cont`d from page 1 - Michigan Beer and Wine Wholesalers

“The Vital Link”
SEPT./OCT. 2010, VOLUME 34, ISSUE 2
A PUBLICATION OF THE MICHIGAN BEER & WINE WHOLESALERS ASSOCIATION
In Washington State,
controversial ballot plans
would dismantle alcohol rules,
threaten regulations
in other states
This November, voters in Washington State will consider two ballot initiatives that will significantly unravel
long-established alcohol regulations promoting safety
and accountability in the Evergreen State.
The results will have long term, wide-ranging and
negative repercussions in Washington and beyond.
And they’ll be watched closely here in Michigan.
In addition to their impact on accountability, the two
Washington measures – if passed – threaten to slash the
state’s revenue by up to $900 million in the next five
years, threatening devastating cuts to state and local services, including police, fire, schools, road and bridge
maintenance, and more.
The two Washington ballot initiatives are:
• Initiative 1100, which would eliminate Washington’s three-tiered liquor control system separating
the manufacturers, distributors and sellers of spirits.
It is designed to privatize the distribution and retail
of spirits and remove the state entirely from the distribution of liquor. Large corporate retailers would
be allowed to buy directly from manufacturers and
sell directly to consumers, removing a crucial layer
of accountability, safety and consumer protection.
The measure will also repeal current bans against
volume discounts. This initiative is driven by Costco
Wholesale Corp. as a ploy to give itself an unfair
competitive edge after failing to deregulate the alcohol industry through normal legal, legislative and
regulatory means.
(Continued on page 3)
FEDERAL LEGISLATION
AIMS TO REAFFIRM STATE
REGULATORY AUTHORITY
The fact that state alcohol regulations and the authority of states to regulate alcohol have been under attack for
the last seven years is common knowledge. What is not
as well-known is the significant financial strain these lawsuits place on state budgets and the negative impact they
have on state regulatory authority. However, those that do
understand these negative consequences have seen
enough and are pursuing federal legislation designed to
provide states some relief from these lawsuits.
The federal legislation is H.R. 5034 and is referred to
as the Comprehensive Alcohol Regulatory Effectiveness
Act, or the CARE Act, for short. The goal of this legislation is to have Congress reaffirm the historical rights of
states to regulate the transportation, delivery and sale of
beverage alcohol products within their border; prevent
the additional erosion of state-based alcohol regulation
through lawsuits and clarify that state alcohol laws are
presumed to be valid and that plaintiffs have the burden
of proving otherwise. The law also incorporates the
Supreme Court decision in Granholm v Heald by making
it clear that states can’t discriminate against out-of-state
producers.
(Continued on page 4)
In This Issue:
President’s Report ...............2
MLCC Leader Speaks up on
Importance of Federal
CARE Act...........................2
Unclaimed Bottle Deposits
Up – Fraud Solution
Working.............................5
Distributors, MBWWA
issues in the news .............6
MB&WWA Launches a
Resource Center for
Healthcare Reform
on Web ..............................9
2010 Region Meeting Dates
and Locations....................9
Annual Meeting & Summer
Convention Recap ...........10
Jelinek Honored .............11
A DVO C AT E S F O R T H E T H R E E T I E R - S Y S T E M
PRESIDENT’S REPORT
Everyone is talking about
helping business, protecting jobs
and doing what is necessary to
help spur economic recovery.
Some want more government
stimulus, but it appears a growing
number want government out of
the way and let the private sector
do its thing. But in some cases,
having the appropriate balance of
government regulation is the right approach. A current
example of this proper balance is under attack via the
Costco-driven proposal in the state of Washington.
Our related story on Page 1 provides the background
on Washington’s Initiative 1100 for those not aware of
these developments. In addition to privatizing the retail
sale of spirits in the state, the initiative would repeal
numerous alcohol laws and regulations that balance the
private sector’s goal of profitable commerce of a legal
product, and the public safety goal of properly controlling
a product that can be abused.
Ever since the repeal of Prohibition, states have
adopted laws and regulations that carefully screen and
license those involved in alcohol commerce. These laws
created the licensed three-tier system prohibiting any one
sector of alcohol commerce becoming too powerful and
controlling other sectors. These laws also discourage
deep discounting of alcohol prices that could lead to overconsumption and abuse.
