The Advisor Magazine - Issue #3 : simplebooklet.com

For some of us, it is hard to believe how far we've come. With new statemeasures coming into play this month, it can't come soon enough for somewhile for others it's a little too late.The excitement of Summer is approaching, and the idea of being on the beach- or, if you're like me, spending even more time on the water - is a welcomedthought.In this issue, we take a close look at the ripple effect of the past year and howsome things may never be the same. Planning past the pandemic providesopportunities we didn't realize were there all along. Page 4 - Planning Past ThePandemic...Page 7 - Checking Out WithBeer & Biscuits: UK'sConsumption CrisisPage 8 - Old World vs NewDistribution: The Evolutionof WinePage 12 - How Many TimesHave You Heard: "I Want To Buy Your Store."The Commonwealth of Massachusetts has its sights set oncontinuing to reopen in the safest, most efficient way possible.What does that mean for licensees and 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.

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Indoor & outdoor arenas, stadiums, andballparks may increase capacity from12% to 25%;Indoor singing performances mayresume at venues, restaurants & otherbusinesses.Street festivals, parades & agriculturalfestivals to resume at 50% of previouscapacity;Bars, beer gardens, breweries, wineries& distilleries subject to 90-minutelimited seated service only (no dancefloors);Restaurants to eliminate food requiredto be served with alcohol & to increasetable size to 10.The ABCC highlighted important dates forlicensees in their Advisory issued May 4th,2021 summarized below. Monday, May 10th, 2021: Monday, May 29th, 2021: All restrictions subject to submittingappropriate safety plans to the Departmentof Public Health and based on public health& vaccination data.As always, all licensees must ensure thatthey comply with the laws of theCommonwealth of Massachusetts, and thatsales of alcoholic beverages take placeonly as authorized by federal, state, andlocal law. All questions should be directedto the ABCC Executive Director RalphSacramone at rsacramone@tre.state.ma.usor (617) 727-3040 x 731.For full details on the Phase 4, Step 2 rolloutwithin the Commonwealth, visitwww.mass.gov/info-details/reopening-massachusettsbyDan NewcombIf you are a musician, know anyonewho is, or just like to be part of aLIVE performance, you're probablylike a kid at Christmas waiting forindoor concerts and performances,not to mention festivals, to beback.Phase 4, Step 2 of the Baker-PolitoAdministration relaxes restrictionsagain starting Monday, May 10th,2021 in live performance venueswith safety measures in place. Restaurants, bars and other venueswill start to see things moving evencloser towards pre-pandemiccapacities.It comes as bittersweet as not allbusinesses made it through to "theother side" of this pandemic.There's no doubt that consumersare ready to put the pandemic inthe rear view mirror.Mass. Governor Baker Announces Further RollBacks On RestrictionsTHE ADVISOR MAGAZINE  | 3www.LiquorLicenseAdvisor.com

