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. 16