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ADVISOR TT HH EE T TH H EE N NA AT T II O ON N S S LL EE A AD D II N NG G LL II Q QU UO OR R S T O R E L I C E N S E R E S O U R C E STORE LICENSE RESOURCE M A G A Z I N FEATURED FEATURED LISTINGS LISTINGS PAGE PAGE 12 12 More On Premise Licenses Retail Tier Reform Drink of Choice CITY OF BOSTON LOOMING 21ST CENTURY SUMMER HOME RULE PETITION ALCOHOL CHANGES DRINK TRENDS 2022 Page 4 Page 10 Page 8 ISSUE 17 JULY 2022 E

Many have plans for a Summer we haven't seen in a few years. As timepasses, it seems people are willing to travel freely, enjoy and evencelebrate like never before with a new level of appreciation.Making up for the past, tourists are flocking back while some locals areplanning shorter, stay-cations to avoid rising costs and make the budgetlast a little longer.Looming legislation for both on and off-premise sectors makes thisSummer feel like the calm before the storm.We hope you all get to enjoy some well-deserved time with your familiesand friends celebrating Independence Day this Summer.Sincerely, Page 4 - More on Premise Licenses? City of Boston Home Rule PetitionPage 8 - Summer Drink Trends: Drink of ChoicePage 10 - Looming 21st Century Alcohol Changes: Retail Tier ReformWith much going on in the world and our country, this Summer isa welcomed break for stakeholders.Looking ForFeatured LiquorStore Listings?www.LiquorLicenseAdvisor.comTHE ADVISOR MAGAZINE  | 2Founder, CEOLiquor License AdvisorD A N N E W C O M BLiquor License Advisor has beena trusted resource in the liquorstore and license industry since2002.

LIQUOR INDUSTRY ADAPTATIONS Independence Day New appreciation for the celebration also leaves lots to consider going into the third quarter of 2022 by Dan Newcomb Meanwhile business owners are trying to get creative to get staff back to work to meet rising demand of the season minimize the shrink of already slim profit margins especially for restaurants and adjust to an increasing awareness of people focusing on heightening their overall physical and mental wellbeing which often means low or no alcohol options The proposal of a Home Rule Petition for the City of Boston will also increase competition for neighbourhood restaurants who are currently serving alcohol People who want a drink with their meal will have almost 200 more options INFLATION BRINGS NEW CHALLENGES As we get set to celebrate one of the largest holidays across the country many families are feeling the squeeze of inflation on their wallets Rising costs for food gas housing interest rates and other essentials to daily living leave fewer funds for novelties like dining out As the Summer progresses it will be interesting to see if the average family reverts back to pandemic habits of serving cocktails at home Maybe BBQs at home instead of restaurants For others stretching for a well deserved night out socializing with family and friends has never been sweeter as the fresh memory of restrictions is not too far into the rear view mirror They re opting for the premium bottle as a token of appreciation for the moment It may seem it s too early to start talking about November 2022 for liquor store owners however this will likely change the way the retail tier operates going forward as far as the number of liquor licenses any given entity can own If you re not prepared you need to be The Summer heat will last long after the season passes Changes are coming to the liquor industry are you prepared If you need support or want to know where you stand in today s market give us a call today 781 319 9800

by Dan Newcombwww.LiquorLicenseAdvisor.comTHE ADVISOR MAGAZINE  | 4Dan Newcomb is Founder & CEO ofLiquor License Advisor & has been in theindustry for more than 20 years.New City of Boston Home Rule Petition (Summary & Updates)

A Home Rule Petition was filed on April 1 2022 regarding the allocation of liquor licenses in the City of Boston as supporters of the petition argue that there is a disproportionate distribution of liquor licenses across the city and that the well documented racial wealth gap in Boston shows that it is crucial for MWBE s Minority Women Owned Business Enterprises to have equitable access to liquor licenses in order to advance economic equity period be distributed to establishments with a capacity of 50 people and under in the following neighborhoods Dorchester Mattapan Roxbury and Hyde Park where there is currently a lack of licenses For example the petition points out that out of the 1 432 liquor licenses in Boston Mattapan holds only ten of them It is proposed that all liquor licenses in the City of Boston shall increase by at least 10 over a ten year period These licenses are for on premise The petition requests that 200 use only and because they would non transferable licenses be non transferable these meaning that if the business licenses would be given back to closes the license would go back the City of Boston if revoked or to the city over a three year canceled to grant an application with the same requirements THE ADVISOR MAGAZINE 5 WCVB5 Boston commented on the petition in an April 7 update describing it as a tool for addressing the city s racial wealth gap Likewise an April 17 Boston Globe article entitled Waiting for liquor license reform in Boston comments on the petition stating that Reforming liquor license law isn t ultimately about booze It s about economic opportunity The article argues that because liquor license holders tend to open establishments in wealthier parts of the city the less wealthy neighborhoods are hurting The article also calls out Boston s state imposed hard cap on restaurant liquor licenses as being antiquated and stubborn a vestige of a bygone time