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Article byDan NewcombSimilar to this case, Spirit Hub, anindependent distillery-focused e-commerce that allows customers toorder and have curbside pick-up atone of the many national retailersthat CEO Michael Weiss is workingwith. And for all the vinos, Wine mustnot be forgotten, as it poses anotherniche that Vivino hopped into as amarketplace that directly partnerswith wineries to fulfill the consumerorders through local retailers.These companies rave that the abilityto get into this business while it is astandout need in the market hasgiven them free reign to do whatthey’re best at.P L A N N I N G P A S T T H E P A N D E M I C It seems as though the scaleshave officially flipped wherebusiness restrictions are fewerand far between, while news ofphase progression is becomingconstant.The country reopens, history isbeing made, and a new air ofhopefulness is stretched acrossthe nation as we retreat from ourlong hibernation.And what better to do than headstraight to your local bar,restaurant, concert, or sportsgame, any and all things we’veheld out on for over a year now.And many of which -for some ofus- means having a drink andletting loose!Business and market analysts arehoning in to see where this newera takes the trends of e-commerce, delivery, wellness,small businesses, and alteredmindsets of their consumers.There is an entire fresh layer tothe new normal and hopefully thisone provides a well rounded,stimulating boom to the world ofcommerce & consumerism.SevenFifty [an online marketplaceand communications platformthat helps importers, producers,distributors, and retail buyersDATE WITH DESTINY?and retail buyers connect witheach other and do business in amodern world] did a recent pieceon the transformation of alcoholdistribution, how e-commerce isbecoming a key player, and howwholesalers are responding.This is one of the mostsignificant periods ofmodernization since the three-tier system was created in 1933.This transformative era hasgiven niche businesses a foot into direct to consumer marketingas well, providing artisanal, craftbrands where they hadn’toriginally fit in at wholesalers.Speakeasy Co. is just oneexample of a modern nicheplatform that enables producersto customize order pages righton their own website that arethen provided by Speakeasy vialocal retailers. As CEO JoshJacobs puts it, “‘This provides aseamless front-end experiencefor consumers, while handlingthe backend for brands. Bymanaging warehousing,fulfillment, and technology forsuppliers, they are freed up to‘focus on growth by owning thedata and building customerrelationships.” THE ADVISOR MAGAZINE  | 5US VS THEM?“Finding the producers andmarketing and getting out therein the world and building thesebrands. It allows us to be a morenimble and focused company.”- An importer of ElentenyImports explains.Elenteny provides distributionservices in some states which allowimporters and producers to sell directto accounts; in other states theyprovide logistics and freight-forwarding services and work with alicensed distributor.Continued on Page 6.

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ON DEMAND IN HIGH DEMAND“‘These are the resources to really help a smaller brand grow and besuccessful.” Michael Epstein, COO of the Massachusetts-based HorizonBeverage adds, wholesalers, need emerging brands: “You never knowwhen a brand is going to pop and become a big brand. You need thesedevelopmental brands in your portfolio because it’s a dynamicmarketplace."Eventually, to survive, any platform is always going to be looking for thenext better, faster, and cheaper system to rely on. It seems as though itwill soon be a meeting of the minds, as online platforms have the upperhand on the customer-facing side when it comes to marketing, ease ofaccess, and modern innovation.On the opposite end of the spectrum, wholesalers are pressured tocreate more value for their buyers and for their consumers. What usedto be free cookies and a slice of cheese at the deli, or the newestproduct offering a tasting, is now at the tips of consumers' fingers rightfrom their own home! It’s social media marketing, instant gratification,engagement and stimulation.The wholesalers still have the leg up when it comes to well-developedquality plus the quantity of mass distribution, communication, thevitality of sales, and suppliers - all factors critical and essential to thegrowth and longevity of any business.THE ADVISOR MAGAZINE  | 6“When a product is promoted onDrizly, Breakthru could quickly see a150 percent increase in sales at itslocal retail customers; he predictsthat 20 percent of alcohol in theU.S. will soon shift online.” Many online platforms are partnering withretailers to get the best of both worlds and itwill be exciting to see which businessescome together to create a master machineof transformative alcohol supply anddistribution. EXCLUSIVE PARTNERSHIPANNOUNCEDUber & Gopuff announceexclusive partnership to delivereveryday essentials (and in somestates, alcohol) through UberEats.- As reported in Business Wire (ABerkshire Hathaway Company), PressRelease, May 4, 2021.With consumer habits changing and majorbrands partnering, it all remains to be seenif we are witnessing history or if we arefurther from The Jetsons than we think. One can't help but wonder, what does this allmean for package stores?

