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 73, Issue 3 July, 2009 M B DA N E W S L E T T E R MBDA MEMBERSHIP— “STRENGTH, SERVICE, VALUE” INSIDE THIS ISSUE: DUES ARE DUE 1 2 2 MBDA LOBBYING 2 PUBLIC RELATIONS 2 2 2 2 2 COURT VICTORY YOUR INVESTMENT GROCERY CAFES WINE VENDING E-MAIL ADDRESS MBDA WEB SITE 2010 CONVENTION DISPAC CONTRIBUTORS DAY ON HILL SB 970 & HB 1833 MAKE CONTACTS LOCAL OFFICIALS GIANT EAGLE SHURFINE THOMAS MARKET WEGMANS WEIS WHOLE FOODS BE ON ALERT LEGAL FUND CONTRIBUTORS PROGRAM DISCOUNTS LET US HELP YOU SALES TO MINORS RAMP CIGARETTES COUNTY MEETINGS 2009 CONVENTION AWARD WINNER SUPPORTERS ASSOCIATE MEMBERS MBDA OFFICERS MBDA DIRECTORS 2 3 3 3 3 3, 4 4 4 4 4 4, 5 5 5 5 5 5, 8 6, 7 8 8 8 8 8 9 10 10 10 10 10, 11 YEAR IN REVIEW 11 11 11 11 11 REMINDERS 12 VACANCIES HB 291 HB 479 HB 996 VICTORY—PA SUPREME COURT RULES IN FAVOR OF BEER DISTRIBUTORS PLCB STOPS BEER SALES AT SHEETZ On June 15th the Pennsylvania Supreme Court, in a 5-1 opinion, held that the Sheetz, Altoona, restaurant/convenience store/gas station is not entitled to a retail dispenser license to sell beer. This decision upholds the Commonwealth Court decision issued in February, 2007. Sheetz, in the hearing on its license before the PLCB, had made clear that it would not serve beer for on-premises consumption but only for take out. Commonwealth Court and now the Supreme Court have held that take-out only policy is illegal under the Liquor Code. The Court agreed with MBDA’s arguments that: (a) Allowing a retail dispenser to sell for take-out purposes only “affords [Sheetz] the benefits of a distributor license without imposing the accompanying restrictions” and allows it to “act as a distributor …yet not be burdened with the restriction of selling by the case.” (b) Allowing Sheetz to operate in that fashion would “infringe upon the market niche legislatively carved for the distributor and would “expand the character of retail dispenser outlets to encompass commercial entities, unlike hotels, restaurants, clubs and eating places, which do not currently engage in the sale of alcohol.” (c) Any such expansion as mentioned in (b) is a policy determination for the legislature. (d) The PLCB used a “loophole” to issue a license to Sheetz. (e) Using such a loophole “far more commercial facilities, which were never clearly contemplated by the Legislature to sell beer through any provision of the [Liquor] Code, could be licensed to sell six-packs.” (f) The PLCB’s interpretation of a retail dispenser “is contrary to the clear legislative scheme regarding beer distribution.” We are awaiting comment from the PLCB as to the effect this decision will have on other pending license protests MBDA has filed against Wegmans, Weis, Giant Eagle, Whole Foods and others. It should be noted that the law firm representing Sheetz is the same firm representing Wegmans and virtually every other supermarket in their quests for a license to sell beer from what they call their “restaurants” but what are in truth no more than the beer aisle of their supermarkets. We are optimistic that this decision is a predictor of good news on the Wegmans and other supermarket cases, but we will need to be patient and await Supreme Court action on MBDA thanks each and every contributor to the Legal Defense Fund. those cases. Without your support this result could never have been achieved. 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 MBDA MEMBERSHIP— AN INVESTMENT IN YOUR FUTURE MBDA PUBLIC RELATIONS It is imperative that we continue to raise awareness to the negative impact that beer in supermarkets and convenience stores/gas stations will have on Pennsylvania. MBDA retains 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. A portion of your membership dues pays for this effective campaign. For the membership year ended June 30, 2009 MBDA had 419 members. Distributors join because they recognize the need for a state-wide trade association to lobby and educate legislators about their concerns as well as to use their collective power to obtain discounted program benefits. Were it not for the strength of our trade association, many distributors would be out of business! Supermarkets and convenience stores would have launched an all-out attack to obtain a grocery store license and would not be trying to sell beer under the pretense of eating-place and restaurant licensees. They want you out of business so that they can sell your products right next to their other consumer goods. RESTAURANTS IN SUPERMARKETS? Wegmans, Weis and Thomas 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 “The beer aisle...coming to a grocery store near you?” to your Senator and House Member. It’s a very effective tool in presenting your case. Members are guaranteed the lowest possible rate with no transaction fees to process credit and debit cards through PNC Merchant Services. Each member enrolled in our business insurance program with Penn National received a dividend check representing 10% of their paid premium on all lines except umbrella. This was the fourth consecutive year that our members saw a return. RENDELL POSTPONES WINE VENDING MACHINE PROGRAM A pilot program to establish self-serve kiosks that would sell wine in PA has been put on hold by Governor Rendell. 