Volume 72, Issue 3 - Malt Beverage Distributors Association of

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M a l t B e v e r a g e D is tr i b u t o rs A s s oc ia t ion o f
P e n ns y l v a n ia , I n c .
Volume 72, Issue 3
July, 2008
M B DA N E W S L E T T E R
MBDA MEMBERSHIP—
“STRENGTH, SERVICE, VALUE”
INSIDE THIS ISSUE:
SUPREME COURT
WEGMANS HEARINGS
1
1
MBDA WEB SITE
1
2
MBDA’S HISTORY
MEMBERSHIP HIGH
INDUSTRY’S VOICE
DUES FORMULA
YOUR FUTURE
JOIN MBDA
SUPERMARKET CAFES
MBDA SUPPORTERS
2
2
2
2
2
2
2
SURVEYS
POLLS
3
3
LICENSE DENIAL
3
3
DAY ON THE HILL
HB 1637 & 1886
TALKING POINTS
WHAT TO DO
PACKAGE REFORM
PUBLIC RELATIONS
LEGAL FUND
FUND CONTRIBUTORS
MEMBER PROGRAMS
2008 CONVENTION
SUPPORTERS
MARK CALENDAR
DISPAC
DISPAC CHAIRMAN
SALES TO MINORS
RAMP
LET MBDA HELP
INSURANCE RETURN
DISTRIBUTORS IMPACT
MBDA OFFICERS
MBDA DIRECTORS
4
4, 5
5
6
6
6
7
8, 9
10
11
11
11
11
11
11
12
12
12
13
13
VACANCIES
ASSOCIATE MEMBERS
13
14
YEAR IN REVIEW
15
16
REMINDERS
ORAL ARGUMENT BEFORE
PA SUPREME COURT
On May 14 th, the Pennsylvania Supreme Court heard oral argument in the Sheetz litigation. The PLCB and Sheetz had appealed the Commonwealth Court order issued in February, 2007 which denied Sheetz the "E" (eating-place retail dispenser) license it wanted to
sell beer at its Altoona location. Commonwealth Court recognized that "...a potential consequence of the PLCB's interpretation [of the Liquor Code] is a significant transformation
of the character of outlets for the sale of malt or brewed beverages, to include grocery
stores, convenience stores and other commercial establishments with some small area for
eating." Some Supreme Court justices, via their questions at oral argument, suggested that
they too may view the issue of convenience stores, gas stations, and grocery stores selling
beer as one which should be addressed by the legislature, not by an administrative agency
such as the PLCB. MBDA has consistently taken the position that the legislature never
intended to allow these outlets to sell beer, in bulk, for take-out, using "E" and
"R" (restaurant liquor) licenses and for the PLCB to allow them to do so is a misinterpretation of the Liquor Code. The Supreme Court has no specific time in which it must render
an opinion but we remain cautiously optimistic that one will be issued before the end of
the year. MBDA dues-paying members and distributors who contribute to our Legal Defense Fund will be kept updated.
WEGMANS HEARINGS
So far, Wegmans has filed restaurant liquor license applications for 10 of their 12 Pennsylvania stores—Bethlehem, Downingtown, two in Erie, Mechanicsburg, Nazareth, Scranton, State College, Wilkes-Barre, and Williamsport. MBDA filed protests to each application. In November 2007, hearings were heard for the Bethlehem, Nazareth, Scranton,
State College, Wilkes-Barre and Williamsport locations. MBDA members Lee Goldstein,
Chuck Greenstreet, Barbara Lynch, Paul Pletcher, Carl Schultz, David Shipula, Mark
Tanczos and Jessica Wheeland gave excellent testimonies on the negative impact that beer
sales by supermarkets would have. The hearing examiner ruled that Wegmans is entitled
to the licenses, and the PLCB issued Orders allowing the license transfers. MBDA expected this outcome since for the PLCB to reach any other conclusion would be equal to
the Board admitting it had erred in allowing the Sheetz license to be granted. MBDA filed
an appeal of the Board’s Orders and Motions to Stay (stop) Beer Sales with Commonwealth Court. Hearings are still to be scheduled for the Downingtown, Mechanicsburg
and Erie locations. MBDA dues-paying members and distributors who contribute to our
Legal Defense Fund will be kept updated.
LATEST INDUSTRY NEWS
Go to MBDA’s web site—www.mbdapa.org.
Mary Lou Hogan
Executive Secretary
Executive Offices
230 South Broad Street, Suite 903
Philadelphia, PA 19102
Phone: 215-732-6258 Fax: 215-732-6023
E-Mail: mbdassn@aol.com
Web: mbdapa.org
Stephanie Eckert
Staff Secretary
BRIEF HISTORY
OF MBDA
Chartered in 1936, the Malt Beverage Distributors Association is proudly celebrating its seventy-second year of continuous and successful service to the beer distributors of
Pennsylvania. MBDA’s commitment to guard our distributors’ rights, confront the opposition, sponsor bills beneficial
to you, defeat harmful legislation and insure your survival
remains as strong today as it did seventy-two years ago.
Your Association is proud of its prestigious record and
achievements. Our success rate in having MBDA sponsored bills become law, defeating dangerous legislation,
and defending your rights in court is impressive.
MBDA MEMBERSHIP—
AN INVESTMENT IN YOUR FUTURE
Were it not for MBDA, most likely beer distributors would
be out of business! Supermarkets and convenience stores/
gas stations would have launched an all-out attack to obtain
a grocery store license and would not be trying to sell alcoholic beverages under the pretense of eating-place and restaurant licenses. They want you out of business so that they
can sell your products right next to their other consumer
goods.
MBDA membership is the best and most reasonable insurance you can buy for your money. You get maximum service and protection at an incredible rate!
MBDA MEMBERSHIP—
AN ALL-TIME HIGH
The number of members has risen significantly. For the
membership year ended June 30, 2008 MBDA had 471
members, more than at any time since its founding! Distributors join because they recognize the need for a statewide trade association to lobby and educate legislators
about their concerns as well as to use their collective
strength to obtain discounted program benefits. Members
are guaranteed the lowest possible fee schedule to process
credit and debit cards through PNC Merchant Services, and
each member enrolled in our business insurance program
with Penn National received a dividend check representing
4% of their paid premium on all lines except umbrella. This
was the third consecutive year that our members saw a return.
JOIN MBDA
Join MBDA for the current membership year, July 1, 2008
to June 30, 2009, by returning the enclosed invoice with
your check. “D” distributor dues are based on annual gross
sales and range from $400.00 to $550.00. “ID” distributor
dues are $550.00. The major portion of your dues is tax
deductible and is noted on your invoice.
We thank our dues-paying members for helping to build a
better and stronger industry. Your confidence, support and
commitment have brought MBDA to where it is today—a
forceful voice representing the concerns of all Pennsylvania beer distributors, an Association that has the influence to get its message across, an Association that is recognized throughout Pennsylvania as the leader of the beer
distributing industry. MBDA’s Executive Office is your
primary source for information, and members should continue to look to us for support, guidance and service.
MBDA—
YOUR INDUSTRY’S VOICE
MBDA is attacking the issue of beer in supermarkets and
convenience stores in the courts and in the legislature. Commonwealth Court reversed the PLCB’s approval of Sheetz’
license in its Altoona store, and we are hopeful that the Supreme Court will also decide this issue in our favor. We
retained Triad Strategies as our public relations firm to assist
us in raising public and our lawmakers’ awareness to the
dangers of supermarkets and convenience stores/gas stations
selling alcohol. Your Association was successful in having
House Bill 1637 and House Bill 1886 introduced to stop
them from using “R” and “E” licenses to sell beer, and we
will continue to lobby for passage when the legislature returns to session in September. MBDA is opposed to a proposal that is being promoted as “package reform”, but is
clearly a bill to benefit supermarkets. Detailed information
is contained in this newsletter, and we ask that you
please read it carefully.
The future of Pennsylvania’s beer distribution system
depends on you. To remain strong and continue in our
successful role, MBDA needs you as a member and your
input as a distributor. Increased numbers signify increased strength, and we look forward to your support.
RESTAURANTS
IN SUPERMARKETS?
Wegmans and Weis say they are just operating restaurants
within their supermarkets and selling beer to their dining
patrons. Their advertising and publicity efforts say differently. We encourage you to show the enclosed flyer
“Does anyone really think it’s about restaurants selling
beer” to your Senator and House Member. It’s a very
effective tool that summarizes our arguments!
WHO SUPPORTS MBDA TO
STOP BEER IN SUPERMARKETS?
NEW DUES FORMULA
Distributors will note a change in MBDA’s dues structure,
including a nominal increase, as approved by our board of
directors. With rising operational costs, including increased
lobbying and public relations expenses, it became necessary
to adjust dues to maintain our high level of service that
members have come to expect. MBDA membership dues
remain among the lowest of any state distributor association.
Distributors have inquired as to which organizations are
supporting us in our fight to stop beer sales by grocery and
convenience stores. The Teamsters Union Local 830 and
Pennsylvanians Against Underage Drinking have stepped
forward to offer their support.
2
SUPERMARKET SURVEYS
The poll results show that a majority of Pennsylvanians
want NO change in the state law barring sales of beer
where gasoline is sold—effectively, no beer sales in convenience stores.
Supermarkets and convenience stores say that consumers
want the convenience of purchasing beer in their stores.
They refer to on-line polls taken by them, but when questioned admit that they are strictly informal and not scientific
polls. Wegmans even gave customers an incentive to take
their survey by awarding three gift cards valued at $100
each. We found their “consumer choice” website to be humorous in that they give customers a “choice” of three 3
emails, all in favor of Wegmans selling beer, but “no
choice” against it.
WARRINGTON TOWNSHIP DENIES
WEGMANS LIQUOR LICENSE
In January 2008, the Warrington Township (Bucks Co.)
supervisors voted 4 to 1 to reject Wegmans liquor license.
Their concerns ranged from fears over open containers in
grocery aisles, to increased access to alcohol for minors, to
the safety of the market’s already crowded parking lot.
TERRY MADONNA’S
OMNIBUS POLL
Most public input was overwhelmingly negative against
Wegmans selling beer. Thirsty’s Beer presented a petition
with more than 300 signatures from area residents who opposed Wegmans liquor license.
MBDA commissioned Terry Madonna Opinion Research to
conduct an omnibus poll among Pennsylvania adults. Triad
Strategies, MBDA’s Public Relations Firm, released the poll
results on October 31, 2007 via PR Newswire, the Capitol
Newsroom, Capitol Wire and faxes and emails to selected
daily newspapers.
MBDA thanks our directors Paul Farthing and David
Dripps and member Steve Mendenhall for attending the
hearings.
The survey results show that consumers want to buy
beer in smaller quantities at their local beer distributor
and not at a supermarket or convenience store.
MBDA’S
LEGISLATIVE BREAKFAST
AND DAY ON THE HILL
71.2% of consumers want to buy beer in smaller quanti-
On April 8th, MBDA held a breakfast meeting at the State
Capitol with House and Senate Leadership and Members of
the House Liquor Control and Senate Law & Justice Committees. All MBDA members were invited to attend. Following breakfast, we scheduled meetings with our lawmakers to discuss stopping beer sales by supermarkets and convenience stores and allowing 12-pack sales by beer distributors.
ties at their local beer distributor.
62.7% believe that Pennsylvania’s 1,300 retail beer distributors provide a sufficient selection of imported and
domestic beer.
54.6% of Pennsylvanians view easier access to carryout
beer, as in supermarkets, as leading to an increase in the
rates of underage drinking or other alcohol-related problems.
We thank the following distributors and MBDA staff members for their participation: Roger Ackerman of Mechanicsburg Bev. in Mechanicsburg. Julie & Michael Cassidy of
Mt. Holly Bev. in Mt. Holly Springs. Ernie Cruciani of
Phoenixville. Tom Derr of West Lawn Bev. in West Lawn.
Stephanie Eckert of MBDA. Paul Egonopoulos of Brewers
Outlet in Philadelphia. Michelle Fisher-Reyes of MBDA’s
lobbying firm Buchanan, Ingersoll & Rooney. Mary Lou
Hogan, Esq. of MBDA. Laura Kuller of Buchanan, Ingersoll & Rooney. Frank & Sherly LaRosa of Beer-A-Rama in
Levittown. Tom Lynch of Banko North in Scranton. Tom
Mehaffie of Breski Bev. in Harrisburg. Gary & MaryAnn
Marcho of Clifford Bev. in Clifford. Jay Patel of Deon
Bevs. in Bristol. Kathy Pippy of Buchanan, Ingersoll &
Rooney. David Shipula of Beer Super in Wilkes-Barre.
Ron Sherwood of Susquehanna Beverage in Hallstead.
SUSQUEHANNA POLL—VOTERS SAY
BEER & GAS DON’T MIX
Triad Strategies commissioned Susquehanna Polling & Research, Harrisburg to conduct a statewide poll, March 5-10,
2008, among 700 registered voters. Voters’ were presented
with the following scenario: Currently state law prohibits the
sale of beer on the same property where gasoline is sold for
safety reasons. Some want to allow the sale of beer by the
six-pack where gasoline is sold and, in some locations, gas
station owners have put gas pumps and convenience store
operations on separate land deeds to meet the letter of the
law.
Question— Should state law be changed to permit the sale
of beer where gasoline is sold:
Yes
No
Undecided
309
357
34
We also appreciated attendance by Felicity DeBacco-Erni,
Executive Director of Pennsylvanians Against Underage
Drinking.
44%
51%
5%
3
HB 1637 & HB 1886—TO STOP
SUPERMARKETS & CONVENIENCE STORES
FROM SELLING BEER
WHAT DISTRIBUTORS
SHOULD DO
Contact your State Representatives and ask them to support
HB 1637 and HB 1886. Have your family members,
friends, employees and customers do the same. We can not
stress enough the importance of grassroots lobbying. Legislators will be at their district offices over the summer. This
is an election year, and they want to hear from their voting
constituents. Show your Representatives the enclosed
flyer, “Does anyone really think that it’s about restaurants selling beer”. Here are some talking points for
your use:
Supermarkets and convenience stores/gas stations are selling
beer under the pretense of being “E” (eating-place retail dispenser) and “R” (restaurant liquor) licensees. They are exploiting a PLCB regulation intended for delicatessens that
permits an interior connection between licensed premises
(where beer is sold) and another business (where cold cuts,
salads & similar items are sold). The regulation requires a
4’ high permanent partition between the licensed and unlicensed areas, but supermarkets and convenience stores are
either ignoring the requirement or putting up a “partition” of
shelves or racks.

