The Advisor Magazine - Issue #10 : simplebooklet.com

Editor s Note There are a number of reasons to celebrate this holiday season After most of us missed out on family memories last holiday season in some capacity it seems we re not willing to make the same sacrifices this year Looking For Featured Liquor Store Listings CLICK HERE Page 4 Past Present Future Of Liquor Licenses Spotlight Dan Newcomb Page 8 Confidence Growing On Premise To see how far we ve come we have to look back to acknowledge where we ve been Some owners are welcoming the holiday rush back with open arms to make up for the lost time The holiday sales and eagerness to move past what was 2021 are evident when you go out Page 10 Competition Heating Up In The Delivery Channel Page 12 License Swap Plus Cash Owners can look to see consumers reaching for premium brands higher shopping cart bill totals and more frequent visits as compared to last year to treat themselves and the ones they love for special occasions Our team wishes you and yours a very healthy and happy holiday season DAN NEWCOMB Founder CEO Liquor License Advisor THE ADVISOR MAGAZINE 2 www LiquorLicenseAdvisor com Liquor License Advisor has been a trusted resource in the liquor store and license industry since 2002

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byDan NewcombChristian M. Wade reported for the Eagle Tribune on November 18, 2021, thestatus of proposals hopeful to make their way onto the 2022 ballot, two ofwhich are critical to liquor laws in Massachusetts.The proposal to allow supermarkets and convenience stores to have access tomore beer and wine licenses did receive enough signatures to move forward.The referendum calls for gradually increasing the number of licenses a singlecompany can own, rising to 18 over the next decade. However, it wouldcontinue to implement a cap on how many total licenses can be issued, aswell as tighten limits on the sale of liquor and spirits, increase ID requirementsimplemented by sellers, and heighten the penalty for businesses found sellingalcohol to minors. This ballot question stands as a compromise withconvenience stores that are pushing for more beer and wine licenses, whichare tightly controlled by the state. Between Thanksgiving & New Year's Eve isalways a welcomed time for owners. How willthings lead into next year?THE ADVISOR MAGAZINE  | 3www.LiquorLicenseAdvisor.comSupermarkets are allowed to apply forlicenses to sell beer and wine inMassachusetts, but a single companyis limited to nine licenses, a numberthat increased this year. Liquor storeowners say that removing the capentirely would destroy their business. Robert Mellion, executive director ofthe Massachusetts Package StoreAssociation, states that, “We are in afight for our survival. We are taking thisto the voters, and want them to knowthat by supporting this they aresupporting local business and theeconomy.”One proposal that won’t make it to thenext phase is the return of happy hourat Massachusetts bars andrestaurants, as it did not gather therequired amount of signatures. Theproposal’s sponsor, Attorney NickSilveira, says that “if lawmakers don’tapprove a standalone bill pendingbefore the Legislature he plans torenew the effort for the 2024 ballot.” We're in a fight for oursurvival.- Rob Mellion, MassPack

