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 74, Issue 3
July, 2010
M B DA N E W S L E T T E R
MBDA MEMBERSHIP—
“STRENGTH, SERVICE, VALUE”
INSIDE THIS ISSUE:
SB 1300
1
2
2
HB 2203/SB 1133
3
SB 970/HB 1833
3
3
4
4
4
HB 115
SUPREME COURT
TAVERNS
WINE VENDING
SUIT AGAINST LCB
MBDA LITIGATION
EMAIL ADDRESSES
PHONE NUMBERS
MBDA WEB SITES
INVEST IN FUTURE
DUES ARE DUE
MBDA LOBBYING
PUBLIC RELATIONS
MBDA OFFICERS
EXECUTIVE STAFF
MEMBER PROGRAMS
DISPAC
PAC CONTRIBUTORS
LEGAL FUND
FUND CONTRIBUTORS
CONVENTION
AWARD WINNER
MARK CALENDAR
SALES TO MINORS
RAMP
MBDA PROCESSING
CARD COMPLIANCE
MBDA DIRECTORS
ASSOCIATE MEMBERS
REMINDERS
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4
5
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6, 7
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8, 9
9, 10
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HB 115—BEER SALES BY
SUPERMARKETS/BIG BOX STORES
Senator John Rafferty’s (R-Montgomery) amendment to House Bill 115 was a
backdoor attempt to put into law beer sales by supermarkets and big box stores.
Distributors—you fought hard and your phone calls to your legislators were very
effective. The bill was marked over, and won’t be addressed until the legislature
reconvenes in September. It is extremely important that beer distributors contact their Senators and House Members at their district offices over the summer to reiterate your opposition to HB 115. Also, please talk with them about
distributors selling 6 and 12 packs as the answer to consumer convenience.
Ask them to support HB 2203 and SB 1133.
The original purpose of HB 115 was to require Responsible Alcohol Management
training for owners and managers. Rafferty’s amendment radically changed its intent by asking the legislature to transfer to the PLCB broad discretionary power to
decide if venues such as supermarkets, convenience stores, gas stations, Wal-Mart,
Target, Costco, and every other location with 30 seats and a hot dog stand be allowed to sell beer for takeout. No administrative agency should have such unlimited power in such a critical area! This goes right to the heart of the Sheetz and
Wegmans litigation, where MBDA argued that the PLCB has no such statutory
right. If passed into law, HB 115 would effectively put an end to the Wegmans
case now before the Pennsylvania Supreme Court.
The Senate voted 37-13 for passage of HB 115. However, many Senators were led
to believe that they were simply voting for a long-standing regulation that needed
to be put into the Liquor Code. MBDA and our members immediately contacted
state lawmakers to advise them of the real ramifications of the legislation, and a
number of Senators assured us that they would vote “No” when HB 115 came up
for a final vote. We told them that an entire industry, beer distributors, will be put
out of business if HB 115 passes, and that small business that depends on distributors, such as local banks, accountants, truck drivers, etc. will be in jeopardy.
Even though proponents of HB 115 say that no “new” licenses will be created, access to beer will be expanded due to the 1,000 restaurant and deli licenses now in
safekeeping that will be reactivated, as well as how pervasive beer will be in a supermarket or big box store frequented by customers who are not looking for it,
versus keeping it in a separate business such as a beer distributor whose customers
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
Web: onsalenearyou.org
Stephanie Eckert
Staff Secretary
are there specifically to buy beer, not milk, eggs, or cereal. Proponents also say that purchasers will be limited
to buying two six packs at a time, but the truth is that as
a result of a PLCB legal opinion there is nothing to stop
supermarkets from ringing up multiple sales. Finally,
proponents state that the three-tier system will not be
harmed. What they don’t say is that beer distributors
will no longer be a part of that three-tier system.
contends, the issue is not one of abuse of discretion
but simply whether or not the Liquor Code allows supermarkets to sell beer, which is what Wegmans Supermarket is doing, then the Supreme Court can apply
its own analysis of whether or not the PLCB correctly
interpreted the Liquor Code in reaching its decision to
allow Wegmans to have a license.
MBDA made a very strong argument, both factual,
during the multiple Wegmans hearings that stretched
over two years and still continue today with regard to
other supermarket chains, and legal, as to why Wegmans is not entitled to a license. We believe the
Court will carefully consider all the issues raised
and issue its decision by late 2010. We will keep you
advised of all developments.