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! A press release was issued June 2nd announcing that the PLCB would begin a pilot program placing self-serve wine kiosks in grocery stores in the fall. The press release was recalled a short time later. Governor Rendell’s spokesman Chuck Ardo said, “He approved the planning for this, but had not approved the program itself. And the Liquor Control Board just jumped the gun on this.” DUES ARE DUE Join MBDA for the current membership year, July 1, 2009 to June 30, 2010, by returning the enclosed invoice with your check. “D” distributor dues are based on annual gross sales as follows: $400.00 for D’s selling under $1 million, $500.00 for D’s selling $1 to $2 million, and $550.00 for D’s selling over $2 million. “ID” distributor dues are $550.00. MBDA membership dues remain among the lowest of any state distributor association, and the major portion of your dues is tax deductible as noted on your invoice. The PLCB conducted an open-bid process for technology that would allow wine to be sold from kiosks in a way that would prevent the sale to underage or intoxicated persons. The recalled press release indicates that if the pilot program were successful, the kiosks would be set up in as many as 100 locations. But Ardo says the governor has communicated to the PLCB that he’s not ready to green-light the pilot program. 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 we are only a phone call away. YOUR E-MAIL ADDRESS Members who provided MBDA with their e-mail address were notified of the Supreme Court decision shortly after it was rendered. Members—If we don’t have your address, please e-mail us at mbdassn@aol.com. 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. We look forward to your support. MBDA’S WEB SITE A summary of the Supreme Court decision was posted on MBDA’s web site. Please be sure to visit us at www.mbdapa.org to get the latest industry news. MBDA LOBBYING MARK YOUR CALENDAR MBDA is represented in Harrisburg by Scott Baker and Eric Battisti of the government relations firm—Buchanan, Ingersoll & Rooney. A portion of your membership dues pays for these well-respected lobbyists. MBDA’s 74th Annual Convention & Trade Show has been scheduled for April 24, 25, 26, 2010 at the new Lancaster Marriott Hotel. You’ll receive details in January. 2 DISTRIBUTORS POLITICAL ACTION COMMITTEE SB 970 & HB 1833—STOP SUPERMARKETS & CONVENIENCE STORES FROM SELLING BEER 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 our 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 6 & 12-packs to consumers. Supermarkets and convenience stores/gas stations are selling beer under the pretense of “E” (eating-place retail dispenser) and “R” (restaurant liquor) licenses. They are using a loophole in a PLCB regulation that permits an interior connection between licensed premises (where beer is sold) and another business. Sheetz made mockery of Pennsylvania’s Liquor Code before their license was revoked as a result of the June 15th Supreme Court decision. You are urged to make a contribution. Mail a personal or partnership (no corporate) check to DISPAC, 230 S. Broad St., Suite 903, Philadelphia, PA 19102. To stop grocery and convenience stores/gas stations from selling beer, Kim Ward (R-Westmoreland) introduced Senate Bill 970 and Ted Harhai (D-Fayette & Westmoreland) House Bill 1833. SB 970 was co-sponsored by Senators Larry Farnese (D-Philadelphia) and Mike O’Pake (DBerks). THANK YOU DISPAC CONTRIBUTORS As we go to press, Chairman Roger Ackerman thanks the following distributors for their generous 2009 DISPAC contributions: Gloria Apollo. James Baran. Ron Baumbach. Joseph HB 1833 was co-sponsored by Representatives Steve Barrar (R-Chester & Delaware), Joseph Brennan (D-Lehigh & Northampton), Ron Buxton (D-Dauphin), Thomas Caltagirone (D-Berks), Paul Clymer (R-Bucks), Dom Costa (D-Allegheny), Craig Dally (R-Northampton), Seth Grove (R-York), Richard Grucela (D-Northampton), Gary Haluska (D-Cambria), Michael Hanna (D-Centre & Clinton),Patrick Harkins (D-Erie), Nick Kotik (D-Allegheny), Deberah Kula (D-Fayette & Westmoreland), Jim Marshall (R-Beaver), Robert Matzie (D-Allegheny & Beaver), Anthony Melio (D-Bucks), John Pallone (D-Armstrong & Westmoreland), Eddie Day Pashinski (D-Luzerne), Harry Readshaw (D-Allegheny), Tim Seip (D-Berks & Schuylkill), Ken Smith (D-Lackawanna), Timothy Solobay (DWashington), Edward Staback (D-Lackawanna & Wayne), Rosemarie Swanger (R-Lebanon) & John Yudichak (DLuzerne). Bound. Terry Bucks. Joseph Chobody. Lou Colangelo Tony Colangelo. Alex & Lisa Cortezzo. Wayne & Madonna Crouse. Ernie Cruciani. Bob DeBone. Charles DeMarco. Martin Denial. Russ Dennison. Robert D’Eramo. Tom Derr. Arun Desai. David Dripps. Paul Farthing. Patrick Flannery. Stephen Gabler. John Galli. Jim & Kathy Goldinger. Myong & Chang Han. Don Heim. Chris Hickey. Maureen & Donald Hicks. Hallowell Bev. Ed Klunk. Michael Kondak. Tak Hong Lao. Un Do & Nam Sook Lee. Kenneth Lewis. Barbara Lynch. Tom Lynch. John McElroy. Tom Mehaffie. John Merolillo. James & Susan Middleton. Larry & Judy Mumbauer. Thomas Myers. Rocco Nicoletti. James Novelli. Sandra Palermo. Raj Patel. Alex & David Piermani. Alberta Rogers. Randy & Janet Royer. Keith Rutt. Joseph & Rose Sarnelli. Eric Seeley. David Shipula. Cynthia & Sam Smith. Michael Spaziani. Mark Tanczos. Joseph & Mary Ellen Tssario. Ted & Ron Valenti. Jessica Wheeland. James & Sally Wolf. SB 970 is in the Senate Law & Justice Committee and HB 1833 is 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. It doesn’t affect taverns, delicatessens, or bowling alleys who sell take-out beer. MBDA has sent letters to all Senators requesting their support of SB 970 and all House Members requesting their support of HB 1833. LEGISLATIVE BREAKFAST AND DAY ON THE HILL On April 21st, all MBDA members were invited to attend breakfast and meetings at the State Capitol with our Senators and House Members to discuss stopping beer sales by supermarkets and convenience stores and allowing 6 & 12-pack sales by distributors. MBDA has consistently taken the position, and the Commonwealth and Supreme Courts agreed, that the legislature never intended to allow these outlets to sell take-out beer, in bulk, using "E" and "R" licenses. For the PLCB to allow them to do so is a misinterpretation of the Liquor Code. DISTRIBUTORS ARE URGED TO— Contact your Senator and ask him/her to support SB 970 and your House Member to request that he/she support HB 1833. Have your family members, friends, and employees do the same. Legislators will be at their district offices over the summer. 