NEW HAMPSHIRE LIQUOR COMMISSION

Minutes of November 8, 2017 Meeting

Page 2

Meeting commenced at 10:35 a.m.

Present: Deputy Commissioner Michael Milligan; Dawn Howe, Administrative Assistant; Lisa Gosselin, Wine Marketing Specialist; Deputy Chief Scott Dunn, Enforcement; Patrick Kerns from DHL.

Excused: Chairman Joseph Mollica; Daniel St. Hilaire, Director of Administration; Nicole Brassard Jordan, Director of Marketing, Sales and Warehousing; James Richards, Store Operations Administrator; Mark Roy, Spirits Marketing Specialist; Director Mark Armaganian, Enforcement;

I) PLEDGE OF ALLEGIANCE

II) ACCEPTANCE OF MINUTES FROM THE COMMISSION MEETING
HELD NOVEMBER 2, 2017

Chairman Mollica is excused from today’s meeting. Deputy Commissioner Milligan accepted the minutes from the November 2, 2017 Commission Meeting

III) ADMINISTRATION

1) Director St. Hilaire is excused from today’s meeting.

2) DHL - Key Performance Indicators (KPI’s) Report Update

Mr. Kerns forwarded the KPI Report to the Commission and it’s been reviewed. Mr. Kerns reported it’s been a very busy week. The numbers are up starting with the inbound at 101,400 and outbound at 115,000. The fill rate is excellent and strong at 95%, and volumes remain strong. This weekend they will be working all 3 shifts. The gift card promotion ends Monday and that will slow things down until the holidays. DHL continues to work with Store Ops coordinating deliveries. All KPIs were met. Deputy Commission stated he’s been in the store and everyone has been happy with DHL and couldn’t say enough about how happy they are with deliveries.

Mr. Kerns was excused from the meeting at this time.

IV) MARKETING AND SALES REPORT

1) Director Brassard Jordan is excused from today’s meeting, Dawn Howe presented for Director Brassard Jordan.

A) Ride and Ski Coupon
Deputy Commissioner approved $25 off purchase of $150 to be accepted at all Liquor and Wine Outlets to be included in a print ad for the Ride & Ski Program to be valid January-March 2018 promotional periods, as recommended.


For Information Only:

Administrative Notice of Non Compliance to Liq 401.03

1. New Administrative Notices
Commission was informed of violations of Liq. 401.03 by Horizon Beverage, Martignetti Co. and Southern Glazer’s Wine & Spirits

2. Updated information on previous weeks’ Administrative Notices
Commission was provided updated information about previous weeks’ violations of Liq. 401.03 by Horizon Beverage, Martignetti Co. and Southern Glazer’s Wine & Spirits.

2) Store Operations
Mr. Richards is excused from today’s meeting.

3) Merchandising Report

A) Wines

1. Horizon Special Purchase and Pricing
Approved request from Horizon Beverage for special purchase and pricing offer for Mezzacorona Pinot Grigio Trentino and Mezzacorona Pinot Noir Trentino, as recommended.

2. Special Exception – Horizon Beverage Company
Approved request from Horizon Beverage for a special exception to list and carry Cupcake Moscato d’Asti with an alcohol by volume of 5.5%, as recommended.

3. Results of Roll Out and Test Programs – Remove from Retail
Approved removal from retail of roll out and test items from Horizon Beverage (codes 25554, 25541 and 29685), Martignetti Co. (code 27669), MS Walker (codes 26170 and 27018) and Pine State Beverage (code 28125) that did not meet gross profit thresholds, as recommended.

4. Test and Roll Out Results – Expand Distribution
Approved expansion of distribution of roll out and test items from Martignetti Co. (codes 10361, 28129, 26765), MS Walker (code 27688), Pine State Beverage (codes 29514 and 24950), Horizon Beverage (codes 28812 and 28810), Perfecta Wines (code 28461) and Southern Glazer’s Wine & Spirits (codes 28850, 23534 and 28838), as recommended.

5. Close Outs – Misc Reps
Approved close out pricing requests from Horizon Beverage (33 codes) Martignetti Co. (5 codes) and MS Walker (1 code), as recommended.

6. On-Premise Special Discount – December
Approved on-premise special discount pricing for the promotional month of December (November 27, 2017-January 1, 2018), as recommended. *body of agenda item states month of November, subject line correctly identifies month of December.

7. Off-Premise Special Discount – Price Busters December
Approved off-premise special discount pricing for the promotional month of December (November 27, 2017-January 1, 2018), as recommended.


8. Outlet Price Busters – December
Approved outlet price buster requests from Horizon Beverage, Martignetti Co., MS Walker, Perfecta Wines, Pine State Beverage and Southern Glazer’s Wine & Spirits for the month of December (November 27, 2017-January 1, 2018), as recommended.