 Enactment of HB 1637 and HB 1886 will stop a floodgate of new outlets from appearing where beer will be
available in grocery stores, convenience stores, gas stations,
Wal-Marts, etc.
Sheetz has made mockery of Pennsylvania’s Liquor Code
that prohibits alcohol and liquid fuel from being sold from
the same premises. The PLCB allowed them to simply separate with speed bumps the parcel from where gas is sold
from the lot on which the convenience store is located and
where beer is sold.

 Cite the Madonna and Susquehanna poll results. Consumer responses underscore two strengths of the current
state beer sales system—wide consumer choices and strong
restrictions against sales to minors. The public wants a system with adequate protections—something that we already
have in place!
To stop grocery and convenience stores/gas stations from
selling beer, Thomas Blackwell (D-Philadelphia) introduced
House Bill 1637 and Paul Clymer (R-Bucks) introduced
House Bill 1886. HB 1637 was co-sponsored by Representatives Brennan (D-Northampton), Casorio (DWestmoreland), Creighton (R-Lancaster), Everett (RLycoming), Harhai (D-Westmoreland), Harkins (D-Erie),
James (D-Philadelphia), Mustio (R-Allegheny), Myers (DPhiladelphia), Parker (D-Philadelphia), Pashinski (DLuzerne), Swanger (R-Lebanon), Thomas (D-Philadelphia),
Watson (R-Bucks) and Youngblood (D-Philadelphia). HB
1886 was co-sponsored by Representatives Boyd (RLancaster), Creighton (R-Lancaster), Denlinger (RLancaster), Helm (R-Dauphin), Hennessey (R-Chester), Hershey (R-Chester), Kotik (D-Allegheny), Rohrer (R-Berks)
and True (R-Lancaster).

 Pennsylvania has 1,300 beer distributors in all 67 counties, a sufficient number of licensees to satisfy public access for off-premises purchase of beer. You offer good
prices, excellent service, a vast selection, and convenient
hours/7 days a week.

 You have made a lifetime investment in your distributorship. Beer in supermarkets will put you out of business.

 Beer distributors employ 10,000 workers. These are
good-paying jobs with quality benefits that include healthcare, paid vacation, paid sick days, retirement plans, life
insurance, disability insurance, annual salary increases, employee discounts and bonuses. Beer in supermarkets will
eliminate their jobs. Not one more Pennsylvania job will be
gained if supermarkets and convenience stores add beer to
their already enormous inventory.
HB 1637 and HB 1886 are in the House Committee on Liquor Control. The legislation states that if you are an “E” or
“R” licensee who wants to sell take-out beer you can not
have an interior connection, or be operated in conjunction,
with another business of more than 1,000 square feet. The
legislation grandfathers in all existing licensees who are already connected to a business of more than 1,000 sq. ft, but
it does not allow those licensees to transfer that “privilege”
to another location. It doesn’t affect taverns and delicatessens who sell take-out beer. A tavern’s entire premises is
one business and does not have an interior connection to
another business. Delicatessens’ licensed premises are usually much larger than the unlicensed portion from which
meats and similar items are sold.

 You generate substantial federal, state and local tax
revenue, and your tax dollars stay in your communities and
in Pennsylvania. Many supermarkets and convenience
stores are out-of-state corporations.

 You are local business people and active in your community’s civic and charitable events. (List the community
programs that you sponsor and the community charities that
you support). Small business keeps neighborhoods strong.

 You offer beer to the public in a responsible manner.
MBDA sent letters to all 203 House Members, requesting
their support of House Bills 1637 and 1886. We included
information on the vast economic and social impact made by
Pennsylvania’s beer distributors and our excellent record in
not selling to minors.
4
Proudly point at statistics showing that distributors account
for only 9% of citations for sales to minors, “R’s” & “E’s”
for more than 90%. Compare your record to Sheetz who
had been selling beer for less than 3 months when they
were cited by the Bureau of Liquor Control Enforcement
for sale to a 19-year old during a compliance check on November 16, 2007.
Using “R” and “E” licenses, supermarkets and conven-

 Supermarkets and convenience stores say beer distribu-
ience stores can sell beer from 7 am to 2 am Monday
through Saturday and 11 am to 2 am on Sunday. Later in
the evening these stores are sparsely staffed and customer
and employee theft is not uncommon, making it even more
difficult to effectively control underage sales.
tors are a monopoly and we don’t want competition. But,
we are limited to owning only one license, and are very
competitive within our system of 1,300 beer distributors.
Since there is no limit to the number of “R” and “E” licenses for use by supermarkets and convenience stores
these outlets would be allowed to control the marketplace.
That’s a monopoly!
Statistics show that grocery store sales would contribute
to an increase in underage drinking. This was documented
by Dr. Ralph Hingson of the National Institute of Alcohol
Abuse and Alcoholism at the Senate Law & Justice Committee Hearing on March 14, 2007.

