2012 convention
TRANSCRIPT
2012 CONVENTION PACKED WITH SPEAKERS & INFORMATION
WBWAO members and convention attendees enjoyed the brisk pace of speakers and panelists as we heard from Ohio winery and brewery owners; several speakers from the economic and legal fields; Ohio agency experts; and industry consultants.
A total of nine speakers filled the two-day convention. Matt Litter, chair for the Council for Leadership Development who spearheaded the roster, was pleased with the diversity of topics and depth of knowledge that was shared. And Greg Maurer, chair of the Wine Advisory Council, said that many attendees were happy to hear from Ohio suppliers Claudio Salvador, Firelands Winery owner, and Greg Hardman, Christian Moerlein owner.
Seminars were led by Steve Buehrer of Ohio Bureau of Workers’ Compensation; David Campell of Vorys, Sater, Seymour and Pease law firm; Michael Brown, an economist from Wells Fargo Securities; and Joe Thompson, industry consultant.
On Friday we heard from Bruce Stevenson, Superintendent of the Division of Liquor Control; Senator Tom Niehaus, President of the Ohio Senate; and John Conlin, industry consultant.
If you were not able to attend, some of the most interesting statistics that Superintendent Stevenson shared is that we now have 23,500 retailers in Ohio; 75 breweries; 174 wineries; and six distilleries. The Division also is working on a more user-friendly website portal for distributors, retailers and consumers.
A big thank you to our convention sponsors: Aim Leasing Co.; Anheuser-Busch InBev; Bank of America; Bickers Consulting Group LLC; CareWorks; Chase; The Craig Group, Inc; John Gerlach & Co. LLP; MillerCoors; Ohio Council of Retail Merchants; Vorys, Sater, Seymour & Pease LLP; Wells Fargo Beverage Finance; and The Wine Group.
Mark your 2013 calendar for September 26-27 when we will reconvene at the Hilton Easton in Columbus.
NEWS FROM YOUR BOARDThe WBWAO Board of Directors has appointed
Joe Schetz, Vice President of NWO Beverage, Inc. in Toldeo, to the seat vacated by Mike Stagnaro, who recently resigned due to pressing business matters.
WBWAO Officers who begin duties December 1 are Vail Miller Jr., President; Mike Tramonte, Vice President; Curt McCamon, Treasurer; and Kris Klepper, Secretary. They were elected by the Board Directors who also include Gary Guagenti, Jim Matesich, Andy Phillips and Joe Schetz. Thank you to everyone for your service!
W H O L E S A L E B E E R A N D W I N E A S S O C I AT I O N O F O H I O COLUMBUS | NOVEMBER 2012
2012, 2013 RULES REVIEW STATUS
Ohio’s Liquor Control Commission is charged with reviewing a set amount of administrative rules each year. The Commission has completed its 2012 rules review without any major overhauls (Rules 3, 43 and 72 are the most important to members). The Commission’s recommendations are now being reviewed by Ohio’s new Common Sense Initiative (CSI).
Once the CSI office approves the rules, they will be filed with the Joint Committee on Agency Review, the final step in the review process.
There are 12 rules which will be reviewed in 2013. Of these, the rules of greatest interest to WBWAO members include:
Rule 32 – product samples
Rule 68 – limits of 20% for dock sales to consumers
Rule 73 – differential pricing practices on beer
Rule 74 – split case fee on wine
If you have any input on the 2013 rules up for review, please call Tim Bechtold or Dave Raber.
CONGRATULATIONS TO PRESIDENT JIM MATESICH FOR BEING AWARDED WHOLESALER OF THE YEAR BY OHIO TAVERN NEWS. PICTURED IS OTN’S MAX
ECKENWILER GIVING JIM THE AWARD AT THE SEPTEMBER CONVENTION.
MISSOURI RESIDENCY CASE CONTINUES
By Dave RaberThe federal court recently upheld
Missouri’s in-state residency law for wholesalers. Southern Wine & Spirits, whose Officers are Florida residents, appealed the case and filed its Brief before 8th Circuit Court of Appeals. Southern through its counsel focuses mostly on the dormant commerce clause challenge. Their attorneys concentrate on what they feel the protectionist nature of the Missouri law and a lack of evidence by the state to defend the policy.
Also, an amicus brief in support of Southern was filed by Missouri Beverage Company. They support the Southern brief and add additional issues including the potential lack of market for their business as a reason why this Missouri law violates the Constitution.
