The Advisor - Issue #7 : simplebooklet.com

Editor s Note Taking a closer look at potential changes to the alcohol system on and off premise in Massachusetts Looking For Featured Liquor Store Listings CLICK HERE Page 4 Doubling Liquor License Allotment Smart Move Or Double Trouble Interesting times in the distribution tier for alcohol Happy hour may be making a comeback while the independent retail liquor stores in MA are agreeing to increase the number of licenses allotted Decisions made back in prohibition times are being stretched and challenged Strategically positioned initiatives and healthy opposition are at the forefront this ballot season and will shape the future of the system for generations to come In this issue we look at who has the upper hand and what the independent owners have to their advantage Will it be enough DAN NEWCOMB Founder CEO Liquor License Advisor THE ADVISOR MAGAZINE 2 www LiquorLicenseAdvisor com Page 6 The Happiest Hour of All Possible Return of Happy Hour In Boston Page 7 In Store Vs ECommerce A Dynamic Duo Page 10 Better For You Beverages Liquor License Advisor has been a trusted resource in the liquor store and license industry since 2002

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G O I N G O N T H E O F F E N S E SLAP ON THE WRIST AIMING FOR Mass Pack Hits Back The ballot initiative presented by Massachusetts Package Store Association MPSA catches some by surprise MORE ACCOUNTABILITY One of the points addressed by the proposed changes is the penalty for serving minors Traditionally it has been a percentage of alcohol sales sold by Dan Newcomb While most of the food and grocery stores leverage alcohol as a lost leader to get people into the door to purchase a list of items outside of the alcohol industry MPSA wants to change the penalty to include a percentage of all sales not just alcohol In the event a liquor store is penalized for an infraction the store can be closed and served with a fine and thus not being able to operate during that time The groups s argument is that as it stands now there s very little risk to food and grocery stores as they would be able to continue to operate other elements of their business and the fine would be considered a slap on the wrist for most RETAIL STORE ASSOCIATION AIMS TO TAKE BACK CONTROL With the numerous disrupters in the alcohol beverage industry trying to gain market control of the retail tier the retail package store owners are pushing back to find a compromise that would allow their members to continue to be competitive and place public safety front and centre Robert Mellion Executive Director General Counsel of MPSA and Ryan Maloney President of MPSA have said the Initiative Petition 2103 is a chess move that prevents outsiders and corporate interests from blowing up the retail tier for alcohol Some were surprised by the move while others once they understood the nuances of what s being proposed agreed this will help to protect the independent retail owner www LiquorLicenseAdvisor com GAINING THE UPPER HAND The two sides of the issue go back to 2006 and prior and now the independent retail owners are trying to take a stand by compromising on some issues such as the number of licenses allotted while planting their flag firmly on public safety and controlled distribution when it comes to alcohol sales in Massachusetts THE ADVISOR MAGAZINE 3

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disruption in alcohol retail that hasbeen going on since 2006”, in aBoston Business Journal articleentitled “Six Proposed 2022 ballotinitiatives for businesses to watch”. Cumberland Farms surprisingly didnot file a ballot proposal related toalcohol sales, as expected, and thisincrease from nine to 18 licensesserves as a compromise betweenCumberland Farm’s former proposaland what is currently allowed. TheState House News Service articleelaborates on the notion ofcompromise by quoting Mellion assaying that, “because many shopperswant to purchase beer or winealongside their groceries andbecause package stores rely onspirits to drive much of theirbusiness, the language could serve asa compromise that offers benefits toboth camps.” The ballot question contains a fewother components as well, such asbanning alcohol sales at self-checkout stations; allowing liquorstores to accept out of state IDs andallowing these IDs to be “reasonabledefense” against allegations ofselling to a minor; and mandatingfines based upon a store’s grosssales, rather than alcohol sales alone,if a store is found selling alcohol to aminor. Regardless of where you stand onthis issue, the liquor license industryis changing, and the CumberlandFarms proposal and this subsequent2022 ballot proposal is paving theway for this change that someowners don't want to stick around tosee how it ends. D O U B L I N G L I Q U O R L I C E N S E A L L O T M E N T . . .A 2022 ballot proposal seeks tochange the liquor license industryas we know it - but in a staggered,controlled fashion. Although thereare a few components to theproposal, the most impactfulportion of the ballot questionproposes to increase the numberof licenses available to retailersfrom the current allotted nine to18. This proposal comes on theheels of Cumberland Farmsunsuccessfully pursuing anunlimited number of beer andwine licenses for food andconvenience stores, whichcreated quite the buzz in theliquor license world. Althoughsimilar in nature, this newproposal requests additional, notunlimited, liquor licenses, whichmay lead to a warmer receptionthan the one the CumberlandFarms proposal met, as thisproposed increase is gradual innature. Currently, each corporate entity orindividual is limited to a maximumof nine total alcohol licenses,including both wine & maltlicenses and all-alcoholicbeverage licenses. All nine ofthese licenses can be all-alcoholiclicenses as of now, a ratio thatwould change under the proposedplan. DOUBLING DOWNIncrease to 12 licenses in2023 Increase to 15 licenses in2027 Increase to 18 licenses in2031 This proposal offers a staggeredincrease of this allotment, whichwould be laid out like so,according to a recent StateHouse News Service report: It is important to note thatall-alcoholic beveragelicenses would be cappedat seven, and theremainder of the licenseswould have to be used forwine & malt. However, any licensee whocurrently holds nine all-alcoholicbeverage licenses would begrandfathered in and allowed tokeep all nine all-alcoholiclicenses. Mass Pack Executive DirectorRobert Mellion describes theproposal as an “olive branch tofood and convenience storeswho previously sought to uncorkan unlimited number of beer andwine licenses”, according toState House News Service. Mellion is also quoted as saying that the proposal “is intended toend some of the constant