 The PLCB Regulation requires a 4’ high permanent
and Evaluation shows that when alcohol is more easily
available, people drink more and more alcohol–related problems occur.
partition between the licensed and unlicensed areas, but
supermarkets and convenience stores are either ignoring the
requirement or putting up a “partition” of shelves or racks.
The Liquor Code prohibits alcohol and fuel from being sold
from the same premises, but the Board simply allowed
Sheetz to separate with speed bumps their convenience
store lot where beer is sold from the lot where gas is sold.
Beer distributors have a customer base of adults. Young

 Supermarkets and convenience stores pretend that their
Research conducted by the Pacific Institute for Research
people frequent convenience stores where alcohol would be
more readily available for purchase. A study by the National Association of Convenience Stores asserts that twothirds of teens age 16 to 20 are convenience store shoppers
“cafés” are no different than chain or mall restaurants.
Their advertising and publicity efforts say differently.
Sheetz’ flyers advertised 12-pack bottles for $7.99 and cans
for $6.99 and stated, “Compare to distributor prices &
save!” Weis Markets in Schnecksville advertise 6-pack and
12-pack beer prices in their flyers right next to the Captain
Crunch cereal, ice cream, and cake. Wait staff in supermarkets and convenience stores is non-existent. Vidalia Market in Lansdale has no tables and chairs in the front portion
of their store where beer is sold. In the licensed portion of
the Fresh Grocer in Drexel Hill, food is minimal—cookies
and bagel chips.
Supermarkets and convenience store clerks and the majority of their employees are typically teens themselves.
These stores have a high rate of employee turnover, and responsible alcohol management training would be difficult.
In one typical chain the average cashier spends only 88 days
in that position—”No Sales-The Attorneys General Initiative”.
The Warrington Township (Bucks Co.) supervisors

 Supermarkets wanting to sell take-out beer has less to
voted 4 to 1 to reject Wegmans liquor license. They cited
concerns ranged from fears over open containers in grocery
aisles, to increased access to alcohol for minors, to the safety
of the market’s already crowded parking lot.
do with consumer convenience than the fact that, in terms
of dollar sales, beer is the 4th largest grocery category of
edible items in their stores.
How efficiently will supermarkets and convenience
stores control beer sales to minors when major retail chains,
including some in Pennsylvania, failed so miserably to prohibit tobacco sales to minors under 18? Only under threat of
prosecution did they then agree to take steps to reduce cigarette sales to children.—”Office of the New York State Attorney General, March 15, 2006.”
Consumers would be negatively impacted through the
loss of choice, with selection being reduced to a few national
labels. Large, national brewers buy entire areas of shelf
space in supermarkets. Small brewers, including many in
Pennsylvania, would be hurt by less access to the marketplace, resulting in even more lost jobs.
If allowed to continue, beer sales by supermarkets and
convenience stores will only grow. Weis Markets already
sells beer in their Schnecksville and Tannersville stores.
They are looking to expand beer sales, and are exploring
their options in Clarks Summit, Dallas, Spring Township in
Berks County, and Sunbury.
5
HERE’S WHAT ELSE
YOU CAN DO
Schedule a visit with your legislators or invite them to visit
your store. MBDA directors Tom Derr and Skip Link did
this and their lawmakers were impressed with their stores’
appearance, selection and prices. If your House Member
and Senator can’t visit your store, send them photos of what
a clean, brightly lit, and well-stocked store you operate and
include a cover letter.
Follow the example of MBDA director Roger Ackerman,
and contact your local school and police officials. Tell
them there is a strong movement underway to expand the
sale of beer to supermarkets and convenience stores/gas
stations. School administrators, faculty, school board
members, local government and local police officials are
concerned with and continuously forced to deal with the
issue of underage drinking, and too often the tragedies associated with it. It’s alarming that according to MADD, 3
out of 10 people are involved in drunk-driving accidents,
either as a victim or driver. A nationwide campaign to control DUI is underway, and expanding the accessibility of
alcoholic beverage is counterproductive to that effort.
“PACKAGE REFORM”
MBDA’S PUBLIC
RELATIONS FUND
John Rafferty (R-Montgomery) and Sean Logan (DAllegheny) are pushing a proposal that gives 18-pack sales
to R and E licensees, 6-pack sales to D and ID licensees,
allows manufacturers and ID’s to rotate stock for licensees,
permits licensees to extend credit, and allows E licensees to
trade their license for a distributor license.
MBDA retained Triad Strategies, a Public Relations Firm,
to give us an added presence in the Capitol newsroom and
to assist us in getting our message out to consumers, the
legislature and the media. To pay for this costly but effective campaign, we established a Public Relations Fund.
It is imperative that we raise awareness to the negative impact that beer in supermarkets and convenience stores/gas
stations will have on Pennsylvania. We are doing this by
way of newspapers, radio and television. Posters were distributed at MBDA’s convention for distributors to place at
their checkout counters and in their store windows.
They are promoting their proposal as a distributors’ bill.
That is not true! It benefits supermarkets. Supermarkets are
using “R” and “E” licenses to sell beer. By giving these licensees the right to sell 18 packs they are essentially giving
them the right to sell cases, and by extension they’re giving
supermarkets the right to sell cases. Another indication that
it’s a supermarket bill is the stock rotation provision. In
states where beer is sold in supermarkets, they expect this
service. 18 packs are known, marketed and priced as cases
in states that allow beer sales in these venues.
We thank the following distributors for their generous 2008
contributions to the MBDA Public Relations Fund: Case
& Keg, Shrewsbury. Craig Dist., Pittsburgh. Exton Bev.,
Exton. Frank’s Beer Stein, Quakertown. Goshen Bev.,
Goshen. Lil Debi’s High Street, Gettysburg. Lou Bev.,
Downingtown. Paoli Bev., Paoli. A. Piermani & Son, Conshohocken. Susquehanna Bev., Hallstead. Tanczos Bevs.,
Bethlehem. Waterford Bev., Waterford. Wet Your Whistle
Bev., Adamstown.
The proposal has a technical error. It says that distributors
can sell 6-packs as prepared by the manufacturer. There are
no 6-packs prepared by the manufacturer. They come from
the brewery as either a 12 or 24 pack and would have to be
broken down, which the bill, as written, does not give distributors the right to do.
This issue will likely resurface when the legislature reconvenes in September.
Distributors who have not done so are asked to make
their 2008 contribution to the MBDA Public Relations
Fund at this time. Mail your business or personal check
to 230 S. Broad St., Suite 903, Philadelphia, PA 19102.
“PACKAGE REFORM”
WHAT DISTRIBUTORS
SHOULD DO
PLEASE MAKE YOUR
MBDA LEGAL DEFENSE
FUND CONTRIBUTION
To date, MBDA’s Legal Defense Fund has spent $200,000
in legal fees and expenses to oppose in court grocery and
convenience stores selling beer. Distributors who contribute to this fund make it possible to pursue the issue of how
beer is sold in Pennsylvania. MBDA received a favorable
ruling by Commonwealth Court in the Sheetz litigation, and
we are hopeful that Pennsylvania Supreme Court will issue
a similar opinion.
Contact your State Senators. Tell them that this proposal
does not benefit the beer distributor—only the supermarkets.
It gives them more packages to sell.
State Lawmakers do not understand the beer business as you
do, so please educate them. Inform your Senators that “yes”
you welcome the opportunity to be more consumer oriented
and want to sell 12-packs to your customers, but not at the
expense of allowing supermarkets to sell three 6-packs or an
18-pack.
MBDA has filed objections to Wegmans’ applications for
“R” licenses in ten of their Pennsylvania stores. All this
litigation costs money! Had MBDA done nothing, most
likely even more supermarkets and convenience stores
would have applied for and obtained licenses. It is apparent
that the PLCB, Sheetz and Wegmans are using every means
possible to have licenses issued. If they are not stopped
now, beer sales by supermarkets and convenience stores
will only increase.
If this proposal is truly package reform, MBDA asks our
legislators to amend it to exclude supermarkets and convenience stores/gas stations from using “R” and “E” licenses to sell take-out beer.
Also opposing the proposal are: Coors Brewing Co., Heineken USA, Miller Brewing Co., and the Teamsters Local 830.

Distributors who have not made their contribution for
2008 are asked to please mail your business or personal
check to the MBDA Legal Defense Fund, 230 S. Broad
St., Suite 903, Philadelphia, PA 19102. Your contribution is a tax deductible business expense. Thank you
for helping us fight to protect your investment.