Wegmans has started an email campaign to the legislature to pass HB 115. That is all the more reason why
distributors can’t slow down now in contacting your
Senators and House Members. Please have your family
members, friends, employees and customers do the
same. Remind them that the livelihood of 1,300 beer
distributors and their 15,000 employees is dependent on
them voting NO to HB 115. Ask them not to give business to large corporations by taking it away from local
small businesses. Distributors—You did a great job in
stopping the progress of HB 115. Please don’t let your
guard down now, continue to make noise.
SB 1300—
SUPERMARKET BEER SALES
There has been no movement on SB 1300 introduced
by Sen. Rafferty on March 29th to allow grocery and
convenience stores to sell beer and distributors to sell
6, 12 and 18 packs as well as the traditional case and
keg sales. The basic framework of the bill is to allow
grocery and convenience stores to buy R, E, D and ID
licenses and transform them into a “food store license.” Those licensees can then sell from 6 pack
through case sizes, the only package they can’t sell
being single containers of 128 oz. or more.
AWAITING THE
SUPREME COURT
RULING IN WEGMANS
On April 14, 2010 the Pennsylvania Supreme Court
heard oral argument in the Wegmans case. Representing MBDA was Robert B. Hoffman, Esq. of Eckert
Seamans law firm, who had successfully argued the
Sheetz case for MBDA before the same court in 2008.
Robert Heim, Esq. of the Dechert firm was brought in
at this level to argue on behalf of Wegmans; and
Roderick Diaz, Esq. argued on behalf of the Pennsylvania Liquor Control Board.
In addition to the 50,000+ food items these stores typically sell they will also be permitted to sell gas; cash
payroll, public assistance, unemployment and any
other relief check; and have minors frequenting the
premises. Senators Earll, Fontana, Logan, Mensch,
Musto and Mary Jo White co-sponsored the legislation.
It was an active court with the justices asking many
questions of all parties. Those questions focused on
whether it was sufficient that the Wegmans’ Market
Cafes qualify as a restaurant and whether the fact that
they were part and parcel of and located within Wegmans made any difference. MBDA argued that the
PLCB needed to look at the economic reality of the
beer sales, which indicate that Wegmans Supermarket,
not Wegmans Restaurant, is making the sales. Wegmans responded that it is within the PLCB’s discretion
to decide if interconnections between a supermarket
and a restaurant disqualify a restaurant from holding a
license to sell take-out beer.
A complete analysis of all provisions of the bill appears in the April Newsletter as well as on the MBDA
website, www.mbdapa.org. This legislation is the first
step toward dismantling the alcohol control system in
Pennsylvania and eliminating thousands of jobs in the
process. For those reasons, and because of the severe
negative economic impact it will have on the beer industry, MBDA opposes it.
Distributors—when you address HB 115 with your
legislators, ask that they also oppose SB 1300. And
again, request that they support HB 2203 and SB
1133 to allow beer distributors to sell 6 and 12packs to their customers. This is an election year,
and legislators want to hear from their voting constituents.
Wegmans contention is critical because, if correct, the
standard of review that the Supreme Court must apply
is to determine if the PLCB abused its discretion. The
Supreme Court cannot simply substitute its own judgment for that of the PLCB’s. However, if as MBDA
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DISTRIBUTOR
6/12 PACK SALES—
HB 2203 & SB 1133
SB 970 & HB 1833—
STOP SUPERMARKETS/CONVENIENCE
STORES FROM SELLING BEER
Rep. Karen Beyer (R-Lehigh) and Sen. Kim Ward (RWestmoreland) are the prime sponsors of legislation
that would allow beer distributors to sell six and 12packs. HB 2203 is in the House Liquor Control Committee. Co-sponsors are: Belfanti, Brennan, Buxton,
Everett, Gabler, Goodman, Grell, Harhai, Harkins,
Kula, Levdansky, Major, Mann, Marshall, Moul, Murt,
Pashinski, Santarsiero, Solobay, Swanger, Tallman,
Waters and Watson. SB 1133 is in the Senate Law &
Justice Committee. Co-sponsors are: Earll and Fontana.
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.
To stop them from selling beer Kim Ward (RWestmoreland) introduced Senate Bill 970 and Ted
Harhai (D-Fayette & Westmoreland) introduced
House Bill 1833.
Distributors are focused on the convenience that consumers want, and are circulating petitions and contacting lawmakers as they intensify their statewide campaign for the right to sell six-packs. So far, MBDA has
tallied more than 65,000 signatures.
SB 970 was co-sponsored by Senators Farnese (DPhiladelphia) and O’Pake (D-Berks).
