Presentation given to the Iowa Wholesale Beer Distributors Association at their Annual Meeting on February 9, 2012, by ABD Administrator Stephen Larson.

1. Iowa Wholesale Beer Distributors
Association Annual Meeting
FEBRUARY 9, 2012
DES MOINES, IOWA

2. Stephen Larson, Administrator
Iowa Alcoholic Beverages Division

3. IowaABD.com

4. Class E Licensees as of 1.31.12
• 1013 active Class E licensees
• 250 are C-Stores
• 160 Class E Licensees added since July
• 747 Active Class E Licensees as of May 24, 2011
• 45 Class E Licensees have cancelled since May 24, 2011

5. Market Trends & Convenience Store Analysis
Market Trends & Convenience Store Analysis
Sales by Category CATEGORY Dollars R12 TY Dollars R12 LY Change Bottles R12 TY Bottles R12 LY Change
WHISKIES $68,286,231 $61,238,806 11.51% 4,605,748 4,251,872 8.32%
VODKAS $54,775,354 $48,653,457 12.58% 5,182,916 4,666,100 11.08%
CORDIALS AND LIQUEURS $37,649,251 $34,887,865 7.92% 2,909,181 2,732,117 6.48%
RUMS $34,951,841 $33,616,591 3.97% 2,679,147 2,574,209 4.08%
TEQUILA $13,447,131 $12,790,328 5.14% 820,788 776,087 5.76%
BRANDIES $8,815,045 $8,420,666 4.68% 995,024 959,935 3.66%
GINS $7,162,237 $6,932,352 3.32% 720,494 708,679 1.67%
COCKTAILS $6,087,041 $5,427,366 12.15% 560,222 509,060 10.05%
DECANTERS AND
SPECIALTY $1,343,545 $1,285,220 4.54% 72,165 71,154 1.42%
ALCOHOLS $642,391 $639,547 0.44% 53,580 54,998 -2.58%
HIGH PROOF BEER $2,571 $218,520 -98.82% 24 76,913 -99.97%
$233,162,639 $214,110,720 8.90% 18,599,289 17,381,124 7.01%
Bottles R12
Sales by Size Bottle Size Dollars R12 TY Dollars R12 LY Change TY Bottles R12 LY Change
50ml $1,050,371 $834,031 25.94% 121,506 99,959 21.56%
200ml $3,363,872 $3,048,923 10.33% 936,812 873,526 7.24%
375ml $9,087,186 $7,999,776 13.59% 1,520,464 1,400,793 8.54%
750ml $89,348,549 $76,694,047 16.50% 6,926,366 6,172,282 12.22%
1 liter $69,568,360 $68,484,489 1.58% 5,080,483 5,004,474 1.52%
1.75 liter $59,571,563 $56,057,179 6.27% 3,832,614 3,663,522 4.62%
Other $1,172,739 $992,274 18.19% 181,044.00 166,568.00 8.69%
$233,162,639 $214,110,720 8.90% 18,599,289 17,381,124 7.01%
Convenience Store Number of Bottles per
Sales Sales Month Total Sales Total Bottles Licensees Sales per Licensee Licensee
July $ 1,038,360 94,579 141 $ 7,364 670.77
August $ 606,722 63,093 183 $ 3,315 344.77
September $ 827,251 86,513 193 $ 4,286 448.25
October $ 867,576 84,932 207 $ 4,191 410.30
November $ 868,542 84,454 225 $ 3,860 375.35
December $ 1,117,119 108,899 231 $ 4,836 471.42
$
5,325,570 522,470 231 $ 23,054 2,261.77

