listing/de-listing industry representative: dave stock-skyy spirits best practices presenters:...
TRANSCRIPT
Listing/De-Listing
Industry Representative:Dave Stock-Skyy Spirits
Best Practices Presenters:
Idaho: Bill ApplegateVermont: George Moulton
NABCA Best Practices October 26th, 2007
New Products are the Future of the Alcohol Beverage Industry
Consumer OrientedDrinking better – Taste good - Seeking Variety - Convenience
InvestmentAll channels must invest in the Industry
NABCA Best Practices October 26th, 2007
Industry Assumptions:
• Listings and delistings are the processes by which new products get to market and nonperforming brands are removed.
• These two processes must work in conjunction with meeting consumer trends & offering the latest innovative products.
Listing Challenges:Industry recognizes the following concerns:
Warehousing Space Warehouse space is limited. New item inventory needs to be monitored. Discontinued items need to be removed in a timely fashion.
Shelf Space Allow adequate number of supply days to avoid out-of-stocks. Shipping cycle. Full case packs should be considered on high velocity brands. Consumer Trends; seeking variety & convenience.
Meet demand by offering a full range of brands; i.e. line extensions, flavors & price points.
Listing Policy Industry Recommendation
Important to have a transparent, clear and effective listing policy.
Result: Improved supplier new item
presentationsState Boards will make more informed
listing decision Improved use of time & efficiencies for all
partiesExpediting new brand process in reaching
the consumer.
Listing PolicyIndustry Recommendation
Listings meetings should be timely
Random listing meetings: Liquor Boards are in a better position to stay ahead of
rapidly changing trends in the Beverage Alcohol Industry.
Store modernization: An update product offering meets consumer demands. Also, supports the Liquor Control system and can operate
as effectively as the open and privatized markets.
Listing Policy Industry Recommendation
The consumer as the ultimate judge of a brand’s success.
By giving products the listing opportunity and retail shelf space, it allows the consumer to decide.
In the end, Consumers should dictate which brands stay and which ones go.
Delisting Policy Industry Recommendation
• Important to have an efficient listing policy as exit strategy
• Delisting policies:
– Fair, transparent system with defined benchmarks. – Offer adequate notice of any pending delisting.
» An opportunity for Supplier to take corrective action.» Supplier can participate with the board in removing the de-
listed brand in a timely fashion.
• Example of progress this year for “Best Practices”:»Idaho & Vermont
•
19 Control Jurisdictions
Listings any time (11 Markets)
• Iowa, Maine, Michigan, Mississippi, Montana, New Hampshire, Ohio, Pennsylvania, Utah, West Virginia, Montgomery County
Listings at certain times per year (6 Markets) • Idaho, North Carolina, Vermont, Virginia, Washington, Wyoming
Hybrid (1 Market)
• Oregon Board’s discretion
• Alabama
2004 Listing Process
19 Control Jurisdictions
Listings any time (14 Markets)
• Iowa, Maine, Michigan, Mississippi, Montana, Montgomery County, New Hampshire, North Carolina, Ohio, Pennsylvania, Utah, Vermont, West Virginia, Wyoming
Listings 3 X Year (3 Markets)
• Idaho, Virginia, Washington, Hybrid (1 Market)
• Oregon Board’s discretion
• Alabama
Listings Process 2007
√ Idaho√ North Carolina√ Ohio √ Vermont, √ West Virginia√ Wyoming
States That Have Adopted Changes to Their Listing Policies Since 2004
“Best Practices”
Industry recommends using Best Practices as a resource.
While each state’s listing and delisting policies include unique policies, two states that have made changes recently:
Idaho
Vermont