IWBDA Annual Meeting

January 30, 2013IWBDA Annual Meeting

Fairways & GreensStephen Larson, AdministratorIowa Alcoholic Beverages Division


Agenda

ABD ReviewPastPresentFuture

Industry UpdateOther Controlled StatesWashington Legislative Issues

Beer and Wholesaler Issues

Wrap Up

Questions


ABD Review

Fiscal Year 12 Results

Current Fiscal Year ResultsBeer

FY 13 – Beer – $6.0 MillionFY 12 – Beer – $6.1 Million

Down 2.6%Wine

3.2 Million3.0 Million

Up 6%


ABD Review

ABD Distribution Model

Purpose

Release date


Modernize

Provide value for our stakeholders

Provide value for Iowans on the delivery of services

Provide value for our employees

Increase our regulatory expertise

What We Have to Do


By understanding What do we doWhy do we do what we doHow do we get there

By measuring

The StepsUnderstanding who our customers areUnderstanding our resources and prioritiesUnderstanding ABD’s wholesaling functions

How Are We Doing That


Enforcement through education and voluntary compliance

Full Transparency and accountability

Foster ways to form partnershipsAssist in the enforcementAssist in providing education on complianceFoster relationships for licenseesIncrease our staff expertise and resources to be the regulatory expert on matters related to Chapter 123 and TTB issues.

Examples


Recent Efficiencies ImplementedIT ConsolidationImplementation Of RoadnetOnline Tax Reporting

Upcoming Efficiencies E-CommerceR-OrderEvaluating current operations

Examples



Three-Tier System


120 AttendeesIndustry from all 3 tiersLocal Authorities including law enforcementPrevention Experts, local and nationalPolicy Makers including legislators

Attendees


Steve Ford

Key Note Speaker


Moderator: Jim Clayton, Chairperson, Iowa Alcoholic Beverages Commission

Panelists: Dr. Lisa Payne Ossian, Professor of History, Des Moines Area Community College

John Lundquist, Iowa Department of Justice, Assistant Attorney General

Robert Wersen, Tassel Ridge Winery, Founder & Co-Owner

Scott Carlson, Court Avenue Restaurant & Brewing Company, Managing Partner

Panel 1: Yesterday, Today, Tomorrow


Moderator: The Honorable Bob Scott, Mayor, Sioux City, Iowa

Panelists: Eric Goers, Iowa City Attorney’s Office, Assistant City Attorney

Aric Schroeder, City of Waterloo, City Planner

Christine Hensley, City of Des Moines, Councilwoman

Panel 2: Case Study: The Opportunities & Challenges of

Change


Moderator: Rick Hunsaker, Iowa Alcoholic Beverages Commission

Panelists: Steven Schmidt, NABCA, VP of Public Policy & Communication

Pat Kohler, Washington State Liquor Control Board, Administrative Director

Panel 3: Regulating in a Climate of Deregulation


Moderator: Claire Celsi, Vice-Chair, Iowa Alcoholic Beverages Commission

Panelists: Victoria McDowell, Presidents’ Forum of the Distilled Spirits Industry

Pamela Erickson, Public Action Management, President, CEO

Mary Segawa, Washington LCB, Alcohol Awareness Program Manager

Panel 4: The Role of the 21st Amendment in Protecting Public Health,

Safety & Welfare


Moderator: Tami Doll, Iowa Alcoholic Beverages Commission

Panelists: Alan Greenspan, Glazer’s Companies, Executive VP & General Counsel

Craig Purser, National Beer Wholesalers Association, President & CEO

David Wojnar, DISCUS, Vice President, State Government Relations

Mike Brewington, Iowa Beverage Systems, President

Panel 5: Blurring the Lines: The Impact of Emerging Trends on the Integrity of the Three-Tier System


Overwhelmingly positive feedback from attendees and panelists

New advocates in the state

Proactive rather than reactive education

End Results


Planning Symposium 21 for 2013!

Share our experience

Next Steps


Industry Update

2013 Legislative Issues

3-Tier & Washington State

Innovative Products, Marketing & Advertising

TTB Buy-Back Decision

Enforcing Wholesaler/Retailer Laws


Industry Update

2013 Legislative IssuesBackground Check Bill

Chapter 123 Update

Outlet Density

Effects of Washington after Privatization

What is going on in other states?



What Driving ItWomen & Spirits

Millennial Generation & Spirits

Premiumization of Spirits

Women:108 million in the US

$7 Trillion spending power

44% drink spirits



Millennial Gerenation:Born between 1982 to 1990

A sizable group of adults between 21 - 30

Demand more than a job from career

Are active in volunteering

Impatient

Nomadic communication style

Accept technology

Read less



What makes Millennials important?Represent 25% of the populationIn 2011 were responsible for 31% of total consumption

1999Beer – 72%Wine – 13%Spirits – 15%

2009Beer – 49%Wine – 21%Spirits – 30%

2019 - ??????



New taste profilesLess Proof

More flavors to mix

Last Two YearsRumchata – 27 proof

Kinky – 34 proof

Sweet is best


Industry Update

TTB Buy-Back DecisionMerchandise Returns

Ordinary and Usual Commercial ReasonsError in delivery

Defective Product

Product unlawful to sell

Termination of retail business or wholesale franchise

Change in Product

Seasonal Dealer


Industry Update

Returning Outdated BeerFollow TTB conditions:

Brewer must have policies and procedures in place that specify the date the retailer must pull the product.

Brewers’ freshness return/exchange policies and procedures are readily verifiable and consistently followed by the brewer.

The container has identifying markings that correspond with this date.

The outdated malt beverage product returned by the retailer may not re-enter the marketplace.


Industry Update

Breakage per TTBBreakage is not exempt for consignment sales

Enforcing Wholesaler/Retailer Laws

Update on online reporting of beer tax


Wrap-Up

Town Hall MeetingsFeb. 5th in Chariton

Save the DateFeb. 20th Open House

Symposium 21: September 2013


Thank You!

Questions?


Thank You!

Stephen Larson, Administrator515.281.7402; [email protected]

Doug Webb, Deputy Director of Administration515.281.7444; [email protected]

Karen Freund, Deputy Director of Regulatory Affairs

515.281.7414; [email protected]

Stephanie Strauss, Government Relations515.281.7432; [email protected]

Documents

IWBDA Annual Meeting