Stateways

StateWays - May/June 2017

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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StateWays | www.stateways.com | May/June 2017 48 market are seem- ingly introduced daily. Imagine a future where we might see 20% of the industry's spirit business conducted online, with a con- sumer that may never even visit a traditional spirits retailer. The stakes are high for all of us to recognize these issues and capitalize on the opportunities they may provide. The challenge to adapt to change is important and neces- sary for all levels of our business. The NABCA's "Taking Advan- tage of Change" sets an appropriate tone for the 80th Annual Conference. Together, NABCA members and suppliers must consider the changing regulatory and consumer landscape, working together to establish legal and equitable pathways to meet or exceed consumers' desires. "Taking Advantage of Change" has long been a key operat- ing philosophy for the NABCA. This philosophy has created the opportunity to initiate change with the modernization of their systems. There are a number of demands facing our in- dustry, including National Accounts growth and its effect on the retail environment, and consumers' desire for selection and convenience. With a continued partnership with suppliers, to- gether we can have an open dialogue to address issues, while maintaining responsible distribution in a retail environment that satisfi es our consumers. As one of the leading suppliers to control states, Heaven Hill Brands strongly advocates industry cooperation. Throughout our three generations of family ownership, an active dialogue with control state administrators has been vital to the compa- ny's success. After our own 82-year relationship with member jurisdictions, this partnership remains as important as ever in the equitable distribution of beverage alcohol. Heaven Hill Brands is extremely honored to be a part of the NABCA Advisory Committee. Working with con- trol state leaders to address industry challenges has been a vital part of our success. Heaven Hill Brands greatly val- ues the leadership and vision of NABCA Chair Stephanie O'Brien. Through her commitment to "Taking Advantage of Change," we continue to collectively address and respond to the most pressing issues in the industry, in a responsible and timely manner. Finally, while most change is inevitable, some things should never change. Front and center is the longstanding collabora- tive relationship between spirit suppliers and our control state partners. While we both operate in a dynamic, ever-changing marketplace, we must continue to work as partners in evolving our business to remain relevant while accommodating consum- ers' needs in a responsible manner. GRETCHEN MCDADE, CONSTELLATION BRANDS GENERAL MANAGER, SPRITS & FINE WINE, CONTROL STATES As Constellation Brands continues to grow, we know how important it is to not only take advantage of change, but also embrace it. While our growth strategy is not new, how we are evolving it is. We use our unique position in total beverage alcohol (TBA) to look across all three categories. We in- vest to fuel growth, have a portfolio of high-growth seg- ments and use our TBA position to stay ahead of con- sumer trends. For us, every- thing starts with the consumer; and consumer demographics are in our favor. It's critical to understand the consumer, what they want, where they want to consume and how they want to enjoy their bev- erage of choice. We are doubling down on our efforts to learn even more about our consumers and how we can develop brands that they will love. Years ago, we introduced the Ge- nome study and began to change how the industry looked at wine consumers. Today, we are applying similar thinking across categories. We have seen taste preferences change dramatically over the years. And we've had to make changes to not only keep up, but also stay ahead of consumers. Today, the majority of consumers drink across categories, and category "lines" are blurring across consumer demographics, products and retail- the ADVISORY COMMITTEE WEIGHS IN "As one of the leading suppliers to control states, Heaven Hill Brands strongly advocates industry cooperation." —Steve Feller, Heaven Hill Brands

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