The alcohol regulations adopted by all states, including Washington, accomplished these worthy goals, plus
much, much more! These government regulations have
benefited business, jobs and economic recovery. They
help promote access to market for all breweries and
wineries, large and small, so the craft brewing and farm
winery industries continue to grow and add jobs. They
preserve the independence of the distribution tier of the
industry, again, protecting thousands of good paying jobs
with good benefits for salesman, drivers, warehouse
workers and administrative support. And they also promote a strong independent retail industry in the states
providing needed jobs in communities. All these benefits
are now being put at risk by the Costco initiative.
Costco’s arguments for its initiatives are disingenuous as they are dangerous. By eliminating accountability
measures that protect people, Costco wants to effectively
control the very regulations that directly impact its profits. Costco isn’t interested in getting government out of
the way. It is only interested in maximizing its profit at
great risk to consumers. Costco’s goal is clear: To sell
cheap, unregulated alcohol and force independent, mom
and pop stores to either go out of business or break the
rules to stay afloat. Forget the independent distribution
tier, the tens of thousands of jobs it provides and the
important role distributors play in helping states account
for and regulate the flow of alcohol.
Passage of I-1100 in Washington may help one business – COSTCO – but it will hurt many others and the
economy as a whole. Let’s hope that the voters in
Washington State can see through this giant corporate
retailers’ profit-driven smokescreen, defeat I-1100 and
provide a resounding endorsement for reasoned and balanced regulation of alcohol. That’s what is good for business and the greater public good.
MLCC Leader Speaks up on Importance of Federal CARE Act
Michigan Liquor Control Commission Chairwoman
Nida Samona participated on a panel discussion in
Washington, D.C., about the importance of the federal
Comprehensive Alcohol Regulatory Effectiveness Act
that is being considered in Congress. Samona spoke of
the number of lawsuits that Michigan and other states
have faced and how these lawsuits negatively impacted
the ability of state regulatory authorities to do their jobs.
The negative impacts included lost revenue in costs to
defend state laws, attorney fees and more, and the cloud
of regulatory uncertainty these lawsuits created with
competing and sometimes contradictory court opinions.
Samona spoke before more than 800 distributors from
across the nation. The event was hosted in April by the
National Beer Wholesalers Association.
2
In Washington State, controversial ballot plans would dismantle
alcohol rules, threaten regulations in other states
cont’d from page 1
• Initiative 1105, would dismantle Washington’s
state-based system of alcohol distribution, by privatizing liquor sales and closing state-operated distributors. The measure would also preserve large
private corporation’s ability to distribute alcohol.
According to revenue estimates by Washington’s
Office of Financial Management, I-1100 will lead to
state and local revenue cuts of more than $700 million
through 2015, if passed; I-1105 will cut state and local
revenue by more than $200 million through 2015, if
passed.
“We anticipate a dramatic increase in purchases of
hard liquor by minors, and generally a significant
increase in problem consumption” stated John Guadnola,
Executive Director of the Washington Beer & Wine
Wholesalers Association (WB&WWA). “To make a bad
situation worse, the Office of Financial Management
estimates that the initiative would strip about $200 million from state and local governments, which now use the
money principally for law enforcement, education, health
care and the like.”
In Washington, opposition to the initiatives is steadily growing because of concerns about their impact on
local jobs, public safety, underage drinking and the overall economy.
The Washington Beer and Wine Wholesalers
Association oppose both initiatives, and family owned
distributors across the nation are also rallying behind
their Washington colleagues.
Distributors are not alone in their opposition. Those
who have spoken against the initiatives – and in support
of accountability and safeguards – include small local
businesses, small grocers and organized labor representing working families. Opposition has also come from
Washington’s thriving craft brewing sector which would
face an unfair playing field since large corporations
would be allowed to manipulate prices by both making
and directly selling alcohol. One
organized opposition group has
already emerged – Keep Our Kids
Safe, made up of Washington firefighters, church and faith leaders and
the United Food and Commercial
Workers union.
Regulations affecting the distribution of alcohol were established John Guadnola
after Prohibition was repealed with Executive Director
the ratification of the 21st
WB&WWA
Amendment in 1933. To protect consumers, prevent underage drinking and hold the alcohol
industry accountable, states crafted rules requiring producers, distributors and sellers of alcohol be separated
into different and distinct tiers. This fundamental principle of alcohol regulation reduces the likelihood for anticompetitive practices and discourages alcohol abuse.
Today, states adopt alcohol regulations that reflect each
state’s priorities. As a result, those regulations will vary
significantly between Utah and Washington and
Michigan, for example.