HB 1833 was co-sponsored by Representatives Barrar
(R-Chester & Delaware), Brennan (D-Lehigh &
Northampton), Buxton (D-Dauphin), Caltagirone (DBerks), Clymer (R-Bucks), D. Costa (D-Allegheny),
Dally (R-Northampton), Grove (R-York), Grucela (DNorthampton), Haluska (D-Cambria), Hanna (DCentre & Clinton), Harkins (D-Erie), Kotik (DAllegheny), Kula (D-Fayette & Westmoreland), Marshall (R-Beaver), Matzie (D-Allegheny & Beaver),
Melio (D-Bucks), Pallone (D-Armstrong & Westmoreland), Pashinski (D-Luzerne), Readshaw (DAllegheny), Seip (D-Berks & Schuylkill), K. Smith (D
-Lackawanna), Solobay (D-Washington), Staback (DLackawanna & Wayne), Swanger (R-Lebanon) and
Yudichak (D-Luzerne).
The PA Tavern Association, a trade group that represents bar owners, is lobbying against 6-pack sales by
distributors. “Giving distributors the right would devalue our liquor licenses,” said Amy Christie, the association’s executive director.
Distributors have been saying for years that they’re losing potential sales from customers who don’t want to
purchase a large volume of beer. As MBDA district
vice president Mark Tanczos told the Allentown Morning Call when addressing supermarket beer sales,
“With the traffic they draw and they can basically use
the grocery store for beer sales, we are definitely losing
some business to them. They’re selling beer for takeout and we are forced to complete with that, but we
can’t sell six-packs. Beer distributors want the chance
to do what competitors can do.”
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. Distributors—
Please ask your Senators to support SB 970 and
your House Members to support HB 1833.
Rep. Beyer said her bill is intended to level the playing
field for distributors. Changing the six-pack law would
help distributors who have customers wanting small
volumes of beer, particularly for craft brews that generally cost more than traditional brews.
Distributors—continue to contact your State House
Member and ask that he/she support HB 2203. Ask
your State Senator to support SB 1133. We are the
answer to consumer convenience, and have the experience and knowledge to offer that convenience in a controlled setting.
TAVERN—SMALL GAMES OF CHANCE
HB 2379 and SB 1301 would allow tavern owners to
have small games of chance in their places of business. Senators Boscola, Farnese, Ferlo, Hughes,
Leach, Logan, O’Pake, Stack, Williams and Wozniak
addressed a letter to Governor Rendell, giving reasons
to support the proposed legislation that included additional tax revenue and enhancing the ability of small
business owners to maintain jobs.
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The Coalition of Restaurant Owners for Liquor Control Fairness state that the PLCB did this without process, there wasn’t open competition, and they were less
than candid from the start.
WINE VENDING MACHINE
IN SUPERMARKETS
Giant Foods in Harrisburg and Wegmans in Mechanicsburg are part of a self-service wine kiosk pilot
launched in June by the PLCB. The PLCB is ready to
place over a hundred other similar machines at supermarket locations across the Commonwealth. As reported by both Dustin Hockensmith of the Harrisburg
Patriot-News and Paul Van Osdol Reports of ThePittsburghChannel.com, Simple Brands, the company that
proposed the idea of using the machines to sell wine in
supermarkets and then was the only company to respond when the PLCB put the plan up for bid, has two
main investors who have given more than $400,000 to
Gov. Rendell’s campaigns.
SUPERMARKET LITIGATION
It will come as no surprise to hear that the PLCB approved Sheetz’ second application to transfer an E license to their Altoona store. The PLCB narrowly interprets the PA Supreme Court opinion in Sheetz to
mean that to qualify for a license Sheetz need only
state that they would allow on-premises consumption
of beer, a statement Sheetz’ representative at the hearing on March 19th readily made. The appeal to Commonwealth Court was filed and that appeal, along with
about 30 other pending appeals, are being held pending the Supreme Court’s decision in the Wegmans litigation.
The kiosks will operate from 9 am to 9 pm, Monday
through Saturday. The buyer’s driver’s license is inserted into the kiosk. The photograph of the license is
matched with a video image of the buyer. A PLCB employee monitors each transaction from a remote location. The kiosks have a built-in breathalyzer. If a breath
alcohol level of .02 percent or higher is detected, the
consumer will be unable to make a purchase.
As for other supermarket chains where MBDA has
filed petitions to intervene in license transfers, Giant
Eagle and Shop N Save in the Pittsburgh and Erie areas continue to be granted licenses; and further east
Giant Foods filed for a license at their Bartonsville,
Monroe County location.
