Control states executive forum: top control state officials discuss the latest developments within their jurisdictions.

As we have for the past eight years, StateWays contacted top control state officials in the 19 jurisdictions and asked them to provide an overview of recent initiatives in their respective states. As we have seen in the past, each state has its own particular set of concerns and accomplishments. For example, Mississippi relates its recovery from the devastation wrought by Hurricane Katrina. Still, several overall themes emerge when reading through the state overviews. First, the states that include retail operations within their mandate continue to upgrade their operations--opening new stores, modernizing old ones, and sometimes relocating and modernizing already existing units. Within all states, enforcement and education remains a driving force for combating the abuse and underage misuse of beverage alcohol products. It's amazing to hear about the many educational and enforcement initiatives making inroads, and the varied partnerships control agencies have formed with the private and public sectors. And once again, virtually every control state has reported robust growth in sales for fiscal year 2006.

In addition, our control state leaders also address areas such as organizational plans and legislative changes as well as ambitious efficiency programs. And this year, the fallout from the U.S. Supreme Court's ruling in Granholm v. Heald has played a role in altering direct shipment policies. Overall, we hope that the following comments provide a meaningful snapshot of the activities taking place throughout the control states. As always, we'd like to thank the various commissioners, chairpeople and administrators from all 19 control jurisdictions who took time out from their busy schedules to respond.

ALABAMA

EMORY FOLMAR 

Administrator Alabama Alcoholic Beverage Control Board

The Alabama Alcoholic Beverage Control Board was honored earlier this year at the National Conference of State Liquor Administrators' (NCSLA) annual conference held in Boston, MA. The ABC Board received top-honors for "Innovations in Responsibility--Best Practices." Robert S. Hill, ABC Board General Counsel, graciously accepted this award on behalf of the agency. I am proud of the entire ABC Board team that has worked so hard to educate the public about the laws and administrative regulations that govern alcohol and tobacco sales in the state of Alabama. In order to continue in this direction, to maximize the use of ABC Board staff, and to provide the utmost service to the citizens of Alabama, the Alcohol Awareness/Responsible Vendor Program was combined with the Enforcement Division. The consolidation of these two divisions will avoid duplication of services and will ensure a more unified effort in the compliance with alcohol and tobacco laws and the education and training of alcohol licensees and tobacco permittees.

The most recent 2006 sales results in Alabama have been exceptional, with total spirit sales increasing approximately 9% over the previous year. What is even more amazing is that 19 brands produced 50% of those sales. Among those 19 brands, six of them are vodkas. I see a continuation of streamlining operations and integrating systems for the handling of products.

The old real estate adage about location, location, location has proven true in Alabama. As ABC Board Administrator, I have made it a point to ensure that ABC stores are located in prominent shopping centers on the most heavily traveled thoroughfares, with easy access and lots of parking. Alabama ABC has developed a comprehensive program to upgrade and relocate specific state stores as well as add new stores to the system. Every time a store is up for lease renewal, a complete financial and demographic analysis of that store is performed to see whether it needs to relocate or be modernized.

IDAHO

DYKE NALLY

Superintendent Idaho State Liquor Dispensary 

Exciting things continue to happen in Idaho! In May, our Governor Dirk Kempthorne was appointed by President Bush to serve as Secretary of the Interior. With Secretary Kempthorne's departure, Lt. Governor James E. Risch took the reigns as Idaho's 31st Governor. Governor Risch, a longtime popular Legislator and Lt. Governor has only a few months at the helm, but has an ambitious agenda, and is calling a special session of the Legislature to deal specifically with significant property tax relief. After his short term as Governor, he will be a candidate for Lt. Governor again on the November ballot. C.L. Butch Otter, a Congressman and former Lt. Governor and Jerry Brady, a newspaper publisher from Eastern Idaho, are the two candidates running for Governor in November.

Another transition that has been challenging for the Liquor Dispensary is the retirement of our Chief Financial Officer and Deputy Superintendent Ken Winkler. Ken departed in May after 38 years of State service. Mr. Tom Blaine, a 34 year corporate director from Albertsons, has joined our management team as Deputy Superintendent. Mr. Blaine brings valuable experience from the private sector, which adds a new dimension to our retail-oriented business.

Idaho continues to experience robust growth with retirees, families and businesses moving to the Gem State in record numbers. Money Magazine attributes quality of life, business opportunities, and jobs as main factors in ranking Idaho as "one of the very best places to live in the nation." Population increases are expected to hold at nearly 3% for the foreseeable future. With this rapid growth, strains have been put on all State services including the Liquor Dispensary. Sales have doubled in ten years with FY 05 sales reaping in double-digit percentage increases, topping out with a 15.11% increase; the highest of any Control State! Sunday liquor sales are now available in 24 of Idaho's 44 counties. Revenue from these sales has added an additional $600,000 to our total sales.

Our current distribution center occupied in 1998 was projected to be adequate for 20 years (based on 3% sales growth estimates in 1996) and is now bulging at the seams. The Legislature approved a major expansion to the existing facility. Construction will begin this fiscal year. The new facility, which adjoins the present warehouse, will feature warehouse management system software and an automated storage and retrieval system.

A fourth District Manager will be added to the state to help alleviate the increased work load resulting from more than three years of double-digit growth in liquor sales. Funding was also approved for six new full service State liquor stores. The new stores will be opening in the near future in areas of the state where demographics support the need for increased service.

Alcohol education, with special emphasis on underage drinking, remains the most critical priority for all of us in the alcohol business. An Idaho Enforcing Underage Drinking Laws (EUDL) partnership consisting of representatives from many agencies meets monthly to develop and implement a state plan to reduce underage drinking. Funding is provided by the Department of Justice, Office of Juvenile Justice and Delinquency Prevention through the "Enforcing Underage Drinking Laws" grant.

Partnership members are represented by the Governor's Office, Departments of Juvenile Corrections, Health, Welfare and Education, Idaho State Police, Office of Highway Safety, Idaho State Liquor Dispensary and Alcohol Beverage Control.

In addition, the partnership utilizes the expertise of other organizations such as the Governor's Coordinating Council for Families and Children, Mothers Against Drunk Driving (MADD), Campus Coalition, Regional Substance Abuse authorities and Regional Alcohol Drug Awareness Resource (RADAR). Some of the projects funded by the EUDL grant have included mini-grants to local law enforcement and community coalitions. Recent grants include: Alcohol Free Graduation activities for graduating seniors, compliance check operations by Alcohol Beverage Control, and a media campaign to reduce underage drinking throughout Idaho.

