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T T HH E E ADVISOR 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 E WHERE S THE MARKET AT FOR LIQUOR STORES Owners Taking Notice D2C AND ECOMMERCE PLATFORMS Maximize Higher End Buyers MASSACHUSETTS LOTTERY May Soon Move Online TEQUILA S POPULARITY Not On the Rocks This Spring ISSUE 27 MAY 2023

CEO s Note As things heat up so does the liquor license industry Looking For Featured Liquor Store Listings CLICK HERE Page 3 Where s The Market At For Liquor Stores Are consumer taste buds changing With the popularity of spirits and premium options bringing new meaning to treat yourself retailers and restaurants are adjusting It s also brought in new streams of competition With lottery built on the backs of retailers going online would reduce foot traffic and ultimately revenue for owners How has all of this impacted the liquor store market With many questions we have answers to some in this issue With our knowledge and experience in the industry we re here to help maximize your success Sincerely Page 6 Massachusetts Lottery May Soon Move Online Page 8 Tequila s Popularity Not On The Rocks This Spring Liquor License Advisor has been a trusted resource in the liquor store and license industry since 2002 DAN NEWCOMB Founder CEO Liquor License Advisor THE ADVISOR MAGAZINE 2 Page 5 D2C And eCommerce Platforms Maximize HigherEnd Buyers www LiquorLicenseAdvisor com

Where s The Liquor Store Market At Owners Taking Notice by Dan Newcomb The past few years have kept liquor store owners on their toes for one reason or another causing a shift in the marketplace once again Across the country and more locally here in Massachusetts the boom sales cycle is levelling off in the alcohol industry What has happened is that once again the industry has proven to be future proof against pandemics recessions and other potential swings in consumer spending habits This has attracted a lot of attention from buyers and investors looking to enter the market or grow their existing business Brought to light again in 2022 was the potential of liquor license laws changing to increase the number of licenses available Even though that particular bill didn t stick it s safe to say there will be more pressure than ever to increase the license cap for owners Grocery chains are lobbying to create a new type of license allowing them an unlimited number of licenses to enter the marketplace The consequences of this would directly impact standalone liquor stores THE ADVISOR MAGAZINE 3 The current political climate will continue to be a battlefield for every inch and every new license that potentially could come to market MassPack s Rob Mellion has said that out of state and outside forces have ramped up their attack on the industry each year causing considerable pressure This strategy has been chipping away with a concession here and a concession there along the way making its future unpredictable Not to mention each new license ultimately increases the overall supply in the market while lowering the value across the board Many owners aren t willing to play the game long term and risk watching the value of their store plummet over time Currently inventory is low and demand is high so strategic owners are considering capitalizing on the opportunity in front of them www LiquorLicenseAdvisor com Continued

With online competition, delivery services and direct-to-consumer companies popping up to meetconsumers' expectations post-pandemic. If ownersaren’t taking advantage of Drizly or similar services,they’re leaving money on the table as “there’s an appfor that”. Large corporate entities like Walmart andAmazon are entering the scene with new optionsputting pressure on the independent, stand-aloneliquor store owner.Inventory for well-kept and well-run stores is the lowestwe’ve seen it in many years. The demand of newplayers entering the game, has increased the amountsome buyers are willing to pay just to enter themarketplace. In specific geographic locations, we havea waitlist of buyers with deep pockets. With lesscompetition for sellers, many are taking thisopportunity to start retirement early, enter newgeographic marketplaces, level up the type of storethey are running or just seize the opportunity becausethe economics make sense in the current marketconditions.According to a recent BizBuySell report, the medianasking price for liquor stores in the United Statesincreased by 13.8% in Q1 of 2021 compared to thesame period in 2020. This indicates a growing demandfor liquor stores, which could lead to higher salesprices for sellers.Furthermore, the same report noted that the medianrevenue for liquor stores increased by 13.2% in Q1 of2021 compared to the same period in 2020. This couldbe attributed to the increased demand for alcoholduring the COVID-19 pandemic, as well as the closureof some liquor stores due to the pandemic. This datashows that now may be the right time for liquor store Where's The Liquor Store Market At? (Continued)by Dan Newcombowners to sell their businesses, as demand andrevenue are currently high. There are several factors to consider when making thedecision to sell a liquor store. The current high demandand revenue for liquor stores, changing demographicsof small business buyers, and the recession-resistantnature of the liquor store industry are all factors thatcould lead to higher sales prices for sellers. Influencefrom current political climate and increasedcompetition from online retailers, further support thatnow may be the right time for liquor store owners tosell their businesses. Ultimately, the decision to sell aliquor store should be based on a careful analysis ofthese factors and an understanding of the currentmarket conditions.If you have questions about current market conditions,we have answers. Give us a call to discuss your uniquesituation in a strictly confidential conversation.

