C OMMONWEALTH P REVENTION A LLIANCE Alcohol Outlets in the US: Landscape and trends Alcohol Outlets in the US: Landscape and trends Presented by Steve.

COMMONWEALTH PREVENTION COMMONWEALTH PREVENTION ALLIANCEALLIANCEAlcohol Outlets in the US: Alcohol Outlets in the US: Landscape and trendsLandscape and trendsAlcohol Outlets in the US: Alcohol Outlets in the US: Landscape and trendsLandscape and trendsPresented by Steve Schmidt, NABCA Sr. VP. Policy/CommunicationsJune 13, 2014

Founded in 1938, NABCA is the Founded in 1938, NABCA is the national association national association

representing the Control State representing the Control State Systems – those jurisdictions Systems – those jurisdictions

that directly control the that directly control the distribution and sale of beverage distribution and sale of beverage

alcohol within their borders – alcohol within their borders – such as Pennsylvaniasuch as Pennsylvania

ABOUT NABCAABOUT NABCA

““THE BIG TENT”THE BIG TENT”Government Officials / EnforcementGovernment Officials / Enforcement

Public Health / All Sectors & Tiers of Alcohol IndustryPublic Health / All Sectors & Tiers of Alcohol Industry

Others Interested in Alcohol Issues / InternationalOthers Interested in Alcohol Issues / International

WHO IS NABCA?WHO IS NABCA?MembershipMembership

WHAT WE ARE NOT…WHAT WE ARE NOT…

We are We are NOT a a beverage beverage

alcohol industry alcohol industry organizationorganization

We are We are NOT a a beverage beverage

alcohol industry alcohol industry organizationorganization

We are We are NOTNOT an an advocacy or advocacy or

lobbying lobbying organizationorganization

We are We are NOTNOT an an advocacy or advocacy or

lobbying lobbying organizationorganization&&&&

CONTROL STATE SYSTEMSCONTROL STATE SYSTEMS Alaska

Alabama

Idaho

Iowa

Maine

MD, Montgomery Co.

MD, Worcester Co.

Michigan

Minnesota

Mississippi

Montana

New Hampshire

North Carolina

Ohio

Oregon

Pennsylvania

South Dakota

Utah

Vermont

Virginia

West Virginia

Wyoming

Alaska

Alabama

Idaho

Iowa

Maine

MD, Montgomery Co.

MD, Worcester Co.

Michigan

Minnesota

Mississippi

Montana

New Hampshire

North Carolina

Ohio

Oregon

Pennsylvania

South Dakota

Utah

Vermont

Virginia

West Virginia

Wyoming

How history has influenced How history has influenced limits and controls on alcohol limits and controls on alcohol

today…today…

PRE-PROHIBITION ABUSESPRE-PROHIBITION ABUSES

• Saloons as havens for Saloons as havens for crime and debaucherycrime and debauchery

• Tied-house saloonsTied-house saloons

• Unfettered AccessUnfettered Access

• Inefficient tax Inefficient tax collectioncollection

• Saloons as havens for Saloons as havens for crime and debaucherycrime and debauchery

• Tied-house saloonsTied-house saloons

• Unfettered AccessUnfettered Access

• Inefficient tax Inefficient tax collectioncollection

Repeal of Prohibition, 1933

THE 21THE 21STST AMENDMENT AMENDMENT

““TOWARD LIQUOR TOWARD LIQUOR CONTROL”CONTROL”

Commissioned by Commissioned by John D. Rockefeller IVJohn D. Rockefeller IV

Commissioned by Commissioned by John D. Rockefeller IVJohn D. Rockefeller IV

Overwhelming public Overwhelming public support needed for support needed for

prohibitionprohibition

Overwhelming public Overwhelming public support needed for support needed for

prohibitionprohibition

Light wines and beer are notLight wines and beer are nota serious problema serious problem

Light wines and beer are notLight wines and beer are nota serious problema serious problem

““TOWARD LIQUOR CONTROL” , TOWARD LIQUOR CONTROL” , CONT.CONT.

