madpitch (1) - Madden Beverage

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Madden Beverage
Outline of Business Operations
June 12, 2012
Maine State Department of Liquor Licensing and Compliance
164 State House Station
Augusta, Maine 04333-0164
Madden Beverage was founded in late 2000 as Madden Redemption, Inc. Madden Redemption Center began
operations as a 1,350 ft2 manual sort recycling center in accordance with the Maine bottle bill. Proceeds of Madden
Redemption’s operating capital were reinvested to construct a store that would specialize in the sale beer, wine, nonalcoholic beverages and brewing supplies. Madden Beverage was constructed in 2003, and began operations on
December 1, 2003. Madden Beverage has held a license to sell malt liquor and wine for off-premise consumption for
more than 8 years. Since its inception, Madden Beverage has focused its product line on the sale of beer (47% of sales)
and wine (28% of sales).
Company Officers:

Edward T. Madden, President – Saco resident and 1981 graduate of Thomas College in Waterville,
Maine. BS degree in Business Management.

Thomas M. Madden, Treasurer – Saco resident and 2008 graduate of Bryant University in Smithfield,
Rhode Island. BS degree in Finance.
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Redemption Center opens December 2000
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Beverage store opens November 2003
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Madden Beverage’s product focus is on beer (47% of sales) and
wine (28% of sales)
Madden Beverage currently operates a 2,400 ft2 retail facility exclusively focused on the sale of beer, wine, nonalcoholic beverages and brewing supplies. Madden Beverage sits on a 1 acre, which maintains a fully operational
redemption center, as well as parking for up to 23 vehicles. Along with a 2,000 ft2 retail showroom, Madden Beverage
maintains 1,558 ft2 of dry storage to accommodate inventory surplus, fixtures, and equipment.
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2,400 ft2 retail facility
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Parking for 23 vehicles
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High volume redemption center on premise
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1,558 ft2 of dry storage
Madden Beverage is conveniently located at 335 North Street (U.S. Rt. 112) in Saco, Maine, just 1.25 miles from
I-95 Maine Turnpike Exit 36. Madden Beverage is the nearest retailer of beer and wine to Saco’s Turnpike Exit. North
Street experiences 15,550 travelers per day and is centrally located among the Northern Saco population of 9,852.
2
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The nearest retailer of beer and wine to Saco’s Turnpike
Exit 36 (1.1 miles) 1
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Located on U.S. Route 112, which experiences 15,550
travelers per day2
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Located in Northern Saco, which maintains a population of
9,852 (53.3% of total city population)3
Maine GeoLibrary, U.S. Geological Survey
MDOT Traffic Statistics provided at http://www.maine.gov/mdot/traffic/tc.htm
3
2010 Census Data provided at http://2010.census.gov/2010census/popmap/
2
Madden Beverage currently operates on both the retail level at Madden Beverage, but also on the service level at
Madden Redemption. Two separate buildings operate the two lines of business, allowing us to sell beverages in a clean
and quiet environment.
Product Focus
Madden Beverage currently maintains an inventory of 615 beer SKUs and 1,029 wine SKUs. The beverage
market has continued to evolve over the past 9 years and Madden Beverage has succeeded in adjusting to these trends.
While the beer industry has seen a 1.3% decline overall, the craft beer segment has undergone a 15% upward trend
nationwide, and our product focus has adjusted to mirror this trend. Our craft lineup continues to grow; now making up
80% of beer product facings. Wine has trended toward value offerings, and Madden Beverage offers over 50 wines for
under $4.99 to capture this market.
Along with beer and wine, Madden Beverage is a Maine State Lottery vendor, and carries a selection of soda,
chips, sundries, water and tobacco.
Daily Business
Madden Beverage handles an annual average of 171 customers per day, seasonally peaking to 202 customers
per day in the summer months. Madden Beverage is open from 9am to 9pm Monday through Saturday, and is open
from 10am to 6pm on Sunday.
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Currently carrying 615 beer SKUs and 1029 wine SKUs, covering 496 and 683 linear feet respectively

Also selling lottery, soda, water and cigarettes

Servicing an average of 171 customers per day
Madden Beverage offers a number of personalized services to accommodate the needs of our customers. If an item
cannot be found on our shelf, and is available in the State of Maine, it can be ordered through Madden Beverage.
Madden Beverage handles an average of 40 special orders per month. Madden Beverage will also special order kegs.
We are one of few locations offering kegs in Southern Maine. Our keg list is available to the public on our website.
Madden Beverage is a common resource for individuals planning parties and events who need information on serving
practices.

Customers can special order any beer or wine available in the State
of Maine. Handling an average of 40 special orders per month

Madden Beverage stocks and special orders kegs

Assists in event planning and education
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Offers free gift wrapping

Gift baskets are available for holidays and as charitable donations
Madden Beverage maintains a security system that focuses on all entrances, product displays, and point of purchase.
Seven security cameras cover the retail floor, cashier area, office, and parking lot. All doors and windows are wired with
an ADT direct response alarm system that contacts authorities immediately upon intrusion. A motion detection system
triggers the ADT direct response in the event that an individual is able to bypass the door and window security system.
Connected to this system is a silent alarm located underneath the front checkout registers, which automatically contacts
the police department when triggered.
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ADT Direct Response 24 hour system
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7 camera security system
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Door, window and motion alarm sensors
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Cashier emergency alert button
Madden Beverage maintains a strict alcohol sales policy intended to inform all employees of expected practices
when distributing alcohol to patrons. All employees are provided a copy of this policy in the event it needs to be
referenced.
The retail floor clearly displays “We Card” signage upon entrance, at the point of sale and throughout the store
to remind patrons that their identification will be required for purchase. At the point of sale, Madden Beverage provides
cashiers with the current Driver’s License guide to aid in identifying illegitimate or falsified licenses. The point of sale
system allows cashiers to enter the customer’s date of birth as listed on their valid ID to ensure they are of legal
purchasing age.
TIPS (Training for Intervention Procedures by Servers) certifications are maintained by all employees working in
excess of 8 hours per week. This training is intended to identify when a customer is intoxicated or underage. In addition
to preventing the illegal sale of alcohol, store employees learn how to handle intoxicated customers and keep them
from harming themselves and others.
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Point of sale age confirmation for alcohol and tobacco built into
register systems
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“We Card” signage displays
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TIPS certified employees
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Employee alcohol sales policy