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N E W C O M B S B A C K G R O U N D HOW IT ALL STARTED How did you get into the alcoholic beverage industry Growing up my family owned 26 restaurants and I played a big part in the business After moving on to buy and run my own restaurant I shortly decided that I did not want to run restaurants anymore However I enjoyed the industry and wanted to find a way to make money within it which led me to restaurant brokerage To make money you had to close deals and in order to close deals you had to get liquor licenses approved Restaurant transactions would take about six months and of that six months three months was the liquor license piece It was the hardest part and I got really good at liquor license transactions because I needed to close deals so that I could make a living In 2010 when the economy got slow banks were coming to me to sell liquor licenses that they had as collateral In very short order I realized the amount of money I could make doing liquor licenses with the same time resources and effort far outweighed what I could make as a restaurant broker That s how it all got started LOOKING BACK ON 2021 What trends have you seen in 2021 and what can existing owners learn from them In 2021 I saw a lot of consolidation in the industry You re seeing operators with the ability to buy multiple stores and leverage multiple locations I also think that you re going to see even more consolidation as they consider increasing the number of licenses that a single operator can acquire right now they can only operate 9 So Walmart Trader Joe s BJ s Stop and Shop and independent operators can only have 9 licenses in the Commonwealth of Massachusetts There are some potential ballot initiatives proposed by Massachusetts Package Store Association to increase the number to 18 Cumberland Farms is trying to remove the quota altogether which will change everything It would give Stop and Shop and Walmart and Total Wine and the independent owners the ability to operate as many stores as they want which gives them leverage with the vendors and the ability to buy products at discounted rates It s going to squeeze the small guy out The Massachusetts Package Store Association has gathered over 80 000 signatures regarding the ballot initiative to keep the limit on how many stores you can operate to protect small businesses in the marketplace From what I have seen in 2021 I think that it s really important that existing owners stay aware of what s going on in the marketplace and prepare their businesses for a quick sale if that s the best move I think the owners that are able to move quickly are the ones that are going to benefit from this because they ll be able to be first to the market and get the biggest return on their money If Walmart s out looking to buy stores you want to be right there and prepared to sell when the right opportunity comes versus waiting to make a decision So owners should think about their future and have a plan and we re here to help with that We can help them devise a plan to maximize their return on investment What s the number one thing you learned in 2021 when it comes to the liquor license industry What I ve learned in 2021 is to be really flexible and move in the direction of the opportunity The opportunity that s in front of us right now is going to expire at some point and if we re not in the position to take advantage of it We re going to build our company so we re aware of what s going on We pay attention we also have the ability to move to serve the needs of our customers as opportunities present themselves THE ADVISOR MAGAZINE 5

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What can owners expect for 2022 and where do you see the industry going? As mentioned before, the trend in 2021 of consolidation and ballot initiatives isgoing to continue. The bigger stores are going to get bigger and the small guysare going to be few and far between. There'll be fewer smaller liquor stores inMassachusetts in 2023 than there were in 2021. The smaller independents aregoing to have to scratch and claw to continue to compete.What advice would you give to liquor store owners considering alcohol deliveryservices? My advice would be that they need to get really good at it really fast because thecompetition is coming in from national players. If they’re not efficient and don’thave a plan for it then they're just going to miss out on taking advantage of wherethe industry is going. Everyone expects to be able to go on an app and getdeliveries to their home. Whether it's liquor, groceries, or clothing. If you're notdelivering or have an efficient system to do so, you're going to miss out onrevenue and lose market share. What is your advice on managing staff and liquor store inventory with shortagesin mind? Every business owner should be striving to make sure that their employees havethe best job that they've ever had. There may be more money up the street, but ifyou could provide them with other things, whether it's time off or growth, it's justbeing able to put them in a situation where you give them what they want, notwhat you think they want. As far as inventory goes, if you can't maintain aninventory level where your customers get what they want and have it in-store, thenyou shouldn't be in the business. You should definitely think of this as a time toexit and come up with a plan. The good operators have plenty of inventory evenwhen there are shortages. THE ADVISOR MAGAZINE  | 6

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What marketing suggestions do you have for promoting sales during the holidayseason? Great customer service because it's going to last year-round. People can get abottle of vodka or a bottle of rum anywhere, but how you make them feel is whatthey’re going to remember. Customer service is a hard thing to find right now inthis marketplace and it’s what’s going to produce repeat business. What is the advice you'd give to someone thinking about selling their store? I think the best advice I could give someone is that engaging a broker is a verywise investment in your whole process. As an example, I recently sold acommercial building and I hired a broker to do that even though I've had mylicense for 20 years. When I sold my house, I could have very easily done thatmyself, but I hired a broker that understood the market. I've had 39 boats andwhen I decided to sell my boat, I hired a broker. In all three instances, there was acost involved, but it was a very wise investment and helped me move all three ofmy biggest properties this year at significantly higher than market value. Ipractice what I preach. What can owners do to prepare and maximize their return on investment beforeselling a liquor store? Consult your advisors early on and have a plan in place to help you maximize yourinvestment. It’s all about planning, so you’re not scrambling to figure out a planwhen you have to sell it. You want to have your ducks in a row when someonecomes across the threshold to buy your store. We can help you do that. We havea checklist to help owners get ready for a potential sale in the future, and if theywant to do it themselves, we'll teach them how to do it, so they don't need abroker if they don't want to have one. We have a guide that we wrote on liquorstore sales and we're happy to provide it. However, they’ll realize very quickly thatit’s much more cumbersome than they thought, and they'll realize that it's a smallprice to pay to have our expertise on their side. THE ADVISOR MAGAZINE  | 7

