Virginia Department of Alcoholic Beverage Control Learning The ABC s Presented by ABC CFO Craig Vanderland & ABC Deputy Secretary to the Board Chris Curtis
Let s start with a Brief History Lesson
Pre-Prohibition (late 1800 s-early 1900 s) Abundance of Saloons
High Consumption and Abusive Drinking Pre-Prohibition (late 1800 s-early 1900 s)
Prohibition: Attempted to Legislate Temperance
Prohibition: Attempted to Legislate Temperance Results Reduced Consumption Increased Crime Increased Corruption Thriving moonshine and bootlegging business
In 1933, the 21st Amendment Repealed Prohibition. Granted the States the right and the authority to control the manufacture, distribution and sale of beverage alcohol. 4 states voted to remain dry 27 resumed the sale of alcoholic beverages through licensed private sellers 17 (currently 18) opted for a new system control.
Virginia ABC is Born In 1934, Virginia adopted a combination monopoly and license system, thus becoming a control state, and the Virginia Department of Alcoholic Beverage Control was born.
Control States in 2013
Virginia ABC Today Our Mission To control the distribution of alcoholic beverages; operate efficient, conveniently located retail outlets; enforce the laws of the Commonwealth pertaining to alcoholic beverages and youth access to tobacco products; and provide excellent customer service, a reliable source of revenue, and effective public safety. Control Service Revenue
Organization Structure
Diverse Set of Stakeholders Lessors Suppliers Prevention Groups General Public Other Government Agencies Colleges Schools Media ABC Law Enforcement General Assembly Licensees Trade Associations Store Customers
Facilities ABC Central Office Located in Richmond, VA Approximately 385,000 square feet Administrative Offices Central Warehouse Richmond Regional Office Approximately 350 employees and 30 visitors on a daily basis 8 Regional Offices statewide 339 retail ABC stores statewide 18 stores reside in owned properties Average ABC Store is 3,200 square feet in size Includes retail area and stock room
Mission-Critical Service Areas Licensing Regulation Law Enforcement Adjudication Warehouse Stores Operations Central Office Support Services
Core Services Licensing and Law Enforcement Licensee Compliance with ABC laws and regulations Underage Liquor Consumption Laws Underage Tobacco Purchase Laws Compliance with other state laws (e.g. narcotics, financial fraud, etc.) Illegal Manufacture and Distribution Moonshine, Bootlegging and Nip Joints Investigate and Process License Applications Over 18,000 one-day and almost 2,000 retail/wholesale license applications processed in 2011.
Core Services Wholesale & Retail Division Retail Operations 339 retail stores Distilled spirits 98.9% of sales Virginia Wine, Mixers and Vermouth remaining 1.1%. Products & Distribution ABC ships over 3.85M cases annually. Over 2,700 items on price list. Average store stocks over 1,000 items. Top 200 items represent over 50% of retail and 70% of restaurant sales. Sales to restaurants are about 20% of annual sales.
Central Administration & Support Functions Financial Management Services Procurement & Support Services Information Technology Services Board Administration Human Resources Property Management Services Internal Audit Policy, Planning and Analysis Public Affairs
Education and Judicial Activities Education Responsibilities Conferences Alcohol and Aging Annual College Tour Annual Youth Alcohol and Drug Abuse Prevention Project (YADAPP) Licensee Training Distribution of Publications Administrative Case Processing Objections for license applications, disciplinary proceedings, and franchise cases. ABC collects up to $1.5M in fines and penalties each year
Leadership and Management Program (LAMP) Senior level management has chosen the proactive path of preparedness Identify senior level management talents within the agency Focus on the reality of predicted institutional knowledge reduction and losses agency-wide due to retirements in the next 5 to 10 years Consider succession planning tactics to posture the agency for future management preparedness What is LAMP? A structured curriculum and blended adult learning experience focusing on developing potential future managers within the agency in key aspects of business and management performance while enhancing the emergence of individuals leadership and decision-making skills. An internal leadership and management training program to develop rising stars from within ABC s existing workforce. Capitalizes on further developing existing internal talents and institutional knowledge in preparation for future management and leadership of ABC.
LAMP Core Curriculum Leadership 40% Partnership Management 30% Partnership Operational Environment 30% Partnership Mentorship On-going Concurrent Community of Practice Blog: SharePoint; Assigned articles Blog takeaways/ insights pertaining to upcoming modules Interactive Attributes Leader Workshops: Premise for Learning- Book Resource Roundtable Review Reflection/ Activity (Using Real ABC Scenarios) Part I: Interview an Exec Leader outside of the agency (ABC) Part II: Project- Partner w/ A Leader on a project (as a group or individual) Orientation: Assessments 360 Feedback Leadership MBTI Graduation: 5 Slide Presentation Interview with a Leader Part I
Fiscal Year 2012 $734M in retail sales About $123M profit $360M total contribution to the Commonwealth & Localities
Virginia Department of Alcoholic Beverage Control Questions?