The Advisor Magazine - Issue #8 : simplebooklet.com

Editor s Note We re watching how the Delta Variant has impacted our industry both on premise in restaurants and bars as well as off premise in liquor stores Looking For Featured Liquor Store Listings CLICK HERE Page 4 Shifting OffPremise Trends How Liquor Stores Are Adjusting Just when we thought we had established a new normal we find our industry continuing to change Some owners are navigating and learning to thrive while others are still adjusting as they go The Boston restaurant liquor license demand is trending up and long time liquor store owners are tiring In this issue we look at opportunities for owners to improve their digital shelf how restaurants are fairing and what s to come entering the 4th quarter of the year for retail Which way are things trending DAN NEWCOMB Founder CEO Liquor License Advisor THE ADVISOR MAGAZINE 2 www LiquorLicenseAdvisor com Page 6 Delta Variant Impact On On Premise Activity Page 8 Autumn Falls Wine Sales Soar Page 12 License Swap Plus Cash Liquor License Advisor has been a trusted resource in the liquor store and license industry since 2002

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LONG TIME RETAIL OWNERS READY TO The Marathon Continues The Liquor Industry is changing right before our eyes blink and you may miss it by Dan Newcomb STEP AWAY Many of the long time owners on the liquor store side are carrying the weight of the pandemic on their shoulders Managing similar staffing issues challenges with enforcing guidelines and longer hours are starting to add up When it s time it s time For some owners it may be earlier than they originally anticipated but it is not on them it is a sign of the times We re here to help you make great decisions Dan Newcomb BOSTON RESTAURANT LIQUOR LICENSES IN HIGH DEMAND There are different realities for restaurant owners across the board since the pandemic started and with license renewal just around the corner some owners are considering their options in Boston In recent weeks we ve seen the demand for both full liquor licenses and wine and malt licenses in the City of Boston Some owners who have yet to open back up are considering leaving the industry altogether while others are at a breaking point trying to staff their establishments follow and implement guidelines and still turn a profit Others who recognize the opportunity to swap their all alcohol license realize they don t utilize it fully and could still operate with a wine and malt license are open to infusing some cash into their business which is needed now more than ever www LiquorLicenseAdvisor com YOU OWE IT TO YOURSELF Whether you ve had a decent run through the pandemic or you have limped along you may want to explore your options in the current marketplace Give us a call any time we re here for you 781 319 9800 THE ADVISOR MAGAZINE 3

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SHIFTING OFF PREMISE TRENDS During the recent U S COVID 19 recovery phase off premise alcoholic beverage trends have been shifting Another category showing an influx is non alcoholic beer wine and spirits which have increased 35 YTD in sales NielsenIQ s beverage alcohol expert Kaleigh Theriault recently discussed these shifting trends with Joe Tarnowski from ECRM and provided both helpful data and insights Let s take a look Commenting on these trends Theriault states that For the remainder of 2021 we can expect a few key trends to stick We ll begin with the most revealing statistic which is that off premise sales have been declining since March 2021 which is contrary to the previous few years RTD sales are going to start gaining traction within on premise as consumers view these to be safer beverage options The article states that Offpremise sales increased 19 in 2020 vs 2019 and that offpremise sales increased 18 YTD vs 2019 YTD As consumers have recently enjoyed a higher comfort level dining and drinking out offpremise numbers have declined However it will be interesting to see where these numbers go with the Delta Variant of COVID coming into play The article also highlights the continuing trend of increasing sales for Ready to drink alcoholic beverages and hard seltzers as both categories have shown an increase since 2020 Firstly the movement towards ready to drink cocktails will continue as sales surpassed summer 2020 sales off premise and also expanded into on premise channels In addition RTD sales are going to start gaining traction within on premise as consumers view these to be safer beverage options With the Delta variant picking up traction we may see currently declining e commerce sales begin to increase again as consumers may choose to dine and drink in rather than frequent the restaurants and bars with which they just became reacquainted Although online alcohol sales aren t quite as high as they were during the height of COVID many people have continued to utilize this service for its convenience and because they can personalize their alcoholic beverage choices For example many shoppers enjoy the ability to type in low calorie low sugar or gluten free to individualize their purchases Theriault comments on this trend stating that and retailers need to further develop their product descriptions and discoverability in order to cater to the growing segment of health conscious consumers looking for personalization We live in a more unpredictable world now than ever and watching consumer trends is essential for off premise suppliers and operators survival We can expect consumers to adapt to the changing climate and offpremise players must follow suit THE ADVISOR MAGAZINE 5