2010 is an election year, and they want to hear from their voting constituents. We’ve enclosed two flyers, “The beer aisle...coming to a grocery store near you?” Give one to your Senator and the other to your House Member. We prepared and distributed a booklet “Why Supermarkets and Convenience Stores/Gas Stations Should Not Sell Beer in PA”. It contained circulars and signage in which supermarkets showcase beer as the equivalent as any other consumer product; public poll results and industry research indicating that supermarket beer sales will lead to an increase in underage drinking; statistics showing our excellent record in not selling to minors; and information on the vast economic and social impact made by Pennsylvania’s beer distributors. 3 Tell them that if supermarkets and convenience stores are permitted to continue to portray themselves as restaurant and deli licensees— CONTACT LOCAL OFFICIALS 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. Over 1,300 local, small businesses will go out of business. Profits will go out of state. More than 10,000 jobs will be lost. Store fronts will be vacant. Our youth will have greater access to alcohol. Point how you offer beer to the public in a responsible manner. Proudly quote 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. GIANT EAGLE As we go to press, Giant Eagle has filed applications for 7 licenses—6 in Allegheny County and 1 in Erie. MBDA filed Petitions to Intervene in each. Hearing dates before a PLCB appointed hearing examiner have been scheduled for July 23rd in Pittsburgh. Locations are: 420 E. Waterfront Drive, Homestead 4010 Monroeville Boulevard, Monroeville 110 Settlers Ridge Center Drive, Pittsburgh 9901 Mountain View Drive, West Mifflin 1029 West View Park Drive, West View 155 Town Centre Drive, Wexford 4400 Buffalo Road, Erie Grocery store sales would contribute to an increase in underage drinking, as 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. Research conducted by the Pacific Institute for Research and Evaluation shows that when alcohol is more easily available, people drink more and more alcohol–related problems occur. We know of other Giant Eagle applications expected to be filed, including an additional location in Erie; another in Seven Fields, Butler County; and another in Strabane Square, South Strabane Township, Washington, PA. MBDA will file protests to all pending transfers. Advise your state lawmakers of the tremendous, lifetime investment you have made in your business. Distributors have signed leases, purchased buildings, and hired employees based on longstanding state liquor laws. Tell them how many people you provide with good-paying jobs including quality benefits, the taxes that you generate, and how your profits stay in your community and in Pennsylvania. Many supermarkets and convenience stores are out -of-state corporations. SHURFINE (NEIL’S INC.) Shurfine Supermarket on Route 422 in South Heidelberg Township (Berks Co.) applied for a license. MBDA filed a Petition to Intervene, and we are awaiting a hearing date before the hearing examiner. Let them know the good prices, excellent service, vast selection, and convenient hours that you offer your customers. Advise them of how active you are in your community, and include the civic and charitable events that you sponsor and support. Supermarkets and convenience stores selling beer does far more to serve the financial interests of big-box store chains than the interests of Pennsylvania’s consumers. THOMAS MARKET (CLUB PARTNERS VENTURES, INC.) Thomas Market in Dallas (Luzerne Co.) applied for a license. A hearing was held before a hearing examiner, and as expected the license was granted. MBDA filed an appeal to Commonwealth Court, and we are awaiting a date for oral argument. Finally, tell them that recently the Colorado, Delaware and Kansas legislatures rejected supermarket and convenience store attempts to sell beer. Passage of SB 970 and HB will stop a floodgate of new outlets from appearing in Pennsylvania where beer will be available in many grocery stores, convenience stores, gas stations, Target, Wal-Mart, etc. WEGMANS Commonwealth Court upheld the PLCB in granting Wegmans licenses for their locations in Bethlehem, Dickson City, Easton, State College, Wilkes-Barre and Williamsport. MBDA filed a Petition for Allowance of Appeal with the PA Supreme Court, and we are cautiously optimistic that the Court will hear our appeal. A Kings Bench petition has been filed with the PA Supreme Court asking that the appeal in the Thomas’ Market matter, above, be joined with these Wegmans appeals. And, please call or send a letter to Sen. Kim Ward and Rep. Ted Harhai to thank them for their support of small business. Also thank the co-sponsors, especially if they are in your district. Contact information for each Senator can be found online at www.pasen.gov. For House Members, go to www.house.state.pa.us. Or call MBDA’s Executive Office, and we’ll be happy to assist you. 4 The PLCB granted licenses to 8 additional Wegmans supermarkets, and the hearing examiner approved the transfers. MBDA filed appeals with Commonwealth Court, and we are awaiting a date for oral argument. Locations are: 3900 Tilghman Street, Allentown Providence Town Center, Routes 422 & 29, Collegeville 1056 E. Lancaster Avenue, Downingtown 