• Recommend eliminating the profit motiveRecommend eliminating the profit motive• Recommend eliminating the profit motiveRecommend eliminating the profit motive

• States should States should control “heavier” control “heavier” alcohol productsalcohol products

• States should States should control “heavier” control “heavier” alcohol productsalcohol products

• Taxation critical with Taxation critical with social control as the social control as the most important most important motivemotive

• Taxation critical with Taxation critical with social control as the social control as the most important most important motivemotive

• Education of public on appropriate use of Education of public on appropriate use of alcohol criticalalcohol critical

• Education of public on appropriate use of Education of public on appropriate use of alcohol criticalalcohol critical

Liquor Stores

Liquor and Drug Stores

Liquor, Drug & Grocery Stores

Liquor, Drug, Grocery & Gas Stations Other

RETAIL CHANNELS – SPIRITSRETAIL CHANNELS – SPIRITS

Liquor Stores

Liquor and Drug Stores

Liquor, Drug & Grocery Stores

Liquor, Drug, Grocery & Gas Stations Other

DRETAIL CHANNELS – WINEDRETAIL CHANNELS – WINE

Liquor Stores

Liquor and Drug Stores

Liquor, Drug & Grocery Stores

Liquor, Drug, Grocery & Gas Stations Other

RETAIL CHANNELS – BEERRETAIL CHANNELS – BEER

GROCERY GROCERY STORE STORE SALES FOR SALES FOR 20142014

WHY DEREGULATION? (What WHY DEREGULATION? (What ultimately leads to increased ultimately leads to increased

outlets)outlets)

• Retailers – Big Box, Chain and Grocers

• Retailers – Big Box, Chain and Grocers

• Fiscal Distress - State and Local• Fiscal Distress - State and Local

• Consumer Focus and Perceptions• Consumer Focus and Perceptions

• Dissatisfaction with Government• Dissatisfaction with Government

• Ideology• Ideology

• Alcohol Abuse Apathy• Alcohol Abuse Apathy

BIG BOX, CHAIN & GROCERSBIG BOX, CHAIN & GROCERS

FISCAL DISTRESSFISCAL DISTRESS

CONSUMER FOCUS AND CONSUMER FOCUS AND PERCEPTIONSPERCEPTIONS

CONSUMER FOCUS AND CONSUMER FOCUS AND PERCEPTIONSPERCEPTIONS

DISSASTISFACTION WITH DISSASTISFACTION WITH GOVERNMENTGOVERNMENT

Anti-Government SentimentAnti-Government Sentiment

IDEOLOGYIDEOLOGY

ALCOHOL ABUSE APATHYALCOHOL ABUSE APATHY

ALCOHOL ABUSE APATHYALCOHOL ABUSE APATHY

NEWSPAPER HEADLINESAlcohol’s role in traffic deaths vastly underrreported: Study

Binge Drinking in US Seniors ‘Cause for Alarm’

How has or How has or might this might this happen in happen in

PA?PA?

How has or How has or might this might this happen in happen in

PA?PA?

Do the Do the number number

and types and types of outlets of outlets matter?matter?

Do the Do the number number

and types and types of outlets of outlets matter?matter?

A Case A Case Study: Study:

Washington Washington StateState

A Case A Case Study: Study:

Washington Washington StateState

THE WASHINGTON STATE THE WASHINGTON STATE EXPERIENCEEXPERIENCE

NEWSPAPER

Voters kick state out of liquor business

WHAT HAPPENED IN WHAT HAPPENED IN WASHINGTONWASHINGTON

Initiative funded primarily by Costco – 22M in 2011, Initiative funded primarily by Costco – 22M in 2011, 10M in 201010M in 2010

Had failed in courts and legislature previouslyHad failed in courts and legislature previously

First initiatives in 2010 failedFirst initiatives in 2010 failed

2011 – Initiative 1183 passes with nearly 57% of 2011 – Initiative 1183 passes with nearly 57% of

the votethe vote

Full implementation as of June 1, 2012Full implementation as of June 1, 2012

First control state to become entirely privatizedFirst control state to become entirely privatized

More importantly – the most sweeping deregulation More importantly – the most sweeping deregulation of a state’s alcohol laws since prohibition.of a state’s alcohol laws since prohibition.

