A Chat with Jonathan H. Newman, Chairman PLCB

[KatieLoeb]

The eGullet Society for Culinary Arts & Letters is delighted to welcome Jonathan H. Newman, Chairman of the Pennsylvania Liquor Control Board (PLCB) for an eG Spotlight special appearance April 24 - 28, 2005.

Although the Chat does not officially start until Sunday the 24th, you may begin posting your questions for Chairman Newman in this thread at anytime.

Since his appointment in August of 2002, the PLCB has expanded its premium collection stores, introducing competitive prices and broadening the selection of wine offered to consumers. Other important initiatives include Sunday sales hours; accessory sales; samplings at stores; enhanced employee training for wine education; launching an Online Store at www.pawineandspirits.com; creating LCB stores within supermarkets (One Stop Shops); establishing climate control during all phases of wine handling; and in-store temperature controlled wine rooms.

In addition, the Chairman Selection Wine program uses the purchasing power of the PLCB (the largest wholesale purchaser of wines and spirits in the world) to offer fine wine at the best prices in the country. His efforts have been honored by Wine Enthusiast magazine, which named Newman its Man of the Year in its December 2003 cover story for his efforts in creating Pennsylvania's profile as a wine-friendly state. In 2004, he was awarded the prestigious Award of Merit by the American Wine Society. And in 2005, he was awarded with honorary membership to the Guild of Sommeliers, an international organization that has given this award to only 4 other individuals in its history.

The Chairman will be taking questions from members of the eGullet Society on subjects ranging from purchasing, pricing, taxation issues and what his plans are for the future of wine and spirits in Pennsylvania.

Please join us in welcoming Mr. Newman to the Society.

[KatieLoeb]

Good Day Mr. Chairman, and thanks for joining us here at eGullet. I often joke that I play "Sommelier for the Masses" when I'm purchasing wine for a group dinner, but you really are Sommelier for the Masses! You're known as a real "consumer's Chairman" and I'd like to know what drives your purchasing for millions of PA retail customers. When choosing wines, for example, are you simply looking for the best deal, are you looking for wines you think will have more universal appeal, or are you trusting your own tastes in making the selections?

[mrbigjas]

hi there mr. newman--thanks for doing this q&a, and for all you've done to improve the lcb. it's been extremely impressive and gratifying to see all this happen over the last couple of years.

my question is regarding beer distributorships. i have loved the sunday hours at the wine and spirits stores. as someone who works a regular 9-5, it's good to have the stores open when i have time to shop.

but i've noticed that beer distributorships are not open on sundays. my question: is there a different set of lcb rules for them, and they are still not allowed to be open on sunday? or is that just up to them, and the owners of the distributorships have decided to remain closed on sunday?

[Chris Amirault]

Thanks, Mr. Newman, for joining us here at our little website. My question requires a long-winded introduction, I'm afraid!

On a typical evening during which I enjoy a bottle of wine, my $10-15 purchase occurs right after work and involves going from a grocery (at which I've just selected ingredients for dinner) to the wine shop or liquor store on the way home. I cannot remember having had a bad bottle of those ready-to-drink wines for over a decade, and (unlike most food and beverage expriences) I can regularly count on an unknown product being better than I expected.

Katie emphasized your role in bringing fine wines to the rest of us, but my question addresses these ready-to-drink bottles. It seems to me that my wine options have increased geometrically in terms both of variety and of quality in the last decade, so much so that I wonder if there hasn't been a revolution in the production, marketing, and distribution of these sorts of wines. If this is so, can you tell us a bit about it?

Thanks so much in advance for your response.

edited to clarify question -- ca

Edited April 23, 2005 by chrisamirault (log)

[lancastermike]

Mr. Newman,

Thanks for taking our questions, and thanks to Katie for making the arrangements. I along with many others were pleased by your first ever post taking place on the Chairman's Selection thread last month.

Do you see wine sales of all kinds, and in particular the Chairman's Selection program as the future growth leader of the PLCP sales? That is, is the future more tied to wine than to spirits?

I imagine it would take an act of the General Assembly to allow this, but would you like to be able to advertise, as other retailers do, your products?

Once again many thanks, and I can say that going to the LCB store these days is a pleasure, unlike the Stalin-like experience of the bad old days.

Edited April 22, 2005 by lancastermike (log)

[Jeff L]

Hi Mr. Newman:

I echo the welcome expressed by fellow posters on this thread. It is really cool of you to make yourself available to the folks who frequent this forum.

