RD470 - 2014 Annual Report of the Virginia Department of Alcoholic Beverage Control (ABC)


Executive Summary:
*This report was replaced in its entirety by the Department of Alcoholic Beverage Control on January 16, 2015.

The Virginia Department of Alcoholic Beverage Control (ABC) celebrated its 80th anniversary in fiscal year 2014 and marked a year of milestones that promise an even brighter future for the agency. The celebratory year offered many highlights including the opening of Virginia’s first premier ABC stores in Williamsburg and Leesburg. Incorporating innovative retail space planning techniques, energy efficient lighting, a permanent tasting area, appealing cabinetry, wall treatments and product displays, the new stores also feature a design theme reflective of the unique characteristics of each of the store’s locations.

The new retail initiative underscores a dedication to providing excellent customer service and is representative of the Board’s commitment to innovative solutions and sound business decisions that keep ABC stores on firm operational and financial ground.

ABC completed fiscal year 2014 with a record $801 million in annual gross sales, an increase of $32 million from the previous year. Retail sales increased 4.7 percent, and sales to mixed beverage licensees (restaurants) increased 1.6 percent compared to the previous year. Seven new stores opened this year generating $2.9 million in sales. The agency also remodeled 19 stores during the fiscal year.

In fiscal year 2014, ABC collected more than $132 million in excise taxes; nearly $35 million in wine liter taxes, nearly $37 million in general sales taxes, more than $43 million in malt beverage taxes and $140 million in profits for a total of $386,860,375 in transfers to the state coffers. ABC has contributed more than $1.8 billion dollars to the Commonwealth in the last five years.

Special agents from the agency’s Bureau of Law Enforcement monitor compliance in licensed establishments statewide. During the fiscal year, ABC special agents conducted 8,675 criminal investigations, made 1,670 arrests, completed 1,154 written warnings and 7,390 written violation reports for administrative action against licensees. ABC agents also take an active role in promoting compliance. They trained 1,739 participants in the Responsible Sellers and Servers: Virginia’s Program (RSVP) and 389 participants in the Managers’ Alcohol Responsibility Training (MART) classes statewide this year.

In fiscal year 2014, the Hearings, Appeals and Judicial Services Division received 780 cases for processing and collected $918,700 in civil penalties. The Hearings and Appeals Division’s new alternative dispute resolution process allowed five applicants and licensees to resolve cases with an impartial mediator and avoid formal hearings. The voluntary process expedites the procedure for addressing violations thus saving time and resources.

ABC continues to be a leader in alcohol prevention and community education initiatives. ABC Education and Prevention section attracted 93 youth teams from schools and communities across the Commonwealth to its annual summer leadership conference, Youth Alcohol and Drug Abuse Prevention Project (YADAPP).

In fiscal year 2014, ABC continued to adapt to an ever-changing marketplace. The agency remains committed to the public safety of Virginia’s citizens, providing alcohol education for people of all ages; excellent customer service at each retail location; and effectively managing a business enterprise generating a consistent source of revenue for some of the Commonwealth’s most important programs.