MassPack Continues To Fight Against Bill Expansion

A recent Massachusetts Package Stores Association (“MassPack”) newsletter and message to MPSA Members from Executive Director Robert Mellion provided some great insight into the work that his association did in 2021 and continues to do in 2022 regarding the many circulating bills that could impact alcohol beverage retail as we know it. According to the newsletter, more than 190 bills were introduced during this legislative session that would impact alcoholic beverage retail – 100 of which would directly overtake local retail by replacing them with out-of-state choices for consumers.

Some of the 2021 highlights from MassPack include:

· Cumberland Farms was derailed from filing another ballot question initiative which would allow unlimited food store licenses to sell beer and wine.

· MassPack prevented industry disruptors from using Covid to further modify alcohol beverage regulations, advance online lottery, and allow for direct shipping of distilled spirits.

· MassPack testified at more than 25 hearings on over 180 bills; a third of the bills filed this session expand off-premise licenses or repeal state and municipal quotas.

· MassPack testified against bills by out-of-state chain stores, supermarkets, and big box retailers that dismantled local licensing and state quota systems.

· MassPack is the only alcohol industry participant to testify against five bills increasing excise tax on alcohol.

· Only MassPack challenged six bills that either ban or place a deposit on miniature bottles and testified against “Nip Bans” at more than 20 municipal hearings across Massachusetts.

· Adding alcohol shipments to the U.S. Postal Reform bill was a top priority.

And as the new year begins, MassPack is already testifying against remaining bills that seek to expand licenses, such as:

· An Act that would further regulate certain licenses for the sale of alcoholic beverages, which is very troublesome because this bill increases the number of allowed all-alcohol retail licenses from 9 to 18.

· An Act concerning the sale of wines and malt beverages by food stores would allow marketplace control of the cheap to moderate alcohol beverages marketplace.

Although the number of bills to monitor and consider is considerable, MassPack asks that we “weigh how [these bills] impact the ABCC’s ability to regulate, consequences to the marketplace and whether these bills undercut public health and safety.”

 

For more articles on the liquor industry – check out The Advisor Magazine – Issue 12.

 

 

Pandemic Exhaustion For Liquor Store & Restaurant Owners

It is hard to wrap our heads around the fact that we will soon be heading into year three of the pandemic. It has been nothing short of a rollercoaster: from normalcy feeling at arm’s length away with cases decreasing, to cases rapidly increasing and feeling as though we are right back to square one.

Many Boston restaurants are still operating with the hope that there is an end in sight, and the turbulence is exhausting. With the new vaccine requirement instated for indoor dining in Boston, the endless struggle to ensure safety for customers and employees is now increasingly more worrisome to restaurant owners.

These restaurant owners fear it will affect their already weakened customer base and ultimately, their bottom line.

The WBUR reported, “But while many restaurants are on board with keeping staff and patrons safe, they also told WBUR the mandate puts even more stress on an already-exhausted industry.”

The instability in the industry has many owners wondering, “is it worth it to even be in the industry anymore?” The fear of the unknown has been at an all-time high for the past few years, and to some, it’s an intolerable burden.

If you are feeling hopeless and burnt out, give us a call. We have been in the industry for over two decades and are here to help you navigate your next move and to make your exit as seamless and beneficial to you as possible.

 

For more articles on the liquor industry – check out The Advisor Magazine – Issue 12.

 

 

What Alcohol Is In Store For 2022?

The key to success in 2022 is going to be preparation and awareness. Support of small businesses was a hot topic during the pandemic where people wanted to help businesses stay afloat, but realistically sometimes it’s more convenient to make a purchase from the big guy.

CEO of LLA, Dan Newcomb, discussed in Advisor Issue #10, the trend in 2021 of consolidation is going to continue with the future ballot question, “the bigger stores are going to get bigger, and the small guys are going to be few and far between. There’ll be less smaller liquor stores in Massachusetts in 2023 than there was in 2021”.

Across alcohol retail sales in Massachusetts, a future ballot question proposes the number of liquor licenses to increase from 9 to 18, and it’s going to provoke commotion. With a forecast of consolidation in mind, it’s crucial that existing owners are attentive to what’s going on in the industry.

If you were presented with the opportunity to execute a quick sale today, would you be ready? You’re going to want to be prepared to maximize your return on investment and we can help you create this plan.