I am quite pleased with all of the revolutionary changes that you have been able to make to the state stores, particularly your Chairman's Selection offerings. I have become a regular purchaser of many of these outstanding wines, and more importantly, outstanding, and dare I say, unheard of prices!

I can honestly confess to you that I can't remember the last time I made a run to New Jersey for my wines.

The only complaint I must lodge with you here is the overall experience one feels at the state store in my area (Newtown) I often don't ask for assistance with my purchases, but the odd times I do, I am struck by the geniuine lack of helpfulness and excitement by most of the store employees. I wonder if you have considered some sort of way to turn this around. Please know that it has been greatly improved since your taking over, but I feel could improve yet further. Perhaps an incentive program might make a difference. Just a thought.

Keep up the great work!!!

[shacke]

Welcome welcome welcome Mr Chairman!

I was curious what your personal feelings are regarding the upcoming supreme court case regarding intrastate (and then perhaps interstate) shipping laws.

I realize that this case, regardless of the outcome, is unlikely to settle the larger issues of shipping across state lines any time soon but I would love to know what you personally think about the prospect of a truly open marketplace for PA residents. Although there is a clause to get wines into the state that isn't sold at the stores, it is indeed a plan drawn up by suits and wrapped in yards of red tape!

You don't control the legislature and you are doing a great great job as many posters have already said. I was just wondering what your own take on the situation as a wine loving PA resident AND the chairman was. I don't profess to knowing all the implications - particularly for the state stores and the systems relationship with licensed establishments. I assume an open system's effect on the former would not be as profound an impact as the latter.

As I said in an earlier post on the PA wine thread, the state system is so vastly improved and the service I get (particularly SLO) is phenomenal - but as a proponent of an open market system, I still believe the residents of PA do not have their freedom - however benevolent the monopoly.

Thanks again for coming! I look forward to your posts and meeting you at an event one day!

Evan

[Holly Moore]

Greetings Chairman Newman

Welcome to eGullet and thanks for taking the time to do a chat with our members. The PLCB is making wonderful strides. This is a tremendous opportunity to hear from the man himself about what has been happening and what is on the drawing boards.

I date back to a time in Philadelphia when it was just counter service and the clerks weren't all that knowledgable on the finer aspects of wine. There was a black and white chart on the wall with two columns, one labeled "red" and one "white," with various food categories under each. Whenever one asked for a recommendation the clerk just pointed to the chart. Ah, the good old days when life was simple.

[Jonathan Newman]

The eGullet Society for Culinary Arts & Letters is delighted to welcome Jonathan H. Newman, Chairman of the Pennsylvania Liquor Control Board (PLCB) for an eG Spotlight special appearance April 24 - 28, 2005.

Although the Chat does not officially start until Sunday the 24th, you may begin posting your questions for Chairman Newman in this thread at anytime.

Since his appointment in August of 2002, the PLCB has expanded its premium collection stores, introducing competitive prices and broadening the selection of wine offered to consumers. Other important initiatives include Sunday sales hours; accessory sales; samplings at stores; enhanced employee training for wine education; launching an Online Store at www.pawineandspirits.com; creating LCB stores within supermarkets (One Stop Shops); establishing climate control during all phases of wine handling; and in-store temperature controlled wine rooms.

In addition, the Chairman Selection Wine program uses the purchasing power of the PLCB (the largest wholesale purchaser of wines and spirits in the world) to offer fine wine at the best prices in the country. His efforts have been honored by Wine Enthusiast magazine, which named Newman its Man of the Year in its December 2003 cover story for his efforts in creating Pennsylvania's profile as a wine-friendly state. In 2004, he was awarded the prestigious Award of Merit by the American Wine Society. And in 2005, he was awarded with honorary membership to the Guild of Sommeliers, an international organization that has given this award to only 4 other individuals in its history.

The Chairman will be taking questions from members of the eGullet Society on subjects ranging from purchasing, pricing, taxation issues and what his plans are for the future of wine and spirits in Pennsylvania.

Please join us in welcoming Mr. Newman to the Society.

←

Hi Katie,

Thank you for hosting me on this forum. I enjoy the egullet website and am honored to participate. I will certainly try to answer most of the questions and look forward to some interesting discussions.