The Court has issued an order extending the briefing for the state to respond to Southern Wine and Spirits appeal to the 8th Circuit in Missouri until November 9, 2012. Any amicus in support of the Missouri would be due by November 16, 2012. Appellants reply brief is due December 17, 2012.
COUNCIL FOR LEADERSHIP DEVELOPMENT
CLD chair Matt Litter, on behalf of committee members Erik Jenkins, Mike Conway, Jason Edwards, Michael Miller and Austin Phillips, reports that the CLD’s focus continues to be researching and recommending membership benefits to the Board as well as arranging visits to the statehouse, the DOLC and (soon to be) the Commission.
“The purpose of these visits is so that we and the general membership can have a better understanding of how each impacts our businesses and industry,” says Matt. “We’ve hosted the legislative staff party and
attended political events throughout the year to become more familiar with our state representatives and senators.”
CDL members worked diligently to secure sponsors for both the Spring Golf Outing and Fall Convention. The CLD has also recruited new Allied members for the Association and speakers for the Fall Convention.
“The CLD looks forward to serving the Association in 2013 and playing a part in developing the next generation of leaders,” says Matt.
AVION ENERGY GROUP HELPS WBWAO MEMBERS REDUCE ENERGY EXPENSE
By Martin O’Keeffe, Avion Energy Region DirectorAvion Energy is very pleased to be a new Allied Member of the Wine & Beer
Wholesale Association of Ohio! Avion Energy is a commercial energy broker operating in all the energy-deregulated States across the Country.
We help you find best pricing for your electricity and natural gas usage. Our services are provided free to all WBWAO members as a benefit.
Since the Ohio energy market was deregulated and opened up to competition at the beginning of the year, businesses all over the State are hearing from multiple energy suppliers … all claiming to have the best pricing and terms. What we do is answer the question: How do you know which energy supplier has the best deal?
A few things make us special: We represent WBWAO member distributors, the business energy users, not the energy suppliers; we gather competitive bids for your electricity & natural gas usage from multiple energy suppliers that are authorized to do business in your area; we then summarize and present their bids to you in a one-page document so you can see who want’s your business the most!
It’s EASY! As a WBWAO member, just go to the WBWAO website & find us under member benefits. Select the Get Started button and we’ll get your free energy rate survey back to you in about a week. We do this every day in all 26 deregulated-energy-States across the USA, so we get better prices for your electricity and natural gas usage than you can get on your own. The energy suppliers know that when we contact them on your behalf, their pricing is going to be presented to you right next to their competitors…on the same sheet of paper!
While our affiliation with WBWAO is still pretty new, we’re already seeing electricity and natural gas bids coming in at 30% less than some members have been paying. Most of you have told us that you’d prefer not to have all the sales reps from the various energy suppliers constantly contacting you anyway, so Avion Energy adds the convenience of having one point of contact for best energy pricing.
Another thing Members should realize is that over time, as more and more Members use Avion Energy, we have increasing leverage with the energy suppliers to get even better pricing because we can negotiate on your behalf as a group. Also, a portion of the broker fee generated from each transaction comes back to WBWAO to support its membership goals.
We really appreciate the great interest and support we’ve received from Jim Matesich, Sue Remy, and the other professionals at WBWAO. We look forward to providing many years of energy savings for WBWAO Members! I can be reached at 404/992-6284 or e-mail [email protected].
KEEP OHIO BEAUTIFUL AUTUMN EVENTS
Keep Ohio Beautiful (KOB), the state-wide umbrella organization for some 33 local Keep America Beautiful affiliates, initiated and produced two exciting programs this Fall that are worth sharing with WBWAO members:
Ohio Statehouse beautification project: With community partners The Scotts Miracle-Gro Company, KOB organized a day of planting on September 18 on the south side of the Ohio Statehouse. It was part of Keep America Beautiful’s first National Planting Day to celebrate the value and power of native species in restoring ecological balance to the environment while creating greener, more beautiful communities.
About 20 high school students from Tolles Career & Technical Center who are studying the landscaping industry did the “heavy lifting” of planting perennial beds, shrubs and a native Red Bud tree, along with a “moist meadow” to improve water drainage.
Senator Richard Finan, who oversees the Capitol Square Review and Advisory Board, was the MC for the news conference and was excited about KOB’s leadership. A date/location for next year’s event already has been set: September 17 for enhancing the northeast side of the Statehouse along Broad Street.
VA Medical Center in Dayton: In cooperation with partner The Home Depot Foundation and Keep Pennsylvania Beautiful, some 60 volunteers revitalized four separate areas of the VA’s Community Living Center (nursing home). The Medical Center has been spending most of its funds for improving building structures and has little left over for landscaping and grounds.