The Independent State Store Union, representing the
state store managers, has filed suit to halt the placement
of these machines, arguing that the Liquor Code does
not authorize the PLCB to create wine vending machines that are posted inside and outside of grocery
stores; a wine vending machine is not a PA Liquor
Store; and that the Liquor Code gives the PLCB authority to sell alcohol only in PA Liquor Stores. The ISSU
has asked for a Preliminary Injunction to halt the placement of these machines and a hearing on that application is scheduled for late July. We will keep you advised of the progress of this litigation.
Distributors should continue to notify the MBDA
Executive Office promptly if they see an orange
PLCB Notice of Transfer poster in any supermarket or convenience store location. Petitions to Intervene must be filed within 30 days of the posting or
the protest will be dismissed.
YOUR E-MAIL ADDRESS
Members who provided MBDA with their e-mail address are immediately notified of important happenings in Harrisburg. Distributors—If we don’t have
your address, please e-mail it to us at
mbdassn@aol.com, so that you too can receive up-tothe minute news on the latest legislative developments.
BAR/RESTAURANT OWNERS
SUE THE PLCB
A group of Philadelphia bar and restaurant owners has
filed suit in Philadelphia’s Common Pleas Court
against the PLCB, seeking an end to the state’s only
wine boutique, inside Garces Trading Company, a restaurant-café at 1111 Locust Street. It accuses the PLCB
of creating a cozy relationship with one private business at the expense of others. Garces is a BYOB establishment—except that under the unprecedented arrangement, there’s a state store next to the dining area.
About 200 wines, behind a glass partition, are sold at
retail. Should a patron buy a wine from the shop at
room temperature, a Garces employee may swap it for
a chilled bottle from a refrigerator.
YOUR PHONE NUMBER
More than 900 distributors received telephone calls
from MBDA president David Shipula, telling them to
contact their Senators and House Members to vote NO
to HB 115. If we don’t have your number, please provide it, so that you too can receive important messages.
MBDA’S WEB SITES
Please be sure to visit us at www.mbdapa.org and
www.onsalenearyou.org to get the latest industry
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MBDA MEMBERSHIP—
AN INVESTMENT IN YOUR FUTURE
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. Please become a duespaying member today.
For the membership year ended June 30, 2010 MBDA
had 436 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.
MBDA LOBBYING
Were it not for the strength of our trade association,
many distributors would be out of business! It’s a very
real possibility that legislation such as HB 115 and SB
1300 would have been enacted to allow supermarkets
and convenience stores to sell your products right next
to their other goods.
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 PUBLIC RELATIONS
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 8% of
their paid premium on all lines except umbrella. This
was the fifth consecutive year that our members saw a
return.
It is imperative that we pass legislation to allow distributors to sell 6 and 12 packs to consumers, and we
must 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.
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 ELECTS OFFICERS
At their June 27th board meeting, MBDA directors
unanimously elected the following slate of officers to
serve for July 1, 2010 to June 30, 2011:
DUES ARE DUE
Join MBDA for the current membership year, July 1,
2010 to June 30, 2011, 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, $550.00 for D’s selling $1 to $2
million, and $600.00 for D’s selling over $2 million.
“ID” distributor dues are $600.00. 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.
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.
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.
MBDA EXECUTIVE STAFF
At their June 27th board meeting, MBDA retained the
services of Executive Secretary/Counsel Mary Lou
Hogan and Staff Secretary/Convention Coordinator
Stephanie Eckert.
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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!
 1.84% flat discount rate for Visa, MasterCard, Discover debit.
 1.94% flat discount rate for Visa, MasterCard, Discover credit.
 Even deeper discounts apply for large volume accounts to be considered on an individual basis.
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:
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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 AN 8% DIVIDEND CHECK FOR THE PERIOD ENDING APRIL 2009, THE FIFTH 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.
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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:
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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.
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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 take-out beer and permitting beer distributors to sell 6 &
12 packs 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 and the positive effect that beer distributors selling 6-packs would have on consumers.
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 Sites: Visit www.mbdapa.org and www.onsalenearyou.org for up-to-the minute industry developments.
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PLEASE MAKE YOUR
DISTRIBUTORS POLITICAL ACTION
COMMITTEE CONTRIBUTION
PLEASE MAKE YOUR
MBDA LEGAL DEFENSE
FUND CONTRIBUTION
To date, MBDA’s Legal Defense Fund has spent
$425,000 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.
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.
Distributors who have not made their contribution
for 2010 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.
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. Remember, this is an election year!
