about potential a 55 percent top rate and a $1 comprehensive tax reform by dangers that changes in tax million exemption. Like many policy could create especially for independent retailers, many beer S corporations and other pass- distribution companies have been reducing the corporate and through businesses. passed down through families for generations. In order to individual rates...” Under current tax law, companies preserve the operation of these organized as partnerships, long-serving businesses that Independent alcohol retailers and limited liability companies or have created jobs and provided beer distributors are fortunate S corporations are treated as economic benefit to communities to have leaders in Congress who “flow-through entities,” and the across our nation, meaningful know this industry and know tax on business income tax is and permanent estate tax reform what your businesses mean to paid directly by the owners of is necessary. the American economy. Speaker the companies. Flow-through of the House John Boehner businesses account for more Members of Congress and other himself started out mopping than half of all private sector policymakers need to hear about floors, waiting tables and tending jobs in the United States. the strength of local businesses bar in his family’s tavern back Higher taxes for flow-through like independent alcohol retailers in Ohio. This understanding has businesses such as beer and beer distributors. They need not been achieved overnight; distributorships could harm to hear about the local jobs it’s important to ensure that their ability to continue to serve you provide and the investment members of Congress remain as job producers for the U.S. you make in your community. educated about issues impacting economy. NBWA opposes any As Congress begins to tackle the beer industry. effort to increase the tax burden the challenge of avoiding a fall on flow-through businesses from the “fiscal cliff,” ABL and Just as issues such as bank fees and encourages Congress to NBWA members must work impact your businesses’ bottom pass comprehensive tax reform together to have a voice in the lines, tax policy can have a major by reducing the corporate and debate so that your investments impact on profitability. Tax reform individual rates similarly and in your businesses and your has been, and will continue to be, rejecting any double-taxation communities are protected. | a hot topic in Congress and on on America’s closely-held the campaign trail this year. As businesses. Congress prepares to consider significant reforms to the U.S. Specifically, NBWA is corporate and individual income focusing on efforts taxes next year, it’s critical that that would limit a beer the American Beverage Licensees distributor’s ability to use (ABL) and the National Beer the Last-In-First-Out (LIFO) Wholesalers Association (NBWA) method of accounting and work together to advocate on other such deductions behalf of your businesses. used by pass-through businesses. More than Due to the federal government’s half of NBWA member dire fiscal situation and the companies use LIFO expiration of a number of Bush- and some proposals on era tax cuts, the potential for tax Capitol Hill and within increases under the auspices of the Administration would tax reform is real. repeal this long-standing, As predominantly family-owned widely-accepted method and -operated businesses, of accounting. Repealing 6 | ABL INSIDER | FALL 12 BY CRAIG PURSER, PRESIDENT / CEO BY Craig Wolf, President & CEO NATIONAL BEER WHOLESALERS ASSOCIATION from the industry wine and spirits wholesalers of america Death and Taxes In a letter he penned to Jean-Baptist Leroy in 1789, to –detrimental to growth and significant impact on our industry. Benjamin Franklin wrote that “’In prosperity, unfairly burdensome And while some of the issues may this world nothing can be said to - or overly generous to - certain be appear at first glance to be to be certain, except death and groups or disadvantageous to specific to one tier of the industry, taxes.” Margaret Mitchell had American businesses trying the fact is that we all have a lot a slightly different take on that to compete in the global to gain – or lose – as a result subject in 1936 in her epic tome marketplace. But while there is of the upcoming debate. What Gone With the Wind, writing that disagreement over the nature detrimentally affects one tier will “Death, taxes and childbirth! of the changes that need to ultimately be detrimental to the There’s never any convenient be made, both Democrats and entire industry. time for any of them.” The reason Republicans understand that I note these two famous quotes there needs to be – and there Complicating our ability to is that, whether we like it or not – will be –reform. And everyone communicate our perspective and whether we find it convenient in Washington believes that the on these issues is that fact that or not - comprehensive tax reform most serious effort to enact virtually every industry will be is a certainty and it is going to be comprehensive tax reform since facing similar challenges and front and center in Washington, 1986 will take place early next Capitol Hill will be bombarded D.C. over the next twelve months. year. with letters, e-mails, faxes, calls And the result of that debate will and visits from constituents have an impact on every player in Among the specific issues of and lobbyists seeking to shape the beverage alcohol business. concern to WSWA and others the ultimate outcome in a way within the beverage alcohol that favors their own interests. Why have we reached this critical industry: There will be a maelstrom of juncture? The answer is fairly 1. Will the estate tax revert voices seeking to be heard, and simple. We have been on an to its pre-2001 levels or one tier or one sector of our extended government spending will there be some sort of industry will be drowned out in spree for the past twelve years, compromise reached to keep it that cacophony. The only way during which time our national at or near current levels? we will be heard is if the industry debt has tripled to close to $16 2. Will there be an attempt works to create a coherent trillion. During the first two to eliminate Last-In, First-Out message and strategy that brings (LIFO) accounting? together our collective power and 3. Will certain important influence. “We are an integral and industry tax credits (5010, 5011) or the Rum Cover-Over The beverage alcohol industry essential part of the national be targeted? has a compelling story to tell. 4. Will there be an effort to We are an integral and essential economy, and legislative lower the corporate tax rate part of the national economy, on the backs of pass-through and legislative action that is action that is detrimental businesses (Subchapter S, detrimental to our industry is partnerships, etc.)? ultimately detrimental to the to our industry is ultimately 5. Will an excise tax increase national economy. WSWA will be imposed and is tax seek to work with ABL and our detrimental to the national equalization being considered? other industry partners in the 6. Will repeal of the Bush supplier and retail sectors – as tax cuts – the “fiscal cliff” well as our friends in the beer economy.” you have been hearing about category – to create a unified – or the scheduled budget voice and a coordinated strategy hundred and twenty-four years of “sequestration” lead us back to derail any efforts to unfairly the republic, we amassed a debt to a recessionary economy? target our industry as the debate of $5 trillion. That figure was over comprehensive tax reform doubled to $10 trillion dollars As you can see, there are a moves forward. | during the eight years of the host of issues that could have a Bush presidency. But over just the first three and a half years of the Obama administration, our national debt has risen another $5 trillion dollars, and current budget projections forecast trillion dollar budget deficits as far as the eye can see.