It’s no surprise to many that the supply chain issues have had a major impact on the alcoholic beverage industry. We advise liquor stores to formulate a plan to ensure consumer demand is met, by always having their best-selling products in stock. The key takeaway here is that your best-selling products are highly likely to stay favorable, so stock up now in order to meet consumer demand.

 

In the age of conscious consumption, sustainability and being environmentally cautious is not going to disappear anytime soon. Consumer demand for more transparent products has significantly increased in the past few years. Selling and marketing organic alcohol is a simple way to introduce sustainable products into your business plan.

Upcycler’s Lab reported, “Organic Alcohol is produced in a way that promotes the sustainability of our planet. Companies producing organic alcohol aim to minimize their impact on the environment by using alternative energy sources, reducing waste, and recycling”.

Preparation and awareness are the keys to success for operators in 2022.

 

For more articles on the liquor industry – check out The Advisor Magazine – Issue 11.

 

 

What Alcohol Is In Store For 2022?

As we’ve learned over the past few years, COVID-19 created a variety of new trends regarding alcohol consumption. Based on reports from cocktail enthusiasts, we’ve been following the forecast regarding drink trends for 2022, and here’s what we found to be the most noteworthy and our advice on how to stay competitive.

During the pandemic, many people took the time to prioritize self-improvement and wellness. It has been reported that this trend will remain, and non-alcoholic and low alcohol beverages are becoming increasingly popular.

As discussed in our Advisor Issue #6 earlier in the year, younger generations are known to be “conscious alcohol consumers”, with a focus on what ingredients are going into their beverages.

Also noted in this article is the younger generation’s tendency to pay attention to who is creating their beverages of choice.

Celebrity-owned spirit sales are predicted to reduce due to the backlash on being seen as inauthentic products.

Take this declining trend into consideration when stocking up on alcohol, as Millennials and Gen Z are not only progressively observant and mindful, but influential as well.

Prominent flavored drinks are predicted to be in high demand. Wine Enthusiast reported their reasoning as, “In the wake of COVID-19, a virus notorious for attacking senses of taste and smell, drinks with prominent, straightforward flavors may reassure those still recovering or otherwise concerned with changes to their senses.”

It has also been reported that RTD (ready-to-drink) cocktails are anticipated to maintain popularity, so we encourage investing in a supply of RTD cocktails with bold, detectable flavors for 2022.

 

For more articles on the liquor industry – check out The Advisor Magazine – Issue 11.

 

The Liquor License COVID Response Program

Liquor License Advisor is pleased to announce the launch of our Liquor License COVID Response Program for Boston and area restaurants, bars and other on-premise licensed establishments. Over the past 6 months, we have been approached by many owners who were looking for specific advice about their current situation and options.

The was a common theme and questions that kept coming up and the more owners we talked to, the more we knew we had to do something more to support the Boston restaurants who have supported us all of these years.

The program allows a quick assessment by our team of liquor license professionals to help you evaluate what your potential options are and what’s next. For full details on the program, see the info below or reach out to our office at (781)319-9800 any time to schedule a private conversation about your unique situation.

You’ve worked hard and deserve the best possible outcome for you and your business – we’re here for you. Give us a call at (781)319-9800.

 

 

Predictions For 2021 Holiday Liquor Sales In Massachusetts

Last holiday season was unprecedented, as COVID turned many large gatherings into small or virtual ones, and the most wonderful time of the year looked much different for most. People thought it was safe to assume that by the 2021 holiday season life would have returned to normal, and that holiday gatherings and spending would gain momentum.

Enter Delta variant and renewed restrictions in certain areas, and it looks like consumer trends may continue to shift. BevAlc recently released their top predictions for 2021 holiday sales, which highlights the uncertainty surrounding consumer behaviors during the months leading up to the start of 2022. Let’s take a closer look.

Before delving into what people will be consuming this holiday season, it is probably more notable to consider how they will be consuming. Celebrations will be mixed this year, as BevAlc reports that less than half of people surveyed will celebrate like they did in 2019, while a majority’s holidays will resemble those of 2020. Many are hesitant to make big plans in the ever-changing climate that has become pandemic life, and there will likely be a mix of pre-pandemic and pandemic celebrations.