The challenges are many for the coming year. Keeping up with growth and change at this pace is difficult, to say the least. I wish to thank Governor Risch, the Legislature, industry, and most of all, the incredible Idaho State Liquor Dispensary employees for their continued support and extra efforts!

IOWA 

LYNN WALDING

Administrator Iowa Alcoholic Beverages Division 

Distilled spirits, as we all know, have been enjoying a bit of a renaissance as of late. Across the country, the popularity of spirits has reached an all-time high--making for an exciting, dynamic and, ultimately, demanding industry. To remain ahead of the curve, the Iowa Alcoholic Beverages Division has spent the past year taking initiatives to render its wholesale operation and regulatory function as efficient and effective as possible.

In Iowa, sales of distilled spirits took another giant leap forward in Fiscal Year 2006. The Division reported sales in excess of $160 million in Fiscal Year 2006, a 9.6% increase over the $146 million recorded in FY05. At the same time, gallonage sales increased just 6.86% in the last year (3.7 million gallons sold in FY06 compared to 3.46 in FY05). The discrepancy between gallons and dollars indicates that Iowan's are not only buying more, they're also buying better.

The "trading up" behavior is also evident in the Division's current "Hot 100" products, which account for approximately 80% of all sales or 8 out of every 10 bottles sold in Iowa. Several premium products have begun to inch their way up the ladder. Sales of Jagermeister, for example, have doubled over the past three years and the German liqueur is now a top-10 brand in Iowa. Also in the past year, Smirnoff Vodka, a mid-range brand, has replaced McCormick Vodka, a value brand, on Iowa's top-10 list.

As sales in Iowa continued to soar in the past year and different products began to emerge as top sellers, the Division took several initiatives to ensure that products could be stored, inventoried and delivered efficiently. This past spring, the Division facilitated a Kaizen event--a process improvement meeting--for its ordering and delivery operations. During the Kaizen, the Division's employees identified wasteful functions in the state's distribution system and collaborated to devise new, efficient functions.

As a result of the Kaizen, the Division's delivery drivers began adjusting customer invoices in the field to reduce the burden on the accounting section, and the accounting and order entry sections were merged in the same wing of the Division's headquarters to facilitate and foster better communication. The Division also began revising the layout of its state liquor warehouse and is in the process of making the room for larger inventories and new products. The warehouse reorganization will help reduce inventory errors resulting from out-of-stock products while, at the same time, expanding the number of listed products and, thereby, reducing the need for special orders.

Finally, in an initiative to enhance customer service and improve the efficiency of its licensing operation, the Division is in the process of rolling out its electronic licensing system. The application process, dram shop insurance verification, local authority approval, state approval and payment are all now completed online, with the sole paper involved being the license that is mailed to the licensee. Currently, approximately 40% of Iowa local authorities are actively using the electronic licensing system with the remainder of the state set to roll out in the coming months.

Growth in the spirits category, the trade-up phenomenon and operational efficiency have combined to significantly enhance the Division's contributions to the state's coffers. The Division transferred more than $83.3 million to the state general fund this past fiscal year. That transfer represents over $5 million of new revenue compared to the $78 million transfer in FY05, and an astounding $21 million increase, a 33% leap, in just five years since fiscal year 2000.

As sales of distilled spirits continue to increase in Iowa and across the country, the Iowa Alcoholic Beverages Division will continue to foster an environment conducive to market growth by maintaining an efficient and effective operation. Doing so will help ensure continued revenue growth, anticipated to eclipse $87 million this fiscal year, while simultaneously meeting the demands of a very dynamic industry.

MAINE

DAN GWADOSKY

Director Maine State Liqour & Lottery Commission

The retail sales and distribution of spirits in Maine has been completely transformed since the 1970s when the only outlets for purchasing spirits were through state-operated liquor stores. Today, through a partnership with the Department of Public Safety almost 400 private retailers and agency stores are licensed to sell spirits and state-operated liquor stores no longer exist. Not only was there a savings to the General Fund by closing the state-operated stores, but sales began to increase as more agency stores began to appear in areas not previously serviced by state stores.

The state's role in warehousing and distribution took another dramatic change in 2004 when the state signed a 10-year contract with a private company to lease the state's warehousing and distribution process.

This partnership continues to have a significant impact on the economic well being of the state as well as the many small private liquor stores operating throughout the state. Service enhancements are impressive. The agent's ordering time has been decreased from 7 to 10 days, to 2 days. Delivery days have increased from 1 day to 2 days per week. Agents can now order via the Internet and assistance is provided with the unloading of shipments from the truck into the store. Predictability, courtesy and responsiveness are the hallmark of this new partnership.

Sales for distilled spirits in Maine have increased 8% since the privatization of the wholesale distribution. Case sales are up approximately 5%.

While privatization initiatives might be interpreted by some as lessening control, in fact, the opposite is true. The contract between The State of Maine and Maine Beverage specially requires Maine to maintain its status as a control state. The uniform listing and pricing of spirits are still controlled by the Bureau of Alcoholic Beverages. The Bureau provides zealous oversight of the leased spirits distribution system by requiring monthly and annual financial reports and instituting an auditing process. We also spend considerable time each legislative session ensuring that the state's proven and effective control system remains firmly intact.

Our mission is to effectively regulate the beverage alcohol industry to insure responsible business practices and create a favorable economic climate while prohibiting sales to minors. The Bureau works daily with the Department of Public Safety on issues of enforcement and advertising. We also collaborate with our State Attorney General's Office to evaluate our distilled spirits listing process, initiate programs to further educate the public on the issues of furnishing alcohol to minors and more generally the challenges of illegal consumption on college campuses. Ultimately, we aim to build and sustain community solutions that support our retail network, benefit our citizens and improve their quality of life.

MICHIGAN

NIDA SAMONA

Chair Michigan Liquor Control Commission

As expected, the biggest development in 2005 at the Michigan Liquor Control Commission (MLCC) followed the Supreme Court decision on the Heald case. On May 16, 2005 the Supreme Court ruled that states cannot discriminate between in-state and out-of-state wineries. They also upheld the three-tier distribution system affirming that states have the right to exercise authority over alcoholic beverage traffic within the state. This left the Michigan Legislature with decisions to make in order to comply with the Supreme Court ruling while at the same time protecting the wineries in our state and the consumers of these products.