In addition to the issue of debt, there is a sense that the current tax structure is – depending upon who you listen

ABL INSIDER | FALL 12 | 7 2012 convention recap

Beer, wine and spirits retailers and members of the alcohol industry from across the country gathered at the 10th Annual ABL Convention in Las Vegas June 10 – 12 to Years celebrate the 10th anniversary of American Beverage Licensees, learn from industry 10 experts, and build relationships among retailers and throughout all three tiers of the ng beverage alcohol industry. rati eb Returning to the Monte Carlo after two years learning about the American traditions l 10 Ce of producing bourbon in Louisville and beer in Milwaukee, a renewed focus on the business of the beverage industry complemented the pubic affairs and government relations topics typically addressed in the annual meeting. ABL Convention This year boasted the most well-rounded and influential lineup of speakers in the ten- June 10-12, 2012 year history of the convention. Equally matched by convention attendees, Celebrating Las Vegas, NV Ten Years served as an opportunity for retailers and industry representatives operating at the highest levels of the industry to interact and learn from one another.

Business Education Seminars Business Technology and Online Marketing “The best website talks about your consumers, and what they want. Not what you want from them.” After two years of training in the latest in social media technologies and social marketing, ABL shifted the focus of the third annual business technology seminar to search engine optimization and internet marketing tools related to a company’s website. Kim Frederiksen of Olicity discussed the many free tools for improving a business’s internet presence, particularly making Google work for your business. Clockwise from left: Stephen Talpins, Kim Frederiksen, and Ginger Johnson View the presentations online! www.ablusa.org/members-only Marketing Beer to Women “The story matters to the female consumer: Who makes it? Where are they located? The story is so important to sales. When she knows the story, she is going to engage.” Ginger Johnson of Women Enjoying Beer presented dynamic ideas that can make a difference in sales and perception by marketing beer to women. While women make the vast majority of consumer decisions in the household, beer has not been historically marketed or sold to female customers. Focusing on the personal connection and a friendly, open environment to discuss the product is key to turning this opportunity into a Recognizing Excellence higher success rate. Indiana Association of Minimizing Dram Shop Liability Beverage Retailers Receives “The number one recommendation is to develop Inaugural Harry Wiles Award In recognition of the Indiana Association relationships with state and local regulators,” as they not of Beverage Retailers for its outstanding only create the laws, but enforce them and can help educate achievement in the area of political communications and government licensees. affairs on behalf of the beverage retailer Stephen Talpins, an attorney with Rumberger, Kirk & Caldwell, discussed protection from community, IABR officer Warren Scheidt dram shop liability and social host laws present in 35 states and the District of Columbia. accepted the inaugural Harry Wiles While not dispensing legal advice, Talpins offered a lawyer’s valuable perspective on the Award at the 2012 ABL Convention important steps that can be taken to minimize liability. These types of lawsuit settlements range from $100,000 to well over $1,000,000, plus tens of thousands in legal costs. In particular, this award highlighted IABR’s strategic use of social media Talpins encouraged attendees to check their insurance policies, as general liability policies and responsible retailing outreach typically exclude coverage for negligent service and only apply to injuries on the premises. to educate the public, package store For a liquor liability policy to be truly effective, it must cover assault and battery, suits owners and legislators about the social brought be third parties injured off-premises by a patron served at the establishment, all and economic consequences of the types of damages (including mental), employee drinking, and defense costs. unchecked expansion of alcohol sales. 8 | ABL INSIDER | FALL 12 Product Education Events