D2C and eCommerce Platforms Maximize Higher End Buyers Not Everyone Is Opting For Affordable Brands During Economic Low Point by Michelle Hansford Direct to consumer D2C alcohol sales are certainly generating a buzz these days Several reports from PYMNTS address recent developments surrounding D2C and eCommerce options and how companies are utilizing these platforms and successfully retaining customers An April 10 article titled Constellation Brands Bypasses Stores to Boost High End Liquor Sales features Constellation Brands a leading international producer and marketer of beer wine and spirits and how they are capitalizing on identifying higher income customers for their D2C products Constellation Brands latest earnings report shows that demand for the company s mainstream brands has been lower amid inflation Conversely however many consumers are seeking more premium options hence their attention on customers with the budget to purchase such items Why D2C Constellation Brands CEO Bill Newlands stated that Our higher end brands also have strong growth in our emerging and rapidly expanding direct to consumer channels and international markets so as sales of every day products suffer due to the suffering economy Constellation Brands is putting their efforts where the biggest profit is THE ADVISOR MAGAZINE 5 Although many companies have shifted away from D2C post Covid now that consumers are frequenting on premise establishments again and are more apt to purchase their alcohol at liquor stores rather than online Constellation Brands focus on this channel has not waned and their persistence appears to be benefiting them A similar PYMNTS April 10 article titled ReserveBar Plots Online Destination for Alcohol Sales addresses the recent partnership between ReserveBar an eCommerce platform and the Distilled Spirits Council of the United States DISCUS This partnership will let consumers who take part in Destination Distillery a DISCUS tourism initiative shop for their favorite brands of alcohol on the Destination Distillery website with the help of ReserveBar s technology Destination Distillery offers a unique experience for customers to learn about the culture and history behind their favorite spirits all from the convenience of their homes More than 42 U S distilleries participate in Destination Distillery So as consumers find themselves returning to onpremise and the line at their local liquor store they may be opting for less expensive options however higher end buyers are still out there and apparently D2C and eCommerce platforms are where they like to spend their money

MASSACHUSETTS LOTTERY MAY SOON MOVE ONLINE RETAILERS ARE BETTING THAT THE ODDS WON T BE IN THEIR FAVOR Protect Your Business Vote NO BY MICHELLE HANSFORD Massachusetts package store owners that offer lottery are feeling the pressure of a possible expansion to have the state s lottery system also exist online A recent MassLive article Beacon Hill s online lottery push meets resistance from package convenience stores explains the reasoning behind this proposed change which is mostly due to concern surrounding the increase in digital and mobile sports betting in our state which could negatively impact lottery revenue Allowing the lottery to move online would bring the 50 year old state lottery into the modern era and allow it to compete with sportsbooks according to House leaders and Governor Maura Healey A handful of bills in support of this shift have been proposed with proponents such as Means Chair Representative Aaron Michlewtiz arguing that In the world now of mobile sports betting being so popular we feel that it s time for our lottery system to also have a competitive advantage or an equal playing field by creating an online lottery system as well THE ADVISOR MAGAZINE 6 Massachusetts Lottery Interim Executive Director Mark Bracken echoes Michlewtiz s point stating that In order for the lottery to continue to meet and exceed its goals we need to operate like any other 21st century company We need to make our products available online The flipside of this argument is being voiced by those who own convenience and package stores that offer lottery as moving lottery online will likely result in less customers in their stores therefore affecting not only lottery sales but overall sales as well MassLive reported that the head of the Massachusetts Package Stores Association Robert Mellion is voicing liquor store owners concerns and explained that establishment of an online lottery will have an impact on in store traffic Executive Director of the New England Convenience Store and Energy Marketers Association Peter Brennan agrees with Mellion stating that this move will lead to some harm to brick and mortar retail stores A PlayMA com article titled Online Lottery Seemingly A Matter Of When Not If In Massachusetts explains that the pursual of online lottery has been going on for over a decade but that the harder push for it now is due to the recent legalization of online sports