9. One Time Purchase and distribution for our Power Buy Program – Misc. Brokers
Approved recommended and not recommended one time purchase and distribution for our Power Buy Program requests from Horizon Beverage (codes 24662 and 42423), Martignetti Co. (codes 30650, 43134, and 3 codes TBD), Perfecta Wine Co. (code 10264), and Southern Glazer’s Wine & Spirits, as recommended.

10. Primary Source Recommendations
Approved all primary source recommendations (15 primary source, 8 imported, 46 exclusive agent), as recommended.

11. E-mail Coupons – December 2017
Approved recommended and not recommended email coupon requests from Horizon Beverage (21 codes), MS Walker ( 2 codes) and Southern Glazer’s Wine & Spirits (7 codes), as recommended.

12. Riedel Glassware – Martignetti Companies
Approved request from Martignetti Co. to carry additional Riedel glassware in stores as part of an accessories program for the holidays, as recommended.

13. January Special Offers

(a) Horizon Beverage
Approved request from Horizon Beverage for special wine offers for the month of January (January 2, 2018-January 28, 2018), as recommended.

(b) Martignetti Companies
Approved request from Martignetti Co. for special wine offers for the month of January (January 2, 2018-January 28, 2018), as recommended.

(c) Pine State
Approved request from Pine State Beverage for special wine offers for the month of January (January 2, 2018-January 28, 2018), as recommended.

(d) Southern Glazer’s Wine & Spirits
Approved request from Southern Glazer’s Wine & Spirits for special wine offers for the month of January (January 2, 2018-January 28, 2018), as recommended.

(e) MS Walker
Approved request from MS Walker for special wine offers for the month of January (January 2, 2018-January 28, 2018), as recommended.

14. In Store Wine Tasting – Spanish Wines 101
Approved request from MS Walker to host an in-store tasting and discussion of Spanish Wines on December 7th from 6:00pm – 7:00 pm with Steve White, Certified Spanish Wine Educator, as recommended. Only a limited number of registered participants (40) may attend at a cost of $12 through TicketLeap, which guarantees class participation, a Riedel wine glass and a $10 NHLWO coupon off 2 bottles of select Spanish wines being featured at the event.


15. November Liquor & Wine Outlet Store Tasting – Additional
Approved additional November Liquor and Wine Outlet Store tastings requests from Bay State, Crush, Djinn, Horizon Beverage, Martignetti Co., NE Uncorked, Perfecta Wines, Pine State Beverage, Premier Distributing, Stark Brewing Company, and Southern Glazer’s Wine & Spirits, as recommended.

For Information Only:

Status of 2017 Test and Roll Out Items
Acknowledged the Status of the 2017 Test and Roll Out items as presented.

After review of each of the Wine items, Deputy Commissioner Milligan approved the recommendations as presented and recommended by Ms. Gosselin and concurred approval by Director Brassard Jordan for the Wine items listed above.

B) Spirits

1. Line Extension Request, Stone Fence Beverage, Rocky Peak Hard Cinnamon
Approved line extension request from Stone Fence Beverage on behalf of Sea Hagg Distillery for #2402 Rocky Peak Hard Cinnamon 1.75L, as recommended.

2. Limited Offering Request, Southern Glazer’s Wine & Spirit, Jim Beam Distillers Cut Bourbon
Approved request from Southern Glazer’s Wine & Spirits on behalf of Beam Suntory to offer #2401 Jim Beam Distillers Cut Bourbon 750ml-120 cases (12-pack) each for limited offering listing, as recommended.

3. Spirit Warehouse Only List
Approved all Spirit Warehouse submissions (2-primary source; 0-imported; and 0-exclusive agent), as recommended.

4. One Time Buy Offers

(a) Martignetti, The Macallan Fine Oak 21yr Single Malt Scotch
Approved request from Martignetti Co. on behalf of Edrington to purchase #8070 The Macallan Fine Oak 21yr Single Malt Scotch 750ml-10 cases (6-pack) as a One Time Buy to be distributed to select stores, as recommended.

(b) Martignetti, Michter’s 10yr Bourbon Whiskey
Approved request from Martignetti Co. on behalf of Michter’s Distillery to purchase #2326 Michter’s 10yr Bourbon Whiskey 750ml-40 cases (3-pack) as a One Time Buy to be shipped into the DHL warehouse and distributed to select stores, as recommended.

(c) Martignetti, Balvenie 25yr Old Single Barrel
Approved request from Martignetti Co. on behalf of William Grant & Sons to purchase #2738 Balvenie 25yr Old Single Barrel 750ml-3 cases (3-pack) and #717 Balvenie 30yr Old Single Barrel 750ml-1 case (3-pack) as One Time Buys to be shipped into the DHL warehouse and distributed to select stores, as recommended.