MORE ON PREMISE LICENSES CONTINUED On June 16th 2022 a City Council Committee on Government Operations hearing was held regarding important matters for the City of Boston including this home rule petition which consists of two Dockets Docket 0465 and 0435 Docket 0465 is the Petition for a Special Law Regarding an Act Authorizing Additional Licenses for the Sale of Alcoholic Beverages to be Drunk on the Premises in Boston with sponsors being Councilors Brian Worrell Ruthzee Louijeune and Ricardo Arroyo Docket 0435 is the Petition for a Special Law Regarding An Act Authorizing the City of Boston to Grant Four Additional Licenses for the Sale of Alcoholic Beverages to be Drunk on the Specified Premises with sponsors being Councilors Ruthzee Louijeune and Julia Mejia If you were unable to attend the hearing we ve got you covered with an overview of the discussion to provide you with the most current updates THE ADVISOR MAGAZINE 6 Significant parts of the conversation focused on the argument that all neighborhoods deserve restaurants to contribute to their culture and the opportunities to infuse the economic activities in these neighborhoods with more options to drink on premise The importance of setting businesses up for success after receiving a license was a hot topic throughout the hearing The discussion that generating a license does not warrant that a business will produce returns on the investment but rather that access to these licenses is crucial to visualizing success was prominent As stated in the meeting It s not a golden ticket but it s an opportunity to work harder Opening and running a business has the possibility of being detrimental with costs of equipment build outs furniture bills employees etc Questions and concerns raised during the discussion included Ensuring the licenses get in the hands of the right people Why Mattapan has so little to no applications How to ensure there is no information gap if the law is passed Consider the approach of walking the cities and informing businesses that license are available Establishing a working session to determine how many licenses go to what neighborhoods over the 10 years Ensuring advocacy for density and development Determining how to set up businesses for success after receiving a license

MORE ON PREMISE LICENSES CONTINUED The Massachusetts Restaurant Association is in support of Docket 0435 which calls for four additional liquor licenses to be granted for the Bruce C Bolling Municipal Building in Roxbury s Nubian Square and one for the Strand Theatre in Dorchester s Uphams Corner The Association cautions that generating the license doesn t ensure the establishment s success the Black Hospitality Association agrees that although obtaining the license may not ensure success the access is first needed to allow visualization of that success They voiced their support of Docket 0435 Another supporter Councilor Lucy spoke on this petition stating that it is to infuse the revenue and economic activities in the neighborhood She lives in Hyde Park and would like to have more options when it comes to dining out Regardless of your stance on this petition liquor licenses are a big part of whether an establishment is successful as most people choose where they eat based on if they serve alcohol THE ADVISOR MAGAZINE 7 Supporters of this petition argued that all neighborhoods deserve restaurants that contribute to and compliment the area s culture Other parts of the city such as the North End are currently thriving and supporters of this petition argue that the petition provides a great opportunity to do that in their neighborhoods as alcohol attracts customers An article published in The Boston Globe after the hearing titled The whiter the Boston neighborhood the easier it can be to find a restaurant with a license to serve booze report shows states that supporters of the petition are trying to get liquor licenses into the hands of entrepreneurs of color The article also states that the Wu administration supports expanding the number of liquor licenses to help rectify the city s racial wealth gap according to Segun Idowu Boston s chief of economic opportunity and inclusion He also stated that ensuring that a diverse array of entrepreneurs have access to liquor licenses is a crucial part of creating opportunities and building generational wealth in Boston