The two Washington initiatives are largely corporate
driven. According to Washington state finance records
and media reports, the campaign to push I-1100 has
raised more than $800,000 with more than $530,000
coming from Costco; the I-1105 campaign has raised
around $400,000, with $300,000 coming from Young’s
Market Co., an out-of-state liquor distribution company
based in California.
“These two initiatives are nothing more than a
shameless power grab by large corporations to avoid
accountability and tried-and-true safety measures,” stated Mike Lashbrook, president of the Michigan Beer &
Wine Wholesalers Association. “This corporate power
grab will put people out of work, shut local businesses
and endanger local communities that are already
stretched thin.”
3
FEDERAL LEGISLATION AIMS TO REAFFIRM
STATE REGULATORY AUTHORITY
cont’d from page 1
Despite some claims to the contrary, the CARE Act
does not require a change to any state’s current direct
shipping laws, such as Michigan’s direct shipping law that
allows wineries with a direct shipping permit to ship up
to 1,500 cases of wine per year. Instead, the legislation is
designed to protect facially neutral state laws that reflect
the policy views of their individual citizens.
Passage of the CARE Act is needed to protect state
initiated common sense safeguards and to ensure consistent court rulings. Some examples include state laws that
require alcohol be sold in face to face transactions have
been challenged and found valid in one state and invalid
in another, and state laws prohibiting volume discounts
have been challenged and upheld in one state and struck
down in another. Historically, these policy decisions have
been state decisions; but, now they are being decided by
federal judges with no hint at uniformity and no concern
about the policy views of a state’s citizens.
It is the state regulator’s power and duty to oversee the
industry they are charged with regulating.
The National Beer Wholesalers Association (NBWA)
and the Wine and Spirits Wholesalers Association
(WSWA) support passage of the legislation, and they are
joined by the Board of the National Alcohol Beverage
Control Association (NABCA) and the National
Association of Attorneys General (NAAG) in asking
Congress to address the growing threat of litigation to state
based alcohol regulation.
“It’s encouraging that Congress has taken an interest
in addressing issues related to alcohol deregulation and
the problems resulting from continuing litigation against
the states,” said NBWA president, Craig Purser.
“More than 25 states have faced challenges to their
authority to regulate alcohol and their ability to maintain
a licensed system of alcohol controls,” Purser continued.
“With the CARE Act, Congress is taking an important
step toward preventing the erosion of the states’ ability to
regulate alcohol by clarifying its intent that states have
the primary authority to regulate alcohol and reaffirming
its commitment to effective state-based regulation which
promotes responsible consumption and maintains an
orderly market.”
In addition, many state regulators, including
Michigan Liquor Control Commission Chairwoman,
Nida Samona, have voiced their support for this legislation. In fact, Chairwoman Samona testified in front of a
congressional subcommittee regarding the need for federal legislation and led the charge to get the NABCA Board
to pass a resolution in support of the CARE Act.
“It is the state regulator’s power and duty to protect
the industry they oversee. The CARE Act re-affirms the
authority the 21st Amendment gave to the states to regulate alcohol and protect the health, safety and welfare of
its citizens,” stated MLCC Chairwoman Samona.
At the time of this writing, the CARE Act had 136 cosponsors including Michigan Representatives John
Dingell, Pete Hoekstra, Thaddeus McCotter, Candice
Miller, Dale Kildee, Gary Peters and Mark Schauer.
The MB&WWA commends our national organizations, Chairwoman Samona and the members of
Michigan’s congressional delegation who have co-sponsored the CARE Act for their leadership on this issue and
for recognizing the need for Congress to reaffirm the
rights of states to craft regulations that reflect their citizens’ views on alcohol policy.
Michigan Beer & Wine Wholesalers Association
invites you to celebrate with your friends…..
Join us for a Fall Harvest Celebration
September 21, 2010 • 5:00-7:30 p.m.
The Tent behind MB&WWA
332 Townsend Street, Lansing, MI 48933
4
Unclaimed Bottle Deposits Up – Fraud Solution Working
In May, the Department of Treasury released the
2009 bottle deposit information to the Legislature. The
numbers are staggering. Since MB&WWA began working on and publicizing the massive fraud that has been
penetrating the bottle deposit system, there has been an
increase of $8.6 million in the Unclaimed Deposit Fund,
from $8.9 million in 2007 to $17.5 million in 2009. What
makes these numbers even more impressive is that they
come in a time when beverage sales have been flat or even
declining. These funds are used directly for environment
cleanup and other environmental projects around the
state.