Through KOB’s leadership, funds and volunteers were secured through The Home Depot Foundation. After the day-long project, patient courtyards had been pressured washed and stained; gazebos and arbors repainted; wheelchair ramps/bridges built; table-top planting stations installed; and numerous perennials and shrubs planted. Also, a walkway leading up to the American flagpole was mulched and planted with rose bushes and daylilies.
The mission of Keep Ohio Beautiful is empowering Ohio communities to take greater responsibility for improving their environment through litter prevention, beautification, community greening, waste reduction and recycling. For more information, visit www.keepohiobeautiful.org.
COALITION KEEPS EYE ON CASINOS, LIQUOR RULES AND MORE
WBWAO is part of a state-wide Coalition called the Coaliton for a Safe and Responsible Ohio, made up of some 16 organizations and agencies which all have an interest in monitoring and working together on underage drinking, abusive drinking and other alcohol-related issues. Meetings are organized and chaired by former Speaker of the House Jo Ann Davidson.
The group is diverse and has a keen interest in issues and new legislation that could negatively impact citizens’ safety in Ohio.
During the last several meetings, WBWAO has had the opportunity to bring speakers to the table to explain the three-tier system of alcohol distribution. Superintendent of the Division of Liquor Control Bruce Stevenson; Ohio Liquor Control Commission Executive Director Jackie Williams; and Dr. Greg Browning, economic consultant and former Ohio Budget Director, have all helped lay educate Coalition members about our industry.
Also, with the focus on human trafficking issues and concern about the impact casino operations may have on this problem, members learned about a new program established in Franklin County for women who have been arrested and jailed several times for prostitution (CATCH Court). Judge Paul Herbert from Franklin County designed the new program and said that 96% of the women under the age of 15 are runaways and most are lured into prostitution by men who get them hooked on drugs.
The Coalition also gets updates on the new casinos in Ohio and discusses topics including gambling, the Ohio Lottery, racing, and drug and alcohol addiction.
The most recent meeting examined the findings of the Ohio Department of Alcohol and Drug Addiction Services (ODADAS) survey conducted in conjunction with Kent State University and Ohio for Responsible Gambling (ORG). The survey interviewed 3,600 Ohioans to measure the prevalence of at-risk and problem gambling as well as measuring dual addiction occurrences.
2012 LEGISLATIVE LUNCHEON
2013 CONVENTION
WORKERS’ COMPENSATION UPDATE2013 Quotes
As 2012 soon comes to an end, we want to remind you that now is the time to review your workers’ compensation program and costs. This is the ideal time to submit your authorization to allow CareWorks Consultants to review your program and offer you a quote through WBWAO’s workers’ compensation program. WBWAO’s program includes various sizes of members from our industry. Members in the WBWAO’s program are saving over $170,000 on their BWC premiums for 2012 alone.
For a no-cost, no-obligation program analysis, call WBWAO’s Program Manager, Jason Bainum toll-free at 1-800-837-3200, ext. 7114 or email him at [email protected]. You may also submit an online application at www.careworksconsultants.com/groupratingapplication/wbwao.
Upcoming DeadlinesFor those of you who take advantage of BWC’s 50/50 Payment Plan, the
balance of your 1/1/12-6/30/12 premium payment is due no later than December 1, 2012.
Ohio BWC AnnouncementsThe Ohio BWC announced last month that they have determined the Credibility
Table (this is the main actuarial chart that BWC uses to determine each employer’s experience-modified premium rate) for the 2013 policy year (7/1/13-6/30/14). They will be keeping the same Credibility Table from the 2012 policy year, so once again the maximum credibility factor is 53%. This means that the maximum achievable discount in a traditional group rating program will be 53%, just as it is for 2012.
If you have any questions or would like to receive a quote through WBWAO, please contact Jason Bainum, CareWorks Consultants Program Manager, at 1-800-837-3200, ext. 7114 or via email at [email protected].
PEOPLE IN THE NEWS Out-going WBWAO Board President Jim Matesich has been elected
Ohio’s next representative to serve as a Director on the Board of National Beer Wholesalers Association (NBWA). Jim was elected to the position in August and will serve a three-year term. Former WBWAO President John Dickerson has served as NBWA Ohio director the last three years and chaired the important NBWA legal affairs committee. A big thank you to both John and Jim!