THANK YOU
DISPAC CONTRIBUTORS
As we go to press, Chairman Roger Ackerman thanks
the following distributors for their generous 2010 DISPAC contributions:
LEGAL FUND CONTRIBUTORS
As we go to press, we thank the following for their
contributions to the MBDA Legal Defense Fund for
2010. Distributors are listed alphabetically:
Michael Adelizzi, Geano Agostino, Margaret Alston,
James Baran & Sandra Kara, David Barger, Douglas &
Susan Berthold, David Cassidy, Joseph Chobody, Tony
Colangelo, Francis & Charlene Corby, Alexander &
Lisa Cortezzo, Jim Crane, Wayne & Madonna Crouse,
Ernie Cruciani, Bob DeBone, Dino DeFlavio, Martin
Denial, Tom Derr, Paul Farthing, Patrick Flannery, Ed
Flynn, Stephen Gabler, Craig Gilham, Jim & Kathy
Goldinger, Don Heim, Daniel & Faye Helwig, Chris
Hickey, Don & Maureen Hicks, Steve Klein, Ed
Klunk, Michael Kondak, Andrew Kramer, Barbara
Lynch, Tom Lynch, LS Beer Co., Jim McCabe,, John
McElroy, Leonard & Rebecca McKee, Tom Mehaffie,
Chris Miller, Rodney Miller, John Millin, Sandy Muller, Larry & Judy Mumbauer, Thomas Myers, Rocky
Nicoletti, Raj Patel, Pete Petousis, Alex & David Piermani, Paul Pletcher, Dawn Reynolds, Keith Rutt,
Douglas Sampson, Anthony Sansone, Joseph & Rose
Sarnelli, Eric Seeley, Ron Sherwood, David Shipula,
Sam & Cynthia Smith, Dale Spahr, Michael Spaziani,
Charles & Rebecca Stubler, Ron & Ted Valenti, Michael Turcan, Rick Vanevenhoven, Mark VanSickle,
David VanZant, Jessica Wheeland, Jim Yaple, June
Yaple.
MBDA thanks Roger Ackerman for his generous contribution, and for the great job he’s doing in educating
our distributors on the importance of an effective political action committee.
8
Alpine, Johnstown. Don & Mary Anderson, Lakeland,
FL. Ardmore Park, Ardmore. Arrow, Wilkes-Barre.
Austin, Collegeville. B & B, Doylestown. B & K,
Dillsburg. Babcock, Pittsburgh. Banko, Allentown.
Banko North, Scranton. Banksville, Pittsburgh.
Barkley, Bradenville. Beaver County, Monaca.
Beck’s, Washington. Beer & Pop, Bridgeville. Beer &
Pop, Erie. Beer & Soda City, Burnham. Beer & Soda
Mart, Red Lion. Beer-A-Rama, Levittown. Beer
Arena, Greensburg. Beer City, Quakertown. BeerCo,
Allentown. Beer Express, Harrisburg. Beer 4 Less,
New Castle. Beer Mart, Morrisville. Beer Mart, Reading. Beermill, West Chester. Beer Minimum, Pittsburgh. Beer-N-More, Bloomsburg. Beer Nutz, Pittsburgh. The Beer Shak, Schuylkill Haven. Beer Super,
Wilkes-Barre. Beer Zone, Lyndora. Beer Zoo, Harrisburg. Bell, Philadelphia. Bensalem, Bensalem. Berks,
Reading. Berks, Laureldale. Beverage Warehouse,
Greensburg. Beverage World, Phoenixville. Blair
County, Hollidaysburg. G.C. Blosser, Carlisle. Bottle
House, New Holland. Bound, Bensalem. Breski, Harrisburg. Brew Avenue, Washington. Brewers Outlet,
Chadds Ford. Brewer’s Outlet, Dunmore. Brewers
Outlet, Lancaster. Brewmeister, Grove City. BrewThru, Pittsburgh. Brew Zoo, Altoona. Brooksys,
Slatington. Buchanan, Waynesboro. Buddy’s, Lemont
Furnace. Bud’s Suds, Cranberry Twp. Joe Burns,
Downingtown. Cape Horn, Red Lion. Carnival, West
Mifflin. Case & Keg, Shrewsbury. Chester County,
Parkesburg. City, Berwick. Clarks Summit, Clarks
Summit. Corby’s, Middletown. Corner’s, Pittsburgh.