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D DE EL LT TA A V VA AR R II A AN NT T O ON N P PR RE EM M II S SE E II M MP PA AC CT T O ON N A AC CT T II V V II T TY Y Just when life was seemingly returning to normal the Delta variant of COVID has thrown us yet another curveball causing restaurant owners bar owners and suppliers to face business challenges once again BY MICHELLE HANSFORD A recent CGA webinar discussed the details of how where and when the Delta variant is impacting the onpremise market and the current trends owners are seeing Here we will discuss how operators and suppliers can strategically maintain control of their business during these ever changing uncertain times Location location location As tolerance levels regarding COVID vary from state to state business owners must have a full understanding of their state s local climate and the general consensus of their local cliental Some states are finding that a majority of their residents feel more comfortable staying home rather than dining out so businesses in these states must cater to this current THE ADVISOR MAGAZINE 6 preference and perhaps expand their delivery and take out options However in other states consumers are expressing a desire to continue dining out but with restrictions in place like mask mandates while not seated and plexiglass between the tables The CGA highlights their recent webinar in the article The Delta variant and the US On Premise Ten insights from CGA which captures the diversified comfort levels within different locations and aptly states that This data surrounding consumers varying comfort levels highlights the need for location based strategies that react quickly to local changes around things like mask mandates or vaccine status Business owners need to feel the pulse of their community now more than ever if they want to survive the current climate The CGA webinar also analyzed sales and found them to be higher on the weekends and earlier in the day than in the past The height of COVID found many working from home and many employers and employees found benefit to this culture leading to many Americans still working from home This shift in office space has led to a significant decrease in the amount of people heading to the local bar tavern or restaurant for after work drinks and dinner With this new schedule becoming more of the norm these days many people are saving their outings for the weekend and leaving the weekdays for homebound activity According to the CGA This has important consequences for operators and suppliers who may need to flex how they activate brands and engage consumers

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DELTA VARIANT IMPACT ON ON PREMISE ACTIVITY DAY DRINKING TREND And not only do operators and suppliers need to shift their marketing to bring consumers back during the week while creating the best weekend business they can they also need to tailor their strategy throughout the day CGA reports that Americans are drinking earlier in the day as the percentage of drinking out at brunch has risen while late night drinking has declined Perhaps the reason for this shift is that people became comfortable with evenings at home during COVID and no longer desire late evenings out and with people more in charge of their own schedules they can pencil in a brunch between zoom meetings and phone calls from their homes Another trend that CGA reports is the influence that menus and staff members are having on consumers which means it is extremely important for business owners to understand and utilize this power over their customers Business owners must ensure that their menus are enticing and driving sales and that their staff members are well trained knowledgeable and courteous to these customers If consumers are dining out less frequently and at different times than in the past business owners need to capture their loyalty by directing them to consume what s going to result in profit all while providing excellent customer service And perhaps most importantly the CGA article points out that market insights are more crucial now than ever As the Delta variant has proven that COVID isn t quite over yet no one knows for sure what the future holds or what will even happen next operators and suppliers must be prepared for whatever is next whether that be restrictions mandates and or shutdowns coming back into play There has never been a time when it s more critical to feel the pulse of the market and to pay attention to what s happening locally and beyond because when it comes down to it business owners have very little control in some aspects and they must control what they can when they can THE ADVISOR MAGAZINE 7

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Autumn Falls Wine Sales Soar By Natali Williams Tis the season for brisker weather festivities pumpkin spice and everything nice With just 3 months left of 2021 reflection on what seemed to be the fastest year thus far has begun There are high hopes of an enjoyable holiday season revolving around friends family food and of course festive beverages We took a look at many people s favorite at home any occasion go to Wine Annual reports from Wine Analytics indicate a 10 increase in wine sales versus 2020 The increase in total spending comes with improving on premise sales retail sales holding steady and an increase in winery direct to consumer DTC shipment value and volume in August Here are some annual figures for comparison 51 8 billion in consumer sales on domestic wine including bulk imports 10 increase table wine sales 2 increase in sparkling wines 9 increase in bulk imports 10 decrease on traditional wines 3 increase in total case volume to 313 million 11 increase in total wine market in the US 75 4 billion 13 increase in packages imports 27 increase in DTC shipment value 13 volume increase in DTC shipments 12 increase in average bottle price of shipments 111 increase in postings on Winery Job Index While sales sustained throughout the pandemic in person experiences in the hospitality industry specifically wineries struggle with low volume Many preserve and continue on hopeful that more large gatherings remain possible during the colder months while fluffing up other areas of their business like distribution and e commerce Pull on your favorite knitted sweater cozy up by the fire with your favorite glass of Red and consider booking your next event at your nearby winery to enjoy the local harvest fall foliage THE ADVISOR MAGAZINE 8