Inform continued Inform continued policymaking in policymaking in

WashingtonWashington

Inform continued Inform continued policymaking in policymaking in

WashingtonWashington

Multiple other states Multiple other states currently debating currently debating

similar changes similar changes (includng Oregon)(includng Oregon)

Multiple other states Multiple other states currently debating currently debating

similar changes similar changes (includng Oregon)(includng Oregon)

RESEARCH IS TAKING PLACERESEARCH IS TAKING PLACE

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JULIA DILLEY Ph.D MES, SENIOR RESEARCH SCIENTISTJULIA DILLEY Ph.D MES, SENIOR RESEARCH SCIENTISTProgram Design & Evaluation Services

Multnomah County/Oregon Health Authority

FUNDED BY THE ROBERT WOOD JOHNSON FOUNDATION

JULIA DILLEY Ph.D MES, SENIOR RESEARCH SCIENTISTJULIA DILLEY Ph.D MES, SENIOR RESEARCH SCIENTISTProgram Design & Evaluation Services

Multnomah County/Oregon Health Authority

FUNDED BY THE ROBERT WOOD JOHNSON FOUNDATION

Applying rigorous research methods to understand the impacts

Applying rigorous research methods to understand the impacts

Additional research funded by NIAAAAdditional research funded by NIAAA

ALCOHOL DISTRIBUTION ALCOHOL DISTRIBUTION SYSTEMSYSTEM

More places and times to buy liquorMore places and times to buy liquorMore places and times to buy liquorMore places and times to buy liquor

Pre-1183 State systemPre-1183 State system• 328 stores, with 73 328 stores, with 73

maximum hours per weekmaximum hours per week

Pre-1183 State systemPre-1183 State system• 328 stores, with 73 328 stores, with 73

maximum hours per weekmaximum hours per week

Post-1183 Private SystemPost-1183 Private System• 1,415 stores, with 140 1,415 stores, with 140

maximum hours per week maximum hours per week

• 269 former state/contract 269 former state/contract stores still have active stores still have active licenses licenses (18% no longer licensed)(18% no longer licensed)

Post-1183 Private SystemPost-1183 Private System• 1,415 stores, with 140 1,415 stores, with 140

maximum hours per week maximum hours per week

• 269 former state/contract 269 former state/contract stores still have active stores still have active licenses licenses (18% no longer licensed)(18% no longer licensed)

Similar resources for enforcement at LCBSimilar resources for enforcement at LCB•Similar compliance check violation rate 90% + compliance Similar compliance check violation rate 90% + compliance for spirits purchase attemptsfor spirits purchase attempts

Similar resources for enforcement at LCBSimilar resources for enforcement at LCB•Similar compliance check violation rate 90% + compliance Similar compliance check violation rate 90% + compliance for spirits purchase attemptsfor spirits purchase attempts

Fewer 8Fewer 8thth graders, and graders, and

1010thth/12/12thth grade grade girls, girls,

personally personally believe use is believe use is “very wrong”“very wrong”

Fewer 8Fewer 8thth, 10, 10thth and 12and 12thth

graders (both graders (both genders) genders)

believe their believe their parents think parents think alcohol use is alcohol use is “very wrong” “very wrong”

for themfor them

Fewer 8Fewer 8thth, 10, 10thth and 12and 12thth

graders (both graders (both genders) genders)

believe their believe their peers think peers think

alcohol use is alcohol use is “very wrong”“very wrong”

Data source: established statewide Healthy Youth SurveyData source: established statewide Healthy Youth Survey

YOUTH ATTITUDES & YOUTH ATTITUDES & BELIEFSBELIEFS

Significant increases in pro-alcohol attitudes in among Significant increases in pro-alcohol attitudes in among youthyouth

Significant increases in pro-alcohol attitudes in among Significant increases in pro-alcohol attitudes in among youthyouth

Data source: established statewide Healthy Youth SurveyData source: established statewide Healthy Youth Survey

YOUTH ATTITUDES & YOUTH ATTITUDES & BELIEFSBELIEFS

EMERGENCY DEPARTMENT VISITSEMERGENCY DEPARTMENT VISITS

Data source: King County (all residents) and Medicaid (minors) to examine trends in Emergency Department (ED) visits pre- and post-law

(June 12)

Significant increases in ED visits for Significant increases in ED visits for alcohol-related conditions post-alcohol-related conditions post-privatizationprivatization

• Minors (teens and young adults <21)Minors (teens and young adults <21)• Men and women ages 40+Men and women ages 40+