Cove, Hollidaysburg. Coventry, Pottstown. Craig, Pittsburgh. Wayne Crouse, Pittsburgh. D & R, Nazareth,
Darlington, Darlington. Denver, Denver. Doc’s, Philadelphia. Duffey’s, Pittsburgh. Dunbar, Lehighton. E &
E, Lebanon. Edgemont, Newtown Square. Ellis, Wilkes
-Barre. Ephrata, Ephrata. Essex, Oakdale. Exton, Exton. Flannery Case, Scranton. Flynn, Towanda. Fort
Allen, Greensburg. Fox, Dover. Franklin, Ellwood
City. Frank’s, Quakertown. Frosty Caps, Abington. Gabler’s, Shippensburg. Galli, New Kensington. Genna,
Philipsburg. Giannini, Monessen. Goff’s, Clifton
Heights. Goshen, West Chester. Grandview, Erie. Great
Valley, Frazer. Greensburg, Greensburg. Hallowell,
Horsham. Harmony, Blakeslee. Hatboro, Hatboro.
Home Service, Williamsport. Ickesburg, Ickesburg.
Iron Run, Allentown. Juniata, Bedford. K.E. Pletcher,
State College. Kasunick, Pittsburgh. Kennett, Kennett
Square. Kouch, Glenolden. Kutztown, Kutztown. Lake
Winola, Factoryville. Lamb, Coatesville. Leola, Leola.
Letterio, West Newton. Liberty Bell, Allentown. Lil’
Debi’s, Gettysburg. Link, Coopersburg. Lionville, Exton. Logan, Tyrone. Lou, Downingtown. Mac’s, Clarks
Summit. Mac’s, Maple Glen. Manoa, Havertown. Maple Creek, Charleroi. Mechanicsburg, Mechanicsburg.
Mid-State, Williamsport. Glenn Miller’s, Lemoyne.
Mock, Springdale. Montour, Montoursville. Moon,
Coraopolis. Mount Union, Mount Union. Mr. Bottle,
Berwyn. Myrna’s, New Kensington. Narberth, Narberth. Nicoletti, Philadelphia. Nittany, State College.
North 9th, Reading. North Penn, Souderton. North
York, York. Northern, Pittsburgh. Oxford, Oxford. P &
B, Perkiomenville. Paoli, Paoli. Paxinos, Paxinos.
Perry, Pittsburgh. Pete’s, Pittsburgh. Picone’s, Nazareth. A. Piermani, Conshohocken. Pike, Oakdale. Pistella, Pittsburgh. Pocono, Mt. Pocono. Pop ‘N Brew,
Mount Pleasant. Quality, Hazleton. Rader, Boyertown.
Rainbow, Coatesville. Reading, Reading. Red Land,
Etters. Richboro, Richboro. Rockland, Reading. Root,
Mount Joy. Ross, Canonsburg. Rossville, Rossville.
Rte. 19, McMurray. Sacco, Berwick. Sam’s, Arnold.
Santiago, Imperial. Save On Beer, Mars. Save-Mor,
Pittsburgh. Self-Serve, York. 7517 Chung, Philadelphia. Shannock Valley, Yatesboro. Shippensburg, Shippensburg. Silver Spring, Mechanicsburg. Jerry Simcoe,
Walnutport. Skippack, Creamery. South Pittsburgh,
McMurray. South Side, Pittsburgh. Southampton,
Southampton. Spaz, West Chester. Spry, York. Stubler,
Oil City, Sue’s, Vandergrift. Super Value, Warminster.
Susquehanna, Hallstead. Tanczos, Bethlehem. Thorndale, Thorndale. Tionesta, Tionesta. Top of the Hill,
Chester Springs. 1206 Joyce, Philadelphia. Upper
Darby, Upper Darby. Valley Forge, King of Prussia.
Val’s, Belle Vernon. Venanzi’s, Monongahela. Henry
Voelcker, Danville. Waterford, Waterford. Waywood,
Kennett Square. West Lake, Erie. West Lawn, West
Lawn. Westy, Camp Hill. Wet Your Whistle, Adamstown. Wexford, Wexford. Wheatland, Lancaster.
Whitpain, Blue Bell. Wilkinsburg, Pittsburgh. Wood,
Phoenixville. Wychock’s, Mountaintop. Wychock’s,
Wilkes-Barre. YorkCo, York. Zelie, Harmony. Zoe’s,
Pittsburgh.
CONVENTION HIGHLIGHTS
On Sunday, April 25th, MBDA initiated a new and
successful format for its business session meetings.
This year we partnered with the Power Packs Project
to promote proper nutrition among children. MBDA
President, David Shipula, presented a $500 ceremonial
check to Power Packs creator and executive director,
Joan Espenshade, who then addressed the convention.