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The more control retailers have over their domain (both literally and figuratively), the better success they willhave building a virtual trademark and extending their merchandising reach in the hyper-competitive online retailspace. Product content on a retailer’s website is the first thing that consumers see and interact with before purchase.It is critical that retailers work to close content gaps and ensure that their brands are represented by high-quality and accurate digital assets. According to research conducted by Salesforce, 87 percent of shoppersengage with digital content before making a purchase either online or in store. The digital shelf is different, and it must be activated to capture all of the online sales opportunities. Weencourage retailers to ask their salespeople for modern merchandising content that can help bring brands tolife. Think of digital activation like offering 50-milliliter bottles at the counter—successful exposure willincrease exploration, trial, and incremental sales. By creating a strong digital presence, retailers can take control of the online sales experience, including addedspace for supplier digital activations and more access to sales data. This data can be shared with theirwholesaler and supplier partners to enhance product offerings, promotions, and subsequently, customerrelationships. Additionally, by thinking creatively and offering store-controlled delivery options and programs,retailers can protect their franchise and prevent further marketplace consolidation. It’s also important forretailers to increase delivery efficiencies and clearly communicate expected delivery times, as we all sufferfrom the Amazon Prime expectations of one- or two-day shipping. While digital activation has grown exponentially, it is by no means replacing the paramount in-store experience.Thus, when creating a digital strategy, retailers must keep in mind that consumers often shop (and research)online before making in-store purchases. Keeping the online and in-store messaging consistent encourages africtionless interaction between the in-person experience and online sales. It is critical that suppliers, wholesalers,and retailers embrace this onlineopportunity to both stay competitiveand build the brands they represent.Brian Becker (Empire Merchant),SeventyFiftyDaily Article, Sept. 20. 2021Exploring E-Commerce For Liquor Store OwnersArticle clip taken from "An Insider Shares His Wine and Spirits Ecommerce Strategy Playbook", by Brian Beckerpublished on SevenFiftyDaily, September 20, 2021.Improve Online Sales & User ExperienceOnline activation has become a criticalcomponent of the omnichannel retail frameworkand will continue to increase in influence. Tosuccessfully compete by reaching the finalconsumer in a meaningful way, all three tiersneed to adapt to an enhanced digital environmentand provide a smoother path to purchase.

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OUR FEATURED LISTINGS by Ben Jerrom NEW Listing Charming Wine Shop On The Lovely South Shore A boutique wine shop located in Norfolk County on the lovely South Shore The store currently offers wine craft beer and tobacco products with a substantial concentration on fine wine providing a range of high end varietals from around the globe The atmosphere is warm inviting customers to peruse their wide selection in this well lit well organized generously sized store Along with the large retail floor the space also contains a full basement for storage needs Norfolk County MA 349 000 Although the store already elicits a positive customer experience there is plenty of opportunity for a new owner to explore including the creation of a website and overall online presence advertising both online and within the community offering delivery service and hosting events such as wine tastings The current owner who has run the store for six years is open to a first time buyer Call Call For For Details Details Listing Type Location Asking Price Full Alcohol Package Store Middlesex County MA 449 000 NEW Wine Malt Package Store Middlesex County MA 385 000 NEW Package Store License Wine Malt Somerville MA 249 000 NEW Package Store License Wine Malt Westborough MA 85 000 NEW Type 44 Plenary Retail Distribution License Teaneck NJ 170 000 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 10

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Here Are Some Of Our Most Recent Successful Transactions Bacon Wine Spirits Framingham MA Retail All Alcoholic Beverage Liquor Store Cost Plus World Market Barnstable MA Wine Malt Liquor Store License Little Steve s Pizza Boston MA Wine Malt On Premise Liquor License Beacon Street Locale Boston MA All Alcoholic Beverage On Premise Liquor License Curious About Working With Us When you ve been through the process as many times as we have you know where the buyers are in the marketplace and who will pay top dollar What owners need to fully understand is not all brokers are created equal We ve been told time and time again that both Sellers and Buyers alike wouldn t have been able to complete the transaction without us DAN NEWCOMB Founder CEO Liquor License Advisor 617 306 1551 dnewcomb llausa com You don t want a Generalist you need a Specialist We re here for you THE ADVISOR MAGAZINE 11

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WANTED Boston All Alcohol Liquor License For Restaurant Use License Swap Plus Cash If you are interested in looking at options for your license you may qualify for a license swap in which you would exchange your Full Alcohol License for a Wine Malt License and receive cash for the difference in value We find some Boston establishments that hold a Full License don t fully utilize it and could trade it for a profit Contact us directly to see if you qualify What was an extremely challenging time for the restaurant and bar industry through the pandemic is now showing signs of trending upward with steadily increasing demand specifically for liquor licenses in the City of Boston Owners would be pleasantly surprised at the value of their all alcohol liquor license in today s market as we have highly qualified buyers ready to pay now Contact us today to find out more Give Us A Call 781 319 9800

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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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References Shifting Off Premise Trends How Liquor Stores Are Adjusting Page 4 1 NielsenIQ Off premise Beverage Alcohol Trends Amid U S Recovery Phase Source NielsenIQ September 1 2021 Delta Variant Impact On On Premise Activity Page 6 2 The Delta variant and the US On Premise Ten insights from CGA September 23 2021 Autumn Falls Wine Sales Soar Page 8 3 US Wine Sales up 10 DTC up 27 by Andrew Adams September 22 2021 Source https www winebusiness com Online Strategy For Local Retailers Page 9 4 An Insider Shares His Wine and Spirits Ecommerce Strategy Playbook by Brian Becker Empire Merchant on SevenFiftyDaily September 20 2021 https daily sevenfifty com an insider shares his wine and spiritsecommerce strategy playbook Special Contributions Acknowledgements Features Editor Editorial Assistant Natali Williams Michelle Hansford Magazine Digital Editor Sherri Beauchamp Liquor License Advisor 2021 All Rights Reserved Unless Otherwise Noted THE ADVISOR MAGAZINE 14

The Advisor Magazine - Issue #8

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