Anheuser-Busch, represented by Jason Hayes, center, sponsored an Afterglow on the terrace overlooking the strip, featuring Bud Light Platinum.

New product House Band Wines hosted ABL National Association convention attendees on of Beverage Importers the terrace with live music continued their annual from local musicians. tradition of hosting the welcome reception.

The tenth annual MillerCoors Luncheon featured their current approach to marketing and branding their classic and new products, presented by Joe Joaquin.

Beam sponsored the Great Whisk(e)y Debate and the luncheon that followed, featuring brand ambassadors for Laphroiag, Knob Creek, and RumChata, another new product on Canadian Club. the market, hosted breakfast Tuesday morning, featuring a RumChata French The debate rages Toast and RumChata Iced Coffee. on, as this contest was declared a tie by moderator View more photos! Bobby G. www.facebook.com/ablusa ABL INSIDER | FALL 12 | 9 2012 convention recap Learning from the Industry Awards and the Top Shelf Banquet Public Attitudes on Alcohol On Monday, June 11, the convention’s first speakers were Adam Chafetz, President & CEO of Health Communications and Dr. Jeffrey Schaler, Ph.D, M. Ed, who shared perspectives on the perception of alcohol as a public health issue, as well as more broadly in the context of American society throughout history to the present.

Dr. Schaler outlined the history of the public health movement, from the “medicalization” of deviant behavior to policies based on the loss of control and disease, to the current trend in addressing an individual’s mindset, values, and how that person experiences environments in any treatment.

Chafetz, below right, discussed how “new prohibitionists” form their arguments, pointing out that they address reducing overall alcohol consumption, rather than abuse. He continued, saying that the issues that are raised most often: raising the drinking age, lowering BAC levels, and the use of interlock devices, are, “Pushing us back to the 18th Amendment in a different way: not legislating it, but kicking us to death.” “People drink for different reasons, in different ways, with different results. If you’re going to help them, you can’t have a one-size-fits-all approach.” Dr. Jeffrey Schaler (far left)

Industry Perspectives from Producers and Distributors Tuesday morning, June 12, opened with John McDonnell, COO of The Patron Spirits Company and Chairman of the Distilled Spirits Council of the United States. McDonnell gave a dynamic presentation focused on the importance of tax issues, social responsibility, and supporting ultra-premium brands. Demonstrating the power of innovation with a technology demo, McDonnell said that, “When premium brands create value in the eyes of consumers, they deserve your support, because they support your profits.”

Joe McClain of the Beer Institute addressed the relationship between the brewer and the retailer, from craft to the largest companies. Drawing from his own experience in the US Navy, McClain focused on the ability of beer to bring Americans together, particularly in the kinds of locally-owned community establishments that ABL represents. “Taverns, bars and independent stores represent the best part of America’s community spirit. That corner pub or store, that top of the tower lounge, you offer communities the right setting for friendship, celebration, or just a place to decompress.”

Charlie Merinoff, Chairman & CEO of The Charmer Sunbelt Group and Chairman of the Wine and Spirits Wholesalers of America and Steve Lytle, Director, Columbia Distributing and Chairman of the National Beer Wholesalers Association, addressed the group in turn, providing the distributors’ perspective on the three-tier industry. The two then composed a panel that opened for questions from the audience.

Merinoff told the audience that distributors think most about supplier alignment, market share, and delivering excellent customer service, and continued to say, “There is always going to be a distributor, an aggregator to bring thousands of products to thousands of stores and tens of thousands of people. The question is, who owns it: it: the independent business, the state, or the large business like CostCo?”