As part of a legislative solution, beverage manufacturers are required to place a distinguishable mark on
their containers which allows the reverse vending
machines to determine if a deposit has been paid on individual containers. Those containers that come in from
another state are no longer accepted through the
machines. While the process has been phasing in since
the legislation’s passage in December of 2008; beginning
this November, machines all along Michigan’s borders
will be upgraded and will no longer accept out-of-state
metal containers.
For years, the state has been losing money due to
non-deposit containers coming in from our neighboring
states. Estimates have placed the loss around $10-$15
million a year from people purchasing beverages in other
states and returning the empty containers in Michigan for
the 10¢ refund. This new information from the Department of Treasury indicates that with very little knowledge
about the corrective action, the state has already
recovered over $8 million since 2007. As the implementation continues, increasing the number and type of containers that are caught by the new technology in the
machines, MB&WWA estimates that the state will continue to see an increase in unclaimed deposit funds.
5
Distributors, MBWWA issues in the news
Michigan distributors continue to appear in the
news media statewide and locally, highlighting the great
work they do in their local communities. The MBWWA
applauds all our distributor members who are communicating to their local media and encourage all members to
continue this terrific work. We also applaud community
leaders and others who speak up on important issues
affecting local jobs at distributorships, fighting underage drinking and reducing alcohol abuse. If you know of
a news article that isn’t included here, please let us
know, by e-mailing it to [email protected].
Powers Distributing highlights its
energy leadership
The Detroit Free Press published a guest column from Jerry Powers of Powers Distributing
Co. that shined a spotlight on the
importance of investing in renewable energy as a way to reduce our
dependence on fossil fuel, and the
opportunity for Michigan businesses to play a lead role in
this effort. Powers cites his
own company’s nation-leading
efforts in investing in renewable
energy, and the good business
benefits these investments can
bring. The column is below:
Aug. 26, 2010
Michigan oil spill should be a call to action for
renewable energy
By Jerry Powers
The blowback from our dangerous dependence on
oil is now hitting home for us in Michigan, a million gallons of oil flooded into the Kalamazoo River recently.
One of the worst environmental disasters in the
Midwest has now hit us in our own backyard and endangered one of the great rivers in Michigan, a river
renowned for fly-fishing and other sport fishing, a river
that is a haven for canoeists and kayakers, a river that
provides jobs, opportunity and a good quality of life for
countless families.
6
As a family-owned business that has served the
metro Detroit area since 1939, Powers Distributing
understands how important it is to leave Michigan strong
for future generations to enjoy. The oil catastrophes in the
Gulf and closer to home in Michigan are wake-up calls
for all of us to work even harder to reduce our addiction
to oil. Businesses can invest in renewable fuels; families
can take easy steps to increase energy efficiency in their
homes.
Beginning in 2008, Powers revamped our truck fleet
and changed the way we deliver our beverages to local
stores, bars and restaurants and other businesses. We
began by converting three dozen trucks and switched
from diesel to a bio-fuel blend that reduces our use of
fossil fuels. We increased our investments in clean vehicles in 2009, by launching a new fleet of 15
trucks and five tractors that are bio-fuel-electric hybrids.
With the new hybrid trucks,
Powers expects to slash fossil
fuel use by more than 25%, or
12,500 gallons each year.
With the bio-fuel hybrid tractors, we will reduce fuel use by
more than 20%, or about 6,000 gallons less fuel, and cut greenhouse gas
emissions by at least 30%.
We’re just one Michigan business that
is moving toward a clean energy future. We
invite everyone – businesses, families and government – to invest in more clean energy technologies and
build a stronger Michigan together.
Speedy beer recall, thanks to Michigan’s
alcohol regulations
Over the Memorial Day weekend, Bayside Beverage
in Petoskey spearheaded and completed a successful beer
recall within about 72 hours of notification, tracking
down and isolating virtually all the affected products – all
done on one of the busiest weekends of the year in
Michigan’s summer vacation epicenter. The incident and
its quick resolution show that Michigan’s system of alcohol regulations works. It protects people and should be a
model for others. Steve Arbaugh of Bayside Beverage
highlighted these points – and thanked his hardworking
employees and retail partners – in a guest column printed in the Petoskey News Review on June 7. The column
that ran in the PNR can be found on page 7.