In December 2005 Michigan Public Acts 268 and 269 created a Direct Shippers license to allow in-state and out-of-state wine makers to sell up to a total of 13,500 liters of wine per year to Michigan consumers and set strict standards for the manner in which the wine is shipped to ensure that it will not fall into the hands of underage persons.

In other developments, our Internet license renewal program continues to blossom with a total of 3,310 licensees renewing their licenses online in 2005. Likewise, the number of licensees who are regularly placing their spirit orders online has grown to 1,925 with 6,700 having passwords to order online if they wish. Increases can also be found in the number of Michigan alcohol servers and sellers being trained in responsible service techniques.

The MLCC Licensing, Enforcement, Financial Management and Executive Services teams were extremely busy in 2005. Immediately prior to the New Year, the Licensing and Enforcement Divisions began processing applications and conducting investigations for National Sporting Event licenses for Super Bowl XL, which was played here in Michigan on Ford Field in Detroit on February 5, 2006. Approximately 14 applications for Super Bowl licenses and dozens of temporary approvals for permits for current licensees were issued by the MLCC. The Enforcement Division partnered with the City of Detroit and held meetings with Detroit licensees prior to the event to discuss liquor laws and ensure the event was as successful and safe as possible. In total for 2005, almost 27,000 licenses were issued, 2,400 enforcement hours were dedicated to controlled buy operations, $830.6 million in gross liquor sales were transacted, 2,500 violations were written and 1,300 violation and appeal hearings were held.

The future holds great promise for increased efficiencies and customer service. The amount of information available on our website continues to grow in depth and range and recently the Manufacturers and Wholesalers Division launched a completely electronic beer and wine label and product registration system. We are excited to begin new programs such as liquor discounting and to supplement existing efforts like alcohol education, underage prevention, enforcement and licensee training sessions in 2006.

MISSISSIPPI

ALICE GORMAN

Deputy Commissioner Mississippi State Tax Commission Alcoholic Beverage Control Division

Our fiscal year 2006, which ended June 30, 2006, started out normally enough, but then an irreverent lady named Katrina blew into our Gulf Coast on August 29, 2005, and nothing has been the same since. The worst disaster in American history, Hurricane Katrina caused catastrophic devastation over 100 miles from its eye. The extreme part of the eastern eye wall, with the highest velocity of winds and greatest storm surge, made a direct hit on the Mississippi Gulf Coast, and slashed through south Mississippi and up through the eastern half of our state. All 70 miles of Mississippi coast line were devastated. With more than a 30 foot storm surge, and hurricane force winds that were relentless for over 12 hours, what we knew of our coastal communities washed or blew away. Katrina changed the face of south Mississippi forever.

Immediately prior to Katrina, we had 323 permitted establishments, both on-premises and package stores, in the three counties that border the Gulf of Mexico. After the storm, 81 (or 25%) of these businesses were totally destroyed and 59 (18%) businesses were damaged and closed. Just a little over half of our permittees could reopen shortly after the hurricane. All 13 casinos were severely damaged or totally destroyed. A year later, only 5 have reopened in various states of repair. Very few of the other damaged permitted businesses have resumed operations.

Even at our Liquor Distribution Center located 175 miles north of the Coast, Katrina caused disruption. Power outages forced closure and halted shipping for four days; however, we came back with a bang. For the first five months after the storm, we shipped 10% more cases than in the September to January time frame in the prior year. For the fiscal year, our revenues were up 8.2%, with over 100,000 more cases shipped.

Reorganization

In order to provide more effective customer service by our sales/distribution group, and better regulatory effort by our enforcement group, these two ABC departments were separated in January, with both the ABC Director and the Enforcement Chief reporting directly to the Deputy Commissioner. Mark Hicks serves as our Chief of Enforcement, and Vince Falconi is our new ABC Director, since former director Ann Richmond's retirement in the spring.

Legislation

Senate Bill 2454 was passed and signed into law to comply with the U.S. Supreme Court's ruling in Granholm v. Heald. Unlike the direction that other states have taken, the amendments remove the authority for native wineries to direct ship to consumers and licensees in-state. Sales on site at native wineries are not affected by this change, so native wineries sell their wine on site and through the ABC. Mississippi currently has only one native winery.

Enforcement

Our Enforcement group was awarded the National Liquor Law Enforcement Association's "Agency of the Year" at the annual conference in August 2006 in Baltimore, MD. MS ABC Enforcement was recognized for its contributions during Hurricane Katrina. Agents were first responders and conducted search and rescue, law enforcement and missing person missions. The National Liquor Law Enforcement Association was established in 1988, with membership limited to liquor law enforcement agencies.

Our Enforcement Agents seized and destroyed a total of 12 moonshine stills, with a record 7 of those in June, during the fiscal year. In addition to the public health issues, the total tax fraud for the stills destroyed could have reached $1.8 million. Despite the penalties, people still continue to manufacture "white lightning" in the South.

MONTGOMERY COUNTY, MD.

GEORGE F. GRIFFIN

Director Montgomery County, MD.

Department of Liquor Control

As our fiscal year ended on June 30, 2006, the Montgomery County DLC looked back on another highly successful year from a fiscal standpoint. Total department sales were up nearly eight percent over the previous year, with gross sales of $191,833,057. [This total represents only gross sales. Additionally, the State of Maryland collected over $6 million in taxes directly generated by our operation. This figure also does not include revenue generated from licensing and regulatory activity.]

Our wholesale operations accounted for 56% of that total with sales of $108,208,372. Meanwhile, our retail operations rang up sales of $83,624,685, contributing 44% of the department total. This represents an increasing share of the total gross sales from our retail stores, which is consistent with the trend of the last few years. Only a few years ago, county retail stores contributed less than 40% of the total sales volume. I believe this growing strength in the retail sector reflects the continuing increase in popularity of distilled spirits, and also reflects our ability to offer our consumers an expanding selection of wines. We will be challenged to open several new stores in the next couple of years to meet this growing demand, as several of our existing stores are operating at or near peak capacity in terms of sales volume.