Summer Drink Trends 2022 by Michelle Hansford A recent bevalcinsights com report featuring Drizly s Top Predictions for Summer 2022 Sales provides some great insight as to what consumers plan to drink this summer as temperatures and travel heats up This summer recovering retailers can capitalize on consumer preferences and their desire to experience the local flavor after being homebound for summers past people will reach for is the key question this summer According to Drizly s report white wine and light lagers have experienced more popularity than usual this year which suggests that this popularity will only increase during the summer months Ready to drink RTD cocktails continue to enjoy massive popularity and it seems that they may replace hard seltzers as the 1 go to for summer celebrations One reason why It s no surprise that people RTD are gaining popularity may because people are generally reach for more be refreshing beverages during the considering more what they are hot summer months however as putting into their bodies opting beverage trends have shifted for more natural choices Liz Paquette Drizly s head of what refreshing beverages consumer insights notes that THE ADVISOR MAGAZINE 8 The RTD category continues to grow and gain awareness among consumers Consumers are becoming more educated on what is in the drinks they are choosing like vodka based cocktails versus malt based seltzers as well as seeking new flavor innovation As red wine has recently increased in popularity especially amongst younger consumers white wine may also increase in popularity this summer as it has increased in shares since 2021 and wine lovers may opt for the cooler more refreshing wine option during the summer months Continued

SUMMER DRINK TRENDS 2022 CON T Summer vacations are also amping up this summer with restrictions lifting and people wanting to make up for lost time and delayed travel And it seems that increasing gas prices and unpredictable air travel won t stop them a June 21 2022 AAA article reports that the ultimate summer holiday the 4th of July will see a high volume of people hit the roads and the airlines this holiday AAA predicts 47 9 million people will travel 50 miles or more from home over the holiday weekend June 30 July 4 The biggest surprise car travel will set a new record despite historically high gas prices with 42 million people hitting the road Once vacationers reach their destinations many will opt for local beverages which both on and off premise operators can capitalize on by ensuring they have plenty of local offerings in stock and strategies to market them Many travellers will also opt for the tropical vibe as many will travel to tropical places or will just want to embrace the laidback lifestyle it suggests Drizly reports that many popular brands are offering tropical options such as TRULY Hard Seltzer High Noon Corona and even Bud is offering a Bud Light Hard Seltzer Tropical Cocktail Hour as a limited edition variety pack Despite high gas prices unsettling air travel and covid not being completely over consumers are ready to travel and celebrate not only the 4th of July but summer and the return of the laid back refreshing vibe that summer has always encompassed THE ADVISOR MAGAZINE 9 Once vacationers reach their destinations many will opt for local beverages which both on and off premise operators can capitalize on by ensuring they have plenty of local offerings in stock and strategies to market them

LOOMING 21ST CENTURY ALCOHOL CHANGESThe fact is, the alcohol laws inthe State of Massachusettshaven't changed since the daysof prohibition. The world hasevolved in many ways withtechnology, delivery systems andconsumer demand yet it's notreflected in the liquor industry. All of that may be about tochange on November 8, 2022. As Rob Mellion of TheMassachusetts Package StoresAssociation (MassPack) puts it,“out-of-state corporate forceshave been trying to abolish thecap on the retail tier for manyyears; however, they haveramped up their efforts morerecently with over 190 bills tryingto maneuver and pass throughthe Senate.” That's when MassPack counteredwith The 21st Century AlcoholRetail Reform bill which is headedto Senate to be voted on inNovember. What Is The 21st Century Alcohol Retail Reform bill?MassPack reported that the timeto sit back and defend is over andthey are going on the offence tosave the main street independentbottle shop. Rather than allow out-of-statecompanies to have unlimitedretail licenses (which they havebeen pushing for the past 20years), MassPack proposed toincrease the quota gradually until2031. Although the cap on liquorlicenses for food stores is notbeing lifted, Massachusettspackage store owners haveproposed a compromise: stateliquor licensing laws to doublethe number of allowable licensesthat any one retailer can hold to18 by 2031. The increase would be structuredas follows: · from 9 to 12 in 2023 · to 15 in 2027 · to 18 in 2031 Important to note: the licensecap for the sale of all alcoholicbeverages (beer, wine, andliquor) would be reduced from 9to 7. THE ADVISOR MAGAZINE  | 10BY MICH ELLE HANSFORD