6
LEGAL DEFENSE FUND
CONTRIBUTORS
We thank the following distributors for their contributions to
the MBDA Legal Defense Fund for 2008. Contributors are
listed alphabetically, by trade name:
A & B Beer in Philadelphia. Academy Beer in Philadelphia.
Ace Beer in York. Aif’s Dist. in Canton. All Star Beer in Summit Hill. Altoona Bev. in Altoona. AM Discount Bev. in Carrolltown, Ardmore Park Bev. in Ardmore. Arrow Beer Dist. in
Wilkes-Barre. B & K Bev. in Dillsburg. B & O Bevs. In Philadelphia. Banko Bev. in Allentown. Frank Banko in Bethlehem.
Banko North in Scranton. Banksville Beer in Pittsburgh.
Barkley Beer in Bradenville. Bazaar Beer Outlet in Horsham.
Beer & Pop 4 Less in Bridgeville. Beer & Soda City in Burnham. Beer-A-Rama in Levittown. Beer Arena in Greensburg.
Beer City in Quakertown. Beer Express in Harrisburg. Beer
Guys in Havertown. Beer Haven in Schuylkill Haven. The
Beer Locker in Fredericktown. Beer Mart in Morrisville. Beer
Mart in Reading. Beer Minimum in Pittsburgh. Beer-N-More
in Bloomsburg. The Beer Place in Lancaster. The Beer Shak in
Summit Station. The Beer Stop in Hershey. Beer Super in
Wilkes-Barre. The Beer Warehouse in Bridgeville. Beer World
in Roslyn. Beer Zone in Lyndora. Beer Zoo in Harrisburg. Bell
Bev. in Philadelphia. Bensalem Beer in Bensalem. Berks Beer
Dist. in Reading. Berks Beer Outlet in Laureldale. Beverage
Barn in Williamsport. Beverage World in Phoenixville. The
Beverage Zone in Fairless Hills. Bison Bev. in Lewisburg.
Bottle House in New Holland. Bound Bevs. in Bensalem. Breski Bev. in Harrisburg. Brew Avenue in Washington. Brewers
Outlet in Chadds Ford. Brewers Outlet in Dunmore. Brewer’s
Outlet in Woodlyn. Brew-Thru in Pittsburgh. Brew Zoo in
Altoona. Brian’s Brew’ry Outlet in Glenshaw. Brighton Bev. in
New Brighton. Bud’s Suds Discount in Cranberry Twp. Butler
Valley Bev. in Drums. Camiel’s Beer in Philadelphia. Cape
Horn Bev. In Red Lion. Caprio’s Bevs. in Houtzdale. Carlisle
Bev. in Carlisle. Carnegie Beer in Carnegie. Carnival Bevs. in
West Mifflin. Case & Keg in Shrewsbury. Chal-Brit Bevs. in
Chalfont. Chester County Beer Dists. Assoc. Clarks Summit
Bev. in Clarks Summit. Clifford Bev. in Clifford. Coventry
Beer in Pottstown. Craig Dist. in Pittsburgh. Wayne Crouse in
Pittsburgh. Ernie Cruciani. D & R Bev. in Nazareth. Daubert
Dists. in Pine Grove. Denver Beer in Denver. Deon Bevs. in
Bristol. Pat Deon Bevs. in Fairless Hills. Duffer’s Dist. in
Kutztown. Duffey’s Beer & Pop in Pittsburgh. Dundee Bev. in
Wilkes-Barre. Duquesne Dist. in Indiana. Edinboro Bev. In
Edinboro. Ellis Beer in Wilkes-Barre. Erme’s in Sharon. Exton
Bev. in Exton. Flannery Case in Scranton. Flynn Bev. in Towanda. Fort Allen Beer in Greensburg. Fox Bevs. in Dover.
Frank’s Beer Stein in Quakertown. Fulton Bev. in Boothwyn.
Gabler’s Bev. in Shippensburg. Genna Beer in Phillipsburg.
Gettysburg Beer in Gettysburg. Girard Beer in Girard. Glendale Bev. in Flinton. Goodale’s in Aston. Goshen Bev. in West
Chester. Grace’s Derry in Harrisburg. Grand Central Beer in
Avis. Grandview Beer in Erie. Hallowell Bev. in Horsham.
Harmony Bev. in Blakeslee. Hatboro Bevs. in Hatboro. Holabaugh Beer in Clarion. Home Service Bev. in Williamsport.
House of Brew in York. Antonino & Mary Claire Incardona.
7
THE FOLLOWING DISCOUNTED PROGRAMS AND SERVICES
ARE AVAILABLE EXCLUSIVELY TO MBDA MEMBERS
Association membership numbers translate into group buying power. MBDA offers the following benefits and
services to our dues-paying members to make and save you money. Members who are interested in enrolling
in the programs should contact Stephanie Eckert at our Executive Office by phone 215-732-6258, fax 215732-6023, or e-mail mbdassn@aol.com.
Credit/Debit Card Processing Program: Association members receive the lowest possible fee schedule to
process credit and debit card transactions through PNC Merchant Services. Savings through this program pays
for your MBDA membership dues many times over:
IMPORTANT—Pay no transaction, per-item, swipe or inquiry fees. This is a significant savings to you!
1.85% flat discount rate for Visa, MasterCard, Discover debit. To process an average $31.00 debit card
ticket your cost is only 57¢.
1.95% flat discount rate for Visa, MasterCard, Discover credit. To process an average $31.00 credit card
ticket your cost is only 60¢.
Even deeper discounts apply for large volume accounts to be considered on an individual basis.




Retail debit network (ATM) processing fee of 12¢ plus network fee. On a $31.00 average Star, Nyce or
Plus ticket your cost is approximately 45 to 48 cents, depending on the network.
Very low pricing to lease or purchase Hypercom or Linkpoint equipment. If you already own equipment it
will be reprogrammed free of charge.
No fees for set up, statements, reporting, account maintenance, batch, ACH, etc.
Receive supplies free of charge.
Customer help desk 24 hours a day/7 days a week.
Dedicated Account Manager for MBDA merchants.
Continue to do business with your existing bank.
If you are a PNC bank customer, monies are deposited into your business checking account in 1 day; otherwise, it is deposited within 2 calendar days.
Fee collection is monthly, not daily.
Guarantee of no rate increase unless MasterCard and Visa increases their fee.
Increase your customer base with our Gift Card Program.
Business Insurance Program: Our comprehensive package is sponsored through Penn National Insurance.
Our endorsed broker is Wells Fargo, but the program is available through all Penn National agents. We encourage you to “Tap Into The Savings” with MBDA’s unique business insurance program designed specifically to meet the needs of beer distributors, at prices exclusive to Association members:
Preferred pricing on automobile, casualty, property, umbrella and worker’s compensation coverages.
Low cost liquor liability.
Dividend opportunity based on our group’s loss ratio. Each member received a 4% dividend check for the
period ending April 2007, the third consecutive year that a dividend was declared.
Enhanced coverage endorsements on auto, business owners, property and general liability at no additional
cost.
Equipment breakdown coverage that is automatically included in the business owners policy at no additional cost.

8
Health Insurance Program: Administered through Wells Fargo, the same agency who gives you superb pricing and service for your business insurance needs:
Access to many health care insurance providers.
An excellent network of doctors and hospitals.
Can tailor a plan specifically for your needs.
Electronic Scanning Program: Help protect yourself from receiving citations and prevent underage sales by
detecting driver’s licenses that have had their face dates altered. Scanners read the specially encoded magnetic
strips and/or bar codes on the back of driver’s licenses. Number of states that can be read is dependent on unit
purchased. MBDA offers you a choice of programs through Protect Your License:
ID-e @ $350.00 (Retails @ $400.00). Reads magnetic stripes. With bar code reader cost is $995.00
(Retails @ $1,150.00).
Smartscan Verify PA @ $700.00 (Retails @ $795.00). Reads magnetic stripes and prints out declaration of
age affidavit. With bar code reader cost is $995.00 (Retails @ $1,150.00).
CAV 3200 with stand @ $1,300.00 (Retails @ $1,545.00). Reads magnetic stripes and bar codes.
Promotional Items: Our advertising specialist, Networker Promotions, offers you an excellent and inexpensive way to promote your business.
Advertising and novelty items are imprinted with name, address and wording of your choice.
Very low pricing on all items, even on minimum quantity orders.
Free catalog with 1000’s of advertising specialties from which to choose.
Invoicing takes place only after delivery.
Government Affairs Lobbying protects you in Harrisburg. Stopping supermarkets and convenience stores/gas
stations from using restaurant and deli licenses to sell beer and permitting beer distributors to sell less than a
case to consumers are top priorities for MBDA.
Our Public Relations Campaign by way of newspapers, radio and television is directed to consumers and the
legislature to raise their awareness to the negative impact that beer in grocery and convenience stores would
have on Pennsylvania.
Any Questions? Need Advice? Our Executive Office is only a phone call away. MBDA has an on-site, experienced staff. Mary Lou Hogan and Stephanie Eckert are always ready, willing and able to help our members on any industry issue or problem.
Newsletters and Releases are regularly sent to members to keep you up-to-date on administrative, court, government, legal, legislative and regulatory issues.
Convention Registration Discounts are given to members.
Responsible Alcohol Management Program (RAMP) participation is offered to members at a discounted rate.
Attend Board of Director and Membership Meetings. We urge each member to become involved and active.
It will definitely be to our advantage and to yours.