The year ahead also promises to be an exciting one. The Montgomery County DLC will consummate two key accomplishments that will improve our operations, and allow our agency to pursue an expanded mission. The first new initiative we will tackle involves a major reorganization of our Department. Montgomery County DLC will welcome the Office of the Board of License Commissioners--the licensing and regulatory authority in the County--into our department. Previously, the BLC has been a standalone, "sister" agency that operated independently of the Liquor Control Department. With this merger, Montgomery County will more closely resemble other control jurisdictions in terms of our institutional composition. I have proposed creating a new division in DLC entitled, "Licensure, Regulation and Education," which will include the traditional licensing and regulatory functions along with our Office of Community Outreach and broader, community-based educational efforts. We will closely coordinate our enforcement and prevention strategies with the County Police Department and State agencies in order to provide an enhanced level of service to our residents. At the same time, we will provide "one-stop-shopping" for anyone concerned with any aspect of alcohol public policy or regulatory issues, as the DLC will coordinate all resources and activity involving licensing, compliance, responsible business practices and abuse prevention strategies. This reorganization provides us

with an appropriately expanded focus and allows us to pursue a more comprehensive alcohol control mission.

The second major project we are about to launch is a significant expansion of our warehouse distribution center. We expect to break ground later in 2006 on a 52,000 square foot expansion of our existing warehouse. We will also use this construction opportunity to upgrade the climate-control air-handling systems for the entire facility, providing better working conditions for our employees and enhanced product quality control of our inventory.

[On a personal note, I would like to thank everyone for the support and cooperation provided to me and the employees of Montgomery County DLC during this past year as I served as NABCA Chairman of the Board. It is greatly appreciated.]

MONTANA

SHAUNA HELFERT

Administrator Liquor Control Division

Montana Department of Revenue

The Montana Department of Revenue's Liquor Control Division continues its efforts to provide excellent service to Montana citizens, with an emphasis on quality customer service and effective public safety. Through its work in administering the Alcohol Beverage Code, the Liquor Control Division ensures a safe, orderly and regulated system for the convenient distribution and responsible consumption of alcoholic beverages in Montana.

This past year, the division pursued several major strategies, including streamlining processes, gaining efficiencies through modernized technology and partnering with key stakeholders.

New Structure

In late 2005, the Montana Department of Revenue underwent a significant reorganization that combined the liquor distribution and liquor licensing functions under one division called the Liquor Control Division. I was selected to be the administrator for the new division.

The new organizational structure helps all areas of the department to provide improved public service. As a result of the reorganization, the Liquor Control Division is more cohesive in controlling alcohol and setting policy.

Increased Revenues

Liquor revenues increased significantly over the previous year. The division recorded sales of approximately $83.9 million, representing a 10% growth over the previous fiscal year. This total growth resulted from a case volume increase of 7%. Liquor dollar sales continue to benefit from a mix of increases in product prices from the suppliers, customers trading up to premium products, as well as an increase in consumption.

The growth in sales, coupled with a decrease in operating costs, resulted in an increase in liquor revenues totaling $24,759,889 for Montana's general fund and local governments. This result is attributable to the hard work of department employees, liquor agents and licensees, and vendor representatives.

Technological Improvements

The division recently has taken major steps to modernize through technology. A new component for liquor warehouse management, inventory and taxes was successfully added to the department's integrated tax system (known as the Integrated Revenue Information System, or IRIS) last January. This new liquor component helps the division to better manage inventory and provides greater efficiency to the wholesale liquor ordering process. The new component also enables the division to provide enhanced customer service through accessibility of data and information.

In October 2006, a liquor licensing component will be added to the tax system. This component will help streamline the liquor license application process, as well as other licensing functionalities. Because Montana's off-premise licensees must complete a combined liquor licensing and gaming application, the Montana Department of Justice has been providing input into the new liquor licensing component regarding the gaming application process.

Community Partnerships

Encouraging responsible alcohol use continues to be a top concern, with educational and regulatory efforts receiving more and more attention from the Liquor Control Division. This past year, the division partnered with several organizations, including:

* The Century Council--to launch the "65% campaign" to retail stores and licensees to help educate the public on how youth obtain alcohol.

* Montana's Universities--to promote responsible use of alcohol on university campuses.

* Healthy Mothers, Healthy Babies--to provide training to liquor licensees on responsible service.

* The division continues to work with other state agencies and public interest groups to cooperatively develop educational efforts to encourage responsible sales and service of alcoholic beverage and promote the prevention of underage drinking and high-risk or binge drinking. As always, the division's goal is to protect the health and safety of Montanans.

Future Endeavors

The Montana Department of Revenue is working with interested parties to draft legislation regarding direct shipping issues for Montana's 2007 legislative session. Currently, small in-state wineries and breweries may self-distribute to licensees and out-of-state wineries and breweries may ship directly to consumers with a valid connoisseur's license.

NEW HAMPSHIRE 

ANTHONY MAIOLA

Chaiman New Hampshire State Liquor Commission

As we begin to assemble fiscal year end results ending June 30, 2006, we look at an increase in net profit of over 6% and sales increases also over 6%. During the past year, much analysis and review of SKU optimization and inventory needs at the store level was discussed, resulting in Store Management responsibility for the onhand inventory and turnover. This effort has resulted in a reduction of store-owned inventory of 4 million, as actual customer take-away at the store versus the "just in case" quantities was studied.

Wine

Currently, every store must stock and display 325 wine SKids and, as space and customer demand increase, a listing of 1,200 is maintained and updated every six months based on gross profit results. Stores that may still have space remaining and customer demand may choose additional wine codes to round out their offering.

Direct Shipper Program

The number of permits from received to Direct Ship into New Hampshire increased by 46% during the last year. Our direct shipper program has proven to be very successful.

As we look to the future and worries about gas prices, we are optimistic that sales will continue to improve and that New Hampshire's important tourist industry is actually improving as visitors stay closer to home.

NORTH CAROLINA 

DOUGLAS A. FOX

Chairman North Carolina Alcoholic Beverage Control Commission 

North Carolina continues to experience strong growth in retail sales of spirituous liquor, with sales for the fiscal year ending June 30, 2006, totaling $600,686,450, up 9.3% over the previous year. In order to meet the demands of the consumer, the local ABC boards are relocating, modernizing and upgrading existing ABC stores. By taking advantage of new design trends in shelving and lighting, stores are assuming a more sophisticated look that gives the consumer an enhanced shopping experience. In time for the tourist season this year, the Carteret County ABC Board opened a new "superstore" in the town of Atlantic Beach on June 1. By relocating and extending operating hours, the store has seen sales increase by 35%. All along the North Carolina coast from Dare County south to New Hanover County, new ABC stores are being built to keep up with the exploding real estate market and retirees relocating there.