Congratulations to the 2012 WBWAO golf tournament winners Erik Jenkins, Eric McFarland, Mike Kelley and Rick Prebles. The team, which shot 63, won in a scoring playoff with the team of Jim Matesich, Sarah Matesich, Wes Raynor and Al Wright. A big thank you to all our sponsors, participants and the Moraine Country Club for another memorable golf outing!
The Middletown Journal recently selected John Dickerson as one of Middletown’s Most Influential People. He was featured in an article describing the company’s charitable giving and community involvement throughout Preble, Butler and Warren County, most notably the Joe Nuxhall golf tournament which has donated $600,000 to 13 school districts in the area.
Kris Klepper has been appointed to the board of trustees of Heidelberg University, following in the footsteps of his father Robert who served on Heidelberg’s board in the 1980s and early 1990s.
IN MEMORY Jim Pauken, past WBWAO
President and long-time industry leader in Ohio, Kentucky and West Virginia, passed away May 11. His wife of nearly 63 years, Laura, died just 12 days later. They were 85 and 86 years old respectively. We extend our deepest sympathy to family members and friends of both Jim and Laura.
Gregg Robins, owner of Robins Beverage Company in Columbus and long-time member of WBWAO, passed away July 12 at age 66. We extend our sympathy to his family and friends.
Robert “Bob” Marchi, 81, passed away on August 10. Marchi Distributing was a past member of WBWAO. We extend our sympathy to the Marchi family and friends.
Charlotte Johnston, wife of Harry Johnston, passed away on August 16. Harry was VP/General Manager at Heidelberg Cleveland before retiring earlier this year to care for Charlotte during her battle with cancer. We extend our deepest sympathy to Harry and his family and friends.
2013 BOARD OF DIRECTORSVail Miller Jr.
President
Mike TramonteVice President
Curt McCamonSecretary
Kris KlepperTreasurer
Gary Guagenti
Jim Matesich
Andy Phillips
Joe Schetz
WBWAO TEAMJ. Richard Lumpe, General Counsel
David Raber, Counsel for Legal Affairs
Timothy J. Bechtold, Counsel for Regulatory Affairs
Andrew Herf, Vice President of Legislative Affairs
Sue Remy, Director of Administration
WBWAO CommitteesWine Advisory Council
Greg Maurer, Chair
David Clark
Casey Forbes
Mark Maher
Greg Michalec
John Roberts
Council for Leadership Development
Matt Litter, Chair
Michael Conway
Jason Edwards
Erik Jenkins
Michael Miller
Austin Phillips
Rules Review Committee
Mike Tramonte, Chair
John Dickerson
John Fleming
Brooke Hice
Gregg Hipp
Greg Maurer
WBWAO 37 W. Broad St., Suite 710
Columbus, Ohio 43215(614) 224-3500
Ohio WATS Line: 1-800-282-7639FAX: (614) 224-1348
E-Mail: [email protected]: www.wbwao.org
We represent you!
Calendar Dates2013 April 14-17 NBWA Legislative Conference, Washington D.C.April 28-May 1 WSWA Convention, OrlandoMay 14 WBWAO Legislative Luncheon, ColumbusJune 3-4 WBWAO Spring Meeting/ Golf Outing, DaytonSept. 26-27 WBWAO Fall Convention, ColumbusSept. 29-Oct. 2 NBWA Convention & Trade Show, Las Vegas
WBWAO SUPPORTED GOVERNOR JOHN KASICH AT A FUNDRAISER EARLIER THIS YEAR.
LEFT TO RIGHT ARE GREG MAURER, GOVERNOR KASICH, DICK LUMPE AND DAVE RABER.
WELCOME NEW MEMBERSNew Wholesaler MemberNatural-State Wines, Inc. Columbus, Ohio 614-543-0080 Susan Mizer, President
New Allied MembersAvion Energy Group Martin O’Keeffe 678-697-7717 [email protected]
Benko Products, Inc. John Benko 440-934-4052 [email protected]
Chase Bank Mark Slayman 614-248-2549 [email protected]
Group Hesse Ken Mannen 816-483-7808 [email protected]
OMAC Beverage Advisors Sean McLaren 404-442-8760 [email protected]
Squire Sanders Donald Hughes 614-365-2700 [email protected]
Toshiba Business Solutions Carl Vella 216-642-7555 [email protected]
TMS, Inc. (Technical Maintenance Support) Everett Manning 949-837-2324 [email protected]
Waymatic, Inc. Dave Gilbert 731-479-1741 [email protected]
Capitol City Trailers, Inc. Matthew Hackney 614-491-8860 Ext. 213 [email protected]