Massachusetts Lottery May Soon Move Online Continued by Michelle Hansford betting here in Massachusetts And the argument additionally includes that despite claims of business owners that such a change would negatively impact their businesses the lottery has a positive impact on the state with the article stating last fiscal year the lottery eclipsed 1 billion in profit and that states currently utilizing an online lottery system have seen consistent growth of traditional lottery sales thanks to their online presence Additionally not only would the state profit from a thriving lottery system but revenue from iLottery is intended to provide grants for early education and help make child care for families more accessible according to Bracken Regardless of who or what benefits from profit produced by launching an online lottery system one thing is for sure lottery retailers across our state are betting that the odds won t be in their favor THE ADVISOR MAGAZINE 7 www LiquorLicenseAdvisor com

TEQUILA S POPULARITY NOT ON THE ROCKS THIS SPRING MARGARITA ANYONE BY MICHELLE HANSFORD With springtime in Boston comes warmer temperatures which often leads consumers to embrace warmer weather cocktails With tequila maintaining as much popularity as it has within on premise establishments it s the perfect time of year for suppliers and operators to take note and capitalize on this demand by offering a variety of margarita and tequila options on their menus especially with Cinco de Mayo quickly approaching and with Cinco de Mayo being on a Friday this year and with consumers still finding any reason to celebrate postpandemic According to a recent CGA report titled Tequila It s showtime in North America tequila continues to grow across the on premise category paving the way for brands suppliers and operators to capitalize on this trend as we move towards warmer days ahead The report states that In the US Tequila is consumed by 17 of On Premise consumers following Whiskey 20 and Vodka 21 by a short distance The percentage rises significantly once spirits drinkers are isolated from the wide On Premise consumer cohort 38 of them consume Tequila while 43 and 46 drink Whiskey and Vodka respectively The CGA report explains that although tequila is fast becoming one of the most popular spirits around the world North America and particularly the US is where the greatest growth is happening on premise It s not surprising that nearly half of all on premise consumers in Mexico drink tequila but it is interesting to note that the spirit s homeland mostly consumes the spirit as a stand alone beverage whereas it is mostly utilized in cocktails here in the US the most popular being the margarita According to CGA margaritas are consumed by over half of American cocktail drinkers Therefore while on premise operators can certainly have different tequila choices on hand what US consumers really want are fun cocktails made from it As consumers make their Cinco de Mayo plans and prepare for warmer days ahead here in Boston on premise operators should be sure to offer a variety of margarita choices tequila options and perhaps even a few non margarita cocktails to capitalize on this growing category THE ADVISOR MAGAZINE 8