Lytle informed the audience that “Deregulation through privatization really challenges our industry, especially distributors.” Emphasizing that privatization is the most important issue for NBWA members, they are also concerned with preemption, Clockwise from top left: John McDonnell, Joe McClain, franchise laws, branch expansion, forced consolidation, and self-distribution. Charlie Merinoff, and Steve Lytle

Beverage Media hosted the Board of Directors and industry media for its tenth annual breakfast.

Below, left: Chuck Ferrar, Bill Slone, and John Bodnovich On Monday evening, convention attendees Below, right: Illinois Association of enjoyed a reception and guided tour of the Beverage Retails and Bill Slone. Souther Wine & Spirits of Nevada distribution center. The state-of-the art facility boasted tens of thousands of feet, much of this climate controlled cold storage to safeguard against the heat of the desert.

Among the thousands of products in the facility, Southern Wine & Spirits of Nevada treated convention attendees to beer, wines and spirits local to the Las Vegas area. 10 | ABL INSIDER | FALL 12 Awards and the Top Shelf Banquet Brown-Forman Retailer of the Year Awards Honored at the 2012 Top Shelf Banquet were the Brown-Forman Retailers of the Year. Nominated by ABL’s state and regional affiliates, the Retailer of the Year awards recognize dedicated ABL retailers who are the last to handle beverage alcohol products before they reach consumers, and are the face of the industry to millions of Americans.

Presented by Ralph Aguera, Vice President, Trade Relations for Brown-Forman, the awards symbolize these business owners’ Left: Brown-Forman’s Ralph Aquera presents the 10th Annual Retailer of the Year Awards Right: The 2012 Brown-Forman Retailer of the Year Award Winners contributions to the beverage alcohol industry. This is the tenth consecutive year that Brown- 2012 Retailer of the Year Award Recipients Forman, a leading producer of distilled spirits, has sponsored the awards, and Mr. Aguera The Avenue Bar | Anchorage, AK Snyder’s Willow Grove | Linthicum, MD thanked each of the recipients for their hard Gold Rush Discount Liquor | Anchorage, AK Arundel Wine & Spirits | Hanover, MD Sav-Mor Spirits | Somerville, MA work and efforts to positively define the Grapevine Wines and Spirits | Little Rock, AR Fisher’s Liquor Barn | Grand Junction, CO Harry T’s Wholesale Wine & Liquor | Canton, MS industry. Habersham Beverage Warehouse | Savannah, GA Stockman Bar | Harlowton, MT Kenwood Liquors | Homer Glen, IL Tops Liquor | Brooklyn, NY Illinois Valley Super Bowl | Peru, IL Allen’s Liquors & Wines | Watertown, NY Hildreth’s Liquor Mart | Seymour, IN BB Beverages | Myrtle Beach, SC Charlie’s Tuna Tap | East Chicago, IN WB Liquors | San Antonio, TX Party Mart | Louisville, KY The Alley | Newport News, VA Terry’s Bar | Oshkosh, WI Top Shelf Award Bennett Glazer, CEO of Glazer’s Inc., a multi-state wine and spirits distributor, was honored with ABL’s Top Shelf Award. This is the highest honor given by ABL, recognizing those who have demonstrated excellence over their careers in the beverage alcohol industry and in their communities. The Top Shelf Banquet reception and dinner were sponsored by the Distilled Spirits Council of the United States and recognized the industry’s finest. Nominated by the Texas Package Stores Association, Bennett Glazer spoke of the unity that remains strong in the beverage alcohol industry, despite the many changes that he has witnessed over the last three decades.

Top Right: Bennett Glazer with ABL President Chuck Ferrar Bottom Left: Texas Package Store Association members with the Glazer family Bottom Right: Mark Gorman of DISCUS, Bennett Glazer, center, and John McDonnell

Leadership Changes The ABL Board of Directors elected new officers to serve into 2014: Vice President Warren Scheidt of Cork Liquors in Columbus, IN; Vice President Steve Morris of Jorgenson’s in Helena, MT; Treasurer Ray Cox from Elite Beverages in Indianapolis, IN; and At-Large Representative Don Diserens of Alton Sports Tap in Alton, IL. They join President Chuck Ferrar of Bay Ridge Wine and Spirits in Annapolis, MD; Vice President Victor Pittman of Silver Leaf Wines & Spirits in Ridgeland, MS; Vice President Bob Sprenger of Bubba’s in Marion, WI; and At-Large Representative Rob Left: Immediate Past President David Jabour and the Executive Committee Swearingen of the Al-Gen Dinner Club in Rhinelander, WI, who will Right: Chuck Ferrar with two outgoing Executive Committee members, Harry continue to serve on ABL’s Executive Committee until 2013. Klock and Jane Springer