Holidays wouldn’t be the holidays without gifts, and BevAlc believes that many gifts will continue to be purchased online this season. Drizly has reported significant growth in the gift giving sector, with share expanding from just 9% in 2019 to 20% by the end of 2020.

Retailers must pay attention to this significant shift, as it presents a valuable opportunity for them. Liz Paquette, Drizly’s head of consumer insights, comments that, “This is an awesome opportunity to drive valuable sales online”, as retailers can both acquire new customers online who perhaps wouldn’t normally frequent their store, as well as be introduced to new local shoppers.

People will be celebrating in different ways and making a lot of online purchases, but what will the drinks of choice be at these celebrations and for online purchases?

According to BevAlc’s report, tequila and whiskey will enjoy huge popularity, tequila making up 25% of liquor sales on Drizly.

Lander Otegui is the senior vice president of marketing at Proximo Spirits and remarked that “our customers like to enjoy tequila during celebratory moments”, and that “this is especially true during the holidays, a time when many are willing to spend more on premium offerings”.

Also making an appearance at holiday celebrations this year will be the newer-to-the-scene Ready to Drink cocktails. Drizly has reported an 85% increase in RTD sales, as hard seltzer sales decline and “RTDs could potentially be seen as a replacement for consumers for some secondary cocktail ingredients”, according to Paquette. If some are limiting their social interactions, hitting the liquor store or clicking around Drizly for the whole package might be all the rage this holiday season, rather than making multiple trips to multiple stores for cocktail ingredients.

And finally, champagne. “…in the U.S., Champagne is the wine for celebration”, according to Xavier Barlier, who is the senior vice president of marketing & communications at Maisons Marques & Domaines USA. Many felt cheated out of their 2020 holiday season, which is all the more reason to celebrate in 2021, whether at a small, socially distant gathering, a large reunion, or while catching up on Zoom. Champagne is also a great holiday and host gift, so people will be enjoying and gifting the bubbly.

“The more frustrated we get with COVID and Delta, “ comments Barlier, “the more we want to compensate. I think this year we’re going to splurge”.

For more articles on liquor licenses and liquor stores, check out our monthly magazine, The Advisor Magazine – Issue #9.

 

 

Shifting Liquor Store Trends

 

During the recent U.S. COVID-19 “recovery” phase, off-premise alcoholic beverage trends have been shifting.

NielsenIQ’s beverage alcohol expert, Kaleigh Theriault, recently discussed these shifting trends with Joe Tarnowski from ECRM and provided both helpful data and insights. Let’s take a look.

We’ll begin with the most revealing statistic, which is that off-premise sales have been declining since March 2021, which is contrary to the previous few years.

The article states that “Off-premise sales increased 19% in 2020 vs. 2019”, and that “off-premise sales increased 18% YTD vs. 2019 YTD.”

As consumers have recently enjoyed a higher comfort level dining and drinking out, off-premise numbers have declined. However, it will be interesting to see where these numbers go with the Delta Variant of COVID coming into play.

The article also highlights the continuing trend of increasing sales for Ready-to-drink alcoholic beverages and hard seltzers, as both categories have shown an increase since 2020.

Another category showing an influx is non-alcoholic beer, wine, and spirits, which have increased 35% YTD in sales.

Commenting on these trends, Theriault states that: “For the remainder of 2021, we can expect a few key trends to stick.

RTD sales are going to start gaining traction within on premise as consumers view these to be ‘safer’ beverage options.

Firstly, the movement towards ready-to-drink cocktails will continue as sales surpassed summer 2020 sales off-premise, and also expanded into on premise channels.

In addition, RTD sales are going to start gaining traction within on premise as consumers view these to be ‘safer’ beverage options.”

With the Delta variant picking up traction, we may see currently declining e-commerce sales begin to increase again, as consumers may choose to dine and drink in, rather than frequent the restaurants and bars with which they just became reacquainted.

Although online alcohol sales aren’t quite as high as they were during the height of COVID, many people have continued to utilize this service for its convenience and because they can personalize their alcoholic beverage choices.

For example, many shoppers enjoy the ability to type in “low calorie”, “low sugar”, or “gluten-free” to individualize their purchases. Theriault comments on this trend, stating that “…and retailers need to further develop their product descriptions and discoverability in order to cater to the growing segment of health-conscious consumers looking for personalization.”