Additionally, the proposal would put new rules into place such as prohibiting self-checkout of alcoholicbeverages and allowing retailers to accept out-of-state IDs. How Will The Vote Impact The Liquor Store Industry? It seems the industry will be changing on November 8, 2022. The question is how? Regardless of the outcome, there are a few potential scenarios that liquor store owners need to beprepared for. Current owners are concerned with how these changes may impact the value of their stores. There are many moving parts and a lot to consider for independent liquor store owners, whether they arecontemplating more stores or wondering when the best time to sell would be. When will the timing be right? As of right now, the answer is: it depends. It depends on your personalsituation, your location(s), and many other factors in your existing marketplace as well as where you wantto end up. In the meantime, we are seeing some owners take advantage of the current guidelines which allow up tonine all-alcohol licenses that would be Grandfathered in, should it be reduced to seven with the upcomingSenate vote. If you are looking for advice or a valuation of your current situation, we're here for you. We are offering a confidential, no-charge audit of your existing store(s) and will assist you with mappingout where to go from here. THE ADVISOR MAGAZINE  | 11781.319.9800

OUR FEATURED LISTINGS by Ben Jerrom Featured Listing Middlesex County Full Alcohol Package Store Asking Price 1 000 000 Call For Information Listing Type Liquor License Advisor offers for your consideration the sale of a full alcohol liquor store on a busy thoroughfare in a northern suburb of Boston The store is a free standing building that offers plenty of retail space as well as storage space on the second floor Offering a variety of spirits wine and beer this store has enjoyed high sales numbers in recent years and has implemented conveniences like Drizzly service to accommodate its customers A large parking lot allows easy access to this store If you are looking to own a busy store in an urban neighborhood don t miss this opportunity to capitalize on this established business Location Asking Price Wine Malt Package Store Middlesex County 200 000 Full Alcohol Package Store Norfolk County MA 750 000 Full Alcohol Package Store Plymouth County MA 525 000 Package Store License Wine Malt Middlesex County MA 75 000 Package Store License Wine Malt Somerville MA 159 000 Package Store License Wine Malt Westborough MA 85 000 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 12

Independent liquor store owners are going to see a shift in the industry and theyneed to be prepared - whether it be to grow their existing footprint or exit to takeadvantage of the market changes.Either way, you need to be planning now. If you have questions on what that willlook like for your business, we can provide detailed recommendations for yourpersonal situation. We're here for you.In approximately 6 months time, a vote in the Senate will change the liquor store industry in Massachusetts forever. The question is by how much...781.319.9800

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 ConciergeSherri BeauchampMarketing SpecialistKate NewcombProject Specialist

© Liquor License Advisor 2022, All Rights Reserved Unless Otherwise NotedSpecial Contributions & Acknowledgements:- Features Editor & Editorial Assistant: Michelle Hansford;- Magazine & Digital Editor: Sherri Beauchamp.THE ADVISOR MAGAZINE  | 17More On Premise Licenses? City of Boston Home Rule Petition (Page 4-7)1 - Boston City Councilors Petition For More Liquor Licenses In Dorchester, Mattapan, Roxbury & Hyde Park, WCVB Feature Article, Updated April 7, 2022 (https://www.wcvb.com/article/boston-city-councilors-petition-for-more-liquor- licenses-in-dorchester-mattapan-roxbury-and-hyde-park/39661459) 2 - Waiting for liquor license reform in Boston by The Editorial Board, Boston Globe, April 17, 2022(https://www.bostonglobe.com/2022/04/17/opinion/waiting-liquor-license-reform-boston/)3 - The whiter the Boston neighborhood, the easier it can be to find a restaurant with a license to serve booze, report shows by Danny McDonald, updated June 20, 2022(https://www.bostonglobe.com/2022/06/20/metro/only-2-percent-boston-liquor-license-holders-are-black-new-report- reveals-startling-disparities/?event=event12) Summer Drink Trends 2022 (Page 8-9)1 – Drizly’s Top Predictions for Summer 2022 Sales, BevAlc Insights by Drizly(https://bevalcinsights.com/drizlys-top-predictions-for-summer-2022-sales/)

The Advisor Magazine runs on a monthly basis to keep stakeholders in theliquor store & liquor license industry in the loop.Liquor License AdvisorSuite 1, 2036 Ocean Street Marshfield, MA 02050 781.319.9800www.LiquorLicenseAdvisor.comCome back for Issue #18 which will reveal the currentstate of the industry, how Summer trends are shapingup, and more.