6. FY12 Financial Highlights
FY 12 FINANCIAL HIGHLIGHTS
July - December
REVENUES CHANGE
FY 2012 FY 2011 Amount Percent
Liquor Sales $127,398,252 $115,721,961 $11,676,291 10.09%
Beer Tax (Regular & Native) 6,200,501 6,723,822 (523,321) (7.78%)
License Fees 5,971,748 5,236,159 735,589 14.05%
Wine Tax (Regular & Native) 3,161,366 3,021,923 139,443 4.61%
General Appropriation 638,188 742,660 (104,472) (14.07%)
Tobacco Transfers 453,830 116,389 337,441 289.93%
Bailment Fee 928,159 636,731 291,428 45.77%
Split Case Fee 662,591 327,281 335,310 102.45%
Other Revenue 1,103,476 925,182 178,294 19.27%
TOTAL REVENUES $146,518,111 $133,452,108 $13,066,003 9.79%
EXPENSES CHANGE
Liquor Purchases $84,267,774 $76,708,897 $7,558,877 9.85%
Warehousing Contract 2,974,355 2,147,595 826,760 38.50%
Office Expenses 669,403 787,518 (118,115) (15.00%)
Tobacco Expenses 232,948 244,855 (11,907) (4.86%)
Other Expenses 737,760 675,348 62,412 9.24%
TOTAL EXPENSES $88,882,240 $80,564,213 $8,318,027 10.32%
REVENUE OVER EXPENSES $57,635,871 $52,887,895 $4,747,976 8.98%

7. FY12 Financial Highlights 12 vs 11
TRANSFERS TO OTHER ENTITIES
General Fund $40,000,000 $38,500,000 $1,500,000 3.90%
Beer Tax 6,190,719 6,723,822 (533,103) (7.93%)
Substance Abuse 7,800,000 7,350,000 450,000 6.12%
Local Authorities 1,677,659 1,643,457 34,202 2.08%
Sub. Abuse for Sunday Sales 851,000 842,000 9,000 1.07%
Tobacco Civil Penalties 17,400 50,100 (32,700) (65.27%)
Alcohol Civil Penalties 79,020 75,000 4,020 5.36%
Economic Development 127,336 100,974 26,362 26.11%
Air Carrier Tax 101
141 40 252.50%
TOTAL TRANSFERS $56,743,275 $55,285,393 $1,457,882 2.64%

8. Beer and Wine FY10 - 12
Actual Transfers Actual Transfers Actual Transfers Cummulative % Variance
BEER TAX FY 2010 To Date FY 2011 To Date FY 2012 To Date Variance YTD
July $ - $ - $ - $ -
August $ 1,439,287 $ 1,439,287 $ 1,368,375 $ 1,368,375 $ 1,315,032 $ 1,315,032 $ (53,343) -3.90%
September $ 1,255,877 $ 2,695,163 $ 1,375,665 $ 2,744,040 $ 1,439,834 $ 2,754,866 $ 10,826 0.39%
October $ 1,337,416 $ 4,032,580 $ 1,244,301 $ 3,988,341 $ 1,277,282 $ 4,032,148 $ 43,807 1.10%
November $ 1,103,185 $ 5,135,764 $ 1,119,551 $ 5,107,892 $ 1,028,470 $ 5,060,618 $ (47,274) -0.93%
December $ 1,071,928 $ 6,207,692 $ 1,615,930 $ 6,723,822 $ 1,130,100 $ 6,190,719 $ (533,104) -7.93%
January $ 1,319,837 $ 7,527,529 $ 747,125 $ 7,470,947 $ -
February $ 897,393 $ 8,424,922 $ 773,734 $ 8,244,681 $ -
March $ 954,969 $ 9,379,892 $ 980,739 $ 9,225,420 $ -
April $ 1,135,405 $ 10,515,296 $ 1,115,027 $ 10,340,448 $ -
May $ 1,207,876 $ 11,723,172 $ 1,155,186 $ 11,495,633 $ -
June $ 1,259,256 $ 12,982,428 $ 1,338,949 $ 12,834,583 $ -
+60 $ 1,493,972 $ 14,476,400 $ 1,437,540 $ 14,272,122 $ -
Beer Total $ 14,476,400 $ 14,476,400 $ 14,272,122 $ 14,272,122 $
WINE TAX
July $ - $ - $ - $ -
August $ 471,122 $ 471,122 $ 502,993 $ 502,993 $ 473,381 $ 473,381 $ (29,612) -5.89%
September $ 556,176 $ 1,027,298 $ 495,443 $ 998,436 $ 545,247 $ 1,018,628 $ 20,192 2.02%
October $ 445,578 $ 1,472,877 $ 452,090 $ 1,450,526 $ 469,644 $ 1,488,273 $ 37,747 2.60%
November $ 842,526 $ 2,315,403 $ 848,261 $ 2,298,787 $ 888,332 $ 2,376,605 $ 77,818 3.39%
December $ 556,255 $ 2,871,658 $ 149,595 $ 2,448,381 $ 667,207 $ 3,043,811 $ 595,430 24.32%
January $ 672,890 $ 3,544,548 $ 1,220,585 $ 3,668,966 $ -
February $ 377,485 $ 3,922,033 $ 423,033 $ 4,091,999 $ -
March $ 471,220 $ 4,393,253 $ 556,705 $ 4,648,704 $ -
April $ 532,073 $ 4,925,327 $ 435,715 $ 5,084,419 $ -
May $ 527,348 $ 5,452,674 $ 566,474 $ 5,650,893 $ -
June $ 480,977 $ 5,933,651 $ 567,612 $ 6,218,505 $ -
+60 $ 516,659 $ 6,450,310 $ 584,505 $ 6,803,010 $ -
Wine Total $ 6,450,310 $ 6,450,310 $ 6,803,010 $ 6,803,010 $
Total TAX $ 20,926,710 $ 21,075,133 $ $ 62,326 0.68%