Significant increases in ED visits for Significant increases in ED visits for alcohol-related conditions post-alcohol-related conditions post-privatizationprivatization

• Minors (teens and young adults <21)Minors (teens and young adults <21)• Men and women ages 40+Men and women ages 40+

Increases in frequency of drinking for older Increases in frequency of drinking for older boysboys

•Significant increases in ED visits for alcohol-Significant increases in ED visits for alcohol-related conditions post-privatizationrelated conditions post-privatization

Increases in frequency of drinking for older Increases in frequency of drinking for older boysboys

•Significant increases in ED visits for alcohol-Significant increases in ED visits for alcohol-related conditions post-privatizationrelated conditions post-privatization

ALCOHOL THEFTSALCOHOL THEFTS

33

MEDIA MEDIA STORY STORY

ANALYSISANALYSIS

• Themes: Dramatic increase from Themes: Dramatic increase from low theft rate pre-1183; “it’s low theft rate pre-1183; “it’s easy to steal”; organized thefts easy to steal”; organized thefts for resale; some danger for store for resale; some danger for store staff; teens stealing for staff; teens stealing for distributiondistribution

• Nearly $250,000 in specific Nearly $250,000 in specific thefts reported through thefts reported through September 2013 (most news September 2013 (most news stories did not report amounts)stories did not report amounts)

• Themes: Dramatic increase from Themes: Dramatic increase from low theft rate pre-1183; “it’s low theft rate pre-1183; “it’s easy to steal”; organized thefts easy to steal”; organized thefts for resale; some danger for store for resale; some danger for store staff; teens stealing for staff; teens stealing for distributiondistribution

• Nearly $250,000 in specific Nearly $250,000 in specific thefts reported through thefts reported through September 2013 (most news September 2013 (most news stories did not report amounts)stories did not report amounts)POLICE POLICE

REPORTREPORTSS

• Dramatic increases in alcohol Dramatic increases in alcohol thefts reported by multiple depts thefts reported by multiple depts (e.g. from 5 in 7.5 years to 83 in (e.g. from 5 in 7.5 years to 83 in 10 months), many by juveniles10 months), many by juveniles

• Dramatic increases in alcohol Dramatic increases in alcohol thefts reported by multiple depts thefts reported by multiple depts (e.g. from 5 in 7.5 years to 83 in (e.g. from 5 in 7.5 years to 83 in 10 months), many by juveniles10 months), many by juveniles

WHAT TO WATCH FORWHAT TO WATCH FOR

• LanguageLanguage• LanguageLanguage

• Opinion EditorialsOpinion Editorials• Opinion EditorialsOpinion Editorials

• LitigationLitigation• LitigationLitigation

• Initiative/Referendum/LegislationInitiative/Referendum/Legislation• Initiative/Referendum/LegislationInitiative/Referendum/Legislation

• Opportunities to criticize the Opportunities to criticize the system – system – scandals, ethics, scandals, ethics, revenue shortfalls, customer revenue shortfalls, customer dissatisfactiondissatisfaction

• Opportunities to criticize the Opportunities to criticize the system – system – scandals, ethics, scandals, ethics, revenue shortfalls, customer revenue shortfalls, customer dissatisfactiondissatisfaction

WHAT NEEDS TO BE WHAT NEEDS TO BE DONEDONE

Keep alcohol Keep alcohol concern and concern and

harm in harm in public eyepublic eye

Know the Know the science and science and data – reach data – reach

out to the out to the expertsexperts

Learn about Learn about your your

regulatory regulatory system and system and the playersthe players

Interact with Interact with the the

regulatory regulatory agencyagency

Support Support alcohol law alcohol law

enforcementenforcement

Know other Know other organization organization positions and positions and

when they when they may be alliesmay be allies

Be a savvy and Be a savvy and engaged media engaged media

consumer – consumer – know the know the

authors, their authors, their motivations, motivations, and respond and respond

when when appropriateappropriate

Legislative interaction

when possible – especially

local

THANK YOU.THANK YOU.Steve Schmidt, Sr. VP Steve Schmidt, Sr. VP

Policy/CommunicationsPolicy/Communications

[email protected]@nabca.org

703-578-4200703-578-4200