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THE HAPPIEST HOUR OF ALL:The Possible Return ofHappy Hour to BostonII’s no secret that the pandemic hurt restaurant and barbusiness in a big way. And it’s no secret that the pandemichurt people’s wallets – and their social lives – in a big way.These are two of the reasons for the proposed 2022 ballotquestion surrounding the revival of “happy hour”, the sought-after time when friends and co-workers meet for post-work,pre-dinner drinks – at a discounted price, or even for free. Massachusetts banned happy hour in 1984 after a womanfrom Weymouth was killed in a drunk driving accident,cumulating a string of drunk driving related accidents.However, since this tragedy, the world has changed in manyways, and the number of drunk driving deaths hasplummeted, thanks to services such as Uber and Lyft comingonto the scene. Boston is known for not being as fun asmore lenient U.S. cities, with Massachusetts being one ofonly 11 U.S. states to have banned happy hour, and thepublic seems ready to get their happy on. According to a pollconducted by MassINC, 70% of respondents are in favor oflifting happy hour restrictions, whereas only 20% are againstit. (The remaining respondents are undecided.) Although people in their late teens and 20’s were more vocalin their desire to see happy hour re-enter the Boston socialscene, the respondents’ feedback stayed about the sameregardless of age, gender, and even politics. When asked, people responded that they would enjoy payingless for their late afternoon cocktails, and it comes to mindthat happy hour may benefit struggling restaurants and bars. Although some may argue that cheaper drinks may hurt morethan help business, the hope is that the price incentive justmight drive business in the right direction - and keep theserestaurants and bars open. Although the pubic seems in favor of this change,Massachusetts Governor Charlie Baker isn’t as supportiveof this initiative. A 10 Boston article cites Baker as saying,“You know, I remember what was going on on the roads inMassachusetts when we had happy hours, and there weresome awful, horrible, terrible experiences on a very regularbasis that came with happy hours back in the day…I wouldstart as a skeptic of going back to the way we ran happyhours once upon a time.” Despite Baker’s resistance, some might argue that theworld is much different than it was in the early 80’s, andthat the struggling local economy might be worth makingthis social shift. With many people still working from home,the after work drink scene has been interrupted, andoffering less expensive drinks may revive this tradition –and perhaps even compensate for some of the businessthat has been lost over the past year and a half. Another proposed change on the ballot is the allowance offirework sales in Massachusetts, which is only one of fourU.S. states to have this ban in place. Banning certainactivities doesn’t make them go away, as summertimenight skies are filled with the light of fireworks, and NewHampshire firework store parking lots are full of MA platesas people fill their trunks with fireworks – and other states’pockets with money. The pandemic has caused many routines to change, andpeople’s mindsets have shifted. Who knows, perhaps soon,we will be enjoying happy hour under a fireworks-lit skyright here in Boston. by Michelle Hansford