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C CO ON NF F II D DE EN NC CE E O ON N G GR RO OW W II N NG G P PR RE EM M II S SE E II N N T TH HE E M MA AR RK KE ET T This holiday season has people gathering together again at least for a little while BY MICHELLE HANSFORD After an unprecedented challenging and in some circumstances devastating 18 months for on premise establishments operators are finally seeing a comeback in their industry Although these glimmers of hope are to be sought after with these opportunities also come challenges as the post pandemic world left operators and consumers in a different place than they were before A recent CGA VIBE Very Important Beverage Executives Beverage Leaders Study features research regarding the current opportunities and challenges now facing on premise operators and how operators can take advantage of post pandemic changes With most pandemic restrictions behind us and a new year ahead operators are laser focused on their recovery According to the report 72 THE ADVISOR MAGAZINE 8 of operators and suppliers feel optimistic about the next 12 months and some new sites are even expected to open It is very encouraging to see such high levels of confidence in the On Premise and that optimism should soon translate into growth for many businesses Alexandra Martin Operator and Analytics Director Americas CGA One reason for this optimism is that businesses expect that many people will make up for lost time and missed occasions and will celebrate at their establishments In addition to celebratory occasions businesses also expect business to grow as people treat and reward themselves by dining and drinking out after lengthy restrictions Operators are also hopeful that latenight business will make a comeback now that the curfews implemented in some areas are over Although confidence and optimism are high among operators and consumers are more than ready to make up for lost time sales could be negatively impacted by the income cuts a lot of Americans took as a result of COVID

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“Operators and suppliers need to adapt to post-COVID-19 changes inpeople’s use of the on-premise”, according to the report, which means notonly keeping in mind the shift in income but also being mindful of safetymeasures that are still a priority for many, as well as adapting to the highlytechnological world that many have become accustomed to with digitalmenus and online ordering. It also can’t be overlooked that consumers will expect an exceptionalexperience after being away from the on premise for so long, which ismore of a challenge for operators now than ever, as staff retention hasbecome a major issue.“Finding, motivating, and retaining good people canbe challenging at the best of times, but the pandemic has heightened theproblem in many areas”, and VIBE reports that staff retention is thenumber one operational challenge facing operators in the upcoming year,with engaging and motivating staff falling closely behind, followed bystaff availability, building guest loyalty, and providing a high-qualitycustomer experience. Even with all of the opportunities for operators to make a comeback in thenew year, there is no shortage of challenges to accompany all of thisoptimism. Operators need to be in touch with their customers and their needs morenow than ever before, which means utilizing technology to drive sales,being aware of income shifts, providing exceptional service despitestaffing challenges, and paying attention to beverage trends. Consumersare ready to consume, and operators and ready to serve.Now it’s a matter of which on premise businesses will survive in this alteredworld?IS 2022 THE COME BACK YEAR?Thinking about moving on from the restaurant industry in 2022?Give us a call to find out what your options are for your alcohol license.781.319.9800