[Jonathan Newman]

Good Day Mr. Chairman, and thanks for joining us here at eGullet.  I often joke that I play "Sommelier for the Masses" when I'm purchasing wine for a group dinner, but you really are Sommelier for the Masses!  You're known as a real "consumer's Chairman" and I'd like to know what drives your purchasing for millions of PA retail customers.  When choosing wines, for example, are you simply looking for the best deal, are you looking for wines you think will have more universal appeal, or are you trusting your own tastes in making the selections?

←

I have turned down almost 75% of the deals that have been presented to me. I am looking for a wine that I would purchase myself because it is great juice that I would feel proud putting on my dinner table. The price to quality ratio is very important. I love the 99 St. Francis Reserve merlot at $12.99, but I would have no interest in this produst at the $45 suggested retail.

There is nothing more frustrating than spending hard earned money on a mediocre bottle of wine or having a special dinner with friends and family and the wine disappoints. So I take these decisions very seriously and the negotiations over price are intense. The Ch. St. Jean 01 Robert Young Vineyard is a beautiful bottle of Chard, but it tastes a lot better to me at $16.49 than spending over $30 a bottle. I try and find many varietals, at different price points from many countries. When I hear that customers enjoyed the Norton privada, and it was the first time they had a Malbec or a wine from Argentina, it makes me feel good that I am introducing our consumers to unique products that they wouldn't have tried otherwise.

I do have personal tatses that certainly come into play and I personally approve every selection. I am a Pinot Noir lover, I do not enjoy vegetal Merlots, Cabernets with a good mouthfeel are important and I do not like overly-oaked chards.

The brokers and suppliers are working on tight margins in the Chairman Selection Program, but there is still a lot of product out there and I feel that the PLCB has an obligation as the exclusive retailer in Pa. to fight for the consumer and use our economies of scale and purchasing power to bring home great deals and make the customer first.

[Jonathan Newman]

hi there mr. newman--thanks for doing this q&a, and for all you've done to improve the lcb.  it's been extremely impressive and gratifying to see all this happen over the last couple of years.

my question is regarding beer distributorships.  i have loved the sunday hours at the wine and spirits stores.  as someone who works a regular 9-5, it's good to have the stores open when i have time to shop.

but i've noticed that beer distributorships are not open on sundays.  my question: is there a different set of lcb rules for them, and they are still not allowed to be open on sunday?  or is that just up to them, and the owners of the distributorships have decided to remain closed on sunday?

←

The LCB is the exclusive retailer and wholesaler of wine and spirits in the Commonwealth. Beer is sold by private industry in Pa. The Kane Report, which chronicles alcohol beverage consumption nationally, pointed to Texas and Souteastern Pa. as the two markets where beer sales are dropping most dramatically. I think we are doing a better job marketing and making the PLCB more consumer friendly. The demographic trends are also pointing to beer consumers switching over to wine and spirits because of health trends and beer being typically higher in carbs. I would recommend that beer distributors and the legislature take a hard look at package reform and Sunday sales. It is also important that beer distibutors upgrade their stores and merchandise better. Customers like to see, touch and sample product. Many distributors need to be more upbeat and consumer-oriented.

[Jonathan Newman]

Thanks, Mr. Newman, for joining us here at our little website. My question requires a long-winded introduction, I'm afraid!

On a typical evening during which I enjoy a bottle of wine, my $10-15 purchase occurs right after work and involves going from a grocery (at which I've just selected ingredients for dinner) to the wine shop or liquor store on the way home. I cannot remember having had a bad bottle of those ready-to-drink wines for over a decade, and (unlike most food and beverage expriences) I can regularly count on an unknown product being better than I expected.

Katie emphasized your role in bringing fine wines to the rest of us, but my question addresses these ready-to-drink bottles. It seems to me that my wine options have increased geometrically in terms both of variety and of quality in the last decade, so much so that I wonder if there hasn't been a revolution in the production, marketing, and distribution of these sorts of wines. If this is so, can you tell us a bit about it?

Thanks so much in advance for your response.

There have been dramatic changes in the production of wine and $10-15 should get you a pretty nice bottle of wine. The wine consumer has a diverse palate and they are willing to experiment with different varietals from many countries. I always recommend that consumers rely on their own palate and not just wine ratings. Robert Parker likes Cabernets that are big and bold, this does not mean that a more subtle, elegant Cabernet is not right for your dinner table. I would recommend trying different styles of wine from many producers at a price point you are comfortable with and taking notes. Get to know your retailer and use them as a resource.