6143 Peach Street, Erie and 5028 W. Ridge Road, Erie Worthington Town Square, Routes 202 & 29, Malvern 6416 Carlisle Pike, Mechanicsburg 1405 Main Street, Warrington LEGAL FUND CONTRIBUTORS We thank the following distributors for their contributions to the MBDA Legal Defense Fund for 2009. Contributors are listed alphabetically, by trade name: Academy in Philadelphia. Ace in York. AM Discount in Carrolltown. Don & Mary Anderson. Ardmore Park in Ardmore. Aston in Aston. B & B in Doylestown. Babcock in Pittsburgh. Bald Eagle in Lock Haven. B & K in Dillsburg. Banko North in Scranton. Banko Real Estate in Bethlehem. Banksville in Pittsburgh. Barbone in Norristown. Barkley in Bradenville. Bayview in Erie. Bean in Pittsburgh. Beaver County in Monaca. Beck’s in Washington. Beer & Pop in Bridgeville. Beer & Pop Discount in Erie. Beer & Soda Mart in Red Lion. Beer-A-Rama in Levittown. Beer Arena in Greensburg. Beer Express in Harrisburg. The Beer Barn in Bradford. Beer City in Quakertown. Beer King in Harrisburg. Beer Mart in Morrisville. Beer Mart in Reading. Beermill in West Chester. Beer Minimum in Pittsburgh. Beer Nutz in Verona. The Beer Place in Lancaster. Beer Super in Wilkes-Barre. Beer Zone in Lyndora. Beer Zoo in Harrisburg. BeerCo in Allentown. Bellevue in Pittsburgh. Bensalem in Bensalem. Berks in Reading. Berks in Laureldale. Berrys in Emlenton. Beverage Express in Carlisle. Beverage Warehouse in Greensburg. Beverage World in Phoenixville. The Beverage Zone in Fairless Hills. Birdsboro in Birdsboro. The Bottle House in New Holland. Bound in Bensalem. Brass Rail in Campbelltown. Breski in Harrisburg. Brew Avenue in Washington. Brewmeister in Grove City. Brew Zoo in Altoona. Brewers Outlet in Chadds Ford. Brewers Outlet in Dunmore. Brewers Outlet in Woodlyn. BrewThru in Pittsburth. Brian’s Brew’ry Outlet in Shaler. Brighton in New Brighton. Brookline in Pittsburgh. Bud’s Suds in Cranberry Twp. Cadden in Scranton. Cape Horn in Red Lion. Carnegie in Carnegie. Carrick in Pittsburgh. Case & Keg in Shrewsbury.ChalBrit in Chalfont. Champion in Coal Township. City in Berwick. Clifford in Clifford. Cold Case in Harrisburg. Corner in Pittsburgh. Coventry in Pottstown. Craig in Pittsburgh. Wayne Crouse in Pittsburgh. Crown in Clarks Summit. Ernie Cruciani in Phoenixville. Daubert in Pine Grove. Denver in Denver, Deon in Bristol. Pat Deon in Fairless Hills. Doc’s in Philadelphia. Duffey’s in Pittsburgh. Dunbar in Lehighton. E & E in Lebanon. Edgemont in Newtown Square. Edinboro in Edinboro. Elizabeth in Elizabeth. Ellis in Wilkes-Barre. Engleside in Lancaster. English Bros. in Elizabeth. Ephrata in Ephrata. Erme’s in Sharon. Essex in Oakdale. E-Town in Elizabethtown. Exton in Exton. Finleyville in Finleyville. Flannery in Scranton. Flynn in Towanda. Forestville in Forestville. Fort Allen in Greensburg. Fox in Dover. Franklin in Ellwood City. Frank’s in Quakertown. Frosty Caps in Abington. Fulton in Boothwyn. Gabler’s in Shippensburg. Galli in New Kensington. Genna in Philipsburg. Goff’s in Clifton Heights. Girard in Girard. Goshen in West Chester. Grandview in Erie. Great Valley in Frazer. Green Valley in North Versailles. John & Cheryl Grunden in Wrightsville. Hallowell in Horsham. Happy Valley in Boalsburg. Harmony in Blakeslee. Hatboro in Hatboro. Home Service in Williamsport. House of Brew in York. Hummelstown in Hummelstown. Ickesburg in Ickesburg. Antonio Incardona in Johnstown. Iron Run in Allentown. Jack’s in Clearfield. JB in Smethport. JBW in Sellersville. Jeannette in Jeannette. Juniata in Bedford. Kasunick in Pittsburgh. Kouch in Glenolden. L & N in Harrisburg. Lakeside in Conneaut Lake. Latrobe in Latrobe. Letterio in West Newton. Liberty Bell in Allentown. Liberty Bell in Schnecksville. Link in Coopersburg. Lionville in Exton. (See Page 8 for continuation of contributors). WEIS Previously, the PLCB granted licenses to Weis for their supermarkets in Schnecksville and Tannersville. Weis requested licenses for 4 additional locations: 13011 William Penn Highway, Easton 6901 Westbranch Highway, Lewisburg 916 Lycoming Creek Road, Williamsport 2759 Paper Mill Road, Wyomissing MBDA filed Petitions to Intervene. Hearings before a hearing examiner were held for the Williamsport and Wyomissing locations, and as expected the licenses were approved. MBDA filed appeals with Commonwealth Court, and are awaiting a date for oral argument. We are awaiting hearing dates before a hearing examiner for the Easton and Lewisburg locations. WHOLE FOODS Whole Foods Market Group Inc. filed for a license for their supermarket located at the Plymouth Meeting Mall, 500 W. Germantown Pike Plymouth Meeting. MBDA filed a Petition to Intervene, and the hearing is scheduled for August 3rd. DISTRIBUTORS— PLEASE BE ON THE ALERT If you see an orange PLCB notice of license transfer posted in any supermarket or convenience store location, please contact MBDA’s Executive Office so that we can take appropriate action. PLEASE MAKE YOUR MBDA LEGAL DEFENSE FUND CONTRIBUTION To date, MBDA’s Legal Defense Fund has spent $295,000 in litigation and expenses to oppose 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 the PA Supreme Court in the Sheetz litigation, and we are hopeful that this decision is a predictor of good news on the Wegmans and other supermarket cases. Distributors who have not made their contribution for 2009 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. 5 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 215-732 -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! 1.89% flat discount rate for Visa, MasterCard, Discover debit. To process an average $31.00 debit card ticket your cost is only 59¢. 