Distributors, MBWWA issues in the news
GUEST COMMENTARY
Michigan’s beer regulations helped in speedy
recall, provides a model for others
The following guest commentary was written by
Steve Arbaugh, president, Bayside Beverage Company
For more than 70 years, Michigan has enjoyed a safe,
efficient and working system for regulating how beer
goes from a brewer to a distributor to the consumer. As a
system of regulation, it emphasizes consumer safety
through effective tracking and accountability. It also provides a model for how food and other beverages such as
wine should be distributed to consumers statewide.
This recent Memorial Day, we got a real-world look
at how Michigan’s beer regulations can help keep potentially harmful products from consumers. On Friday, May
28th at around 5 p.m., Labatt learned that several cases of
six-pack bottles of Labatt Blue Light sent to Michigan
might have been contaminated with some glass and instituted a voluntary recall. Labatt immediately informed
our company, Bayside Beverage Corporation, the designated Labatt distributor serving Northern Lower
Michigan, about recalling the affected beer.
Within hours, Bayside identified 86 affected cases
that had been shipped into retail, when they were shipped
to Michigan, when they left our distributorship and what
stores received them. Seventeen Bayside employees were
notified of the immediate need to respond and gave up
their precious time with family and friends on the
Saturday of Memorial Day weekend. We contacted the
affected stores in Charlevoix, Cheboygan, Emmet and
Otsego counties. In many cases, Bayside management,
salespeople, delivery drivers and merchandisers drove to
stores to personally inspect their inventories and removed
any suspect packages. We worked round the clock with
our retail partners, who rolled up their sleeves and gave
us their full cooperation on one of the busiest weekends
of the year and they deserve a huge amount of gratitude
for their efforts.
By Memorial Day, May 31, we had recalled all but a
few of the cases. We worked non-stop to get to those
remaining cases of beer. In the meantime, Labatt aggressively communicated with the news media about the voluntary recall, telling consumers to be on the lookout for
the affected beer, coded E10 and to call 800-268-BEER
with questions or concerns.
One key reason Michigan’s beer distribution system
could respond quickly to the possible contamination was
because each distributor distributes specific brands to a
cont’d from page 8
single specific territory. This streamlines the distribution
process and promotes accountability and efficiency.
Michigan beer distributors like Bayside are responsible
for keeping track of all the beer that comes to our warehouse from the brewer, and what stores it goes to after it
leaves on our delivery vehicles. Our workers are trained
to make sure we maintain this ironclad chain of custody.
We are proud of this responsibility because it helps protect consumers.
Beer distribution’s one-distributor-per-brand-per-territory model helped track a contaminated product within
72 hours. In 2009, a deadly salmonella outbreak linked to
peanut butter began in a contaminated peanut factory. In
2006, a nationwide outbreak of e.coli-contaminated lettuce that sickened dozens of people, including in
Michigan, stumped investigators for months before a
source was identified.
Regulations like those used for beer distribution
could have protected people during outbreaks, and possibly even saved lives.
Michigan’s beer distribution regulations work. Tight
regulations and territorial integrity helped us respond
quickly, efficiently and responsibly in a recall. By
emphasizing accountability and safety, Michigan’s beer
distribution system provides a model that other food and
beverage producers could emulate.
Helping the Kalamazoo oil spill clean up
When more than 1 million gallons of oil flooded the
Kalamazoo River in late July, Atlas Sales in Battle Creek
did what a multigeneration family
business
with
roots in the community dating to
1933 always does
in a crisis: It went
straight to work,
and stood shoulder
to shoulder with
other volunteers.
The Dunn family
secured around 24,000 cans of drinking water from
Anheuser Bush’s emergency water program. The water
was trucked in from Georgia and distributed to volunteers and clean-up crew working to restore the
Kalamazoo River. Atlas went one step further: It told the
local media about the event, and was covered in the
Kalamazoo Gazette.
(Continued on page 8)
7
Distributors, MBWWA issues in the news
cont’d from page 7
Atlas also posted a video of the delivery on YouTube:
www.youtube.com, and search for “atlas sales delivers
AB emergency drinking water.”
Below are the Kalamazoo Gazette article and some
photos of the water delivery.
23,000 cans of water donated to volunteers
cleaning Kalamazoo river oil spill
Saturday, August 07, 2010
Fritz Klug | Kalamazoo Gazette
BATTLE CREEK — Anheuser-Busch is making a
donation to relieve the thirst of volunteers cleaning the
Kalamazoo River oil spill.
On Friday night, Battle Creek distributor Atlas Sales
was scheduled to receive 23,500 cans of drinking water
to distribute to workers. The water comes in 12-ounce
aluminum cans and was shipped from Cartersville, Ga.