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Ubiquity versus exclusivity - an often difficultdistinction to make, especially whenconsidering various commodities. Britainrecently rides the line by stripping alcohol fromsupermarket shelves, in an attempt to lowerconsumption. Alcohol consumption hasencountered somewhat of a crisis when itcomes to ‘lockdown drinking’ in which DailyMail claims, “researchers say policies to clampdown on problem drinking would work better ifthe UK moved to a radical Scandinavian-stylesystem where booze is sold exclusively in off-licenses.”Several countries in the UK have proposedefforts to control liquor consumption, includingraising the prices of alcohol, which, as ChrisConrad, Senior VP of Martignetti, puts, “hasrather embarrassingly failed to achieve itsintended result in Scotland.”With the ease and convenience of grocerystores selling alcohol, Taco Tuesday soundseven better with a margarita, a bottle of winewith dinner becomes daily, and weekend foodshopping on Thursday turns into celebrating“Friday Jr.”THE ADVISOR MAGAZINE  | 7Studies depicted an intrinsic relationshipbetween food and alcohol buying habits,emphasizing that the price is not the onlyvariable up for debate. Raising the price,limiting the relationship to food, publicdisclosure of calorie count, as well as thedangers of drinking - all plans to behighlighted and adjusted.In turn with this, managing poverty andobesity are tied into the decision. Publichealth minister Jo Churchill hopes that this isa win-win for their country. The convenience of delivery or grocery storeavailability is unsurpassed- especially duringa pandemic. However, will the exclusivity ofbooze only create a bigger stir and desire forit?UK'S CONSUMPTION CRISIS PLAN by Natali WilliamsBUY 1, GET NONE FREE?“For every 1% increase in the priceof food, this translated into a 1% decrease in alcoholconsumption.”

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Where Do We Go From Here?As we all know, it DID take a pandemic forbusinesses to evolve in a way they never havebefore. Remote work, deliveries for all of yourwants and needs, e-commerce -- isolation.Being apart from one another and store-frontsfor months has created a new realm ofbusiness that was necessary to the survival ofso many companies. Instant gratification ismore important than ever, and while countlessentities have suffered, others have risen to thetop and thrived.Specific to alcohol delivery, like our past twoissues of The Advisor have addressed, winedelivery has made an appearance in this newworld of commerce.Wineries have always been a bit behindtechnology-wise for the sake of their sacred old-world traditions. With such an interactivebusiness model, the entire experience(particularly the intimacy and social aspect)surrounding wine was ground to a halt. It seemedto be impossible to mimic this special tradition.However, the wine business pleasantly surprisedus all with their adaption to Zoom tastings,delivery services, and personalization.“Wineries shipped more than 8.39 million cases of wine in 2020, +27% increase from 2019.”(Sovos ShipCompliant)by Glenn Lawler

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The pandemic meant not just virtual tastings - but virtual parties. These seemed to suit wine just as well asit did for pre-pandemic girls' nights in, Sunday brunch, golden hour patio dinners, date nights, celebrations,etc. where many people traditionally chose to enjoy wine.WHY LIMIT 'HAPPY' TO ONE HOUR?The question that comes with this success is its potential for longevity as things progress into the new normal.Direct to the consumer hasn’t thrived in the wine world since 2005 when wine clubs from tastings began, and itdoesn’t seem to be going anywhere. Wineries hold the advantage of loyalty and legality; however Jeff Carroll,general manager at Avalara (which helps wineries with DtC logistics) urges, “Seize the moment, you have bigplayers getting involved.”THE ADVISOR MAGAZINE  | 9Wineries got savvy to online marketing in 2020 during the pandemic. But will that last in 2021?(Source: WineSpectator.com)“Market analysts had predicted that wine would be stagnant before thepandemic began and expected the worst once businesses startedshutting down. Instead, the numbers show that sales increased in bothvolume and value. Wineries showed incredible creativity in findingways to reach consumers. An industry that had remained stubbornlyold-school shifted to digital sales in a big way.” (Winespectator.com)