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In Store Vs E Commerce A Dynamic Duo Combining forces to elevate the consumer experience by Natali Williams Consumer behavior has been under a microscope as the waves of the pandemic left waters choppy and unclear for the future trends of the Liquor Industry Stirring up a new storm of e commerce potential creative solutions to restaurant s profit margin as well as kicking the in store experience up a notch throughout reopening ChaseDesign conducted a survey on wine and spirits shopping trends that reported that customers still prefer shopping in store vs online because they enjoy being in control of their experience and want the ability to browse 1 Bonnie Brae Liquor in Denver Colorado boasts an e commerce experience like no other trailblazing the path for the rest of the nation and setting the bar high Having won Drizzly s 2021 Top Shelf Retailer Ol Reliable Award they pride themselves in prioritizing customer values offering a wide selection of high caliber wine unique spirits and the newest beers all available online A critical aspect to fueling their sales is going the extra mile for their customers Whether it be Bruce personally expediting a delivery on Christmas Eve to the customer s doorstep or Gallagher and his team using Drizly s back end reporting tools to stay up to date on product sales and consumer trends If you re focused on customer service you ll retain your customers for life says Bruce Gallagher Owner of Bonnie Brae Liquor 2 That is not limited to going above and beyond to exceed expectations service wise but also inventory wise Bonnie Brae Liquors exhibits a wide variety of high caliber wine and unique spirits and the newest beers are available to their online customers With over 4 500 products available to choose from online they are setting the pace in the local market 2 satisfying customers across all demographics In addition to providing excellent attention and service to customers Bruce prioritizes the same for his staff Nobody works for me they work with me When you take care of your staff properly your customers will always be happy 2 The values Gallagher instills in every aspect of the business is hospitality sincerity and appreciation as well as expertise in the field If you re focused on customer service you ll retain your customers for life Bruce Gallagher Owner of Bonnie Brae Liquor THE ADVISOR MAGAZINE 7

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IN STORE VS ECOMMERCENCE CONTINUED This recipe of success for Bruce Gallagher aligns well with the current status of the liquor market being that ecommerce has played a major role throughout the pandemic and will settle down while an elevated in store experience is still crucially valued The future of shopping is neither digital or physical stores but rather the convergence of digital and physical in a retail shopping environment that truly makes the customer journey more enjoyable and productive 1 said Joe Lampertius president at ChaseDesign In addition to providing excellent attention and service to customers Bruce prioritizes the same for his staff Welcome Back Your Customers While buying alcohol online provides the convenience shoppers like they report missing the in store experience with 53 saying they enjoy seeing beverage choices in person 42 reporting they like to pick up products to learn more about them 41 saying it s easier to discover new brands in store and 37 indicating they like the overall atmosphere in a store And critically 35 commented that store associates who know about options and choices are missed while shopping online 1 With some preferring picking up their bottle of wine with their groceries others are missing the in person experience and expertise that a well run liquor store can provide Maybe the answer is a combination of both THE ADVISOR MAGAZINE 8

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OUR FEATURED LISTINGS by Ben Jerrom NEW Listing Liquor Store Development Opportunity New Building and License Middlesex County MA 525 000 An opportunity to develop your own upscale premium adult beverage store in an affluent historic town This new project is to be located in a beautiful new mixed use development alongside a salon day spa and a bank The liquor store space has front and rear entrances basement storage accessible from the parking lot is handicap accessible and has 46 parking spots easily accessible This retail store is licensed for an all alcoholic beverages license and is the perfect set up for hand selling wines craft beer premium liquors as well as a selection of gourmet foods and coffee You will have the opportunity to build out a sleek modern Adult Beverage store within the space The space will be delivered as a vanilla box or can be built out to turn key by the developer Call Call For For Details Details Listing Type Store Location Asking Price Package Store License All Alcohol Essex County MA 350 000 Package Store with Full Liquor Essex County MA Call For Info Package Store with Full Liquor Boston MA 385 000 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 9

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Here are Drizly s top 10 to date in 2021 BETTER FOR YOU BEVERAGES THE RISE OF THE NON ALCOHOLIC CATEGORY by Glenn Lawler It seems we are more aware of what we put into our body moreso now than ever This is no different when it comes to alcohol This trend is taking off across North America following the lead of Europe and driven primarily by Gen Z Producers are innovating this category to meet consumer demand While this category represents less than 1 of sales on Drizly they report it is one of the fastest growing categories year over year What Are People Buying NA products fall into the major categories including beer wine and cocktails Here are the top 10 non alcoholic brands in 2021 to date according to Drizly 1 Heineken 2 Athletic Brewing Company 3 Sutter Home Fre 4 Ariel 5 Seedlip 6 Clausthaler 7 Lagunitas 8 Brooklyn Brewery 9 Gr vi 10 Budweiser While the nationally established brands have the reach independent craft entrants are gaining ground The category with the most traction because of longer exposure in the marketplace is non alcoholic beers 1 Heineken Non Alcoholic 0 0 2 Athletic Brewing Run Wild Non Alcoholic IPA 3 Lagunitas IPNA 4 Clausthaler Original Non Alcoholic 5 Brooklyn Special Effects Hoppy Amber NonAlcoholic Brew 6 Budweiser Zero Full Flavored Zero Alcohol Brew 7 Athletic Brewing Free Wave NA Hazy IPA 8 Weihenstephaner Hefeweissbier Alkoholfrei 9 Coors Non Alcoholic Beer 10 O Doul s Non Alcoholic Amber Though the NA spirits category is growing rapidly it s dominated by a few major brands Seedlip Ritual Zero Proof and Lyre s Drizly s top selling NA wines reveal a similar trend the top 10 list is entirely composed of the brands Ariel Fre and Gr vi If you re looking for creative ways to top up sales and target a different market testing nonalcoholic beverages could be an option