Greg Dunn, Atlas Sales president, said his company
made the request from the corporate Anheuser-Busch
office because of the importance of the Kalamazoo River.
“We know what the river means to people,” Dunn said.
“It’s important for people to support (the volunteers).”
Dunn hopes this donation will spur others to assist
volunteers.
Hundreds of workers have helped with the clean up
since the spill was first reported on July 26. Since 1988,
the brewer of Budweiser, Bud Light and Michelob beers
has donated more than 69 million cans of water following disasters.
Fabiano Brothers celebrates 125 years
For the Fabiano family, 125 was the magic number.
Fabiano Bros. Inc. in Bay City celebrated 125 years
of providing quality products, creating local jobs and giving back to their community with the completion of a
state-of-the-art, stunning new beer distribution center in
Monitor Township.
Fabiano Bros. also threw a local party for the community, bringing in the famed Budweiser Clydesdales
and King the Dalmatian, and introducing its new facility
to friends, neighbors and business partners.
More than 200 people attended the ribbon cutting,
and many came to see the Clydesdales and join in the celebration.
The event was held on May 21, and was widely covered by TV, radio and print media in the Bay, Saginaw
and Mid-Michigan area.
The $16-million-plus beer distribution center and
headquarters is at 1885 Bevanda Court off Mackinaw
Road near US-10, in Monitor Township.
President and CEO James Fabiano Sr., told the Bay
City Times: “It's just great to have everyone here. To
bring all the family together ... It's just a fun day.”
James Fabiano Sr.’s grandfather, Gennaro Fabiano,
started the company in Italy in 1885 by selling fruit, vegetables and homemade wine.
Today, the company is the second largest AnheuserBusch Co. distributor in Michigan, according to James C.
Fabiano II.
Fabiano’s 125th celebration and the unveiling of its
new facility was covered by regional media, including
www.mlive.com, ABC 12, WNEM, NBC 25 and more.
MB&WWA Welcomes Our New Associate Members
ARCO National Construction Co,
Inc. – Beverage Group
Michael Brunetto
1750 S. Brentwood Blvd., Suite 600
St. Louis, MO 63144
8
First Beverage Group
Sean McLaren
11100 Santa Monica Blvd.,
Suite 850
Los Angeles, CA 90025
Petoskey Plastics
Paul Keiswetter, President
Charles Lee, Jr., Vice President Sales
& Marketing
One Petoskey Street
Petoskey, MI 49770
MB&WWA NEWS & UPDATES
MB&WWA Launches a
Resource Center for
Healthcare Reform on Web
Understanding health care reform and the implications to your business can be a daunting task. The
MBWWA Employee Benefit Trust and MBWWA
Services, Inc. have partnered with Gallagher Benefit
Services and their team of regulatory compliance experts
to provide you with up-to-date and accurate analysis of the
Health Care Reform Law. Throughout the coming months
as the law is interpreted and interim rules and guidance are
released, we will post articles and information to the
resource center to help you evaluate your benefit plans and
make decisions for the future. We are entering uncharted
territory and the landscape will continue to evolve over the
next several years. The website will feature a Healthcare
Reform Q & A document which will be updated periodically to keep members informed as rules and interpretations further define the new law. As always, those participating in the MB&WWA Group Insurance Program will
continue to receive personalized guidance from staff, the
program’s attorney and industry consultants.
2010 Region Meeting Dates
and Locations
Mark your calendars! Our 2010 meetings will be a
healthy balance of staff updates on important legislative,
regulatory, legal and political matters coupled with critical
information regarding health care reform. Don’t forget to
include your key management so that they too can stay in
the loop with what’s going on here in Lansing and beyond.
Region 3 — Tuesday, October 12
MB&WWA Headquarters, Lansing, 1933 Room
Region 1 (Upper Peninsula) — Friday, October 15
Best Western Pioneer Inn, Escanaba
Region 1 (Northern Lower) — Monday, October 18
Treetops Resort, Gaylord, The Oak Room
Region 3 — Thursday, October 21
The Amway Grand Plaza, Grand Rapids
Region 4 — Thursday, October 28
Sheraton Detroit Novi, St. Clair Room
In-Memoriam
We are saddened by the deaths of:
Halyna Szewczuk, Chief Financial Officer for
Arbor Beverage Company in Ann Arbor. She was
the daughter of Theodore and Zenovia Szewczuk
who started Arbor Beverage Company in 1959.