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THE ADVISOR MAGAZINE  | 10QUESTIONS ABOUT LISTINGS?Call/Text Ben Jerrom Partner & Buyer SpecialistCell: 413.544.4960Liquor License Advisor offers, for your consideration,information regarding the sale of a Full Service All Alcoholstore with Real Estate in a densely populated city innorthern Essex County. In addition, this building includestwo additional short-term commercial tenants with a totalsquare footage of 4,446. This free-standing building hasmultiple surface access points, adequate parking and issituated at an active intersection with a traffic light on themain artery.The 1763 sq ft store is very bright, clean, and well-organized and features lottery, tobacco, and ATM. 19cooler doors are supported with a walk-in cooler, and thegondolas are well stocked with wine and end cap displays.The store’s high-velocity beer sales are supported withhigh-end Cognac, Scotch & Tequila sales. The businessenjoys a strong local customer base where convenience isa priority. Do not miss out on this opportunity to own awell-established business with the opportunity to expandinto the leased space!NEW Listing: Package Store with Full Liquor & Commercial IncomeProducing Real EstateEssex County, MA $2,975,000 by Ben JerromContact Ben Jerrom directly for further details on all of our current listings.Wine & Malt Convenience Store Package Store with Full Liquor $249,900Middlesex County, MAEssex County, MAStore Type: Store Location: Asking Price:In The Heart of Boston $425,000Package Store with Full Liquor$375,000Package Store with Full LiquorSuffolk County, MA $875,000

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Based on Liquor License Advisor's network andknowledge of the marketplace, we were not only ableto find a buyer willing & able to do the deal, we madesure to move the process along & have all partiessatisfied at the end of the successful transaction. Sean was approached by Liquor License Advisor tosell his store. Hesitant at first, he had no plans ofselling as he previously sold another store on his ownroughly one year prior. Finding A Match: Sean neededto have the right buyer at the right price.Dan's a true professional &definitely earned his keep.”“There was a buffer & a middle man to bouncethings off of. Sean G., Recent Seller5/5 Stars At Post-Closing InterviewSeller has experiencedrepresentation & someonelooking out for interests;Able to move deal to closeregardless of delays.Hesitant Seller (didn't wantto pay broker fees);It's imperative to invest inan attorney with knowledgeon liquor license process.Not every transaction is the same & you need to havethe knowledge to navigate the deal as well as anythingthat may come up - even if you've done it before.A Reliable ResourceWhen you are running a business full-time, it'snecessary to have a buffer from the other party so youcan focus on running the business at a high level. Maintaining A BufferSean understands that there is a time & place for aBroker & he would recommend Liquor License Advisorto those looking to get the deal across the finish linewith much less stress than doing it on your own.Investing In The ProcessExcellence & Expertise Required ToClose A Successful TransactionLiquorLicenseAdvisor.comTHE ADVISOR MAGAZINE  | 11

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© Liquor License Advisor 2021, All Rights Reserved Unless Otherwise NotedSpecial Contributions & Acknowledgements:- Features Editor & Editorial Assistant: Natali Williams;- Magazine & Digital Editor: Sherri Beauchamp.THE ADVISOR MAGAZINE  | 153 - Connor Boyd Assistant Health Editor For Mail. (2021, April 20). BANNING alcohol from UK supermarkets could curb'booze crisis', say scientists. DailyMail.comPlanning Past The Pandemic (Pg 4 - 6)1 - Kaplan, A. (2021, May 03). The Transformation of Alcohol Distribution. SeventyFifty Daily.2 - Nesin, B. (2020, April). Will The Covid-19 Crisis Change Alcohol E-Commerce Forever? Like, Forever Ever? RaboResearchFood & Agribusiness.Checking Out With Beer & Biscuits (Pg 7)Old World vs New Distribution: The Evolution of Wine (Pg 8-9)4 - Frank, M. (2021, May 31). Home Wine Deliveries Keep on Truckin'. Wine Spectator. In Case You Missed It: Wine Beer & Spirits Replay (Pg 13)5 - Wine Beer & Spirits Show aired Friday, April 23, 2021, at 2:00 PM on WSAR 1480AM hosted by Massachusetts PackageStores Association Executive Director and General Counsel, Robert A. Mellion.

The Advisor Magazine - Issue #3

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