[Jonathan Newman]

Mr. Newman,

          Thanks for taking our questions, and thanks to Katie for making the arrangements.  I along with many others were pleased by your first ever post taking place on the Chairman's Selection thread last month.

          Do you see wine sales of all kinds, and in particular the Chairman's Selection program as the future growth leader of the PLCP sales?  That is, is the future more tied to wine than to spirits?

          I imagine it would take an act of the General Assembly to allow this, but would you like to be able to advertise, as other retailers do, your products?

          Once again many thanks, and I can say that going to the LCB store these days is a pleasure, unlike the Stalin-like  experience of the bad old days.

←

Thank You for your kind words. Our 750 ml. wine business is increasing more dramatically than the great majority of retailers in the country. We are using Pa.'s purchasing power to bring some great wine deals to our stores and we are starting to win back many customers who used to buy out of state. We still have a lot of work to do. Wine consumers expect an upbeat store with great product selection and hot prices. The spirit consumer is brand loyal and there is a fairly small universe of spirits that retailers must carry. Wine accounts for the majority of our unit sales, but spirits account for the majority of dollars. Wine does continue to grow at an impressive rate and per capita wine consumption in the U.S. is increasing. We just started advertising, although our budget is small given the fact we will do $1.45 billion in sales this year. Since we have instituted many improvements it is important to get the message out there through advertising. We have accomplished a number of exciting marketing initiatives in the past 3 years, including:

Temperature control for fine wine at our warehouses and in shipping

Outlet stores

One stop shops in grocery markets(8)

More premium Collection stores

An e-commerce website at www.pawineandspirits.com

Enhanced employee training

Chairman selection wine program

Sales of accessories and gift cards

In store samplings

Wine Clubs

Wine Festivals next week in Philly, Harrisburg and Pittsburgh

[Jonathan Newman]

Hi Mr. Newman:

I echo the welcome expressed by fellow posters on this thread. It is really cool of you to make yourself available to the folks who frequent this forum.

I am quite pleased with all of the revolutionary changes that you have been able to make to the state stores, particularly your Chairman's Selection offerings. I have become a regular purchaser of many of these outstanding wines, and more importantly, outstanding, and dare I say, unheard of prices!

I can honestly confess to you that I can't remember the last time I made a run to New Jersey for my wines.

The only complaint I must lodge with you here is the overall experience one feels at the state store in my area (Newtown) I often don't ask for assistance with my purchases, but the odd times I do, I am struck by the geniuine lack of helpfulness and excitement by most of the store employees. I wonder if you have considered some sort of way to turn this around. Please know that it has been greatly improved since your taking over, but I feel could improve yet further. Perhaps an incentive program might make a difference. Just a thought.

Keep up the great work!!!

←

Jeff,

Thanks for the positive feedback. I've worked very hard with employee training and we now have quarterly tastings with all our Premium Collection wine salespeople. I know we still have a lot of work that needs to be done. Dee Costello frequently posts on this website and if you have specific concerns or products that you need to find she will certainly accomodate you. We also started a new service at our www.lcb.state.pa.us website where you can check for product availability at each store. At one time there was an informal policy that our salespeople not recommend wine so it would keep consumption down. This was ludicrous for so many reasons. I will continue to make employee training a priority and hope to make you feel even better about purchasing in Pa. Thank you for shopping here and your words of encouragement.

[cdh]

Mr. Chairman:

I want to take this opportunity to second all of the complements that others here have lavished upon you. The PLCB stores are really turning around, and the Chairman's Selections are a wonderful addition.

My question/comment is about the ability of the LCB to stock some of the more unusual and interesting products from around the world. I think it is great that I randomly discovered the southern French aperitif Byrrh because it was on the shelves at the Norristown super store. I've also picked up a bottle of Beirao, a Portuguese herbal/honey tasting liqueur that caught my eye and is quite nice in a Benedictine kind of way.

Do these obscure things appear on the shelves as the result of some program in the LCB, or because some wily buyer knows the good stuff that the big liquor interests are not pushing at the moment?

I applaud the LCB for delving off the beaten track, and hope you continue to do so. There is a huge array of interesting drinks out there that are not controlled by the luxury marketing houses. I hope that Pennsylvania continues to seek out the opportunities to buy interesting stuff at good prices and pass the benefits along to PA consumers. What would be even better is if some of these things got descriptions so we knew what we were getting into when we pick up the bottle.