ABL INSIDER | FALL 12 | 11 BY JOE McCLAIN, President op-ed feature Beer Institute

Clamping Down on Keg Theft

It’s a problem that won’t go Many of these new small Brewers commonly imprint or away – and is starting to add brewers don’t know, for paint their logos on the kegs up to real dollars. It’s the example, that the kegs that to make it harder for anyone problem of keg theft. When they may be buying second- to pass them off as their keg thieves prowl the alleys hand as a cost-cutting own. Many brewers also have behind bars, taverns and measure may actually have policies to not sell kegs once restaurants, they drive up costs been procured illegally. They they are retired, which makes for brewers, retailers, and may believe they are buying it much easier to identify ultimately, consumers. legally-possessed kegs for re- stolen kegs. And ISRI helps conditioning, when the truth is by refusing to purchase kegs Unfortunately, keg theft is not they are buying stolen kegs. as scrap metal, aside from new to our business. According special arrangements with to data gathered by the Beer So our newest initiative to brewers. Institute, each year more reduce keg theft is a multi- than 350,000 kegs are lost, pronged effort, coordinating Brewers and importers know totaling more than $50 million with large and small brewers that our partners in retail – in financial loss to brewers on a new outreach effort. whether tavern keepers or and importers. When new package store operators or kegs cost more than $130 As part of that, the Beer others – already do a lot for Institute is cooperating with our common business. We will the Brewers Association, never overlook that. We simply “Today, we must ask our National Beer Wholesalers want to work closer with every Association and the Institute link the chain between beer partners in the tavern and of Scrap Recycling Industries brewer and beer drinker on (ISRI) to educate all our an effort to educate everyone restaurant business to help members about steps they on the fact that kegs are not can take to prevent keg theft the property of distributors, by considering new ways by reducing the demand for retailers or consumers – they stolen kegs. We also want to are owned by the brewers and of securing empty kegs to work with retailers – whether importers. package stores, taverns or prevent thieves from gaining restaurants – on steps you can From brewers to wholesalers do to reduce the opportunity to retailers to customers, easy access – and help avoid for kegs to be stolen. everyone suffers when keg thieves are free to work. But that $50 million in costs to For example, we are working through education, vigilance with ABL to look into ways that and a few simple steps, we can the bar tabs of beer drinkers.” package stores, restaurants put a kink in the line of keg and taverns could cheaply theft. apiece, and keg deposits range secure empty kegs awaiting from $10 to $50, it’s clear pickup by distributors. The Beer Institute, established how keg loss can start to hurt Unfortunately for us all, gone in 1986, is the national trade the bottom line of retailers are the days when leaving association for the brewing and tavern owners, and how empty kegs “out back” was industry, representing both thieves are forcing up the price enough. Today, we must ask large and small brewers, as of beer on all consumers. our partners in the tavern well as importers and industry and restaurant business to suppliers. The Institute is In 2008, the last time we saw help by considering new ways committed to the development a real spike in keg theft, it was of securing empty kegs to of sound public policy and to driven by demand for scrap prevent thieves from gaining the values of civic duty and metal. So the Beer Institute easy access – and help avoid personal responsibility: worked in cooperation with that $50 million in costs to the www.BeerInstitute.org | scrap metal dealers to reduce bar tabs of beer drinkers. the market for keg thieves. This time, we have a different problem: even while there is some demand kegs as scrap metal, there is also an explosion of new brewers – not all of whom are up to speed on every detail of the beer industry.

12 | ABL INSIDER | FALL 12 BY Guy L. Smith, Executive vice President op-ed feature Diageo, North America

Guy L. Smith on “Alcophobes”

Our industry – represented organizations who insist on time, Diageo will not stand by suppliers, retailers, demonizing alcohol in a thinly by silently while Alcophobes distributors, restaurants, veiled attempt to ban alcohol drive their agenda without hotels, pubs, bars and more – consumption outright. I call challenge. is under attack. these people Alcophobes. At Diageo, responsible Recently, you may have seen Alcophobes often employ “junk drinking is core to everything an increase in those accusing science” based on flawed we do, evidenced in our strict our industry of being the cause methodology or incomplete Marketing Code, extensive of alcohol abuse and underage data to drive their agenda. responsibility programs and drinking. Often it is you - the While they may claim to be continued work with our retailers - that are unfairly focused on reducing alcohol industry, community and civic targeted and get the brunt of harm, it is clear their real partners. There is a special these accusations. mission is to entirely remove responsibility when selling