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SELLER EXPERIENCE 10 10 Rating During Interview Seller Feedback Professional representation Timely responses Accurate marketplace information Know the process Didn t push or postpone Great communication We wish Gabi the best of luck in all of his future endeavors it was our pleasure to serve you You have a higher chance to get exactly what you want when you hire a professional It took me awhile to realize I needed a professional to do it There s a lot of things to know the process is more than I realized at first I have been in the industry for over 10 years and I don t regret hiring Liquor License Advisor I will be using their services again in the next phase of my career GABI FORMER BOSTON RESTAURANT OWNER Thinking of Selling Give Us A Call 781 319 9800

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Taking charge of the transaction.When you've been through the process asmany times as we have, you know wherethe buyers are in the marketplace and whowill pay top dollar.What owners need to fully understand is notall brokers are created equal. We've been told time and time again thatboth Sellers and Buyers alike wouldn't havebeen able to complete the transactionwithout us.You don't want a Generalist, you need aSpecialist. We're here for you."What Are Your Fees?"THE ADVISOR MAGAZINE  | 12Founder, CEOLiquor License AdvisorD A N N E W C O M Bdnewcomb@llausa.com617-306-1551Click To Play Video:Thinking of selling & wondering...

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YOUR TRUSTED INDUSTRY PARTNER Did you know that for over 2 decades our Founder Dan Newcomb has been in the liquor license industry as the go to for other industry professionals and leaders Every phone call that comes into our office is about a liquor license We don t work in any other industry besides liquor stores and licenses We provide owners with a firewall to protect them from all of the pitfalls we know are out there throughout a transaction because we know how to prepare the deal and navigate the waters We re here for you Meet Our Team Dan Newcomb Ben Jerrom CEO Founder Buyer Specialist Glenn Lawler Jennifer Medico Seller Specialist Transaction Specialist Michelle Hansford Natali Williams Sherri Beauchamp Seller Concierge Special Projects Marketing Specialist Questions Call 781 319 9800 or visit LiquorLicenseAdvisor com

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References:© 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  | 14Doubling Liquor License Allotment: Smart Move or Double Trouble (Page 4)1 - An Initiative Petition For Law Relative To 21st Century Alcohol Retail Reformhttps://www.mass.gov/doc/21-03-initiative-petition-for-a-law-relative-to-21st-century-alcohol-retail-reform/download 2 - Package Stores Aim For Alcohol License Compromise With Food Stores, by Chris Lisinski of State House News Service,August 2, 2021.3 - Six Proposed 2022 Ballot Initiatives For Businesses To Watch, by Gary Higgins of Boston Business Journal, August 9,2021.The Happiest Hour Of All: The Possible Return of Happy Hour in Boston (Page 6)4 - A Referendum on Fun in Massachusetts Is Coming. Are We Ready to Party, or Not? By Spencer Buell of BostonMagazine, August 11, 2021.5 - Poll: 70% of Mass. Residents Want Happy Hour Back. By Olessa Stepanova and Mary Markos of NBC Boston, July 22, 2021. 6 - Massachusetts lawmakers are eyeing a repeal of the state’s happy hour ban. Charlie Baker isn’t so sure. by Nik DeCosta-Klipa, Boston.com dated July 22, 2021.In-Store vs E-Commerce: A Dynamic Duo? (Page 7)7 - Walmart leads retailers in shopping experience for beer, wine, spirits. By Michael Browne onSupermarketNews.com on Jul 29, 2021.8 - Operations: How Denver’s Bonnie Brae Liquor Built a Reputation of Reliability. Writtten by BEVALC INSIGHTSTEAM on BevAlcInsights.com.Better-For-You Beverages (Page 10)7 - Category Report - Category on the Rise: Non-Alcoholic Wine, Beer, and Spirits. Written by BEVALC INSIGHTSTEAM on BevAlcInsights.com

The Advisor - Issue #7

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