Thanks for doing a great job!

[MarketStEl]

Hello and welcome, Mr. Newman! This is turning into a real lovefest, isn't it?

Well, the warm fuzzies are deserved, for your work has made shopping at the State Stores (wait, we shouldn't call them that anymore, right?) a real pleasure.

My question concerns spirits rather than wine.

I know that for many years, private liquor stores in the states bordering Pennsylvania have offered very attractive "loss leaders" on popular brands and sizes of spirits in order to drive cross-border traffic; a liquor store that is located right at the Naamans Road exit off I-95 just inside Delaware--as close to Pennsylvania as you can get without actually being in the state--is a prime example.

I also know that the Wine & Spirits Outlets are an effort to compete against these retailers, and I understand that they have been successful. Is there any possibility, however, that the PLCB might pursue the "loss leader" route to keep customers in-state, or do laws or your own opinions prevent this?

Certainly, there's much less reason to drive to Delaware to buy wine now that there's so much excellent wine at really great prices available in PLCB stores.

[mike volker]

With the seemingly endless reports on the glut of french wine, what are the chances we will see some french chairman's selections?

Best,

Mike

[Jonathan Newman]

Welcome welcome welcome Mr Chairman! 

I was curious what your personal feelings are regarding the upcoming supreme court case regarding intrastate (and then perhaps interstate) shipping laws. 

I realize that this case, regardless of the outcome, is unlikely to settle the larger issues of shipping across state lines any time soon but I would love to know what you personally think about the prospect of a truly open marketplace for PA residents.  Although there is a clause to get wines into the state that isn't sold at the stores, it is indeed a plan drawn up by suits and wrapped in yards of red tape!

You don't control the legislature and you are doing a great great job as many posters have already said.  I was just wondering what your own take on the situation as a wine loving PA resident AND the chairman was.  I don't profess to knowing all the implications - particularly for the state stores and the systems relationship with licensed establishments.  I assume an open system's effect on the former would not be as profound an impact as the latter. 

As I said in an earlier post on the PA wine thread, the state system is so vastly improved and the service I get (particularly SLO) is phenomenal - but as a proponent of an open market system, I still believe the residents of PA do not have their freedom - however benevolent the monopoly.

Thanks again for coming!  I look forward to your posts and meeting you at an event one day!

Evan

←

Evan,

I appreciate all your kind words.

I believe the Supreme Court will decide that you cannot discriminate. If an in-state winery is able to ship directly to homes they will opine that an out of state winery should be able to direct ship to in-state residents. It is possible the Supreme Court could go further and it will effect the very nature of the three tier system across the United States. I do not have a problem with shipping fine wine directly to people's homes. I certainly have concerns that product not get into the hands of minors and insuring the Commonwealth's ability to collect taxes. That is why we must find a way to wean Pa. off of the Johnstown flood tax.

I also do not condone people braking the law, but I think it is wrong to arrest people for purchasing across state lines and would hope this could be de-criminalized.

I do have concerns with fortified wine and beer being shipped directly to homes because I think there could be abuse. It is my recommendation that the Legislature respond to the Supreme Court's decision in a thoughtful manner and hold hearings and allow a cross-section of various interests to articulate their positions and that a decision be made that best serves the Commonwealth.

[Jonathan Newman]

Greetings Chairman Newman

Welcome to eGullet and thanks for taking the time to do a chat with our members.  The PLCB is making wonderful strides.  This is a tremendous opportunity to hear from the man himself about what has been happening and what is on the drawing boards.

I date back to a time in Philadelphia when it was just counter service and the clerks weren't all that knowledgable on the finer aspects of wine.  There was a black and white chart on the wall with two columns, one labeled "red" and one "white," with various food categories under each.  Whenever one asked for a recommendation the clerk just pointed to the chart.  Ah, the good old days when life was simple.

←

Thank you for very much for your support and confidence in me. I am proud of the many changes we've made in the last 3 years and I believe that you will continue to see even more improvements.

[philadining]

Yet again, welcome, Chairman Newman.

Big thanks for chatting with us here, as well as for all the improvements we've all been enjoying at the stores, and on-line. I applaud the staff training program you've already mentioned, and indeed, nothing will beat the personal experience of the salespeople actually tasting the wines. But salespeople are never going to be able to have a good assessment of every wine on the tip of their tongues, nor the time to chat in depth with every customer. So I'd encourage you to add more shelf tags wherever possible, perhaps created by you folks as you make your decisions about what to carry, or in the course of your training tastings. Even manufacturer PR, can be helpful, I know many of the larger wineries make up descriptive tags, some of which are actually informative, not just hype. That's one of the things I like about shopping in other states, the additional information often available from staff and written guides.

