abd update
DESCRIPTION
Presentation given to the Iowa Wholesale Beer Distributors Association at their Annual Meeting on February 9, 2012, by ABD Administrator Stephen Larson.TRANSCRIPT
FEBRUARY 9, 2012
DES MOINES, IOWA
Iowa Wholesale Beer Distributors Association
Annual Meeting
Stephen Larson, Administrator
Iowa Alcoholic Beverages Division
IowaABD.com
Class E Licensees as of 1.31.12
• 1013 active Class E licensees
• 250 are C-Stores
• 160 Class E Licensees added since July
• 747 Active Class E Licensees as of May 24, 2011
• 45 Class E Licensees have cancelled since May 24, 2011
Market Trends & Convenience Store Analysis
Sales by Category CATEGORY Dollars R12 TY Dollars R12 LY Change Bottles R12 TY Bottles R12 LY ChangeWHISKIES $68,286,231 $61,238,806 11.51% 4,605,748 4,251,872 8.32%VODKAS $54,775,354 $48,653,457 12.58% 5,182,916 4,666,100 11.08%
CORDIALS AND LIQUEURS $37,649,251 $34,887,865 7.92% 2,909,181 2,732,117 6.48%RUMS $34,951,841 $33,616,591 3.97% 2,679,147 2,574,209 4.08%
TEQUILA $13,447,131 $12,790,328 5.14% 820,788 776,087 5.76%BRANDIES $8,815,045 $8,420,666 4.68% 995,024 959,935 3.66%
GINS $7,162,237 $6,932,352 3.32% 720,494 708,679 1.67%COCKTAILS $6,087,041 $5,427,366 12.15% 560,222 509,060 10.05%
DECANTERS AND SPECIALTY $1,343,545 $1,285,220 4.54% 72,165 71,154 1.42%ALCOHOLS $642,391 $639,547 0.44% 53,580 54,998 -2.58%
HIGH PROOF BEER $2,571 $218,520 -98.82% 24 76,913 -99.97%$233,162,639 $214,110,720 8.90% 18,599,289 17,381,124 7.01%
Sales by Size Bottle Size Dollars R12 TY Dollars R12 LY ChangeBottles R12
TY Bottles R12 LY Change50ml $1,050,371 $834,031 25.94% 121,506 99,959 21.56%200ml $3,363,872 $3,048,923 10.33% 936,812 873,526 7.24%375ml $9,087,186 $7,999,776 13.59% 1,520,464 1,400,793 8.54%750ml $89,348,549 $76,694,047 16.50% 6,926,366 6,172,282 12.22%1 liter $69,568,360 $68,484,489 1.58% 5,080,483 5,004,474 1.52%
1.75 liter $59,571,563 $56,057,179 6.27% 3,832,614 3,663,522 4.62%Other $1,172,739 $992,274 18.19% 181,044.00 166,568.00 8.69%
$233,162,639 $214,110,720 8.90% 18,599,289 17,381,124 7.01%
Convenience Store Sales Sales Month Total Sales Total Bottles Number of Licensees Sales per Licensee
Bottles per Licensee
July $ 1,038,360 94,579 141 $ 7,364 670.77 August $ 606,722 63,093 183 $ 3,315 344.77
September $ 827,251 86,513 193 $ 4,286 448.25 October $ 867,576 84,932 207 $ 4,191 410.30
November $ 868,542 84,454 225 $ 3,860 375.35 December $ 1,117,119 108,899 231 $ 4,836 471.42
$ 5,325,570
522,470 231 $ 23,054 2,261.77
Market Trends & Convenience Store Analysis
FY12 Financial Highlights
FY 12 FINANCIAL HIGHLIGHTS
July - December
REVENUES CHANGE FY 2012 FY 2011 Amount Percent Liquor Sales $127,398,252 $115,721,961 $11,676,291 10.09% Beer Tax (Regular & Native) 6,200,501 6,723,822 (523,321) (7.78%) License Fees 5,971,748 5,236,159 735,589 14.05% Wine Tax (Regular & Native) 3,161,366 3,021,923 139,443 4.61% General Appropriation 638,188 742,660 (104,472) (14.07%) Tobacco Transfers 453,830 116,389 337,441 289.93% Bailment Fee 928,159 636,731 291,428 45.77% Split Case Fee 662,591 327,281 335,310 102.45% Other Revenue 1,103,476 925,182 178,294 19.27% TOTAL REVENUES $146,518,111 $133,452,108 $13,066,003 9.79%
EXPENSES CHANGE Liquor Purchases $84,267,774 $76,708,897 $7,558,877 9.85% Warehousing Contract 2,974,355 2,147,595 826,760 38.50% Office Expenses 669,403 787,518 (118,115) (15.00%) Tobacco Expenses 232,948 244,855 (11,907) (4.86%) Other Expenses 737,760 675,348 62,412 9.24%
TOTAL EXPENSES $88,882,240 $80,564,213 $8,318,027 10.32%
REVENUE OVER EXPENSES $57,635,871 $52,887,895 $4,747,976 8.98%
FY12 Financial Highlights 12 vs 11
TRANSFERS TO OTHER ENTITIES
General Fund $40,000,000 $38,500,000 $1,500,000 3.90%
Beer Tax 6,190,719 6,723,822 (533,103) (7.93%)
Substance Abuse 7,800,000 7,350,000 450,000 6.12%
Local Authorities 1,677,659 1,643,457 34,202 2.08%
Sub. Abuse for Sunday Sales 851,000 842,000 9,000 1.07%
Tobacco Civil Penalties 17,400 50,100 (32,700) (65.27%)
Alcohol Civil Penalties 79,020 75,000 4,020 5.36%
Economic Development 127,336 100,974 26,362 26.11%
Air Carrier Tax 141 40 101 252.50%
