1. Listing/De-Listing Industry Representative: Dave Stock-Skyy Spirits Best Practices Presenters: Idaho: Bill Applegate Vermont: George Moulton NABCA Best Practices October 26th, 2007

2. New Products are the Future of the Alcohol Beverage Industry Consumer Oriented Drinking better – Taste good - Seeking Variety - Convenience Investment All channels must invest in the Industry NABCA Best Practices October 26th, 2007

3. Industry Assumptions: Listings and delistings are the processes by which new products get to market and nonperforming brands are removed. These two processes must work in conjunction with meeting consumer trends & offering the latest innovative products.

4. Listing Challenges: Industry recognizes the following concerns: Warehousing Space  Warehouse space is limited.  New item inventory needs to be monitored.  Discontinued items need to be removed in a timely fashion. Shelf Space  Allow adequate number of supply days to avoid out-of-stocks.  Shipping cycle.  Full case packs should be considered on high velocity brands.  Consumer Trends; seeking variety & convenience.  Meet demand by offering a full range of brands; i.e. line extensions, flavors & price points.

5. Listing Policy Industry Recommendation Important to have a transparent, clear and effective listing policy. Result:  Improved supplier new item presentations  State Boards will make more informed listing decision  Improved use of time & efficiencies for all parties  Expediting new brand process in reaching the consumer.

6. Listing Policy Industry Recommendation Listings meetings should be timely Random listing meetings:  Liquor Boards are in a better position to stay ahead of rapidly changing trends in the Beverage Alcohol Industry. Store modernization:  An update product offering meets consumer demands.  Also, supports the Liquor Control system and can operate as effectively as the open and privatized markets.

7. Listing Policy Industry Recommendation The consumer as the ultimate judge of a brand’s success.  By giving products the listing opportunity and retail shelf space, it allows the consumer to decide.  In the end, Consumers should dictate which brands stay and which ones go.

8. Delisting Policy Industry Recommendation Important to have an efficient listing policy as exit strategy Delisting policies: –Fair, transparent system with defined benchmarks. –Offer adequate notice of any pending delisting. »An opportunity for Supplier to take corrective action. »Supplier can participate with the board in removing the de- listed brand in a timely fashion. Example of progress this year for “Best Practices”: »Idaho & Vermont

9. 19 Control Jurisdictions  Listings any time (11 Markets) Iowa, Maine, Michigan, Mississippi, Montana, New Hampshire, Ohio, Pennsylvania, Utah, West Virginia, Montgomery County  Listings at certain times per year (6 Markets) Idaho, North Carolina, Vermont, Virginia, Washington, Wyoming  Hybrid (1 Market) Oregon  Board’s discretion Alabama 2004 Listing Process

10. 19 Control Jurisdictions  Listings any time (14 Markets) Iowa, Maine, Michigan, Mississippi, Montana, Montgomery County, New Hampshire, North Carolina, Ohio, Pennsylvania, Utah, Vermont, West Virginia, Wyoming  Listings 3 X Year (3 Markets) Idaho, Virginia, Washington,  Hybrid (1 Market) Oregon  Board’s discretion Alabama Listings Process 2007

11. √ Idaho √ North Carolina √ Ohio √ Vermont, √ West Virginia √ Wyoming States That Have Adopted Changes to Their Listing Policies Since 2004

12. “Best Practices” Industry recommends using Best Practices as a resource. While each state’s listing and delisting policies include unique policies, two states that have made changes recently: Idaho Vermont