MBDA Welcomes Suggestions From Our Members. Let us hear from you as to what changes should be
made to benefit or improve the beer business.
9
MBDA CONVENTION
HIGHLIGHTS
as distributors and craft brewers. Despite increasing pressure from interests such as chain stores to change the system she believes it should be protected as it currently exists.
MBDA was honored to have representatives from the Pennsylvania Liquor Control Board Office of Administrative
Law Judge, the State Police Bureau of Liquor Control Enforcement, and the Alcohol & Tobacco Tax & Trade Bureau
address the distributors and industry members in attendance
at the Sunday Business Session. Unfortunately, for the first
time in many years the PLCB’s Office of Chief Counsel and
the Bureau of Licensing were unable to provide speakers.
However, MBDA was fortunate to be able to add new voices
to this forum and the audience was addressed by the Honorable Karen Beyer (R-Lehigh), member of the House Committee on Liquor Control and Felicity DeBacco-Erni, Executive Director of Pennsylvanians Against Underage Drinking.
Felicity DeBacco-Erni, Executive Director, PAUD, began
her remarks by thanking MBDA for the opportunity to address the distributors directly. She spoke in support of the
current control system, stressing that her organization is not
in favor of increased access to alcohol and that the problem
of underage drinking must be solved. She suggested that
working together puts distributors and PAUD on the right
track to solving that problem. She concluded by asking for
a dialogue on keg registration, suggesting that a pilot program may be the first step.
President David Shipula thanked the panel members for
their participation and the session continued with distributors only.
The Honorable Eileen Maunus, Chief Administrative Law
Judge, spoke of the PLCB’s 75 th Anniversary celebration
being planned by Director of Consumer Relations, Margaret
Kerwin. And as in past years she praised distributors for
their under-representation in both citations in general (7% of
all citations issued) and citations for sales to minors in particular (2.45%), attributing that performance to the work of
an active trade association and the willingness of distributors
to observe the laws.
Mary Lou Hogan, Executive Secretary/Counsel, brought
the distributors up-to-date on the Sheetz/Wegmans litigation; pending legislation; poll results; “package reform”;
privatization of the state store system; wine kiosks; the
Costco decision; MBDA website; and the MBDA insurance
dividend. MBDA lobbyist, Kathy Pippy of Buchanan Ingersoll, reported on the legislative effort to stop beer in supermarkets and convenience stores; “package reform” bills;
and 12-pack sales by distributors. MBDA public relations
representative Tony May of Triad Strategies re-capped the
various initiatives started on behalf of beer distributors and
distributed materials useful when contacting individual legislators.
Sgt. James A. Jones, Punxsutawney District Office Commander, and Enforcement Officer 3, Mary E. Mills, of the
State Police Bureau of Liquor Control Enforcement concurred with Judge Maunus’ comments about the small number of violations issued to distributor licensees. By working
together, the BLCE and distributors can insure that licensees
are in compliance. His remarks about compliance checks
urged distributors to examine customer identification carefully to insure that the ID does in fact show that the customer is over age 21 before completing a sale.
The Monday Business Session was unique this year in that
rather than having industry speakers the audience heard
from Rep. Paul Costa (D-Allegheny) and Rep. Mark Mustio (R-Allegheny) both members of the House Committee
on Liquor Control. Rep. Costa, a committee member for 8
years, stated he is not in favor of 6-packs on grocery store
shelves, further saying he is against easy access to beer.
Rep. Mustio, on the committee since 2003, is very much
pro-small business, stating that often larger companies manipulate rules to the detriment of small businesses. Both
gentlemen were well received by their audience which appreciated hearing from legislators sitting on the committee
that directly affects their livelihood.
Jim Zaremski, Alcohol & Tobacco Tax & Trade Bureau Investigator, reported on the structure of his agency and reminded wholesalers that while the Special Occupation Tax
has been formally repealed as of July 1, 2008, distributors
still must register with ATT&T. A link to the agency’s website is on the MBDA website, mbdapa.org. Wholesalers
were also reminded that the agency is re-emphasizing the
Trade Practice Program to insure the integrity of the 3 tier
system.
Rep. Karen Beyer, member of the House Committee on Liquor Control, shared her views on some industry issues. The
demographics of her district have been changing due to its
proximity to large cities such as New York and Philadelphia
and it is considered a bellwether or indicator of future
trends. As part of her constituent breakfast meetings she has
asked them if they want change to the current system of selling beer and alcohol in Pennsylvania. They do not. They’re
concerned about health care and property taxes. She herself
has lived all over the world and across the U.S. in locations
with less restrictive alcohol laws and does not believe they
work as well as the system in Pennsylvania that is meant to
promote control of access and protect small businesses such
MBDA thanks Barbara Lynch of Brewers Outlet in Dunmore and Alexis Shipula of Beer Super in Wilkes-Barre for
their assistance at our registration desk. We express our
sincere thank you to our officers, directors, members, brewers, importers and allied trade suppliers for their overwhelming convention and trade directory support.
Many thanks for a job well done to Convention Chairman
John Manz and MBDA Convention Coordinator Stephanie
Eckert.
10
DISPAC CHAIRMAN
MANUFACTURERS
WHO SUPPORTED
MBDA’S 2008 CONVENTION
MBDA and our members thank the following brewers and
importers for their support of our recent Convention—
Anheuser-Busch, Coors Brewing Co., Crown Import Co.,
Diageo-Guinness USA, Erie Brewing Co.., High Falls Brewing Co., Labatt USA, The Lion Brewery, Miller Brewing
Co., Moosehead USA. Pennsylvania Brewing Co., Straub
Brewery, Troegs Brewing Co., United Brands Co.,
Yuengling Brewing Co.
We thank Roger Ackerman of Mechanicsburg Beverage,
Mechanicsburg for accepting the position as DISPAC
Chairman. Distributors—please give him your support.
DEFENSE AGAINST
SALES TO MINORS
Licensees are reminded that they have three proven “good
faith” defenses against sale of beer to persons under 21
years of age: (1) Have a suspected minor sign the PLCB
declaration of age affidavit. (2) Take a photocopy or photograph of one of the following forms of identification—
current driver’s license with photo, ID card with photo issued by the Department of Transportation, military ID or
valid passport. (3) Use an electronic scanning device. Keep
all records on your licensed premises.
We appreciated convention attendance by the following allied trade suppliers who provide products and services of
value to our distributors—Dotmark Promotions, C.W. Howard Insurance Agency, Micro Matic Dispense Service, Penn
National Insurance, PNC Merchant Services, Revolution
POS, Rochester Store Fixture, SCR Systems, Susquehanna
Business Systems, Wells Fargo Insurance Services, Yale
Industrial Truck-Pittsburgh.
It is illegal to sell tobacco to anyone under 18 years of age,
and you must ask for a picture ID from any person who
appears to be under the age of 27.
MBDA thanks the following companies for donating prizes
for our Convention’s Monte Carlo Night: Anheuser-Busch,
Banko Bev./Banko North, Frank Fuhrer Wholesale, High
Falls Brewing, Iron City Brewing, The Lion Brewery,
MBDA, Miller Brewing, Muller, PNC Merchant Services,
Penn National Insurance, Straub Brewery, Vecenie’s Dist.,
Wells Fargo Insurance Services, Wilson-McGinley, and
Yuengling Brewery.
MBDA members who are interested in purchasing an electronic scanning machine to help identify fraudulent driver
licenses should call our Executive Office.
Post “We ID” stickers at your cash register and let customers know that you expect valid identification, no exception,
no excuses. Train your employees to carefully scrutinize
driver licenses used as proof of age. If in doubt, request a
second form of identification and ask questions to validate
the person’s knowledge of the information contained on the
ID such as birth date, weight, middle initial, etc. Be on the
alert for driver’s licenses indicating more than two duplications – it could be a phony.
MARK YOUR CALENDAR
MBDA’s 73 rd Annual Convention and Trade Show has been
scheduled for April 24, 25, 26, 2009 at the Sheraton Park