Thanks in a large part to your efforts, we know that the “Recently, you may have seen vast majority of underage drinkers do not illegally an increase in those accusing purchase alcohol at retail. Despite unfounded claims to our industry of being the the contrary, research shows the majority of underage drinking is a result of kids cause of alcohol abuse and getting alcohol from relatives or friends. underage drinking. Often it

For more than a decade, is you - the retailers - that are the alcohol industry has joined together with law unfairly targeted and get the enforcement, government agencies, legislatures and brunt of these accusations.” parents to work collaboratively towards targeted, solutions- oriented approaches. And it alcohol from the market. I first alcohol, which we take very is working. The good news is talked about this alarming seriously and I know you do as that underage drinking and trend earlier this year at the well. drunk driving rates are at all Responsible Retailing Forum time lows and trending down. – of which I know many of you I’m sure you’ve seen some of While there is still a lot more are members. To see the full this first hand. If so, please that needs to be done, these presentation, click here. send me an email. I’d like positive to hear firsthand about any trends The counterproductive efforts Alcophobes in your area and indicate of Alcophobes are designed what they’re doing locally. You that to harm the alcohol industry can reach me directly at: progress and unfairly punish adults is being who enjoy a legal beverage [email protected]. made. responsibly. And worse, they cloud the real issue of alcohol Diageo and I look forward to Despite this abuse. working together with you progress, and other industry partners to there are a We cannot allow these continue our efforts to combat number of attempts to distract from alcohol abuse in every form, individuals our efforts or sidetrack our including Alcophobes. and determination. Our industry must sustain our commitment Cheers! to working together in order to continue to reduce underage guy consumption and all types of alcohol abuse. At the same

ABL INSIDER | FALL 12 | 13 WashingtonUpdates on New State’s York Rocky Wines, Road Wine toin OklahomaPrivatization Groceries, and Sunday Sales in Connecticut

After several failed attempts in the legislature, Costco invested over $22 million in the campaign to pass I-1183, the largest contribution from a single source.*

The average state store was 5,000 That’s $5.89 per square feet... registered voter

...I-1183 excluded small business by requiring stores have at least 10,000 square feet.

State revenue was $345 million in 2011, with another $71 million distributed to city governments. $10 Average liquor price increase per 750ML bottle Jobs cut. And Costco plans to only carry about 70 of the thousands of products available.

Drop in WA liquor sales

June 2011 compared to June 2012

Border stores in Oregon and Idaho have had record-breaking sales increases since June 1. 33% 35% © 2012 American Beverage Licensees