I.D. guidebook
The Madden family has resided in Saco for 28 years. For almost 12 years, Madden Beverage has been able to
utilize its line of business to assist in the benefit of numerous non-profit and other organizations. Specifically, Madden
Beverage provides products, consultation, and assistance for two major wine tasting events each year to benefit the
Biddeford Saco Rotary Club and Camp Laughing Loon. Madden Beverage has also assisted in the fundraising efforts of
over 120 organizations by providing a facility and assistance on bottle drive campaigns. Funds are also donated annually
to the following local organizations:
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Saco Little League
Biddeford Firefighters
The Don Fogg Memorial Golf Tournament
Thornton Academy
The Saco Biddeford Rotary
Good Shepherd Parish
Special Olympics
Toys for Tots
Madden Beverage is also an active member of the Biddeford/Saco Chamber of Commerce.
 Assists in annual charitable events including Rotary Club and Camp Laughing Loon wine tasting fundraisers.
 Numerous community sponsorships and donations provided annually.
 Has hosted fundraising collaborations with over 120 local organizations.
 Active member of the Biddeford/Saco Chamber of Commerce.
If allowed, Madden Beverage intends to expand its current product line to offer the retail sale of liquor. Liquor
will maintain 16% of retail floor space and we speculate it will make up approximately 35% of product sales in the first
year. Madden Beverage plans to initially stock approximately 750 SKUs of liquor, with the potential to exceed 1000 over
time.
Madden Beverage intends become licensed as a reselling agent to offer wholesale delivery to local on-premise
retailers. Madden Beverage will diversify these deliveries by offering the pick-up of empty containers for recycling by
our redemption center. Offering on-premise retailers both wholesale liquor drop-off and redemption pick-up will
position Madden Beverage very competitively amongst other wholesale licensees. Madden Beverage currently has the
storage space and equipment necessary to accommodate this style of delivery system, and is prepared to pay associated
licensing fees.
Madden Beverage has found that the demographic of high-end liquor clients are greatly under-serviced in the
Saco area, and Madden Beverage intends to offer a selection of high-end liquors to accommodate this demand. Maine
law currently offers a temporary permit, allowing Madden Beverage to sample higher end liquors to our clients. Title 28A, Chapter 19 §460 allows stores with more than 200 labels to conduct up to three (3) of these tastings each month.
Madden Beverage follow the laws dictated by this statute and will use these tasting opportunities to educate the
population on liquor styles, tasting techniques and alcohol awareness. These events will be integrated into our current
schedule of beer and wine tastings, which take place about once a month (each).
Though Madden Beverage’s current focus is on beer and wine, spirits are not an unknown market. Madden
Beverage works hard to stay on top of market trends and changes in the liquor industry as well. We recognize that due
to the recent economic downturn, there has been a sustained shift in consumption patterns away from bars and
restaurants and more towards at-home consumption in the liquor segment. While sales remain relatively flat overall, a
recent surge in boutique-quality gins, flavored vodka, and small batch domestic spirits is offering an opportunity to
capture trending sales in an otherwise stagnant industry. If allowed, Madden Beverage would focus its product line first
on nationally recognized brands and value offerings, but also on premium and trending small batch spirits. By offering
these unique and trending products, Madden Beverage can add an otherwise underrepresented value to the spirit
industry in Saco as a whole.

Will stock 750 SKUs of spirits over 254 linear feet.

Will offer wholesale delivery and redemption pickup to local on-premise retailers.

Will offer high-end, premium, and trending product offerings.

Will host community tasting and education events pursuant to Title 28-A, Chapter 19 §460.
Title 28-A: LIQUORS
Part 2: STATE AND AGENCY LIQUOR STORES
Chapter 15: STATE AND AGENCY LIQUOR STORES
§351. Proximity to churches and schools
1. State or agency liquor store may not be located within 300 feet of school or church. The alcohol bureau may
not establish a state liquor store or the bureau may not license an agency liquor store within 300 feet of
any public or private school, church, chapel or parish house.
Source: Maine GeoLibrary, U.S. Geological Survey
Store Layout
Saco Population Map
Title 28-A: LIQUORS
Part 2: STATE AND AGENCY LIQUOR STORES
Chapter 19: AGENCY LIQUOR STORES
§453-A. Issuance of agency liquor store license
5. Licensing decisions. When considering the issuance of a license, the bureau shall consider the proximity of the
proposed agency store to existing agency stores and the potential impact the location of the proposed agency store may
have on an existing agency store.
Downtown Saco Map With Traffic Counts
Source: http://www.sacomaine.org/archives/mdot_traffic_count_map_letter.pdf
Direct Distance to Current Licencees:

Hannaford Supermarket – 1.25 miles

Bob and Mike’s Citgo – 1.33 miles

Shaw’s Supermarket – 1.11 miles
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