The Commission's Education and Training Division has risen to meet the needs of the evolving retail environment by conducting educational and training programs for the industry, as well as the community. Responsible Alcohol Seller (RASP) Workshops are hosted by the local ABC boards to inform their permittees on the responsible sales and service of alcoholic beverages. Within the last fiscal year, Alcohol Education Specialists conducted 1,354 RASP classes to 6,105 participants with 2,317 consultation visits to industry and non-industry members. Non-industry member training includes the U.S. Open Pinehurst and Wachovia Championship Open bartending staff, NC Association of Convenience Stores, programs for Western Carolina, Brevard, Appalachian State, and Eastern Carolina Universities. Additionally, the Alcohol Education Specialists participated in community events for Delta Sigma Theta, Dell Curry Foundation, Safe Communities, Safe and Drug Free, Statesville Sheriff Department and Chapel Hill Town Hall. According to the 2003 Roper Youth Report, 73% of today's 8-17 year-olds say their parents have more influence on them than anyone else when it comes to choosing to drink alcohol. The division has implemented and conducted 196 programs addressing 21,347 students and parents on making choices and the consequences of underage alcohol usage with such programs as, "Teach Your Parents Well," "Illusions ..." and "AB Cardinal" programs.

OHIO 

RAE ANN ESTEP 

Superintendent Ohio Division of Liquor Control

The Ohio Division of Liquor Control recently completed another record year of liquor sales, and transferred $138 million to the state's General Revenue Fund (GRF) in Fiscal year 2006.

Spirituous liquor dollar sales at the state's 425 contract liquor agencies reached a record high of $638.8 million in Fiscal Year 2006. This was an increase of $51.3 million (or 8.72%) over sales in Fiscal Year 2005. Total gallons of spirituous liquor sold in Fiscal Year 2006 was 9.9 million, an increase of 362,304 gallons (or 3.8%) compared to Fiscal Year 2005.

Liquor dollar sales continue to benefit mostly from increases in product prices, and a rise in the level of consumption. However, Ohio's level of consumption of distilled spirits remains one of the lowest among control states.

This Fiscal Year's GRF transfer of $138 million is $23 million more than last Fiscal Year. In addition to the GRF transfer, the Division contributed another $114.7 million in liquor sales and tax revenue to help fund a variety of state services. The Division's total contribution for fiscal year 2006 was $252.7 million. This revenue was earmarked and distributed as follows:

* $138 million transferred to the state's General Revenue Fund;

* $28.9 million to the Ohio Department of Development for the retirement of economic development bonds used to fund the state's small business loan program;

* $5.3 million to the Ohio Department of Development for the retirement of Clean Ohio Revitalization Bonds;

* $9.7 million to the Ohio Department of Public Safety for state liquor law enforcement;

* $3.5 million to the Ohio Department of Alcohol and Drug Addiction Services (ODADAS) to fund alcoholism treatment, education and prevention programs statewide;

* $1.2 million to the Ohio Department of Health to fund the Alcohol Testing Program;

* $668,006 to the Ohio Liquor Control Commission to fund its operations;

* $33.4 million in state gallonage tax deposited in the state treasury;

* $27.1 million in state sales tax deposited in the state treasury;

* $5 million in additional gallonage taxes in Cuyahoga County for the Gateway Stadium Project.

Direct Shipping:

The Division has made recommendations for the creation of new classes of licenses for bringing Ohio's statutory scheme regarding direct shipping of alcoholic beverages into compliance with the United States Supreme Court decision in Granholm vs. Heald. The goal of these recommendations is to create a level playing field between in-state and out-of-state manufacturers and retailers of beer, wine and mixed beverages.

In addition, the Division's recommendations would make the out-of-state manufacturers and retailers who ship alcoholic beverages into Ohio subject to the statutes and rules of the state of Ohio, and the jurisdiction of Ohio Liquor Control Commission, the Ohio Department of Taxation, the Ohio Department of Public Safety, the Ohio Division of Liquor Control, and the Ohio courts. The Division's recommendations would also have the effect of deterring consumption of alcoholic beverages by underage individuals by adding new labeling and shipping requirements, and increasing penalties for violation of those requirements.

In addition, the Division is monitoring the Costco and WineCountryGiftBaskets.com legal cases to determine how those decisions would impact Ohio.

OREGON

PHILIP D. LANG

Chairman Oregon Liquor Control Commission 

Distilled spirits sales in Oregon are robust and the outlook is for continued growth, which brings with it a number of challenges for the Oregon Liquor Control Commission (OLCC).

Liquor sales zoomed from $312.5 million in 2004-05 to $348.5 million in 2005-06, a $36.1 million increase, or about 11.54%. And this remarkable growth rate is expected to continue at about 8 percent annually for the next three years. Case movement is increasing slightly slower--up 4.66% from fiscal year 2004 to 2005.

As the agency continues its traditional focus on enforcement and licensing, we are also striving to meet spirits sales increases on several fronts--improving the warehouse and distribution system by updating facilities and hiring additional distribution center staff, and reviewing compensation for liquor agents in our 243 retail stores.

The Oregon Legislature granted the OLCC up to $500,000 to look into liquor agents' compensation to determine if it adequately covers the cost of doing business and upgrading facilities. A report to the Legislature's Emergency Board is due by year's end.

The agency has added a number of temporary warehouse workers and is considering going to a second shift in the distribution center to meet the increasing demand for product and service to agents, licensees and customers. A budget request for additional permanent workers will go to the Governor's office this fall.

In the enforcement area, the commission is focusing on underage drinking prevention activities, chiefly compliance checks of licensees using underage minor decoys. OLCC liquor inspectors expect to conduct at least 1,500 compliance checks this year and have been directly supporting local police compliance operations in several heavily-populated counties in the Portland metropolitan area. Working with licensees and their employees to prevent over service of alcohol is another key enforcement program area.

The commission's licensing, record-keeping and data-retrieval will soon take a quantum leap forward with a new computer software system due to come on line next June. Currently, field inspectors and licensing people have trouble getting real-time data because of limitations in the agency's antiquated records management system. OLCC licensing and computer specialists are customizing and testing the new "My License" software program for the much-anticipated upgrade.

And to finance some of these activities, the OLCC will submit an ambitious budget package to the Governor's office to consider sending to the 2007 Legislature in January.

Budget requests include restoring funding authority the OLCC lost during the state's tough financial times, and funds to expand regulatory programs. Public safety (regulatory) program requests have been designated a top priority. They include adding field inspectors to prevent underage drinking, plus additional staff to speed up processing license applications and to ensure manufacturers' and producers' compliance with liquor laws.