October 14
Board of Directors
Meeting
Gordon Cove, former owner of
Cove Distributing in Hastings.
November 11
Board of Directors
Meeting
December 8
Annual Meeting &
Holiday Luncheon
(Kellogg Center, East
Lansing)
March 2-5, 2011
Winter Seminar Series
(LaPlaya Resort &
Spa, Naples FL)
July 24-26, 2011
Annual Meeting &
Summer Convention
(Grand Traverse
Resort & Spa)
Walter Jozaitis, Jr., President of Jozaitis
Distributing Company in Menominee, Michigan
and Marinette, Wisconsin.
Harry Wiles, Executive Director of American
Beverage Licenses. Harry was the former Senior
Vice President for Federal Government Relations
and Senior Counsel for Wine & Spirits Wholesalers
of America (WSWA) from 1987-2000.
Our deepest sympathies are extended
to their friends and families.
9
Annual Meeting & Summer Convention Recap
The 2010 Summer Convention and Annual Meeting
of Members held at Boyne Mountain Resort Grand Lodge
in Boyne Falls on July 25-28 drove home this year’s theme
of “Face Time. It Matters”. Wholesalers and their families along with associate members, legislators and members of the Michigan Liquor Control Commission kept
themselves busy with three jam-packed days of business
meetings, industry updates and entertaining social functions in beautiful northern Michigan.
Sunday evening welcomed attendees at the opening
Mardi Gras reception where participants enjoyed a perfect summer night, great food and most important, good
company.
MLCC Chairwoman Nida Samona and Administrative Commissioners Pat Gagliardi and Don
Weatherspoon started off Monday morning with a panel
discussion on the regulatory climate at both the national
and state levels. Discussions centered around the federal Comprehensive Alcohol Regulatory Effectiveness Act,
the Costco initiative in Washington state that puts alcohol
accountability at risk –and which could potentially
impact Michigan distributors.
Mark Restum of Gallagher Benefit
Services updates members on the new
national healthcare laws.
Suppliers and wholesalers proving
that face time does matter.
10
Monday morning also featured a legislative panel
discussion with Senate Majority Leader Mike Bishop,
Sens. Ron Jelinek and Alan Sanborn, Reps. Harold
Haugh and Woodrow Stanley. The panel discussed issues
specific to beer and wine distributors, as well as upcoming budget challenges facing the state and elections just
a few months away.
Tuesday morning featured three presentations that
were all about business in Michigan in 2010. Michigan
Chamber of Commerce President & CEO, Rich Studley,
started off the morning with a discussion on the state’s
economic climate, including current struggles and
opportunities for growth. In addition, he thanked distributors for being strong job providers, active community
members and for their relationship with and support of
the Michigan Chamber.
MB&WWA was fortunate to welcome and hear from
Brad Keene of Boyne Resorts; Gerald “Bird” Smith of
Tully’s Log Cabin; and Keith McGlaughlin of ToskiSands Market, three top retailers of the on- and offpremise trade in northern Michigan. The group updated
Brian Fox, recipient of the
2010 Key Man Award.
Legislators discuss the important 2010
elections. (From left) Senate Maj.
Leader Mike Bishop, Sen. Alan
Sanborn, Sen. Ron Jelinek, Rep. Harold
Haugh and Rep. Woodrow Stanley.
Boyne Mountain Resort Grand Lodge
in beautiful northern Michigan.
Kids of all ages being creative during
Sunday evening’s Mardi Gras reception.
distributors on recent trends at the retail level and how
we can work together to promote the hospitality industry.
Wrapping up the morning was Jerry Rueschhoff and
Mark Restum of Gallagher Benefit Services, who provided an in-depth presentation on the impact of national
healthcare reform. A timeline of key changes both near
term and long-term (2014-2018) was discussed, including the significance of grandfathering and various tax
implications.
A “Motown Magic” themed dinner-dance event entertained the 120 attendees on Tuesday evening. During the
dinner program, Brien Fox, CEO of Henry A. Fox Sales
Co., was presented the Key Man Award for his outstanding
service to the MB&WWA in a leadership capacity.
The Annual Meeting of Members on Wednesday
morning concluded another successful convention. First
on the agenda was the election of officers (see accompanying box with election results). Chairman Don Klopcic
reported to members the results of the strategic planning
efforts that were conducted in April and outlined the four
pillars for the future of the association.
In addition, staff, lobbyists and PR consultants
briefed members on the association’s advocacy efforts
and members reviewed the budget approved by the Board.