What lessons can we learn? Pushing out distributors leads to decreased has applied for licenses for all its locations in the ABL does not support or oppose the privatization choice for consumers. Bringing thousands of state. And unlike local business owners who keep of retail liquor sales. But we can all learn from products to thousands of stores is no simple feat. profits in the local economy, it remains to be seen what happened in Washington state, as control I-1183 allows mega retailers to purchase directly if national chains will invest in Washington state states from Pennsylvania to Oregon consider from producers, so it is no surprise that they are communities. privatization. offering a small fraction of available products. In a state with a $656 million wine industry and Dramatic increases in availability and little Complicated tax structures increase taxes. growing craft distillers, that is a large market to training can lead to problems of safety. Since I-1183 proponents promised lower prices marginalize. I-1183 has taken effect, reports of liquor theft through competition, but the heavy fees levied to and underage possession have increased. Many compensate the state coffers have raised prices Any scheme with square footage requirements big box retailers simply do not have the same 10-30% across the board. In response, advocacy will attract mostly big box stores to market. investment in alcohol sales as small business groups are lining up to fight the taxes that were Sure enough, national chains are circling the owners. 14intended | ABLto maintain INSIDER the state’s | FALL revenue 12 stream. Evergreen state. Washington’s largest liquor How much does Washington state stand to lose? license holder will be Safeway, while Wal-Mart *Visit www.ablusa.org/1183info for source information. affiliate update Wine in Kentucky Grocery Ruling, Real Recycling for Massachusetts, Happy Hours in Kansas, WIGS in Oklahoma, and a Wisconsin Election Federal Judge in Kentucky Gives Massachusetts Package Store ubiquitous college crowd. He suggested Grocers Right to Sell Liquor Association Mounts Coalition bars host afternoon promotions that target A federal judge in Kentucky struck down Campaign Against Bottle Bill retirees, saying, “You could call it ‘an old enough to know better’ hour.” the state’s 70-year ban on wine and liquor The Massachusetts Package Store in grocery stores, stating unconstitutional Association and Real Recycling for discrimination against different retailers. Massachusetts – an organization of Wine in Groceries Pops Up, Goes The final ruling is awaiting a conference. citizens, businesses, trade organizations Down in Oklahoma and unions – are working to defeat a The Retail Liquor Association of Oklahoma Judge John G. Heyburn ruled August 14, hidden tax slipped into legislation designed (RLAO), comprised of 80 of the state’s 640 2012, on a lawsuit brought by a coalition to generate economic development and licensed package liquor retailers, opposed of grocers, stating that legislators “wanted job creation. a petition submitted by the coalition to limit liquor sales generally ... and it did group Oklahomans for Modern Laws. so by arbitrarily distinguishing grocers A five-cent tax on bottled beverages was The initiative petition would have created from all other retailers.” “Perhaps back attached to a “jobs bill” expected to pass a new wine license, permit stores of at then grocers were different from other by the end of the legislative session. The least 25,000 square feet of floor space to potential alcohol vendors in some manner Senate voted in July to reject the same sell wine for off-premises consumption. that rationally related to the sale of liquor proposal. The $22 million in expected Convenience stores were excluded from and wine. If so, none of those differences proceeds was not slated for recycling the measure. appear today; most drugstores sell staples efforts, but poised to be deposited into and some grocers sell prescription drugs,” the state’s general fund. Real Recycling J.P. Richard, RLAO president told the Heyburn wrote. for Massachusetss estimates that it will Associated Press, “This is big corporate raise the price of groceries by as much as business making a cash-flow grab,” The ruling calls into question a current $116 million a year, while costing retailers Richard said. “All you have to do is read Kentucky law that also requires that only an estimated $58 million annually in the language in their petition.” employees 20 years old or older may sell additional operating costs. liquor, and it may be sold only in stores Despite an earlier ruling by the Supreme where minors are not allowed unless The coalition is advocating for more Court allowing the petition to move accompanied by a parent. It is unclear effective recycling systems, including forward, the coalition withdrew after if those regulations would be maintained expanding curbside pickup, improving realizing their campaign would leave the for package liquor stores or how the the ability to recycle on-the-go, making State Election Board insufficient time restrictions would be applied to new recycling accessible in more public places to place the measure on the ballot. The retailers. such as parks and arenas, and supporting leader of Oklahomans for Modern Laws comprehensive litter prevention has stated the group fully intends to bring The Kentucky Association of Beverage programs. the measure to ballot in 2014. Retailers (KABR) opposes the ruling. Karen Thomas Lentz, a KABR spokesperson, told Happy Times Return to Kansas ABL Board Member Wins Local the Business Journal that “Alcohol is not Happy hours are once again legal in Kansas Primary bread, and it is not milk. It is the most after a twenty-year ban on discounts Tavern League of Wisconsin member and highly regulated product we have, and based on times of the day. The bill also longtime ABL leader Rob Swearingen rightfully so.” allows bars to offer drink specials based received nearly 75% of the vote to secure on demographic groups, such as ladies’ victory in his primary election for the 34th nights. District of the Wisconsin Assembly. Rob is now preparing for the for the November Phil Bradley, Executive Director of Kansas 6 general election where he will face Licensed Beverage Association, told the Democrat Merlin Van Buren to fill the open Lawrence Journal-World that he’s been seat vacated by retiring Representative advocating for the change for 15 years, Dan Meyer. | and the changes will help Lawrence establishments market outside the calendar of events SEPT 22, 2012 OCT 14-16, 2012 SEPT 9-11, 2012 Indiana Assoc. of Beverage Retailers Retail Beverage Council of Florida 40th Anniversary Educational Seminar Illinois Licensed Beverage Association Trade Show and Trade Show 127th Annual Convention & Business Indianapolis, IN Meeting St. Augustine, FL Collinsville, IL Sept 29-Oct 1 2012 OCT 14-17, 2012 ABL Board of Directors Meeting SEPT 10-13, 2012 National Beer Wholesalers Association Chicago, IL 75th Annual Convention Montana Tavern Association San Diego, CA 57th Annual Convention & Trade Show OCT 9, 2012 Lewiston, MT New York State Liquor Stores OCT 21-22, 2012 Association Tavern League of Wisconsin SEPT 17, 2012 Holiday Trade Show Fall Convention Ohio Licensed Beverage Association Albany, NY Wisconsin Dells, WI Buckeye Bar Expo Columbus, OH OCT 10, 2012 OCT 22, 2012 Massachusetts Package Stores Metropolitan Package Store Association Association Annual Dinner MassPack Trade Show Howard Beach, NY ABL INSIDER | FALL 12 | 15 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. |

www.ABLUSA.org | www.FACEBOOK.com/ABLUSA | www.TWITTER.com/ABLUSA

rocers a Right to Sell Liquor Sell to Right a rocers G Forefront the at Issues Tax Bill,

entucky entucky K ives G Judge Federal Learned We What Transportation Passes Congress