Ridge Hotel, King of Prussia. Detailed information and registration forms will be sent to you in January.
RAMP CERTIFICATION
DISTRIBUTORS POLITICAL
ACTION COMMITTEE
DISPAC is MBDA’s distributors political action committee,
and by law is authorized to make contributions to the campaigns of legislators who are favorable to our issues. Contributions enable MBDA officers, directors, members, and
staff to attend fundraisers to show our support for and help
elect these legislators. It is imperative that we defeat the
grocery and convenience stores’ agenda and pass legislation
to allow distributors to sell 12-packs to consumers.
It makes good business sense to be well trained in preventing sales to minors. Through its Responsible Alcohol Management Program (RAMP), the PLCB offers free training
to owners and managers. Employee training is provided by
certified trainers who charge a nominal fee.
Benefits to the licensee who meets the requirements of Act
141 include possible reduction in fines and penalties for
sales to minors or visibly intoxicated persons issued by the
Administrative Law Judge if the licensee has received no
citations for the previous four years. Certification is valid
for two years.
Distributors are urged to make a contribution. Please
mail your personal or partnership check to DISPAC, 230
S. Broad St., Suite 903, Philadelphia, PA 19102. Corporate checks are not permitted by law.
Please call the PLCB’s Alcohol Education Specialist, Lori
Rizzo, at 717-558-2160 for more information. Or go on
line at www.lcb.state.pa.us. MBDA encourages your participation.
We thank the following distributors for their generous 2008
DISPAC contributions: Roger Ackerman. Geano Agostino.
Joseph Chobody. Frank Corby. Ernie Cruciani. Christina D’Ettorre. Maureen & Donald Hicks. Ed Klunk. Kevin Klunk. Michael Kondak. Drew Kramer. Mark Kramer. Barbara Lynch. Tom
Lynch. Judy Mumbauer. Rocco Nicoletti. Ed O’Donnell. Sandy
Palermo. Greg Ramirez. Alberta Rogers. Ron & Charlotte Sherwood. David Shipula. Mark Tanczos. Jessica Wheeland.
11
LET MBDA HELP YOU KEEP
YOUR HARD-EARNED MONEY
in the newest age verification equipment, and MBDA promotes its use by offering discounted pricing through endorsed vendors. They train employees not to sell to minors
or intoxicated persons, and participate in alcohol awareness
and educational programs throughout the Commonwealth
that include Cops in Shops, DARE, Family Talk, Project
Sticker Shock, RAMP, Responsible Marketing Initiative,
Slow on the Bottle Enjoy the Road, TIPS and We ID. They
give talks at local schools on the dangers of underage
drinking and are a force in the community to fight teen
drinking.
Don’t be mislead by credit/debit card processing companies
who say they are offering you a lower rate than MBDA
members receive through PNC Merchant Services. Unless
you fully analyze the proposal, it can be very deceiving.
Processors hide the fact that when they offer you a lower
percentage rate they add on a transaction fee and are
actually quoting a higher effective rate.
Let’s look at several examples. If a processor quotes you
1.69%, ask him about the additional transaction fee or peritem charge. Believe us, it will be anywhere from 10 to 25
cents. A distributor’s average Visa, MasterCard or Discover
ticket is $31.00. At 1.69% plus 10 cents you would be paying that processor 62 cents ($31.00 x .0169 + 10 cents). At
1.69% plus 25 cents you would be paying that processor a
whopping 77 cents ($31.00 x .0169 + 25 cents). Through
MBDA’s processor you would pay only 57 cents ($31.00
x .0185) for debit and 60 cents ($31.00 x .0195) for credit,
and these savings really add up!
Encouraging Responsibility: Pennsylvania’s beer distributors work diligently with industry affiliates, enforcement agencies, churches, schools and advocacy groups to
promote adult responsibility, fight underage drinking and
alcohol abuse. They have formed partnerships with a variety of community groups and initiatives that include Catholic Youth Organization, College Action Against Underage
Drinking, Council on Chemical Abuse, Dickinson University’s Public Safety Department, Local Chapters of MADD,
Pennsylvanians Against Underage Drinking, PLCB,
SADD, Sheriffs’ Association and Wyoming Valley Alcohol
& Drug Service. U.S. Department of Transportation statistics indicate that Pennsylvania, with a decline of 7.4% over
2005, was one of 26 states in which the number of drunkdriving-related fatalities dropped.
We hope that by showing you these examples it is clear that
because a distributor has a relatively low average sale you
should not be paying a transaction fee! Here’s our guarantee. If you don’t agree that MBDA is saving you money by
processing your credit and debit cards through our PNC
Merchant Services we will refund your membership dues. If
members have any questions, please call our Executive Office. We will be glad to assist you.
Community Involvement: Pennsylvania’s beer distributors are local, family-owned and operated businesses, generation after generation, who give back to their communities. They sponsor a variety of consumer-based programs
that include youth and school athletics, benefits to help offset medical costs, cheerleading, fishing clubs, bands, theater groups, concerts, school scholarships, block parties,
fairs, festivals and parades. They contribute to a variety of
community groups that include local churches, youth ministries, police/fire/ambulance departments, booster clubs,
women’s clubs, libraries, museums, historical societies,
parks and recreational centers.
BEER DISTRIBUTORS—
ECONOMIC & SOCIAL IMPACT
MBDA released the following information and statistics to
our state lawmakers. Please remind your Senators and
House Members of the huge economic and social impact
that beer distributors have in Pennsylvania.
Employment & Tax Dollars: Beer distributors employ
10,000 workers. We generate substantial federal, state and
local tax revenue. In distributor license & filing fees alone,
our Commonwealth receives $1,097,260 annually, a portion
of which goes back to each local municipality.
Specific beneficiaries include: Alex’s Lemonade, ALS,
AMBUCS, American Cancer Society, American Legion,
Big Brothers/Big Sisters, Bone Marrow Transplant Unit at
Hershey Medical Center, Boy Scouts/Girl Scouts, Cerebral
Palsy, Children’s Miracle Network, Cystic Fibrosis, Diabetes Association, Easter Seals, Exchange Club, 4-H Club,
Humane Society, Kiwanis Club, Lions Club, Make-AWish, March of Dimes, Muscular Dystrophy Association,
Multiple Sclerosis Association, Optimists Club, Read
Across America, Red Cross, Relay for Life, Rotary Club,
St. Jude’s Hospital for Children, Salvation Army, Society
for the Prevention of Cruelty to Animals, Special Olympics, Sudden Infant Death Syndrome, Toys for Tots, United
Way, University of Pittsburgh Cancer Center, Veterans of
Foreign War, Vietnam Wall Memorial, Walk for Life, War
Veterans of Iraq, Wolves Club and YMCA/YWCA. Besides monetary support, donations include beverages,
snacks, ice, shirts, hats and gift certificates.
Consumer Choice: Pennsylvania’s beer distributors represent hundreds of manufacturers, from multi-national breweries to the smallest microbreweries. They provide customers
with a vast selection of imported and domestic beers, including all Pennsylvania brews. A typical distributor offers consumers more than 1,000 choices in the form of multiple
brands, styles, sizes, packages and related snacks and supplies.
Protecting Minors: Pennsylvania’s beer distributors have
years of experience in not selling to minors, and their livelihood is dependent on preventing illegal sales. PLCB statistics for the period 2004-2006 show that distributors account
for only 9% of all citations issued to licensees for sales to
minors—an exceptional record! Distributors have invested
12
MBDA ELECTS
OFFICERS
District #5: Bedford, Blair, Cambria, Centre, Fulton, Huntingdon, Mifflin & Somerset Counties: Vice President
Chris Hickey, W.R. Hickey Beer Dist., State College; Director Rick Vanevenhoven, Brew Zoo, Altoona.
At their June 22nd board meeting, MBDA directors unanimously elected the following slate of officers to serve for the
July 1, 2008 to June 30, 2009 fiscal year:
District #6: Columbia, Montour, Northumberland, Snyder
& Union Counties: Vice President Mark VanSickle, Henry
Voelcker Inc., Danville.
President—David Shipula, Beer Super, Wilkes-Barre.
1 st Vice President—Tom Lynch, Banko North, Scranton.
2 nd
Vice
President—Tom Mehaffie,
Harrisburg.
Breski
District #7: Armstrong, Butler, Cameron, Clarion, Clearfield, Elk, Forest, Indiana & Jefferson Counties: Vice
President Jim Goldinger, Beer Zone, Lyndora; Director
Doug Jack, Blairsville Bev., Blairsville.
Bev.,
3 rd Vice President—John Manz, Vecenie Dist. Co., Millvale.
