RD339 - Annual Report of the Department of Alcoholic Beverage Control


Executive Summary:
Virginia ABC's vision and mission are in focus throughout the agency as employees strive to balance service, revenue and control in the distribution, sale and consumption of alcoholic beverages. ABC employees are partnering to carryout the agency mission to control the distribution of alcoholic beverages; operate efficient, conveniently located retail outlets; enforce the laws of the Commonwealth pertaining to alcoholic beverages and youth access to tobacco products; and provide excellent customer service, a reliable source of revenue and effective public safety.

In its eighth straight record-breaking year, Virginia ABC continued its commitment to maintaining a reliable source of revenue. In Fiscal Year 2006, ABC store sales grossed$572 million and produced net profits of $93.3 million. In addition, Virginia ABC collected $95 million in excise taxes, $26.5 in wine liter taxes, $22.2 in general sales taxes and $43.9 in malt beverage taxes for a total of $280.9 million in contributions to Virginia state agencies, the General Fund and localities.

Opening new stores to better serve a growing population, ABC expanded by 53 stores in four years to 312 stores at the end of Fiscal Year 2006. ABC customers surveyed this year indicate that 91 percent of customers are very satisfied with overall customer service, 95 percent say the service is prompt and 93 percent describe the ABC store as clean and attractive. Efficiency increased with completion of the multi-million dollar warehouse automation project; the system has the capability of processing 20,000 cases in a day.

ABC special agents based out of eight regions across the state are enforcing criminal and ABC laws in more than 14,000 licensed establishments. Criminal activities ranging from drugs and vice to money laundering and embezzlement are investigated and prosecuted through the state court system. ABC special agents utilize underage buyers to conduct checks on retail licensees that sell or serve alcohol, including ABC stores, and on retail establishments that sell tobacco products. Compliance rates for sales of alcohol to underage buyers reached 87 percent in licensed establishments and 97percent in ABC stores. Tobacco retailers reached 90 percent compliance in 2006.

ABC leads the Commonwealth in alcohol prevention and community education initiatives. The agency provides thousands of dollars in grant funding to enhance community and university coalitions and provides training to licensees and other groups to promote compliance with ABC laws. A highlight of Fiscal Year 2006 was the awarding of rural law enforcement community grants, a first for the agency providing this type of grant to rural communities. ABC special agents conducted 252 public and 1,890licensee compliance training presentations during the year.

In Fiscal Year 2006, the Hearings, Appeals and Board Administration Division received 1,317 cases for processing, and collected $1,812,458 in civil penalties. In addition to administrative violations, the division dockets contested license applications referred for hearing.

Throughout the Commonwealth, ABC employees are focusing on the agency vision and mission, striving to provide excellence in all areas of control, service and revenue.