The OLCC has a national profile this year, too, as I am serving as board chairman of the National Alcohol Beverage Control Association (NABCA), and our director of Enforcement and Compliance Services, Linda Ignowski, serves as president of the National Liquor Law Enforcement Association (NLLEA).

The non-profit NLLEA has 350 members in the U.S. and Canada and works to improve standards and practices for liquor-law enforcement, professional development of its members, and for recognition of the role liquor-law enforcement plays in protecting and promoting public health and welfare.

My goal as NABCA chair is to promote "Social Responsibility" and work toward uniformity and upgrading liquor law enforcement policies and practices across the country. NABCA represents 18 states and Montgomery County, MD, which directly control the distribution and sale of alcoholic beverages within their borders, so we're anticipating some busy days ahead.

Meanwhile, one immediate goal for the OLCC is to appoint a new executive director to be on board as we ramp up for the holiday sales and distribution season. And, of course, the OLCC will continue its work with community groups, lawmakers and industry representatives to strengthen the state's liquor laws and prevent underage drinking and the abuse or misuse of alcoholic beverages.

PENNSYLVANIA

JONATHAN NEWMAN

Chairman Pennsylvania Liquor Control Board

The state of the Pennsylvania Liquor Control Board is strong. In the past fiscal year, the Board experienced sales growth in excess of 7% for the third consecutive year. Aggregate sales for the Board are over 24% for the past three years. Our goal, in the current fiscal year is to continue implementing new marketing initiatives to continue our strong growth.

Retail Operations

In recent years, the PLCB has made many improvements to its retail operations and adopted new marketing initiatives, which are now yielding significant financial results. On the operations side of the business, the PLCB instituted extended Sunday and holiday hours, employee training on fine wine and temperature control throughout our distribution channels. In addition, the PLCB expanded the number of Premium Collection Stores and One Stop Shops. Our One Stop Shops offer consumers the convenience of shopping for their groceries and wine and spirits under one roof. In the coming year, we will evolve our e-commerce site into a "virtual store" where customers can search our vast product selection at their local Wine and Spirits store, order products and have products delivered for convenient pickup.

On the marketing side of the business, the Chairman's Selection program continues to produce very impressive results. The program offers amazing wine at unbeatable prices. Since the program's inception three years ago, it has generated over $52 million in sales--proof positive that Pennsylvanians benefit when the PLCB flexes its purchasing power. As the Chairman's Selection program becomes more successful, wineries and producers gain more and more interest in the program and consequently, we are able to offer more and more top-quality wine to wine enthusiasts. This year, I will be sourcing wine from many new locations to diversify the selection in the program. It's an exciting opportunity and I know that our customers will love what I bring back.

Additional marketing initiatives include cultivating membership in our wine club, The Wine Connection, increasing the selection on our e-commerce site, www.pawineandspirits.com and broadening advertising and Public Relations campaigns to position Pennsylvania as a leading wine and spirits retailer with great product selection, amazing prices, knowledgeable store employees and beautiful retail stores. In the coming year, we will continue to hold true to the "Customer is King" philosophy and strengthen our position in the industry.

Alcohol Education

The Board's commitment to its alcohol education mission remains steadfast. To bolster the development of alcohol education and prevention initiatives, the Board has increased the budget for the Bureau of Alcohol Education by 25%, over the past three years. In the past fiscal year, the Board authorized $3.1 million in spending for alcohol education and prevention programming. In this fiscal year, we will continue to develop cutting-edge initiatives in order to maintain our position as a nationally recognized leader on education and prevention. We will continue to enforce a "zero tolerance" policy to prevent minors from acquiring alcohol in our retail stores and build on the vigilance of our employees who have thwarted 3.2 million attempts by minors to purchase alcohol, over the past four years. Further, the Board will continue its initiatives to reduce our inventory shrinkage, already down to 63 cents, on a per thousand dollar sales basis, from 96 cents, just the year before.

Conclusion

In the past fiscal year, PLCB sales of wine and spirits resulted in nearly $1.6 billion. The Board returned $80 million in profits to the Commonwealth and $315 million in taxes. The Board also provided more than $18.5 million to the State Police for liquor control enforcement and $2 million to the Department of Health for drug and alcohol programs. The Board's level of achievement could not have been possible but for the dedication and hard work of the entire PLCB team. Our goal in the year ahead is to build on our achievements and make the PLCB even more successful, while serving in the public interest.

UTAH 

KEN WYNN

Director Utah Department of Alcoholic Beverage Control 

Things are moving right along in the state of Utah. We just closed our books on FY 2006 sales, and total sales and profits are new highs. Sales topped $200 million for the first time in history, our profit increased by about $9 million over last year and the taxes we collected are about $4 million more than last year. It was a good year for us on the retail side.

We were successful during the legislative session in getting $2.1 million to fund a program we call EASY, eliminate alcohol sales to youth. Six hundred thousand dollars of the funding is to go to law enforcement for reimbursement for compliance checks four times a year at every retail outlet that sells beer to go. The rest of the money is for a media campaign about eliminating alcohol sales to minors. We just awarded a contract to a local advertising company for the project, and it should start running on TV, radio and outdoors by late August. We are excited about this program and hope to cut sales to minors by 50% the first year. We ran a billboard program in May warning 2006 graduates to avoid alcohol-related parties. In June, we ran a bus board program warning about the effects of alcohol on the brain on kids as young as 13. Studies done here have indicated that 13 is the age at which some Utah kids start drinking. The Governor is totally committed to these programs and we hope to continue to get funding to keep them going.

We have also been busy with our retail stores. We currently have three 12,000 square foot stores under construction, one in Park City and two in Ogden and Harrsville, both north of Salt Lake City. We are closing on land to build a 12,000 square foot store in the southwest corner of the valley. We are looking for land for another 12,000 square foot wine store in Salt Lake and a land search is underway in St. George. We have three stores scheduled for remodeling to add space to them. Utah is growing and the demographics are changing.

VERMONT

DAN O'BRIEN 

Chairman Vermont Department of Liquor Control

Issues facing Vermont in the next year include evaluating the newly enacted direct shipment legislation, reviewing current regulations in light of the recent Costco decision, beginning phase 1 of the warehouse automation project, preparing new technology initiatives which include a new licensing and enforcement system, and finally, prioritizing expenditures for the upcoming FY08 budget process.

New Legislation

The 2006 Legislative Session adjourned May 10, which is early, but is typical in an election year. Here are some highlights of legislation passed.