District #8: Crawford, Erie, Lawrence, McKean, Mercer,
Venango & Warren Counties: Vice President Martin Denial, Grandview Beer, Erie. Directors: Michael Kondak,
Edinboro Bev., Edinboro; Pete Sirianni, Beer & Pop Discount, Erie.
Secretary—Barbara Lynch, Brewer’s Outlet, Dunmore.
Treasurer—Chris Hickey, W.R. Hickey Beer Dist., State
College.
At the board meeting, MBDA Legislative Chairman Ernie
Cruciani was honored as the recipient of this year’s “Jack
Muller Award for Distinguished Service”.
District #9: Berks, Carbon, Lehigh, Northampton &
Schuylkill Counties: Vice President Mark Tanczos, Tanczos Bevs., Bethlehem Directors: Tom Derr, West Lawn
Bev., West Lawn; Skip Link, Link Bevs., Coopersburg;
Bruce Orwig, D & R Bev. Ctr., Nazareth.
MBDA ELECTS DISTRICT
VICE PRESIDENTS & DIRECTORS
At their April 28th meeting, MBDA’s policy board representatives elected district vice presidents and directors for the
fiscal year beginning July 1 st. Officers, district vice presidents and directors are not paid employees of the Association, but give generously of their time to attend board meetings and legislative receptions. We appreciate their efforts
throughout the year, and members should feel free to call on
them with questions and suggestions.
District #10: Delaware & Montgomery Counties: Vice
President Michael Adelizzi, Narberth Bev., Narberth. Directors:
Drew Kramer, Aston Bev., Aston; Brian
Mutschler, Brewers Outlet, Chadds Ford; David Piermani,
A. Piermani & Son, Conshohocken. Ernie Cruciani serves
the Association as Past President and Legislative Chairman.
Alternate Director is Alex Piermani, A. Piermani & Son,
Conshohocken.
District #1: Philadelphia County: Vice President Dennis
Harrison, Muller Inc.; Director Steve Benko, Doc’s World
of Beer.
District #11: Bucks & Chester Counties: Vice President
Ed Klunk, Thorndale Bev., Thorndale. Directors: Jim
Crane, Goshen Bev., West Chester; Dave Dripps, Southampton Bev., Southampton; Paul Farthing, Chal-Brit Bev.,
Chalfont.
District #2: Lackawanna, Luzerne, Monroe, Pike, Susquehanna, Wayne & Wyoming Counties: Vice President, Tom
Lynch, Banko North., Scranton. Directors: Tony Colangelo, Quality Beverage, Hazleton; Barbara Lynch, Brewers
Outlet, Dunmore; David Shipula, Beer Super, Wilkes-Barre.
District #12: Bradford, Clinton, Lycoming, Potter, Sullivan
and Tioga Counties: Vice President Carl Schultz, Valley
Bev., Hughesville; Director Jessica Wheeland, Home Service Bev., Williamsport.
District #3: Adams, Cumberland, Dauphin, Franklin, Juniata, Lancaster, Lebanon, Perry & York Counties: Vice
President Keith Rutt, Wheatland Dists., Lancaster. Directors: Roger Ackerman, Mechanicsburg Bev., Mechanicsburg; Russ Dennison, Silver Spring Bev., Mechanicsburg;
Tom Mehaffie, Breski Bev., Harrisburg; Jim Yaple, Westy
Beer Dist., Camp Hill. Ackerman also serves as our DISPAC Chairman.
DIRECTOR VACANCIES
There exists director vacancies in District #1, District #3,
District #5, District #6, District #7, and District #9. MBDA
members who are interested in serving should call the Association’s Executive Office. Directors are asked to attend
quarterly board of director meetings and our annual convention. They also assist MBDA in relaying information
back to their area members.
District #4: Allegheny, Beaver, Fayette, Greene, Washington & Westmoreland Counties: Vice President Felix Zaffina, Zaffina’s Distributor, Scottdale. Directors: Geano
Agostino, Barkley Beer, Latrobe; Bob DeBone, Beverage
Warehouse, Greensburg; George Duffey, Circle Beer, Pittsburgh; John Manz, Vecenie Dist., Millvale; John McGinley,
Wilson-McGinley, Pittsburgh, Frank Pistella, Pistella Beer
Dist., Pittsburgh; Christian Stein, Bellevue Beer, Bellevue.
13
MICRO MATIC NORTHEAST, Center Valley, PA 18034. Thomas
Ginthner, Area Sales Representative. Phone: 610-625-4464. Fax: 610625-4466. E-Mail: tcg@micro-matic.com. Draft Beer Equipment.
ASSOCIATE MEMBERS
MBDA has thirty associate members. Firms who are interested in joining should contact us. We thank the following
manufacturers for investing in the future of Pennsylvania’s
beer distributing business:
MILLER BREWING CO., Milwaukee, WI 53208. Pat Walsh. Phone:
610-805-9597. Miller High Life, Miller Lite, Miller Genuine Draft,
Miller Genuine Draft Lt., Milwaukee’s Best, Milwaukee’s Best Lt.,
Magnum Malt Liquor, Sharps NA, Icehouse, Red Dog, Old English 800,
Mickey’s Malt, Leinenkugel, Henry Weinhard, Pilsner Urquell, Peroni,
Fosters Lager, Steel Reserve, Sparks, Tyskie.
ANHEUSER BUSCH, INC., Boston, MA. Rob Passi, Sales Dir. Phone:
781-224-1133. Budweiser, Bud Light, Bud Light Lime, Budweiser Select,
Bud Dry, Bud Extra, Bud Ice, Bud Ice Light, Michelob, Michelob Light,
Michelob Ultra, Michelob Ultra Amber, Michelob Amber Bock, Michelob
Specialty Brands, Bare Knuckle Stout, O’Doul’s, O’Doul’s Amber,
Busch, Busch Light, Busch Ice, Busch NA, Natural Light, Natural Ice,
Rolling Rock, Rock Green Light, Redbridge, Wild Hop, Jacks’ Pumpkin
Spice Ale, Winter Bourbon Cask Ale, Sun Dog Amber Wheat, Beach
Bum Blonde Ale, Shock Top, Wild Blue, Harbin Lager , Kirin brands,
Hurricane brands, King Cobra, Bacardi Silver Flavors, Tilt, Tilt Green,
180 Energy Drink Flavors. Import/Alliance brands: Grolsch Brands, Tiger, Stella Artois, Beck’s brands, Bass, Leffe, Lowenbrau, Hoegaarden,
Staropramen, Tennet’s, Boddington’s, Czechvar, Red Hook Brands, Widmer, Monster Brands.
MOOSEHEAD USA LTD., Boulder, CO 80302. Andrew Kish, Regional Development Mgr. Phone: 724-339-8466. Moosehead Lager,
Moosehead Light.
NETWORKER ASI, Marlton, NJ 08053. Jackie Moore, Owner. Phone:
856-427-3424. MBDA Endorsed Novelty & Promotional Items.
PENN NATIONAL INSURANCE, Harrisburg, PA 17105. Randy
Mancini, Regional VP. Phone: 800-388-4764. Fax: 888-888-8982.
MBDA Endorsed Business Insurance Carrier.
PERLEY-HALLADAY ASSOCIATES, INC., West Chester, PA
19380. Dave Atkinson, Regional Sales Mgr. Phone: 610-296-5800. Fax:
610-647-1711. E-Mail: frontdesk@perleyhalladay.com. Controlled
Environment Warehouses & Warehouse Keg Beer Coolers.
ARIESOFT, INC., Great Neck, NY 11021. Michael Klein, Pres. Phone:
516-829-7333. Fax: 516-773-4141. E -Mail: mklein@ariesoft.com. POS/
Wholesale Computer System for Distributors.
PNC MERCHANT SERVICES, Blue Bell, PA 19422. Russ Hayes,
Account Executive. Phone: 888-466-0369. Fax 215-742-9007. E-Mail:
russell.hayes@pnc.com. MBDA Endorsed Credit/Debit Card Processing.
COORS BREWING CO., Golden, CO 80401. Dave Bauer, Metro Mgr.
Phone: 412-564-5310. E-Mail: david-bauer@coors.com. Coors Original,
Coors Banquet, Coors Light, Coors Extra Gold, Coors NA, Killians Red,
Keystone Premium, Keystone Light, Keystone Ice, Molson, Molson Canadian, Molson Canadian Light, Molson Golden, Molson Ice, Molson
XXX, Blue Moon Belgium Ale, Zima.
PROTECT YOUR LICENSE, c/o The Six Pack Store, Philadelphia,
PA 19149. Ray Swerdlow, Owner. Phone: 215-338-6384. Fax: 215338-8064. E-Mail: ray@thesixpackstore.com. Electronic Scanning..
ROCHESTER STORE FIXTURE, Rochester, NY 14605. Steve
Mancini. Phone: 585-546-6706. Fax: 585-546-4452. E-Mail:
danielkorn@rochesterstorefixture.com. Beverage & Food Service
Equipment & Supplies.
CROWN IMPORTS, Chicago, IL 60603. Kevin Kodish, Region Mgr.
Phone: 571-521-7320. Fax: 571-521-7235. Corona, Corona Light, Modelo
Especial, St. Pauli Girl, Tsingtao.
DIAGEO-GUINNESS USA, Norwalk, CT 06851. Brian Croughan, District
Mgr. Phone: 724-742-1163. Fax: 724-742-1167. E-Mail: brian.croughan@
diageo.com. Guinness, Harp, Smithwicks, Smirnoff Ice, Parrot Bay.
RUETER INSURANCE AGENCY, INC., Philadelphia, PA 19114.
Joseph Rueter, President. Phone: 215-637-8223. Fax: 215-637-8226. EMail: RueterInsurance@comcast.net. Commercial Insurance.
DOTMARK PROMOTIONS, Murfreesboro, TN 37129. Larry Marks,
Owner. Phone: 615-895-2099. Fax: 615-494-1258. E-Mail: dotmark@
bellsouth.net. Beverage Insulators & Drinkware.
STOUDT BREWING CO., Adamstown, PA 19501. Carol Stoudt,
President. Phone: 717-484-4386. Fax 717-484-4182. E-Mail:
carol@stoudtsbeer.com. Stoudt.
ERIE BREWING CO., Erie, PA 16501. Bruce Pia, Gen. Mgr. Phone:
814-459-7741. Fax: 814-461-1622. E -Mail: bpia@eriebrewingco.com.
Railbender Ale, Mad Anthony’s Ale, Presque Isle Pilsner.
SUPER VALUE BEVERAGE STORES. Philadelphia, PA 19140.
Joseph Shott, President. Phone: 215-423-6916. Fax: 215-423-6918. EMail: jshott@abwds.com. Beverages, Snacks, Tobacco, Cigarettes.
GERBRON WHOLESALE, Kennett Square, PA 19348. John Gerbron,
Owner. Phone: 610-347-0440. Fax: 610-347-0492. Cigarettes, Cigars,
Candy, Paper Products.
SUSQUEHANNA BUSINESS SYSTEMS, INC., Duncannon, PA
17020. Dale Simmons, Owner. Phone: 717-957-6187. Fax: 717-8349831. E-Mail: susquehannabiz@yahoo.com. Malt Beverage Point of
Sale.
HERLOCHER ENTERPRISES, 415 E. Calder Way, State College, PA
16801. Jean Vonada, Business Mgr. Phone: 814-237-4373. Fax: 814-237-1893.
