American Beverage Licensees
Independent Retailers
Current
• Members in 33 states; ~15,000 licensees
• On-premise (bars, taverns, restaurants); Off-premise (package
stores)
• Independent business people; Often multi-generational & familyowned; Active in communities
Fun Facts
• Bev. licensees check more IDs than most law enforcement officers
• 703 ABL members have a physical address of “Main Street”
• Beverage retailers sell an astonishing ~68 billion 12-ounce servings
of beer per year.
• No better friend to craft beverages than independent retailers
Independent beverage licensees help form the most diverse and innovative
beverage alcohol marketplace in the world
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Economic Impact of Beverage Retailers
More than 2/3 of U.S. adults enjoy beverage alcohol…
• …which means that America’s independent and local bars, taverns and
package stores play a large role in that enjoyment.
ECONOMIC IMPACT
In the United States, the direct retail sales of the
beverage alcohol industry are responsible for
$762 billion in total economic activity.
WAGES
Businesses selling alcohol in the United States,
along with their supplier and ancillary
industries, pay $281 billion in wages and
benefits each year. This amounts to an average
of $34,000 in wages and benefits.
JOBS
Establishments that sell alcohol employ as
many as 5.65 million people in the United
States, and generate an additional 2.61 million
jobs in supplier and ancillary industries.
TAXES
In the United States, the industry and its
employees pay over $43 billion in state taxes,
and an additional $64 billion in federal taxes.
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Growth of Craft Beverages
Impact on Traditional Retail Licenses
Benefits
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Category excitement (Who could have told me what a Gose was 10 years ago? 5 years ago?)
Strong margins
Local relationships, local movements
Consumer interest
More SKUs, brands and mainstream styles than ever before
Beer, wine and spirits remain affordable luxuries for American consumers
Challenges
Saturation; Limited cooler space/tap handles
Not all craft is created equal; “Craft” ≠ “Quality”
Brand Education; Availability; Customer expectations
New market entrants whose business models’ success seemingly relies on changing
regulatory/licensing systems
• Suppliers increasingly want to be vendors…and direct competitors
• Potential return to vertical integration and tied-houses
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Framing the Debate
What should the beverage alcohol marketplace look like?
Cognitive Dissonance
• Access is good and/but licensing structures exist for a reason
• Innovation is good and/but Three-Tier exists for a reason
Regulation
• Sensible market regulation where alcohol is celebrated & respected – not demonized – is not antithetical
to growth, social responsibility and consumer satisfaction….it may even be one of the reasons for it!
Who should be able to sell alcohol?
Over 21? Over 18? Corporations? Producers? Wholesalers?
When should alcohol be sold?
Sundays? 24 hours a day? Holidays?
Where should alcohol be sold?
Gas Stations? Coffee shops? Barbershops? Food trucks?
How should alcohol be sold?
Online? In what containers? At what price? At what temp?
How should we address this?
In legislatures? In court? At the ballot box? Locally?
What does this mean for licensees?
Can the rules change in the middle of the game? (A. YES)
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Challenges for Local Authorities
How best to regulate beverage products?
Things to consider
• Tax breaks/corporate welfare: What is the ROI for states and
communities when they provide breaks to beverage businesses?
• Most authorities recognize existing permittees and their reliance
interests
• Unintended consequences…what is around the corner? (HINT: big
suppliers)
• Question: Would most cities/towns be OKAY with 20 new bar/tavern
licenses ?
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For your consideration…
Some modest observations
• Solve problems in the marketplace before making them a policy issue.
• Embrace evolution, but understand that with a flat (on volume) beverage
alcohol market there is a zero sum game when it comes to jobs.
• Consumer convenience is important – as is fair competition– but should not
trump responsibility and public safety.
• Let’s not forget what got us to this golden age of beverage alcohol. (HINT: It
wasn’t a European, vertically integrated model.)
• WE’RE IN THIS TOGETHER: At the end of the day, we all do better when we
all do better. (Sorry to be tautological.)
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Questions & Discussion
John Bodnovich | Executive Director | American Beverage Licensees
[email protected] | www.ablusa.org | @ablusa
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