Ava and Jimmy
Morgeson show off
their Mardi Gras
masks.
ELECTION RESULTS
2010-2011 Board of Directors
Donald Klopcic, Jr., Chairman
Paul Quasarano, Vice Chairman
Jim Tyler, Treasurer
Steven Arbaugh, Immediate Past Chair
James Johnston, Region 1 Director
Kevin Sullivan, Region 2 Director
James Wanty, Region 3 Director
Syd Ross, Region 4 Director
Stephen Anderson, Director At-Large
Joseph Fabiano, Director At-Large
Michael Miller, Director At-Large
Jelinek Honored
Greg O’Niel of O.K. Distributing and
MB&WWA President Mike Lashbrook
present the award.
MLCC Chairwoman Nida Samona
addresses members during Monday
morning’s panel discussion.
Wholesalers taking notes during Tuesday’s business seminars.
MB&WWA honored State Senator Ron Jelinek
(R-Three Oaks) during the Annual Summer
Convention on July 28. Senator Jelinek has worked
tirelessly over the last four years to ensure that legislation is in place to end the return of fraudulent
beverage containers. His efforts have preserved the
integrity of Michigan’s Bottle Bill, conserved environmental cleanup funds and retained good paying,
Michigan jobs. MB&WWA is grateful for Senator
Jelinek’s service to Michigan’s beer and wine distributors and the citizens of the State of Michigan.
For that, MB&WWA was proud to present him the
2010 MB&WWA Distinguished Service Award.
11
2010 PAC CONTRIBUTORS
Below is a list of companies who have
contributed to the MB&WWA Political
Action Committee. Thank you to all
company owners and employees who
continuously support MB&WWA’s political actions and work hard to promote the
beer and wine wholesaling industry.
*Companies with employee programs
Total Contributions for 2010 -
$331,310.68
Alpena Beverage Company, Inc.
Anderson Distributing Company
Arbor Beverage Company
*Atlas Sales, Inc.
*B & B Beer Distributing
*Bayside Beverage Corporation
Bink's Wines & Beverages
Bud Distributing, Inc.
Caswell-Latocha, Inc.
*Central Distributors
Dan Henry Distributing Co.
Daniel L. Jacob & Co., Inc.
*Earl Smith Distributing Company
*Eastown Distributors Company
*Fabiano Brothers, Inc.
*Floral City Beverage, Inc.
Four Seasons Beer Distributing
*Gerry's Distributing Company
*Great Lakes Beverage Company
12
*Great Lakes Wine & Spirits
Griffin Beverage Company
*H. Cox & Son, Inc.
Henry A. Fox Sales Company
*Hubert Distributors, Inc.
Huron Distributors, Inc.
*I.H.S. Distributing Company, Inc.
Imperial Beverage Company
*Kent Beverage Company, Inc.
*Ludington Beverage Co., Inc.
*M & M Distributors, Inc.
*Main Beverage Company
Marchetti Distributing
*MB&WWA Staff
*Modern Beverage Company, Inc.
Nate Wines, Inc.
*O.K. Distributors, Inc.
*O & W, Inc.
*Paw Paw Wine Distributor Co.
*Peterlin Brothers Company, Inc.
*Petitpren Inc.
Pisani Company, Inc.
*Powers Distributing Company, Inc.
Rave Associates, Inc.
*Silver Foam Distributing Company
Thompson Beverage Company
*Tom Ryan Distributing Company
*Tri-County Beverage Company
*Tyler Sales Company, Inc.
*West Side Beer Distributing
Wicksall Distributors, Inc.
MB&WWA
Information
Michigan Beer & Wine
Wholesalers Association
332 Townsend Street
Lansing, MI 48933
Phone: 517-482-5555
Fax: 517-482-1532
Website: www.mbwwa.org
Email:
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
General Email:
[email protected]
[email protected]
Publication:
Today’s Wholesaler, The Vital Link
Quarterly Publication of the
MB&WWA
Editor, Michael Lashbrook
Asst. Editor, Brandi Tribell
Elected Officers:
Donald Klopcic, Jr., chairman
Paul Quasarano, vice chairman
Jim Tyler, treasurer
Staff:
Michael Lashbrook, president
Spencer Nevins, vice president,
regulatory/legal affairs and counsel
Angela Madden, director of
legislative and political affairs
Ellen Biergans, administrative
services director
Brandi Tribell, executive assistant
Llynn Wagner, marketing and
member services director
Tonya Bonette, benefits coordinator
Shirley Copeland, benefits specialist