9. Strategic Initiatives
1. Comprehensive review to maximize revenues
through the efficient delivery of services
2. Re-structuring of ABD for efficiency and greater
return on investment
3. Cultivate relationships and build partnerships
4. Increase compliance and regulatory clarity
5. Educational and outreach programs

10. Strategic Initiatives
1. Comprehensive review of how ABD delivers ALL
services
2. In depth analysis of traditional and
nontraditional distribution models
3. Focus on education, compliance and prevention

11. Alcohol Compliance Section - Statistics
Investigations January 2012 Fiscal Year-to-Date
Number of Complaints Received 31 115
Number of Investigations Completed 29 96
Number of Founded Investigations 12 56
Number of Unfounded Investigations 17 40
Number of Pending Investigations 19
Routine Compliance Checks
Checks Completed 12 213
Number Compliant 9 148
Number Non-Compliant 3 65
Action Taken
Educational Letter 9 93
Warning - Verbal 2 7
Phone Call - Educational 1 1
Sent to AG for Review: 3 18
7 of the 15 settled
2 of 15 dismissed
6 of 15 pending
Waivers Granted (3 restroom; 1 Wine Ports) 0 4
Ownership Updated 0 2
Law Enforcement Training by Investigators 5 35

12. Alcohol Compliance Section - Statistics
Top 3 Violations
1. No records on licensed premises
2. Illegal Credit
3. Advertising brands outside of premises

13. Online Training Program
I-PACT.com

14. IowaABD.com

15. Legislative Update
Agency Pre-Filed Bill
SSB 3101

16. Legislative Update
SF 2089
Infusion / Rectifying / Manufacturing
on a licensed retail premises

17. NABCA Resources
www.NABCA.org

18. QUESTIONS?

19. ABD Contact Information
Doug Webb, Deputy Director of Administration
(515) 281-7444 • Webb@IowaABD.com
Stephanie Strauss, Government Relations
(515) 281-7432 • Strauss@IowaABD.com
Tonya Dusold, Communications Director
(515) 281-7420 • Dusold@IowaABD.com
Karen Freund, Deputy Director of Regulatory Affairs
(515) 281-7414 • Freund@IowaABD.com

20. IowaABD.com

21. THANK YOU!