Affiliate Update: Affiliate Recap: Convention 2012 pdate: U DC

in this issue this in

Insider

VOL. 6, NO. 3 | FALL 12 FALL | 3 NO. 6, VOL. ABL A PUBLICATION OF THE AMERICAN BEVERAGE LICENSEES | | LICENSEES BEVERAGE AMERICAN THE OF PUBLICATION A

Ohio Licensed Beverage Association Beverage Licensed Ohio merica A of ild u G pirits S & ine W

Georgia Alcohol Dealers Association Dealers Alcohol Georgia Massachusetts Package Stores Association Stores Package Massachusetts Wyoming State Liquor Association Liquor State Wyoming hio O

New York State Liquor Stores Association Stores Liquor State York New ia g Geor setts u assach M g yomin W

Federation Association Metropolitan Package Store Association Store Package Metropolitan Tavern League of Wisconsin of League Tavern

Retail Beverage Council of the Florida Retail Retail Florida the of Council Beverage Retail Maryland State Licensed Beverage Beverage Licensed State Maryland Association isconsin W

Empire State Restaurant & Tavern Tavern & Restaurant State Empire Virginia Licensed Beverage Association Beverage Licensed Virginia lorida F aryland M

Connecticut Package Stores Association Stores Package Connecticut Kentucky Licensed Beverage Association Beverage Licensed Kentucky k k or Y ew N inia g ir V

Kentucky Association of Beverage Retailers Beverage of Association Kentucky New Jersey Liquor Stores Alliance Stores Liquor Jersey New Texas Package Stores Association Stores Package Texas t u onnectic C

Colorado Licensed Beverage Association Beverage Licensed Colorado y k c u Kent ersey J ew N as x e T

Kansas Licensed Beverage Association Beverage Licensed Kansas Nevada Tavern Owners Association Owners Tavern Nevada Licensed Beverage Dealers of South Dakota South of Dealers Beverage Licensed olorado C

Arkansas Beverage Retailers Association Retailers Beverage Arkansas Kansas evada N ota k a D th u o S

Indiana Licensed Beverage Association Beverage Licensed Indiana Montana Tavern Association Tavern Montana ABC Stores of South Carolina South of Stores ABC ansas k r A

Anchorage CHARR Anchorage Indiana Association of Beverage Retailers Beverage of Association Indiana ontana M arolina C th u o S

Alaska CHARR Alaska Mississippi Hospitality Beverage Association Beverage Hospitality Mississippi Rhode Island Liquor Stores Association Stores Liquor Island Rhode ndiana I

Illinois Licensed Beverage Association Beverage Licensed Illinois a k las A ississippi M sland I hode R

Alabama Beverage Licensees Association Licensees Beverage Alabama Beverage Retailers Alliance of Illinois of Alliance Retailers Beverage avern League of Minnesota of League avern T Retail Liquor Association of Oklahoma of Association Liquor Retail

BAMA la A llinois I MINNESOTA lahoma Ok

affiliate members affiliate

Wirtz Beverage Group Beverage Wirtz

Republic National Distributing Co. Distributing National Republic

Pernod Ricard USA Ricard Pernod Remy Cointreau USA Cointreau Remy

Wine & Spirits Wholesalers of America of Wholesalers Spirits & Wine States Glazer’s, Inc. Glazer’s, Patron Spirits Company Spirits Patron

National Beer Wholesalers Association Association Wholesalers Beer National Distilled Spirits Council of the United United the of Council Spirits Distilled Charmer-Sunbelt Group Charmer-Sunbelt Monarch Beverage Company Beverage Monarch Sidney Frank Importing Frank Sidney

Diageo Beam, Inc. Beam, Castle Brands Castle Moet Hennessy USA Hennessy Moet Luxco

Beer Institute Beer Bacardi USA Bacardi Brown Forman Brown Constellation Brands Constellation ATM Network ATM

DIAMOND M U PLATIN OLD G SILVER BRONZE

ABL maintains a robust Associate Membership roster, with membership support coming from all levels of the beverage alcohol industry. alcohol beverage the of levels all from coming support membership with roster, Membership Associate robust a maintains ABL associate members associate