One can find a good amount of advice on-line, but sometimes it's really helpful to have it right in front of you as you're browsing. The Chairman's Selections are serving that purpose, I like not only the good prices, but also the more extensive info provided on the descriptive cards on the displays, not to mention the presumption that the wines must be pretty good for you to have chosen them in the first place.

Once again, thanks for all the improvements we've seen recently, it truly is a pleasure to shop in the wine specialty shops and outlets now. I would only ask that you continue to provide the consumers (OK, me...) with as much info as practical at the point-of-sale.

[Jonathan Newman]

Mr. Chairman:

I want to take this opportunity to second all of the complements that others here have lavished upon you.  The PLCB stores are really turning around, and the Chairman's Selections are a wonderful addition.

My question/comment is about the ability of the LCB to stock some of the more unusual and interesting products from around the world.  I think it is great that I randomly discovered the southern French aperitif Byrrh because it was on the shelves at the Norristown super store. I've also picked up a bottle of Beirao, a Portuguese herbal/honey tasting liqueur that caught my eye and is quite nice in a Benedictine kind of way. 

Do these obscure things appear on the shelves as the result of some program in the LCB, or because some wily buyer knows the good stuff that the big liquor interests are not pushing at the moment? 

I applaud the LCB for delving off the beaten track, and hope you continue to do so.  There is a huge array of interesting drinks out there that are not controlled by the luxury marketing houses.  I hope that Pennsylvania continues to seek out the opportunities to buy interesting stuff at good prices and pass the benefits along to PA consumers.  What would be even better is if some of these things got descriptions so we knew what we were getting into when we pick up the bottle.

Thanks for doing a great job!

←

Chris,

Thank you for all your kind words, they are much appreciated.

The PLCB has the infrastructure and resources to create big, beautiful Premium Collection stores that can stock merchandise that a private retailer would never carry. In the last couple months, we have opened spectacular stores that carry thousands of wines and many boutique spirits-including a McCaffery's supermarket in Yardley, a Superfresh in Yardley, an outlet store in South Philly, an expanded outlet store in Washington and West Goshen, Chester county and a beautiful premium Collection store in Hanover, to name a few. We will continue to concentrate on expanding our stores and include a diverse fine wine selection and stocking boutique spirits that most retailers would never carry because of the cost of inventory.

[Jonathan Newman]

Hello and welcome, Mr. Newman!  This is turning into a real lovefest, isn't it?

Well, the warm fuzzies are deserved, for your work has made shopping at the State Stores (wait, we shouldn't call them that anymore, right?) a real pleasure.

My question concerns spirits rather than wine.

I know that for many years, private liquor stores in the states bordering Pennsylvania have offered very attractive "loss leaders" on popular brands and sizes of spirits in order to drive cross-border traffic; a liquor store that is located right at the Naamans Road exit off I-95 just inside Delaware--as close to Pennsylvania as you can get without actually being in the state--is a prime example.

I also know that the Wine & Spirits Outlets are an effort to compete against these retailers, and I understand that they have been successful.  Is there any possibility, however, that the PLCB might pursue the "loss leader" route to keep customers in-state, or do laws or your own opinions prevent this?

Certainly, there's much less reason to drive to Delaware to buy wine now that there's so much excellent wine at really great prices available in PLCB stores.

←

Sandy,

Great question.

There are some saavy retailers who use very effective marketing to reach out to Pa. consumers and I recognize and understand the border bleed problem. Our outlet stores and great wine deals in our Premium Collection stores are helping to win consumers back but we must be even more aggressive to keep this revenue in the Commonwealth.

There are some impressive out of state retailers. However, for many it is a game to get the customer in the store and then sell them on more profitable merchandise. Look carefully at the ads our competitors take out. You have to clip coupons, there are expiration dates, bottle limits, and sometimes it is even cash only. They may advertise a product like KJ VR Chard at $9.99 and the product is buried in the store and they sample you and stack out obscure private labels where they have higher margins. Our outlet stores have all the major spirits discounted year long with no bottle limits, you don't have to clip coupons and it is cash or credit. In fact, these stores discount many more spirits than almost all of our competitors. The spirits are liters that have a one-third higher pour than a 750 ml. and are typically only about a dollar higher than the 750ml. We also have the most popular wines that are co-packed with significant savings. The Franklin Mills store did 4 million before it was an outlet store and it will do over $12 million in sales this year and we are in the process of expanding the store. The store on Columbus and Snyder in South Philly is a beautiful Premium Collection outlet store and there is a similar concept store in West Goshen, Chester County.