E-Mail: jean@herlocherfoods.com. Herlocher Dipping Mustard.
WELLS FARGO BANK, Atlanta, GA 30328. Tom O’Neill, Regional
VP. Phone: 770-551-4640. Fax: 770-551-4679. Banking.
HIGH FALLS BREWING CO., LLC.,445 St. Paul St., Rochester, NY 14605.
Paul McGee, Area Sales Mgr. Phone: 585-546-1030. Fax: 585-546-5011.
Genesee, JW Dundee’s, Seagram’s Escapes Coolers.
WELLS FARGO INSURANCE SERVICES OF PA, INC., Mechanicsburg, PA 17055. Debra McClain. Phone: 800-462-4943. Fax: 717761-4836. E-Mail: debra_mcclain@wellsfargois.com. MBDA Endorsed
Insurance Broker.
C.W. HOWARD INSURANCE AGENCY, INC.,Butler, PA 16001.
Larry Sommers, Account Executive. Phone: 724-283-8181. Fax: 724285-9180. E-Mail: lsommers@howardinsurance.com. Insurance for distributors/wholesalers.
YALE INDUSTRIAL TRUCKS-PITTSBURGH., INC., Monroeville,
PA 15146. Christopher Burns, Pres. Phone: 412-856-9253. Fax: 412372-2941. E-Mail: sales@yalepittsburgh.com. Material Handling Equipment-Yale Forklift Trucks.
LABATT USA, Buffalo, NY 14202. John Nicotra, District Mgr. Phone:
716-604-1073. E-Mail: jnicotra@labattusa.com. Labatt Blue, Labatt Blue
Light.
THE LION BREWERY, INC., Wilkes-Barre, PA 18705. Michael Luksic, Sales/Marketing Mgr. Phone: 570-823-8801. Fax: 570-823-6686. EMail: info@lionbrewery.com. Stegmaier Gold Medal, Stegmaier Porter,
Steg 150, Stegmaier Brewhouse Bock, Stegmaier Midsummer White,
Stegmaier Oktoberfest, Stegmaier Holiday Warmer, Lionshead, Lionshead Light, Pocono Lager, Pocono Amber Ale, Pocono Blond Ale, Pocono Pale Ale, Lion Root Beer, Olde Philadelphia Sodas.
D.G. YUENGLING & SON, INC., Pottsville, PA 17901. David Casinelli, COO. Phone: 570-622-0153. Fax: 570-622-6203. E-Mail: smandel@yuengling.com. Yuengling Premium, Yuengling Light, Lord Chesterfield Ale, Dark Brewed Porter, Traditional Lager, Yuengling Original
Black & Tan, Light Lager.
14
MBDA’S YEAR
IN REVIEW
Hundreds of hours are spent on legislative, regulatory and
court issues; attending and testifying at public hearings and
workshops; commissioning polls to determine public opinion on beer in supermarkets; keeping our members updated
by newsletters and special reports; servicing member discounted programs; planning our annual convention; compiling our trade directory; raising funds for DISPAC, our
Legal Defense Fund, and our Public Relations Fund; sponsoring and attending legislative receptions and participating
in alcohol awareness programs.
The following is a brief summary of MBDA’s activities and
accomplishments for our fiscal year ended June 30, 2008.
It conveys the dedication and hard work of our officers,
directors, members and staff.
Legislation: MBDA is working hard to stop supermarkets
and convenience stores from using “R” and “E” licenses to
sell beer. We contacted all Pennsylvania House and Senate
Members and outlined the reasons why beer should not be
sold in these non-traditional outlets. Positive responses
were received from many legislators. They are well aware
that beer distributors offer great prices, selection and service and have an excellent record in preventing sales to minors.
Beer in supermarkets and convenience stores would result
in the loss of thousands of jobs by distributors and Pennsylvania breweries. The loss of these wages would have a ripple effect throughout the Pennsylvania economy, resulting
in lost income taxes, real estate taxes, and other local taxes.
At the same time, we are increasing support for 12-pack
sales by beer distributors. It is unfair that we remain the
only Pennsylvania licensees not permitted to sell in less
than case quantities. If legislators want Pennsylvania’s alcohol laws to be more consumer friendly, why not give us
the opportunity to sell 12-packs to our customers!
Litigation: MBDA quickly responded to the latest challenge to beer distributors. We retained counsel to represent
our distributors’ interests against the PLCB in granting
Sheetz an “E” license and Wegmans an “R” license to sell
beer. Commonwealth Court reversed the PLCB’s approval
of Sheetz’ license, Sheetz and the PLCB appealed the decision to the Supreme Court, and we are awaiting their decision.
Wegmans applied for “R” licenses for ten of their Pennsylvania stores, and proudly proclaim that they want to preserve their family dining atmosphere by selling only beer
and wine! MBDA has filed objections to the transfers.
You have our assurance that MBDA will continue to pursue
your rights in court. But, this takes money. So please
make a contribution of at least $100.00 to the MBDA Legal
Defense Fund.
15
Public Relations Campaign: We retained the services of
Triad Strategies, a public relations firm, to help MBDA get
our message out to the public and legislature on the negative impact that beer sales in supermarkets and convenience
stores would have on Pennsylvania.
Polls: MBDA commissioned two noted pollsters, Terry
Madonna Opinion Research and Susquehanna Polling &
Research, to determine public opinion on the issue of beer
in supermarkets and convenience stores. Consumers are in
favor of keeping our current system intact.
Programs & Seminars: We support the PLCB’s Responsible Alcohol Management Program and sponsored employee RAMP training. The Association participated in
DUI prevention programs, such as “Slow on the Bottle,
Enjoy the Road”. Our officers and directors were active in
their local community’s alcohol education campaigns to
promote responsible hospitality practices, combat underage
and abusive drinking, and accordingly reduced the possibility of additional restrictions being placed on licensees.
Political Receptions: MBDA supported and attended
breakfasts, cocktail parties, dinners and golf outings for
legislators who are supportive of our issues. We sponsored
a legislative breakfast and day on the hill with our state
lawmakers to discuss beer in supermarkets and 12-pack
sales by distributors. Distributors—please make a contribution to DISPAC (MBDA’s political action committee) to
enable us to continue to sponsor and support legislative
events.
Annual Convention & Trade Directory: The Association
presented the largest state distributor convention in the
country. We published our 2008 Trade Directory, regarded
as the official handbook for the industry in Pennsylvania.
Discounted Programs: Through PNC Merchant Services,
Association members’ discounted processing fees were reduced to a low 1.85% for MasterCard, Visa & Discover
debit cards and 1.95% with no transaction fees for MasterCard, Visa & Discover credit cards. Our members continue
to receive reduced rates and saw a 4% return on their premium through our business insurance program with Penn
National. Without the buying power and organizational
structure of MBDA, these discounted programs would not
possible.
Public Hearing: On September 12, 2007, MBDA testified
at a public hearing in Philadelphia called by the House
Committee on Liquor Control on beer sales in supermarkets
and convenience stores. President David Shipula spoke on
behalf of 1,300 beer distributors in support of House Bill
1637 to stop these sales. Also testifying against expanding
the types of outlets permitted to sell alcoholic beverages
were PAUD, the Philadelphia chapter of MADD, and two
local civic associations. We thank Roger Ackerman, Mike
Adelizzi, Ed Klunk, Tom Lynch, Tom Mehaffie, Alex Piermani, Keith Rutt, Carl Schultz, Mark Tanczos and Jim
Yaple for attending the hearing on behalf of MBDA.
DISTRIBUTORS—
CONTACT YOUR
HOUSE MEMBERS.
RETURN THE ENCLOSED
MBDA MEMBERSHIP INVOICE
WITH YOUR DUES CHECK.
See Page 2 For
More Information.
SHOW THEM THE ENCLOSED
FLYER & ASK THAT THEY SUPPORT HOUSE BILLS 1637 & 1886
TO PROHIBIT SUPERMARKETS
& CONVENIENCE STORES FROM
USING “R” & “E” LICENSES
TO SELL BEER.
Use The Talking Points
Outlined On Pages 4 & 5.
SAVE MONEY AND JOIN MBDA’S
DISCOUNTED MEMBERSHIP PROGRAMS.
See Pages 8 & 9
For More Information.
CONTACT YOUR SENATORS
TO OPPOSE SENATORS
RAFFERTY’S & LOGAN’S
“PACKAGE REFORM” PROPOSAL.
MAKE A CONTRIBUTION TO
MBDA’S LEGAL DEFENSE FUND
SO WE CAN CONTINUE
TO DEFEND OUR POSITION IN
COURT AGAINST BEER
IN SUPERMARKETS &
CONVENIENCE STORES.
See Pages 6 & 7
For More Information.
TELL THEM THAT “YES”
YOU WANT TO SELL 6 & 12-PACKS
TO YOUR CUSTOMERS,
BUT NOT AT THE EXPENSE OF
GIVING SUPERMARKETS &
CONVENIENCE STORES
ADDITIONAL QUANTITIES &
PACKAGES TO SELL.
Use The Talking Points
Outlined On Page 6.
MAKE A CONTRIBUTION TO
MBDA’S PUBLIC RELATIONS FUND
SO WE CAN CONTINUE TO
GET OUR MESSAGE OUT TO
LEGISLATORS & CONSUMERS
BYWAY OF NEWSPAPERS,
TELEVISION & RADIO.
See Page 6 For More Information.
MAKE A CONTRIBUTION
TO DISPAC.
IT ENABLES US TO SHOW
SUPPORT FOR LEGISLATORS
WHO ARE FAVORABLE TO
THE BEER INDUSTRY.
See Page 11 For More Information.
BECOME RAMP CERTIFIED.
See Page 11 For More Information.
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