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COMPETITION HEATING UP IN THE DELIVERY CHANNEL If you haven t already now is the time to integrate delivery services into your business strategy By Glenn Lawler As a result of COVID 19 lockdowns it was no surprise that at home consumption of alcohol accelerated at a fast pace To fulfill the demand of consumers liquor stores and alcohol delivery services quickly adjusted their business models and the trend is here to stay The competition in the delivery channel is heating up as businesses continue to enhance their strategies to stay in the game and adjust to mainstream platforms Retailers delivering alcohol traditionally via FedEx or UPS must comply with federal and state shipping requirements Laws vary from state to state Massachusetts online retailers are restricted to wine deliveries and Massachusetts on demand retailers are permitted to deliver wine beer and liquor Industry trends have seen online retailers and on demand retailers merging business models in order to expand their target market and delivery capabilities in accordance with the law A variety of large companies have acquired brick and mortar businesses such as Uber with Drizly and GoPuff with BevMo and Liquor Barn By the end of 2021 ReserveBar will acquire MiniBar Delivery ReserveBar is an online retailer that ships luxury spirits to thirty six states at a traditional rate of shipping MiniBar Delivery is an on demand retailer for products such as wine beer and RTD cocktails This acquisition will expand ReserveBar s customer base with the added value of on demand delivery and geographical expansion delivery to all qualifying forty three states Forbes magazine reported ReserveBar and Minibar Delivery began negotiations long before COVID 19 As both companies have grown and consumer adoption of e commerce has accelerated we recently revisited our original thesis and found it even more compelling than before As noted by Forbes the steady rise in online liquor sales presented a perfect opportunity for ReserveBar to seal the deal and by the end of 2021 they will acquire MiniBar Delivery What does this mean for liquor store owners This specific acquisition is predicted to increase the number of retailer locations that they serve If you have not already now may be the time to partner up with one of the many alcohol delivery services available as an opportunity to expand your customer base THE ADVISOR MAGAZINE 10

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OUR FEATURED LISTINGS by Ben Jerrom NEW Listing Upscale Liquor Store for Sale with Plenty of Growth Opportunity Worcester County MA 249 000 Don t miss your opportunity to capitalize on a winning concept with major growth potential Call Call For For Details Details Listing Type An upscale Sonoma wine country inspired liquor store located in a beautiful downtown space in a lovely Worcester county community The store prides itself on featuring an extensive selection of unique fine wines as well as craft beer and premium liquors Hand selected cheeses meats nuts and chocolates elevate the shopper s experience offering pairing accompaniments conveniently in one store There is an opportunity for growth as the mainstream beer wine and liquor selections could be developed and there is also the potential for a tobacco license onsite The store has been well maintained and features a tasting bar area where the new owner could host tastings and pairing selection events The seller is motivated and organized ready to work with interested qualified buyers Location Asking Price Full Alcohol Package Store Middlesex County MA 449 000 Wine Malt Package Store Middlesex County MA 385 000 Package Store License Wine Malt Somerville MA NEW Call for info Package Store License Wine Malt Westborough MA 85 000 Type 44 Plenary Retail Distribution License Teaneck NJ 220 000 Contact Ben Jerrom directly for further details on all of our current listings QUESTIONS ABOUT LISTINGS Call Text Ben Jerrom Partner Buyer Specialist Cell 413 544 4960 THE ADVISOR MAGAZINE 11

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Did you know that for over 2 decades, our Founder, Dan Newcomb, hasbeen in the liquor license industry as the "go-to" for other industryprofessionals and leaders? Every phone call that comes into our office is about a liquor license. Wedon't work in any other industry besides liquor stores and licenses.We provide owners with a "firewall" to protect them from all of the pitfallswe know are out there throughout a transaction because we know how toprepare the deal and navigate the waters. We're here for you.Dan NewcombCEO & FounderBen JerromBuyer SpecialistJennifer MedicoTransaction SpecialistGlenn LawlerSeller SpecialistMichelle HansfordSeller ConciergeNatali WilliamsSpecial ProjectsSherri BeauchampMarketing Specialist

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© Liquor License Advisor 2021, All Rights Reserved Unless Otherwise NotedSpecial Contributions & Acknowledgements:- Features Editor & Editorial Assistant: Natali Williams & Michelle Hansford;- Magazine & Digital Editor: Sherri Beauchamp.THE ADVISOR MAGAZINE  | 14Confidence Growing On Premise (Page 8)1 - CGA Beverage Leaders Study Presentation Slides from VIBE Conference, November 2021.Competition Heating Up in the Delivery Channel (Page 10)2 - ReserveBar Is Acquiring Minibar Delivery: Here’s What That Means For Alcohol E-Commerce And RTDs by JillianDara on Forbes, November 5, 2021 (https://www.forbes.com/sites/jilliandara/2021/11/05/reservebar-is-acquiring-minibar-delivery-heres-what-that-means-for-alcohol-e-commerce-and-rtds/?sh=5435591d492c)

The Advisor Magazine - Issue #10

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