Unfortunately, given our legislative paramaters we cannot even have a small universe of loss leaders-we have uniform pricing. State Representative Ron Raymond, from Delaware County, is offering flexible pricing legislation later this Spring. I support this initiative because it would allow us to be more competitive.

[Jonathan Newman]

With the seemingly endless reports on the glut of french wine, what are the chances we will see some french chairman's selections?

Best, 

Mike

←

The American dollar is getting pounded and most of the deals are in the United States.

I remember when the Euro was at 83 cents and it has actually gone over $1.30 recently. I did get a beautiful Chassagne montrachet from Dom. F&L pillot, and hot deals from Chapoutier on their Ermitage Blanc Le Meal and St. Joseph St. Granits. The Italian, Spanish, Chilean and even Australian producers have been much more aggressive in the Chairman Selection program than the French. Many french producers have been withdrawing from the marketplace because of the exchange rate and some ill feelings towards the french government. French wine sales were down double digits last year and this year in both Pa. and most American markets. Instead of marketing their products more aggressively, most producers are cutting back marketing dollars and their wine industry is in a state of turmoil.

[Jonathan Newman]

Yet again, welcome, Chairman Newman. 

Big thanks for chatting with us here, as well as  for all the improvements we've all been enjoying at the stores, and on-line. I applaud the  staff training program you've already mentioned, and indeed, nothing will beat the personal experience of the salespeople actually tasting the wines. But salespeople are never going to be able to have a good assessment of every wine on the tip of their tongues, nor the time to chat in depth with every customer. So I'd encourage you to add more shelf tags wherever possible, perhaps created by you folks as you make your decisions about what to carry, or in the course of your training tastings.  Even manufacturer PR, can be helpful, I know many of the larger wineries make up descriptive tags, some of which are actually informative, not just hype. That's one of the things I like about shopping in other states, the additional information often available from staff and written guides.

One can find a good amount of advice on-line, but sometimes it's really helpful to have it right in front of you as you're browsing. The Chairman's Selections are serving that purpose, I like not only the good prices, but also the more extensive info provided on the descriptive cards on the displays, not to mention the presumption that the wines must be pretty good for you to have chosen them in the first place.

Once again, thanks for all the improvements we've seen recently, it truly is a pleasure to shop in the wine specialty shops and outlets now. I would only ask that you continue to provide the consumers (OK, me...) with as much info as practical at the point-of-sale.

←

That is good constructive criticism.

We have to do a better job with point of sale materials to help our consumer. In a few stores like Bryn Mawr and 12th and Chestnut, we have computer kiosks with informational wine links. Our e-commerce website at www.pawineandspirits.com is also a valuable resource. There is a wine of the month club, of which I am a member, that offers great selections from boutique wineries with detailed information on all of the wines. At www.lcb.state.pa.us, you can now check real-time inventory of all products at individual stores. Later this spring, we will have Star Wine racks in our Premium Collection stores to highlight wines selected by the best sommeliers in the World in a top tasting competition conducted in Philly this winter. I will pass your comments on to our marketing team and stress the importance of employee training and point of sale information to allow the consumer to make a more informed decision.

Thank you for all your kind words and thoughts.

[shacke]

That is good constructive criticism.

........At www.lcb.state.pa.us, you can now check real-time inventory of all products at individual stores. Later this spring, we will have Star Wine racks in our Premium Collection stores to highlight wines selected by the best sommeliers in the World in a top tasting competition conducted in Philly this winter. .........

←

I must say, Mr Newman, that the online inventory on the ecommerce site was an explosive step forward for the system and is a great tool that I use almost daily. Hooray! I also want to say that the Star Wine idea is very exciting - it would be nice to have some trusted options beyond Parker (and perhaps Wine Spectator) ratings, although I appreciate both of these entities as useful guides.

Are there other ideas or upcoming changes in the works that you can clue us into now?

BTW, Special thanks for your thoughts on my question above!

Evan