She said the new partnership would not only bring in
new funds but increase the organization’s exposure
across the state. “Not only are we curbing hunger, we
are empowering families to regularly provide healthy
meals for their children,” said Espenshade.
Next, the convention heard from Mark Everest of Occupational Athletics, Inc., a behavior training and
stretching coach. Mark talked about the 4 quarters of
life and the importance of overall health and wellbeing. His program is interactive and in addition to
verbal participation he soon had everyone in the audience on their feet learning the benefits of stretching
and other physical activity. He was given a wellearned round of applause at the end of his presentation.
The business session closed with reports from MBDA
Executive Secretary, Mary Lou Hogan and Lobbyist,
Eric Battisti covering proposed legislation, changes to
the Liquor Code, compliance check statistics, and the
good news of an 8% dividend for participants in the
MBDA business insurance program.
On Monday, April 26th, MBDA hosted a breakfast followed by the annual membership meeting. At the
meeting the members were addressed by Robert B.
Hoffman of Eckert Seamans law firm, the attorney
representing MBDA in the Wegmans and other supermarket litigation. Bob gave a detailed report of the
April 14th Supreme Court oral argument in the Wegmans litigation, and answered questions from members about that litigation and other related matters. Executive Secretary Mary Lou Hogan covered in detail
9
the issues from Sunday’s business session, as did lobbyist, Eric Battisti. This was a “members only” meeting about issues of critical importance and MBDA policy regarding those issues, and opening it to members
only allowed for more give and take between those reporting and those in the audience.
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.
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 encourages you to call the PLCB’s Alcohol
Education Specialist, Lori Rizzo, 717-558-2160 for
more information. Or go on line, www.lcb.state.pa.us.
MBDA PROCESSING PROGRAM
MBDA thanks Barbara Lynch of Brewers Outlet in
Dunmore and Alexis Shipula of Beer Super in WilkesBarre for their assistance at our registration desk. Our
sincere appreciation goes out to Jim Kilcoyne of Inco
Beverage in Johnstown for his assistance in securing
ads for our Trade Directory. And finally, many thanks
for a job well done to Convention Chairman Tom Mehaffie, Vice-Chairwoman LeAnn Supeck, and MBDA
Convention Coordinator Stephanie Eckert.
PNC Merchant Services has lowered its processing
rate to offset the increases to MasterCard and Visa Assessment and Access fees. Effective July 1st, our debit
rate decreased from 1.89% to 1.84% and our credit
rate from 1.99% to 1.94%.
MasterCard and Visa fees will now appear as separate
pass through line items on the merchant’s statement.
On an average ticket level, most transactions will
come out at approximately the same costs, with the
recent increases to Assessment and Access Fees
slightly altering the pricing structure. The Visa APF
per item has been a component of the overall pricing
since July 2009, and the MasterCard NABU fee is a
new component to the pricing structure.
AWARD WINNER
We can not think of a more deserving recipient of the
2010 Jack Muller Award for Distinguished Service
than Tom Mehaffie of Breski Beverage in Harrisburg.
He was presented with the award at MBDA’s recent
convention. Congratulations Tom!
Should MBDA members have any questions please
call our PNC Relationship Manager Denver
Kirkpatrick at #412-768-5016. And remember, the
MasterCard and Visa fees have been passed onto all
processors, not just PNC.
MARK YOUR CALENDAR
MBDA’s 75th Annual Convention & Trade Show has
been scheduled for April 30-May 2, 2011. Site is to be
announced, and you’ll receive detailed information in
January.
CREDIT CARD COMPLIANCE
In late April, MBDA members who process credit/
debit card transactions through PNC Bank received
material alerting them to the need to comply with Payment Card Industry Data Security Standards (PCIDSS). As required by Visa, MasterCard, American
Express and Discover, all businesses that accept or
process payment cards must meet these industry-wide
standards to protect cardholder data. Member distributors are advised to review the information received
from PNC to bring themselves in compliance. If there
is a security breach of cardholder information and
your business is not compliant, Visa can impose fines
of up to $500,000 per incident! MBDA is in the process of reviewing the materials sent by PNC to determine if there is an alternative, less costly and less time
-consuming, than that proposed by PNC. Members can
also visit the website, www.pcicomplianceguide.org,
for more information, answers to faq, and suggestions
about compliance.
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, the PLCB offers free training to owners and managers. Employee training is provided by certified trainers who charge a nominal fee.
10
MBDA ELECTS DISTRICT
VICE PRESIDENTS & DIRECTORS
At their April 26th 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; Frank Kalanty, JL’s Beer Box.
