RD413 - 2013 Annual Report of the Virginia Department of Alcoholic Beverage Control (ABC)


Executive Summary:
Fiscal Year 2013 marked another record year for the Virginia Department of Alcoholic Beverage Control (ABC)’s Retail Operations Division. Total gross sales for the fiscal year were $769 million, $35 million higher than last year and $11 million higher than the projected $758 million target. Profits were $134 million, an increase of $2 million from the previous fiscal year. Retail sales ended the year up 5.5 percent and mixed beverage licensee sales were up 1.5 percent. Six stores opened this year, generating a total of $2.5 million in sales.

In addition to opening stores, ABC relocated eight stores and modernized nine. Store grand openings are now community events that include local officials and media representatives, as well as ABC executive staff. The agency is piloting a new store design that redirects customer flow to enhance the shopping experience. Specialized ceilings and floors, energy-efficient lighting and enhanced trade fixtures are featured. The new design will debut in Williamsburg in 2013 and in Leesburg in 2014.

Beginning July 1, 2012 all ABC retail locations not previously open on Sunday opened from 1 to 6 p.m. Total Sunday sales for Fiscal Year 2013 were $43 million. In addition to Sunday sales expansion, 30 ABC stores increased hours of operation on other days to enhance the level of service in those locations.

A new quality control program monitors order-filling accuracy of warehouse personnel along with store-reporting accuracy when orders are received at the location. In addition, the agency implemented an incentive program rewarding warehouse order pickers who perform at a 99.9 percent accuracy rate.

After taking a close look at current operations and identifying best practices in other control states, ABC created a new division to direct the agency’s product placement and marketing efforts. ABC hired a director of marketing to develop and manage agency-wide marketing and promotions functions, including promotions planning and analysis, store branding and product planning and performance.

The new licensing unit in ABC’s Central Office continues to improve citizens’ application process experience. Licensing centralization has established consistency in requirements and continues to decrease processing times.

To better equip ABC agents to enforce the commonwealth’s alcohol laws, the bureau purchased a Field Support Vehicle (FSV) with $750,000 of asset forfeiture funds. Virginia is home to hundreds of events and festivals each year, the majority of which involve adult beverages. The FSV functions as a centralized command post for ABC coordinating with local law enforcement and other public safety entities at these events and serves as an onsite police base for citizens in need of assistance.

Education initiatives this year included the Youth Alcohol and Drug Abuse Prevention Project (YADAPP), which hosted nearly 500 students and adult educators. ABC also began coordinating the Governor’s Office for Substance Abuse Prevention (GOSAP) program. The Substance Abuse Awareness Vital for Virginia Youth (SAVVY) initiative hosted three successful Expos in Central, Northern and Eastern Virginia to provide prevention resources and networking to help combat youth substance abuse. The Alcohol and Aging Awareness Group (AAAG) continues to provide solutions to substance misuse problems facing older Americans.

ABC remains committed to the public safety of Virginia’s citizens by providing alcohol education for people of all ages, excellent customer service at each retail location and a consistent source of revenue for some of the commonwealth’s most important programs.

J. Neal Insley
ABC Board Chairman