(d) Southern Glazer’s Wine & Spirits, Elmer T. Lee Bourbon
Approved request from Southern Glazer’s Wine & Spirits on behalf of Sazerac Co. to purchase #1210 Elmer T. Lee Bourbon 750ml-12 cases (6-pack) as a One Time Buy to be shipped into the DHL warehouse and transferred to the Concord warehouse to go through our allocated product raffle on line site, as recommended.

(e) Southern Wine & Spirits, Avion Silver Tequila
Approved request from Southern Wine & Spirits on behalf of Pernod Ricard to purchase #6477 Avion Silver Tequila 50ml-125 cases (60-pack) as a One Time Buy to be shipped into the DHL warehouse and distributed to select stores, as recommended.

5. Test Market Request and One Time Buy, Horizon Beverage, Sagamore Spirit Rye 83 Proof
Approved request from Horizon Beverage Co. on behalf of Sagamore Spirits to offer #2400 Sagamore Spirit Rye 83 proof 750ml for test market listing and to offer #2403 Sagamore Spirit Rye Cask Strength 750ml-up to 50 cases (6 per case) as a One Time Buy, as recommended.

6. Test Market Result
Approved the full distribution of test market code #1514 Bacardi Classic Rum Punch to be carried in all NHLC locations except #3, 5, 13, 16, 17, 18, 26, 28, 29, 35, 36, 43, 45, 52, 65, and 78;
Approved specialty distribution of test market code #8310 Boodles Gin to be carried in all 36 Spirit Specialty NHLC locations;
Approved specialty distribution of test market code #1322 Padre Azul Reposado Tequila to be carried in all 36 Spirit Specialty NHLC locations;
Approved specialty distribution of test market code #1356 Bushmills Red Bush Irish Whiskey to be carried in all 36 Spirit Specialty NHLC locations;
Approved specialty distribution of test market code #1316 Kerrygold Irish Cream to be carried in all 36 Spirit Specialty NHLC locations;
Approved limited distribution of test market code #1439 Olmeca Altos Anejo Tequila to be carried in cluster 1 and 2 NHLC locations;
Approved limited distribution of test market code #1319 TGI Friday’s Classic Margarita to be carried in cluster 1 and 2 NHLC locations;
Approved limited distribution of test market code #1194 Jose Cuervo Raspberry Margarita to be carried in cluster 1 and 2 NHLC locations;
Approved delist test market codes #927 Hangar One Mandarin Blossom Vodka 750ml, #1246 Kalani Coconut Rum 750ml, #1270 Vespertino Tequila Cream 750ml, #1291 Tanteo Chipotle Tequila 750ml, #1311 Devil’s Bathtub Gin 750ml and #1430 Ezra Brooks Rye Whiskey 750ml, as recommended.

7. January Sale Special Offers

(a) Horizon Beverage Co.
Approved spirit special offers from Horizon Beverage for the month of January (January 2, 2018-January 28, 2018), as recommended.

(b) Martignetti Company
Approved spirit special offers from Martignetti for the month of January (January 2, 2018-January 28, 2018), as recommended.


(c) Perfecta Wine Company
Approved spirit special offers from Perfecta Wines for the month of January (January 2, 2018-January 28, 2018), as recommended.

(d) Pine State Beverage
Approved spirit special offers from Pine State Beverages for the month of January (January 2, 2018-January 28, 2018), as recommended.

(e) Southern Glazer’s Wine & Spirits
Approved spirit special offers from Southern Glazer’s Wine & Spirits for the month of January (January 2, 2018-January 28, 2018), as recommended.

(f) MS Walker
Approved spirit special offers from MS Walker for the month of January (January 2, 2018-January 28, 2018), as recommended.


Mr. Roy is excused from today’s meeting. Ms. Howe presented the Spirits items in Mr. Roy’s absence.
After review of each of the Spirit items, Deputy Commissioner Milligan approved the recommendations as recommended by Mr. Roy, presented by Ms. Howe and concurred approval by Director Brassard Jordan for the Spirit items listed above.

V) LATE ITEMS
No Late Items

VI) PUBLIC COMMENT
No Public Comments

VII) ENFORCEMENT AND LICENSING REPORT Agenda
Enforcement minutes are reported on the Liquor Commission website under the Enforcement section.

VIII) EXECUTIVE SESSION
No Executive Session Items

At 10:50 a.m. the meeting was adjourned.

Minutes prepared and submitted by:

Anne Bogart, Administrative Assistant

Office of the Commissioners