* H665 Allows educational sampling events to be conducted that promote gourmet food and beverages. An entry fee of not less than $5 must be paid to attend and the permit holder pays $200 to conduct the event. This new law was promoted by Sante Magazine which held a three-day food and wine symposium for over 300 restaurant professionals. It was a great success and will be hosted again in 2007.

* S58 Authorizes direct shipping of vinous beverages to Vermont consumers, restaurants and grocery stores by both in-state and out-of-state wineries, via application and fee submitted with applicable supportive documentation to the Vermont Department of Liquor Control. This new legislation complies with the U.S. Supreme Court's ruling in Granholm vs. Heald. This legislation also clarifies the regulation of wine tasting events and amends 7 V.S.A [section] 2(5) and (17) relating to serving alcoholic beverages with food.

* S106 Increases the handling fee for beverage container handlers to three and one-half cents per container. Legislation also requires a Bottle Bill Study & Report to be submitted to the Legislature in 2007 and 2008.

* H702 Adjusts and reallocates Liquor Control fees that have not been increased for many years. New monies will be allocated to Enforcement, thereby freeing up Enterprise Funds for other department projects.

SEI (Strategic Enterprise Initiative)

Governor Jim Douglas has made information technology a top priority in his goal of transforming state government and all of its services through better use of technology. The SEI is a very lengthy process involving all agencies and departments. Two areas of focus for DLC are automation of the warehouse and replacement of the current enforcement and licensing system. Both of these changes will happen over FY07-09, with the warehouse starting the first phase in FY07.

Warehouse Automation Study

The Department is in the process of issuing an RFP as part of last year's privatization study recommendations to review current warehouse functions and update them with an automated system. The Department intends to begin the project in FY07 and complete it in stages over the following years. The Department of Liquor Control will be seeking proposals from qualified contractors to supply a Warehouse Management System (WMS). The DLC seeks competitive bids from qualified vendors with a track record working on warehouse automation and supplying, installing, configuring, and customizing warehouse management system software and associated hardware, including servers, mobile computers, scanners, printers, and other peripherals required. Concomitant with the installation and configuration of the software system and its associated hardware should be documented operating procedures to facilitate increased efficiency and accuracy in warehouse workflow, along with training in both procedures and supporting systems.

Retail/Merchandising

DLC is experiencing its eleventh straight year of growth in sales dollars. In Fiscal year 2006, sales reached $52,895,614; this represents a 5.25% ($2.6 million) increase over FY2005 figures. This stellar accomplishment is attributable to the hard work of our liquor board, agents and department staff.

Education, Licensing & Enforcement

The Enforcement Division continues to be busy with alcohol and compliance testing, along with licensee inspections. The recently adjourned legislature increased license fees that will help fund the division's ongoing programs. Catering regulations will be reviewed this summer in the hope of expanding the various types of caterers allowed under current law.

Alcohol and Tobacco Education continues to be a very important part of DLC's mission. The education staff, along with field investigators, has provided seminars to thousands of license holders and their employees this past year. Combining that with monthly alcohol and tobacco compliance testing, the statistics continue to improve, with 90%-plus alcohol and tobacco compliance for those who attend DLC seminars. Education and Enforcement are making a difference in denying youth access to alcohol and tobacco products. DLC is also conducting workshops in August at the National Underage Drinking Conference in Baltimore.

VIRGINIA

ESTHER H. VASSAR

Chair Virginia Department of Alcholic Beverage Control

Virginia Department of Alcoholic Beverage Control (ABC) had a remarkable eighth record breaking year in Fiscal Year 2006 by reaching $572 million in annual gross sales. Customers surveyed this year indicate that 91% are very satisfied with overall customer service, 95% say the service is prompt and 93% describe the ABC store as clean and attractive.

Efficiency increased with the completion of a major multi-million dollar warehouse automation project. The new system provides for the efficient flow of items from arrival at the warehouse to delivery to the trucks for shipment, and it is capable of processing 20,000 cases in a day. The enhancement will meet the demands of an ever-growing network. Virginia currently has 312 stores in operation.

Like many other states, Virginia remains involved with litigation and legislation on issues of the interstate distribution and sale of alcoholic beverages. One of the issues receiving recent attention involves the sale of Virginia wine in state ABC stores. About 25 years ago, the Virginia General Assembly decided to eliminate wine sales in state stores, since wine was also sold by private sector retailers. However, in an attempt to benefit the state's fledgling wine industry, ABC was allowed to continue selling wines produced by Virginia farm wineries.

In April, 2005, a federal judge ruled that the statute limiting ABC stores to Virginia wines to the exclusion of those from other states was unconstitutional, and Virginia ABC stopped purchasing Virginia wines at that time. Farm winery interests this year unsuccessfully attempted to get legislation passed opening Virginia's state stores to wines from other states. This issue remains on appeal to the United States Court of Appeals for the Fourth Circuit, where oral arguments were held in June. If the appeal is successful, ABC could once again sell Virginia wine.

While enforcing criminal and ABC laws in more than 14,000 licensed establishments, ABC's Bureau of Law Enforcement takes an active role in promoting compliance for licensees. Statistics reflect that for every written warning and violation report issued by our enforcement agents, there is a training session presented to citizens and licensees. ABC also offers "Do Not Sell" stickers, Licensee Guides summarizing ABC laws and other compliance tools.

ABC continues to lead the Commonwealth in alcohol prevention and community

education initiatives and provides thousands of dollars in grant funding to enhance community and university coalitions. Highlights of Fiscal Year 2006 include the awarding of five rural law enforcement community grants. This is the first year we have been able to offer this type of grant in rural communities, and we are looking forward to the new partnerships. Another ABC accomplishment involves the production of Solving the Puzzle of Underage Drinking, a compilation of "Best Practices" in alcohol education. The booklet has been distributed in Virginia and is shared with other states nationwide.

For Fiscal Year 2006 and beyond, we remain committed to balancing control, service and revenue to benefit the citizens of Virginia.

WASHINGTON STATE

MERRITT LONG

Chairman Washington State Liquor Control Board 

The Washington State Liquor Control Board has continued to focus on growth in its retail and wholesale business while also developing strategies to improve licensing, regulatory and enforcement practices. Court decisions, new laws, and increased public concern about alcohol misuse are other factors influencing change in the agency.

Growth in business operations has been particularly strong, with gross sales topping $700 million in FY 2006. Growth is being driven by increases in the state's total population (now 6.3 million) and in the percentage of the population over 21. Other factors influencing sales growth include a new tax surcharge, new brands, increased sales of higher-priced brands and growth in the number of establishments licensed to sell liquor by the drink.