1.99% flat discount rate for Visa, MasterCard, Discover credit. To process an average $31.00 credit card ticket your cost is only 62¢. 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. Low pricing to lease or purchase the latest 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. Monies are deposited into your business checking account within 2 calendar days. 1 day, for PNC bank customers. Fee collection is monthly, not daily. Surcharge for reward cards is processed at pass-through only. There are no add-on charges. 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. While our endorsed broker is Wells Fargo, 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: Competitive pricing on automobile, casualty, property, umbrella and worker’s compensation coverages. Low cost liquor liability. 10% credit on auto, business owners & worker’s compensation. 10% credit on liquor liability if you use an electronic scan device. Dividend opportunity based on our group’s loss ratio. Each member received a 10% dividend check for the period ending April 2008, the fourth consecutive year that a dividend was declared. Health Insurance Program: Administered through Wells Fargo, the same agency who gives you superb pricing and service for your business insurance needs, can tailor a plan specifically for your needs: Access to many health care insurance providers. An excellent network of doctors and hospitals. 6 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 @ $1,350.00 (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 employees of distributor 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. MBDA Web Site: Visit www.mbdapa.org for the latest industry news. 7 In addition, pin debit network access fees, compliance fees, security breach fees are being added by many other processors. Be aware of one time setup fees, application fees, programming fees and other start up fees that can erase any proposed savings. Batch fees, which we do not incur in our program, are often not disclosed in some proposals. Supplies are not usually discussed, and we have seen some instances where a case of terminal paper can cost up to $100. LEGAL FUND CONTRIBUTORS (Continued from Page 5) Mac’s in Maple Glen. Manoa in Havertown. Maple Creek in Charleroi. McTighe’s in Glenshaw. Mechanicsburg in Mechanicsburg. Mellinger in Pittsburgh. Mid-State in Williamsport. Mock in Springdale. Montour in Montoursville. Moon in Coraopolis. Mount Pocono in Mount Pocono. Mount Union in Mount Union. Mr. Beer In Wyomissing. Mr. Bottle in Berwyn. Mt. Bethel in Mt. Bethel. Myrna’s in New Kensington. Narberth in Narberth. Nazareth in Nazareth. Nicoletti in Philadelphia. North 8th Street in Reading. Northern in Pittsburgh. North Penn in Souderton. North Wales in North Wales. North York in York. P & B in Perkiomenville. Paoli in Paoli. Paxinos in Paxinos. Penn-Thrift in Levittown. Perry in Pittsburgh. Pete’s in Pittsburgh. Pete’s in Ellwood City. A. Piermani in Conshohocken. Pike in Oakdale. Pistella in Pittsburgh. K.E. Pletcher in State College. Port in Port Allegheny. Presque Isle in Erie. Quality in Hazleton. R & R in Fredericksburg. C.R. Rader in Boyertown. RBC in Belle Vernon. Reading in Reading. Red Land in Etters. Rite Buy in Clifton Heights. Robinson in McKees Rocks. Rockland in Reading. Root in Mount Joy. Rt. 19 in McMurray. Ross in Canonsburg. Rossville in Rossville. Ruger’s in Levittown. Rukas in E. Vandergrift. Santiago in Imperial. Sacco in Berwick. Salute in Pittsburgh. Sam’s in Arnold. Save On Beer in Mars. Self Serve in York. 7517 Chung in Philadelphia. Shannock Valley in Yatesboro. Shrewsbury in Shrewsbury. Shiloh in York. Shippensburg in Shippensburg. Silver Spring in Mechanicsburg. Jerry Simcoe in Walnutport. Skippack in Creamery. Southampton in Southampton. South Pittsburgh in McMurray. South Side in Pittsburgh. Spaz in West Chester. Star Bev. In Altoona. State Budget in Indiana. Straub in Slippery Rock. Stubler in Oil City. Summit in Clarks Summit. Super Value in Warminster. Susquehanna in Hallstead. Tanczos in Bethlehem. Tanczos in Northampton. Taters Lycoming in Williamsport. Thirsty’s in Warrington. Titusville in Titusville. Thorndale in Thorndale. Thrifty Bev. In Hanover Twp. Tionesta Bev. in Tionesta. TNT in Harrisburg. Towamencin in Kulpsville. Tube City in McKeesport. Upper Darby in Upper Darby. Valley in Pennsburg. Valley Forge in King of Prussia. Val’s in Belle Vernon. Vecenies in Millvale. L.T. Verrastro in Scranton. Village Bev. Mart in Biglerville. Henry Voelcker in Danville. Waterford in Waterford. Waywood in Kennett Square. West Lake in Erie. West Lawn in West Lawn. Westy in Camp Hill. Wet Your Whistle in Adamstown. Wexford Beer in Wexford. Wheatland in Wheatland. Whitpain in Blue Bell. Willy’s in Cheswick. Zelie in Harmony. Before signing on with a processor other than PNC, please be careful and consider all of the charges you will incur, not just the rate you are offered. We have also noticed an alarming increase in customer service and help desk issues with many other processors. DEFENSE AGAINST SALES TO MINORS Licensees are reminded that they have three proven “good faith” defenses against the 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— valid 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. RAMP CERTIFICATION 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. 