TOTAL TRANSFERS $56,743,275 $55,285,393 $1,457,882 2.64%
Beer and Wine FY10 - 12
Actual Transfers Actual Transfers Actual Transfers Cummulative % Variance BEER TAX FY 2010 To Date FY 2011 To Date FY 2012 To Date Variance YTD
July $ - $ - $ - $ -
August $ 1,439,287 $ 1,439,287 $ 1,368,375 $ 1,368,375 $ 1,315,032 $ 1,315,032 $ (53,343) -3.90%September $ 1,255,877 $ 2,695,163 $ 1,375,665 $ 2,744,040 $ 1,439,834 $ 2,754,866 $ 10,826 0.39%October $ 1,337,416 $ 4,032,580 $ 1,244,301 $ 3,988,341 $ 1,277,282 $ 4,032,148 $ 43,807 1.10%
November $ 1,103,185 $ 5,135,764 $ 1,119,551 $ 5,107,892 $ 1,028,470 $ 5,060,618 $ (47,274) -0.93%December $ 1,071,928 $ 6,207,692 $ 1,615,930 $ 6,723,822 $ 1,130,100 $ 6,190,719 $ (533,104) -7.93%January $ 1,319,837 $ 7,527,529 $ 747,125 $ 7,470,947 $ - February $ 897,393 $ 8,424,922 $ 773,734 $ 8,244,681 $ - March $ 954,969 $ 9,379,892 $ 980,739 $ 9,225,420 $ - April $ 1,135,405 $ 10,515,296 $ 1,115,027 $ 10,340,448 $ - May $ 1,207,876 $ 11,723,172 $ 1,155,186 $ 11,495,633 $ - June $ 1,259,256 $ 12,982,428 $ 1,338,949 $ 12,834,583 $ - +60 $ 1,493,972 $ 14,476,400 $ 1,437,540 $ 14,272,122 $ -
Beer Total $ 14,476,400 $ 14,476,400 $ 14,272,122 $ 14,272,122 $
WINE TAX July $ - $ - $ - $ - August $ 471,122 $ 471,122 $ 502,993 $ 502,993 $ 473,381 $ 473,381 $ (29,612) -5.89%September $ 556,176 $ 1,027,298 $ 495,443 $ 998,436 $ 545,247 $ 1,018,628 $ 20,192 2.02%October $ 445,578 $ 1,472,877 $ 452,090 $ 1,450,526 $ 469,644 $ 1,488,273 $ 37,747 2.60%November $ 842,526 $ 2,315,403 $ 848,261 $ 2,298,787 $ 888,332 $ 2,376,605 $ 77,818 3.39%December $ 556,255 $ 2,871,658 $ 149,595 $ 2,448,381 $ 667,207 $ 3,043,811 $ 595,430 24.32%January $ 672,890 $ 3,544,548 $ 1,220,585 $ 3,668,966 $ - February $ 377,485 $ 3,922,033 $ 423,033 $ 4,091,999 $ - March $ 471,220 $ 4,393,253 $ 556,705 $ 4,648,704 $ - April $ 532,073 $ 4,925,327 $ 435,715 $ 5,084,419 $ - May $ 527,348 $ 5,452,674 $ 566,474 $ 5,650,893 $ - June $ 480,977 $ 5,933,651 $ 567,612 $ 6,218,505 $ - +60 $ 516,659 $ 6,450,310 $ 584,505 $ 6,803,010 $ -
Wine Total $ 6,450,310 $ 6,450,310 $ 6,803,010 $ 6,803,010 $
Total TAX $ 20,926,710 $ 21,075,133 $ $ 62,326 0.68%
1. Comprehensive review to maximize revenues through the efficient delivery of services
2. Re-structuring of ABD for efficiency and greater return on investment
3. Cultivate relationships and build partnerships
4. Increase compliance and regulatory clarity
5. Educational and outreach programs
Strategic Initiatives
1. Comprehensive review of how ABD delivers ALL services
2. In depth analysis of traditional and nontraditional distribution models
3. Focus on education, compliance and prevention
Strategic Initiatives
Alcohol Compliance Section - Statistics
Investigations January 2012 Fiscal Year-to-DateNumber of Complaints Received 31 115Number of Investigations Completed 29 96Number of Founded Investigations 12 56Number of Unfounded Investigations 17 40Number of Pending Investigations 19
Routine Compliance ChecksChecks Completed 12 213Number Compliant 9 148Number Non-Compliant 3 65
Action TakenEducational Letter 9 93Warning - Verbal 2 7Phone Call - Educational 1 1Sent to AG for Review: 3 18 7 of the 15 settled 2 of 15 dismissed 6 of 15 pending Waivers Granted (3 restroom; 1 Wine Ports) 0 4Ownership Updated 0 2
Law Enforcement Training by Investigators 5 35
Alcohol Compliance Section - Statistics
Top 3 Violations
1. No records on licensed premises
2. Illegal Credit
3. Advertising brands outside of premises
Online Training Program
I-PACT.com
IowaABD.com
Legislative Update
Agency Pre-Filed Bill
SSB 3101
Legislative Update
SF 2089
Infusion / Rectifying / Manufacturing on a licensed retail premises
NABCA Resources
www.NABCA.org
QUESTIONS?
ABD Contact Information
Doug Webb, Deputy Director of Administration (515) 281-7444 • [email protected]
Stephanie Strauss, Government Relations(515) 281-7432 • [email protected]
Tonya Dusold, Communications Director(515) 281-7420 • [email protected]
Karen Freund, Deputy Director of Regulatory Affairs(515) 281-7414 • [email protected]
IowaABD.com
THANK YOU!