We live in a more unpredictable world now than ever, and watching consumer trends is essential for off-premise suppliers’ and operators’ survival. We can expect consumers to adapt to the changing climate – and off-premise players must follow suit.

 

For more articles on the liquor industry – check out The Advisor Magazine – Issue 8.

 

Planning Past The Pandemic For The Liquor License Industry

Date With Destiny

It seems as though the scales have officially flipped where business restrictions are fewer and far between, while news of phase progression is becoming constant. The country reopens, history is being made, and a new air of hopefulness is stretched across the nation as we retreat from our long hibernation. And what better to do than head straight to your local bar, restaurant, concert, or sports game, any and all things we’ve held out on for over a year now. And many of which -for some of us- means having a drink and letting loose!

Business and market analysts are honing in to see where this new era takes the trends of e-commerce, delivery, wellness, small businesses, and altered mindsets of their consumers. There is an entirely fresh layer to the new normal and hopefully, this one provides a well-rounded, stimulating boom to the world of commerce & consumerism.

SevenFifty [an online marketplace and communications platform that helps importers, producers, distributors, and retail buyers connect with each other and do business in a modern world] did a recent piece on the transformation of alcohol distribution, how e-commerce is becoming a key player, and how wholesalers are responding. One of the most significant periods of modernization since the three-tier system was created in 1933, the article states.

Us vs Them

This transformative era has made niche businesses a foot into direct-to-consumer as well, providing artisanal, craft brands where they hadn’t originally fit in at wholesalers. Speakeasy Co. is just one example of a modern niche platform that enables producers to customize order pages right on their own website that are then provided by Speakeasy via local retailers. As CEO Josh Jacobs puts it, “‘This provides a seamless front-end experience for consumers while handling the backend for brands,’ explains Jacobs. By managing warehousing, fulfillment, and technology for suppliers, they are freed up to ‘focus on growth by owning the data and building customer relationships.’”

Similar to this case, Spirit Hub, independent distillery-focused e-commerce that allows customers to order and have curbside pick-up at one of many national retailers that CEO Michael Weiss is working with. And for all the vinos, Wine must not be forgotten, as it poses as another niche that Vivino hopped into as a marketplace partnering with wineries directly that then fulfills the consumer’s order through a local retailer.

These companies rave that the ability to get into this business while it is a standout need in the market has given them free reign to do what they’re best at, “finding the producers and marketing and getting out there in the world and building these brands. It allows us to be a more nimble and focused company.” An importer of Elenteny Imports explains. (Elenteny provides distribution services in some states which allow importers and producers to sell directly to accounts; in other states, they provide logistics and freight-forwarding services and work with a licensed distributor.)

On the opposite end of the spectrum, wholesalers are pressured to create more value for their buyers and for their consumers. What used to be free cookies and a slice of cheese at the deli, or the newest product offering a tasting, is now at the tips of consumer’s fingers right from their own home! It’s social media marketing, instant gratification, engagement and stimulation.

The wholesalers still have the leg up when it comes to well-developed quality + quantity of mass distribution, communication, the vitality of sales, and suppliers, all factors critical and essential to the growth and longevity of any business.

On-Demand In High Demand

“These are the resources to really help a smaller brand grow and be successful.” Besides, he [Michael Epstein, COO of the Massachusetts-based Horizon Beverage] adds, wholesalers, need emerging brands: “You never know when a brand is going to pop and become a big brand. You need these developmental brands in your portfolio because it’s a dynamic marketplace.”

Eventually, to survive, any platform is always going to be looking for the next better, faster, and cheaper system to rely on. It seems as though it will soon be a meeting of the minds, as online platforms have the upper hand on the customer-facing side when it comes to marketing, ease of access, and modern innovation. “When a product is promoted on Drizly, Breakthru could quickly see a 150 percent increase in sales at its local retail customers; he predicts that 20 percent of alcohol in the U.S. will soon shift online.” Like many online platforms are partnering with retailers to get the best of both worlds, it will be exciting to see which businesses come together to create a master machine of transformative alcohol supply and distribution.

 

If you enjoyed this article, you’ll love our monthly publication, The Advisor Magazine – click to view more articles like this in The Advisor Magazine – Issue #3.

 

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