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. LET MBDA HELP YOU KEEP YOUR HARD-EARNED MONEY In these tough economic times, we know you are looking at all of your operational costs. The Association and our preferred vendor, PNC Merchant Services, advise distributors to be aware of the hidden fees and costs that are not always disclosed by more than a few competing merchant card processors in their proposals. Distributors have a low average ticket, and in MBDA’s program you pay no transaction fees! Transaction fees result in much higher costs for processing. Surcharges for rewards cards are pass through, which means PNC only charges the additional interchange cost imposed by Visa & MasterCard for those cards. Many other processors are charging high surcharges for these type cards that they do not fully disclose. NON-FIRE SAFE CIGARETTES The deadline for retailers to sell out their existing inventory of non-fire safe cigarettes has been extended to July 11, 2010, as long as such inventory was purchased and stamped before January 1, 2009. THANK YOU We thank MBDA member David VanZant of Cape Horn Beverage for scheduling the June 15th meeting of the York County beer distributors. President David Shipula represented MBDA. Members who are interested in holding county meetings should contact our Executive Office. 8 talking points available for use by distributors; and other issues of interest. MBDA lobbyist, Scott Baker of Buchanan Ingersoll, reported on legislative efforts to stop supermarkets and convenience stores/gas stations from selling beer; less than case sales by distributors; and other legislation and issues of interest to the audience. MBDA CONVENTION HIGHLIGHTS MBDA was once again honored to have representatives from 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. As in 2008, the Pennsylvania Liquor Control Board’s Office of Chief Counsel and the Bureau of Licensing declined MBDA’s invitation to participate in the panel discussion. On Monday, April 27, 2009 the distributors were addressed by Jerry Mullane, Vice President, State Affairs East Region, Anheuser-Busch, Inc. Mr. Mullane’s division works to protect and promote the company’s interests in trade practices, environmental issues and responsible alcohol use, and works very closely with others in the alcoholic beverage industry. At the current time there is much concern across the industry about possible increases in beer excise taxes to close state budget deficits. He pointed out that such taxes are regressive and single out middle income people. Enforcement Officer Supervisor, Frank Spera, of the State Police Bureau of Liquor Control Enforcement covers Philadelphia, Delaware and Chester counties. He was “happy to say” that there are not too many violations issued to distributors for sales to minors. As regards the Age Compliance Check program, since 2005, in his district only two (2) distributors have been cited for sales to a minor. Enforcement Lt. Steven P. Davis, Eastern Section Commander was also a panel member and both officers made themselves available to answer questions for distributors throughout the afternoon. Moving on, he stated his belief that A-B’s position regarding certain industry issues had been misrepresented and that the State Affairs division functions in a transparent manner. Building on that theme he stated that A-B won’t try to change anything in the Pennsylvania system, unless: a) the wholesalers support it; b) the wholesalers’ association supports it; c) A-B talks to other brewers about it; d) consensus with other industry members is sought. Jim Zaremski, Alcohol & Tobacco Tax & Trade Bureau Investigator, explained the mission of the TTB is to govern and regulate wholesalers, importers and retailers of alcoholic beverages. He reminded distributors that the Internal Revenue Code requires them to keep at their business premises complete records covering at least the last three (3) years of operation. He also reminded them that, while the Special Occupation Tax was repealed as of July 1, 2008, distributors still must register their business at time of start-up, and notify TTB when the business terminates or if there is any change to the business, such as a change of location. Registration and notices of change can be done on-line through the Bureau’s web site, ttb.gov, and other information can be gotten from there. He also commented on the Trade Practice Program, whose purpose is to insure wholesaler independence from the manufacturer, and retailer independence from wholesalers, all to insure the integrity of the 3 tier system. Other issues discussed were the floor stock tax, and substantial tax increases in all tobacco products to fund the Children’s Health Insurance Program. He then laid out A-B’s position concerning package reform and beer sales by chain stores, two issues of great importance to Pennsylvania distributors. With regard to package reform, legislators approached A-B seeking support for beer package reform legislation as a result of the state’s more aggressive position on the Wine and Spirits Shoppes. A-B believed 6, 12, 18 and 20 packs would benefit everyone, was responsive to consumer demand, advantageous to A-B brands, and supported the proposed changes. However, A-B now sees that the issue is too divisive, with taverns, beer wholesalers and small brewers each having their own concerns. When agreement can’t be reached, it’s time to move on and re-focus on other issues, which is A-B’s intention. Sen. John Rafferty (R-Montgomery) was told AB has no interest in package reform and was asked to reachout to his co-chairman of the Senate Law & Justice Committee, Sen. Sean Logan (D-Allegheny), to convey that message to him. A-B will not engage actively in this debate. As regards beer sales in chain stores or convenience stores, A-B has taken no position on it, or lobbied in favor of it, and remains completely neutral on the issue. Mr. Mullane closed his remarks by wishing everyone great success in the coming summer season. President David Shipula thanked the panel members for their participation and the session continued with distributors only. Mary Lou Hogan, Executive Secretary/Counsel began her