THE ADVISOR MAGAZINE  | 9QUESTIONS ABOUT LISTINGS?Call/Text Ben Jerrom Partner & Buyer SpecialistCell: 617.936.7102OUR FEATURED LICENSES by Ben JerromContact Ben Jerrom directly for further details on all of our current listings.Wine & Malt Retail License Only$125,000 Cambridge, MALunenburg, MAAttleboro, MA$125,000 Wine & Malt Retail License Only$325,000Asking Price: Location:Listing Type:Wine & Malt Retail License Only Newton, MA$135,000 Full Alcohol Retail License OnlyWine & Malt Retail License OnlySomerville, MA$225,000 Here is a summary of some of our available off-premise, retail liquor store licenses - this isfor the sale of the license only. This is not an inclusive list so if there is something specificyou are looking for, contact Ben Jerrom for more information. Here is a summary of some of our available on-premise, liquor licenses for restaurant use -this is for the sale of the license only. This is not an inclusive list so if there is somethingspecific you are looking for, contact Ben Jerrom for more information. Full Alcohol Retail License Only$125,000 Woburn, MAGloucester, MASaugus, MA$85,000 Full Alcohol Retail License Only$110,000Asking Price: Location:Listing Type:Full Alcohol Retail License Only

THE ADVISOR MAGAZINE  | 10QUESTIONS ABOUT LISTINGS?Call/Text Ben Jerrom Partner & Buyer SpecialistCell: 617.936.7102OUR FEATURED LISTINGS by Ben JerromContact Ben Jerrom directly for further details on all of our current listings.Full Alcohol Package Store$120,000 Middlesex CountySuffolk CountyEssex County$300,000 Full Alcohol Package Store$825,000 Full Alcohol Package Store Middlesex County$749,000 Asking Price: Location:Listing Type:Suffolk County$2,100,000 Full Alcohol Package StoreFull Alcohol Package Store with Real estateLiquor License is proud to offer, for yourconsideration, a number of retail liquor store locationsfor sale in Massachusetts. Some include real estateand some are offline listings only (not listed here) -contact Ben Jerrom for full details.Call For DetailsCall For Details

YOUR TRUSTED INDUSTRY PARTNERDid 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.Meet Our TeamDan NewcombCEO & FounderBen JerromBuyer SpecialistJennifer MedicoTransaction SpecialistGlenn LawlerSeller SpecialistMichelle HansfordSeller ConciergeSherri BeauchampMarketing SpecialistQuestions?Call 617.648.5558 orvisit: LiquorLicenseAdvisor.comKate NewcombProject Specialist

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References Where s The Liquor Store Market At Page 3 1 BizBuySell Q1 2021 Insight Report https www bizbuysell com insight report 2 National Association of Business Brokers NABB Report https www nabbiz com news industry news smallbusiness sales set records in 2020 creating opportunities for business owners and buyers 3 IBISWorld Report https www ibisworld com united states liquor stores industry market research report D2C and eCommerce Platforms Maximize Higher End Buyers Page 5 1 https files constantcontact com cb479599001 f956f1b3 401e 437b a821 69a3b0a6097d pdf rdr true 2 https files constantcontact com cb479599001 b1c85605 4574 41e1 b996 db18e7e1d19d pdf rdr true Massachusetts Lottery May Soon Move Online Page 6 1 https www masslive com politics 2023 04 beacon hills online lottery push meets resistance from package convenience stores html outputType amp 2 https www playma com news online lottery massachusetts legal Tequila s Popularity is Not On the Rocks this Spring Page 8 1 https info cgastrategy com hubfs GDI_2023 GDI 20 20US 20Tequila 20Mini 20Report pdf Special Contributions Acknowledgements Features Editor Editorial Assistant Michelle Hansford Kate Newcomb Magazine Digital Editor Sherri Beauchamp Liquor License Advisor 2023 All Rights Reserved Unless Otherwise Noted THE ADVISOR MAGAZINE 13

THE ADVISOR MAGAZINEB Y L I Q U O R L I C E N S E A D V I S O RThe Advisor Magazine runs on a monthly basis to keep stakeholders in theliquor store & liquor license industry in the loop.Liquor License Advisor10 Post Office SquareSuite 800 SouthBoston, MA 02109 617.648.5558www.LiquorLicenseAdvisor.comJune 2023Come back for Issue #28 which will reveal the currentstate of the industry, how industry trends are shaping upfor summer, and more.