Enterprise Funding

The agency is proposing the ability to retain a portion of the revenue it generates to provide greater flexibility in meeting business operation needs. The current two-year appropriated budget does not offer the flexibility to adapt quickly to changes in the business environment. Bringing new stores online in the current appropriated system can take up to four years compared to possibly one year with the enterprise funding model.

Business Operations' Challenges and Opportunities

Additional staff, training, and increased funding for store hours and new stores are needed to meet the demands of sales growth and maximize revenues over the next decade and beyond. Additional staff is needed to provide the analytical and management expertise needed to operate. New store business strategies are needed to serve a growing customer base, such as the expansion of Sunday sales.

Licensing, Regulation and Enforcement

Recent court decisions, changes in state laws regulating the sale and distribution of beer and wine, proposed new policies and legislation and a major review of the state's three-tier system are driving change at a rapid pace. The number of liquor licenses has reached its legal limit. A License Density Workgroup is expected to recommend an increase in the State's ceiling on spirits, beer and wine licenses. New types of licenses are being considered as business models in the private sector continue to evolve. A nightclub liquor license is under consideration.

To ensure high levels of public safety in a climate of growth and change, the LCB has proposed increasing its research and policy capability (currently one staff member), hiring more licensing and enforcement personnel and becoming more strategic about how it enforces the laws on minor access, over-service and alcohol misuse. Alcohol Impact Areas, which restrict the sale of low-cost, high-alcohol products in certain areas, have been developed and are being expanded in some cities.

Alcohol Awareness Campaign

A new alcohol awareness manager is conducting a statewide education and prevention campaign. This spring and summer the alcohol awareness manager worked closely with key members of the drug and alcohol prevention communities to create an alcohol awareness campaign in middle schools this fall. The Liquor Control Board also will be exploring ways it can work with the alcohol beverage industry to advance the objectives of the program.

WEST VIRGINIA 

DALLAS STAPLES

Commissioner West Virginia Alcohol Beverage Control Administration 

[For a wide range of the activities taking place at the West Virginia Alcohol Beverage Control Administration, see the State Ways cover story from last issue (July/August 2006). These are a few additional initiatives taking place.] Plans are underway to hold our Annual Trade Show in Morgantown on September 18 and 19. This year's event is geared more to the needs of the distributors, brokers and retailers as opposed to the club and tavern owners. Due to the overwhelming positive response we will hold a second mixology class.

* Our IT department is currently computerizing many features of our distribution business and our state-of-the-art Scan Guard system. We have received in excess of $500,000 in grant funds to upgrade these systems and allow for new enforcement approaches.

* The WV ABCA is currently working with law enforcement agencies across the state during DUI checkpoints. This new approach is intended to obtain information and establish drinking patterns so that we may get to the source and educate and enforce laws that prohibit serving and selling to intoxicated patrons.

* The WV ABCA recently held their 4th Annual Governor's Summit on Alcohol Use in Higher Education at West Virginia State University. The statewide coalition now includes representatives from presidents, deans, counselors, students, law enforcement and the industry in every public and private school in WV. This year's event addressed liability issues, task forces development and the biennual review, and featured speakers from the U.S. Dept. of Education Higher Education Center and Peter Lake, author of "Rights and Responsibilities of the Modern Campus."

* FY 05 sales were $61,803,621.00. For FY 06, sales were $66,035,981.23 up $4,232,360.23. This is mainly due to premium purchases.

WYOMING

BILL POMEROY

State of Wyoming Department of Revenue, Liquor Division

The Wyoming Liquor Division has contemplated the ramifications to the State that the recent decision handed down by the United States District Court's Western District of Washington at Seattle in the case of Roger Hoen, et al, defendants and Washington Beer and Wine Wholesalers Association, intervenor-defendant favoring the plaintiff, Costco Wholesale Corporation.

The State's concern for the demise of the existing three-tier system (manufacturers sell products to distributors, who sell to retailers) would of course have major consequences for Wyoming's distribution and sale of alcohol products. The Division feels that the decision will provide impetus for large retailers to try and dictate how they operate in those states that have alcohol control statutes. There are major differences in the current operations of Wyoming's liquor distribution operation and those in Washington State and elsewhere. The Division's review of those differences points out that Wyoming has no Costco Wholesale Corporation stores operating within its boundaries. Wyoming does however have the giant retailer Wal-Mart Corporation that operates either Wal-Mart's or Sam's stores in many areas throughout the state. Wal-Mart Corporation is the number two retailer in the world in terms of revenue and is huge by any measure, but comparing it to Costco Wholesale Corporation, which is the 95th largest corporation in the world in terms of revenue, even makes the comparison more interesting. With the retail size of Wal-Mart Corporation they could very well influence those entities in local and county government to provide favored status.

Wyoming statutes currently require that the acquisition of liquor licenses is governed by a strict population formula that provides full retail liquor licenses to be issued by the various governmental agencies, either city or county. However, there exists the ability for retailers to acquire full retail liquor licenses by outright purchase of existing licenses or simply applying for and receiving a full retail license when additional population growth in the state dictates that the population supports additional licenses.

Wyoming has reviewed the specifics of the above decision and asks the question, How does the state differ and how are we similar? Specifically, the State of Wyoming does not require beer distributors and manufacturers to "post" their prices with the state and to "hold" those prices for a full month; provide policies that require beer distributors to charge uniform prices to all retailers; prohibit volume discounts for beer sales; promote policies that require beer distributors to charge the same "delivered" price to all retailers, regardless of the actual delivery costs; prohibit central warehousing of beer by retailers; require a 10% minimum mark-up on sales of beer from distributors to licensed retailers.

The State has no retail stores, so many of the restrictive practices experienced in Washington State may not prevail in Wyoming. The State of Wyoming's Liquor Division, being the sole distribution agency for all distilled spirits and wine products that are purchased by retailers, may have restrictive statutory language or policy statements; requirements that distilled spirit and wine manufacturer's hold the line on price increases until providing the Division with 90 days notice; prohibit selling beer, wine or spirits to retailers on credit; provide uniform volume discounts to all retailers for wine and spirits; by statute the Liquor Division marks-up wine and distilled spirits 17.6%, allowing retailers to mark-up at their discretion products to consumers.

The Wyoming Liquor Division will be monitoring very closely the appeal process of this decision, which may require the Division to rethink any statutory changes.