report with the announcement of a 10% insurance dividend (refund) for all MBDA members participating in the MBDA Insurance Program. From there she up-dated the distributors on all court issues, including Sheetz, Wegmans, Weis, Giant Eagle, Shurfine, Whole Foods and Thomas’ Market.; proposed legislation to stop supermarkets and convenience stores/gas stations from selling take-out beer; less than case sales by distributors; materials prepared by MBDA and available to distributors for their legislators explaining industry issues, in particular “beer in supermarkets” and “package reform”; the Legal Defense Fund; posters and Our sincere appreciation goes out to our officers, directors, members, brewers, importers and allied trade suppliers for their overwhelming convention and trade directory support. MBDA thanks Alexis Shipula of Beer Super in WilkesBarre for her assistance at our registration desk. And finally, many thanks for a job well done to Convention Chairman Tom Mehaffie and MBDA Convention Coordinator Stephanie Eckert. 9 PENN NATIONAL INSURANCE, Harrisburg, PA. Mike McCurdy, CL Territory Manager. Phone 717-234-4941. MBDA Endorsed Business Insurance Carrier. PERLEY-HALLADAY ASSOCIATES, INC., West Chester, PA. Dave Atkinson, Regional Sales Mgr. Phone 610-296-5800. Controlled Environment Warehouses & Warehouse Keg Beer Coolers. PNC MERCHANT SERVICES, Blue Bell, PA. Russ Hayes, Account Executive. Phone 888-466-0369. MBDA Endorsed Credit/Debit Card Processor. PROTECT YOUR LICENSE, c/o The Six Pack Store, Philadelphia, PA. Ray Swerdlow, Owner. Phone 215-338-6384. Electronic Scanning. REVOLUTION POS, Exton, PA Rick Malthaner, Managing Director. Phone 610-280-3210. POS & Inventory Control. STOUDT BREWING CO., Adamstown, PA. Ed Stoudt, CEO. Phone 717-484-4386. SUPER VALUE BEVERAGE STORES. Philadelphia, PA. Joseph Shott, President. Phone 215-423-6916. Beverages, Snacks, Tobacco, Cigarettes. SUSQUEHANNA BUSINESS SYSTEMS, INC., Duncannon, PA. Dale Simmons, Owner. Phone 717-957-6187. Malt Beverage Point of Sale. WELLS FARGO INSURANCE SERVICES OF PA, INC., Mechanicsburg, PA. Debra McClain. Phone 800-462-4943. MBDA Endorsed Insurance Broker. YALE INDUSTRIAL TRUCKS-PITTSBURGH., INC., Monroeville, PA. Christopher Burns, Pres. Phone 412-856-9253. Material Handling Equipment-Yale Forklift Trucks. D.G. YUENGLING & SON, INC., Pottsville, PA. David Casinelli, COO. Phone 570-622-0153. AWARD WINNER At this year’s convention, Third Vice President John Manz was honored as the recipient of the “Jack Muller Award for Distinguished Service”. We thank John for his wholehearted support of MBDA. MANUFACTURERS WHO SUPPORTED MBDA’S 2009 CONVENTION MBDA and our members thank the following brewers and importers for participating in our recent Convention— Anheuser-Busch, Crown Import Co., Diageo-Guinness USA, Erie Brewing Co., The Lion Brewery, Miller/Coors, and Yuengling Brewing Co. We appreciated attendance by the following allied trade suppliers who provide products and services of value to our distributors—Dotmark Promotions, Full Circle Solutions Group (formerly Engle), Lansdale Packaged Ice, Micro Matic Dispense Service, Penn National Insurance, PNC Merchant Services, qb Resource NEPA, Revolution POS, Rochester Store Fixture, and Wells Fargo Insurance Services. ASSOCIATE MEMBERS MBDA has twenty-seven associate members. Firms who are interested in joining should contact our Executive Office. We thank the following manufacturers for investing in the future of Pennsylvania’s beer distributing business: MBDA ELECTS OFFICERS ANHEUSER BUSCH, INC., Wakefield, MA. Rob Passi, Sales Director. Phone 781-224-1133. THE BALTIMORE LIFE COMPANIES, York, PA. Kyle McLaughlin, Agent. Phone 717-600-0770. Employee Benefits & Business Continuation Insurance. COTT BEVERAGES USA, Tampa, FL. John Collins, Director Sales. Phone 813-313-1800. Vintage, Clear Choice, Stars and Stripes. CROWN IMPORTS, Reston, VA. Kevin Kodish, Region Mgr. Phone 571521-7320. DOTMARK PROMOTIONS, Murfreesboro, TN. Larry Marks, Owner. Phone 615-896-2099. Beverage insulators & drinkware. ERIE BREWING CO., Erie, PA. Bruce Pia, Gen. Mgr. Phone 814-4597741. FULL CIRCLE SOLUTIONS GROUP, Elizabethtown, PA. Joe Wertz, POS Team Leader. Phone 717-367-1436. POS Hardware & Software. GERBRON WHOLESALE, Kennett Square, PA. John Gerbron, Owner. Phone 610-347-0440. Cigarettes, Cigars, Candy, Beverages, Paper Products. HERLOCHER ENTERPRISES, State College, PA. Jean Vonada, Business Mgr. Phone 814-237-4373. Herlocher Dipping Mustard. HIGH FALLS BREWING CO. LLC., Rochester, NY. Damian Rippon, Exec. VP Sales/Marketing. Phone 585-546-1030. LANSDALE ICE, Harleysville, PA. Vinnie Bagdwal, President.Phone215-361-1111. Package Ice. THE LION BREWERY, INC., Wilkes-Barre, PA. Michael Luksic, Dir. of Sales/Marketing. Phone 570-823-8801. MICRO MATIC NORTHEAST, Center Valley, PA. Jim Barnett, Sales Manager. Phone 610-625-4464. Draft Beer Equipment. At their June 28th board meeting, MBDA directors unanimously elected the following slate of officers to serve for July 1, 2009 to June 30, 2010: President—David Shipula, Beer Super, Wilkes-Barre. 1st Vice President—Tom Lynch, Banko North, Scranton. 2nd Vice President—Tom Mehaffie, Breski Bev., Harrisburg. 3rd Vice President—John Manz, Vecenie Dist. Co., Millvale. Secretary—Barbara Lynch, Brewer’s Outlet, Dunmore. Treasurer—Chris Hickey, W.R. Hickey Beer Dist., State College. MBDA ELECTS DISTRICT VICE PRESIDENTS & DIRECTORS At their April 27th meeting, MBDA’s policy board representatives elected district vice presidents and directors for the fiscal year beginning July 1st. 