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 #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; David
VanZant, Cape Horn Bev., Red Lion; Jim Yaple, Westy
Beer Dist., Camp Hill. Ackerman also serves as our
DISPAC Chairman.
District #4: Allegheny, Beaver, Fayette, Greene,
Washington & Westmoreland Counties: Vice President
Felix Zaffina, Zaffina’s Distributor, Scottdale. Directors: Bob DeBone, Beverage Warehouse, Greensburg;
Dino DeFlavio, McBroom Dist., Pittsburgh; Steve
Klein, Save-Mor Beer & Pop, Pittsburgh; Chris Miller,
Wilkinsburg Bev., Pittsburgh; Snehai Patel, Moon Beer
& Pop 4 Less, Coraopolis; Frank Pistella, Pistella Beer
Dist., Pittsburgh; Christian Stein, Bellevue Beer, Bellevue.
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
Pete Sirianni, Beer & Pop Discount, Erie. Directors:
Martin Denial, Grandview Beer, Erie; Michael Kondak, Edinboro Bev., Edinboro.
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.
District #11: Bucks & Chester Counties: Vice President Paul Farthing, Chal-Brit Bev., Chalfont. Directors: Jim Crane, Goshen Bev., West Chester; Dave
Dripps, Southampton Bev., Southampton; Ed Klunk,
Thorndale Bev., Thorndale.
District #12: Bradford, Clinton, Lycoming, Potter,
Sullivan and Tioga Counties: Vice President Jessica
Wheeland, Home Service Bev., Williamsport. Director
Carl Schultz, Valley Bev., Hughesville.
THANK YOU
ASSOCIATE MEMBERS
Manufacturers who are interested in joining MBDA
should contact our Executive Office. We thank the following for investing in the future of the beer distributing industry in 2010: ANHEUSER-BUSCH,
CROWN IMPORTS, DOTMARK PROMOTIONS, FULL CIRCLE SOLUTIONS, GERBRON WHOLESALE, HERLOCHER ENTERDistrict #5: Bedford, Blair, Cambria, Centre, Fulton,
PRISES, THE LION BREWERY, MICRO
Huntingdon, Mifflin & Somerset Counties: Vice PresiMATIC, MILLER COORS, MOOSEHEAD, NETdent Chris Hickey, W.R. Hickey Beer Dist., State ColWORKER PROMOTIONS, NORTH AMERICAN
lege; Directors: Kevin Luensmann, Cove Bev., HolliBREWERIES, PENN CENTER SYSTEMS, PENN
daysburg; Rick Vanevenhoven, Brew Zoo, Altoona.
NATIONAL INSURANCE, PNC MERCHANT
SERVICES, REVOLUTION POS, THE SIX
District #6: Columbia, Montour, Northumberland,
PACK STORE, STRAUB BREWERY, SUPER
Snyder & Union Counties: Vice President Mark VanVALUE BEVERAGE STORES, WELLS FARGO
Sickle, Henry Voelcker Inc., Danville. Director Matt
INSURANCE SERVICES, YALE INDUSTRIAL
Viens, Keller’s Beer, Selinsgrove.
11 TRUCKS, D.G. YUENGLING & SON.
DISTRIBUTORS—YOU ARE URGED TO:
CONTACT YOUR HOUSE MEMBERS & SENATORS.
ASK THAT THEY SUPPORT HOUSE BILL 2203 AND SENATE BILL 1133
TO ALLOW 6 & 12-PACK SALES BY DISTRIBUTORS.
Use The Talking Points
Outlined On Page 3.
CONTACT YOUR SENATORS & HOUSE MEMBERS.
ASK THAT THEY OPPOSE HOUSE BILL 115 AND SENATE BILL 1300
TO ALLOW BEER SALES BY SUPERMARKETS,
CONVENIENCE STORES & BIG BOX STORES.
Use The Talking Points
Outlined On Pages 1 & 2.
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 2, 4, 8 & 9 For More Information.
RETURN THE ENCLOSED MBDA MEMBERSHIP INVOICE
WITH YOUR DUES CHECK.
IT’S THE BEST INVESTMENT
YOU CAN MAKE TO PROTECT YOUR BUSINESS.
See Page 5 For More Information.
THIS IS AN ELECTION YEAR.
MAKE YOUR DONATION TO DISPAC
SO THAT WE CAN CONTRIBUTE TO THE
CAMPAIGNS OF LEGISLATORS WHO ARE
UNDERSTANDING OF OUR ISSUES.
See Page 8 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 SITES—
WWW.MBDAPA.ORG
WWW.ONSALENEARYOU.ORG
12