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 #1: Philadelphia County: Vice President Dennis Harrison, Muller Inc.; Directors Steve Benko, Doc’s World of Beer & Paul Egonopolous, Brewers Outlet. MILLER/COORS, Edison, NJ. Fred Chapman. Phone 1-215-378- 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. 7303. MOOSEHEAD USA LTD., Boulder, CO. Andrew Kish, Regional Development Mgr. Phone 724-339-8466. NETWORKER PROMOTIONS, Marlton, NJ. Jackie Moore, Owner. Phone 856-427-3424. MBDA Endorsed Novelty & Promotional Items. 10 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; Geoffrey Sturgill, Gettysburg Beer, Gettysburg; Jim Yaple, Westy Beer Dist., Camp Hill. Ackerman also serves as our DISPAC Chairman. HB 291 This bill is supported by the Pennsylvania Beer Alliance (formerly, Pennsylvania Beer Wholesalers Association) as a means to bring Pennsylvania’s beer distribution system in compliance with the U.S. Supreme Court decision in Granholm v. Heald. Current Pennsylvania law makes certain distinctions between in-state and out-of-state brewers as regards the treatment of sales by, purchases from, and use of additional storage facilities. HB 291 substitutes distinctions between small manufacturers, producing 75,000 barrels or less per year, and all other beer manufacturers. It also eliminates the 2 year residency requirement for distributors. MBDA is unable to support eliminating the residency requirement, and at its recent Board meeting was advised by counsel that the extensively amended bill needed further review after all amendments were incorporated. Counsel will provide the MBDA Board with an analysis of the proposed legislation and a decision will be made about it at that time. That decision will appear on the MBDA web site and be sent to all members who have provided email addresses to the Executive Office. 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. 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. District #6: Columbia, Montour, Northumberland, Snyder & Union Counties: Vice President Mark VanSickle, Henry Voelcker Inc., Danville. HB 479 Current law allows each county a minimum of 5 distributor licenses, regardless of population within the county. HB 479 reduces the minimum number to 4. MBDA supports this bill because it brings counties more closely in line with the quota of 1 distributor license per 30,000 county resident. District #7: Armstrong, Butler, Cameron, Clarion, Clearfield, Elk, Forest, Indiana & Jefferson Counties: Vice President Jim Goldinger, Beer Zone, Lyndora. 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. HB 996 Current law allows distributors to have additional storage only in the municipality where the licensed premises is located. HB 996 extends additional storage space to anywhere within a distributors franchise territory. This bill, a form of satellite warehousing, will eliminate secondary ID’s and D’s servicing retail accounts located a distance from the primary ID’s licensed premises. It all accelerates consolidation in the beer industry. MBDA opposes the bill because of the loss of businesses and jobs that will result. District #9: Berks, Carbon, Lehigh, Northampton & Schuylkill Counties: Vice President Mark Tanczos, Tanczos Bevs., Bethlehem. Directors: Tom Derr, West Lawn Bev., West Lawn; Larry Gerhard, Liberty Bell Bev., Schnecksville; Skip Link, Link Bevs., Coopersburg. 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. MBDA’S YEAR IN REVIEW After reading this newsletter, you can appreciate how the Association spends hundreds of hours on legislative and court issues; attending hearings; lobbying; public relations campaigns; keeping our members updated by newsletters and special reports; preparing materials for distributors to give to their legislators; servicing member discounted programs; planning our annual convention; compiling our trade directory; raising funds for DISPAC and our Legal Defense Fund; and sponsoring and attending legislative receptions. Our success rate in having MBDA sponsored bills become law, defeating dangerous legislation, and defending your rights in court is impressive. Please become an MBDA member for July 1, 2009 to June 30, 2010 by returning the enclosed invoice with your dues check. 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 #12: Bradford, Clinton, Lycoming, Potter, Sullivan and Tioga Counties: Vice President Carl Schultz, Valley Bev., Hughesville; Director Jessica Wheeland, Home Service Bev., Williamsport. DIRECTOR VACANCIES Director vacancies exist in Districts #1, #5, #6, #7, #8, and #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. 11 DISTRIBUTORS—YOU ARE URGED TO: CONTACT YOUR SENATORS & HOUSE MEMBERS. SHOW THEM THE ENCLOSED FLYER “THE BEER AISLE…COMING TO A GROCERY STORE NEAR YOU?” ASK THAT THEY SUPPORT SENATE BILL 970 AND HOUSE BILL 1833 TO PROHIBIT SUPERMARKETS & CONVENIENCE STORES FROM USING “R” & “E” LICENSES TO SELL TAKE-OUT BEER. Use The Talking Points Outlined On Page 4. WE WERE VICTORIOUS IN THE SHEETZ LITIGATION. NOW LET’S DEFEAT— GIANT EAGLE, WEGMANS, WEIS, SHURFINE, THOMAS & WHOLE FOODS IN THEIR QUESTS TO SELL BEER IN ALLENTOWN, BETHLEHEM, COLLEGEVILLE, DALLAS, DICKSON CITY,DOWNINGTOWN, EASTON, ERIE, HOMESTEAD, LEWISBURG, MALVERN MECHANICSBURG, MONROEVILLE, PITTSBURGH, PLYMOUTH MEETING, SOUTH HEIDELBERG TOWNSHIP, STATE COLLEGE, WARRINGTON, WEST MIFFLIN, WEST VIEW, WEXFORD, WILKES-BARRE, WILLIAMSPORT, & WYOMISSING. MAKE A CONTRIBUTION TO MBDA’S LEGAL DEFENSE FUND SO WE CAN CONTINUE TO DEFEND OUR POSITION IN COURT AGAINST SUPERMARKETS & CONVENIENCE STORES SELLING BEER-TO-GO. See Pages 4 & 5 For More Information. RETURN THE ENCLOSED MBDA MEMBERSHIP INVOICE WITH YOUR DUES CHECK. See Page 2 For More Information. SAVE MONEY AND JOIN MBDA’S DISCOUNTED MEMBERSHIP PROGRAMS. See Pages 6 & 7 For More Information. GET THE LATEST INDUSTRY NEWS GO TO MBDA’S WEB SITE— WWW.MBDAPA.ORG. 12