Special Orders (Friend or Foe?)

1. Special Orders(Friend or Foe?) NABCA Administrators ConferenceCharlotte, NC Monday, October 27th, 2008

2. Now, Isn’t That Special!!

3. People Want Access To More Goods and Services Than Every Before

4. And They Want It Now!!! • Drive Thru Coffee Shops • Express Check-outs • Self-Check-out • Next Day Delivery • Order by Phone • Order by Fax • Order On-Line

5. Ease of Access • The e-commerce infrastructure is still growing. More than 85% of the world’s Internet users surveyed have purchased something online, according to The Nielsen Company’s “Global Online Survey on Internet Shopping Habits,” • 63% of people who shop online are women

6. Ease of Access • “Two years ago, approximately 10% of the world’s population (627 million) had shopped online,” said Bruce Paul, vice president of customized research at Nielsen US. “This number has increased by approximately 40% to 875 million.”

7. Ease of Access The technological and institutional changes that are occurring as the global electronic marketplace becomes more widely used are certainly substantial. These changes should be viewed not as threatening but as providing new opportunities to advance consumer interests. This confidence is based on the fact that the Internet will reduce the cost of transactions and thus will make it possible to serve an ever greater proportion of the consumer population. Restricting the evolution of this phenomenon will thus be a disservice to consumers.

8. So, What Is A Special Order? Any item that is not normally in stock or is unlisted

9. So, What Is The Big Deal? • Special Orders provide consumers with access to unique and hard to find products who’s volume doesn’t warrant a full listing • Special Orders fulfill every State Liquor Boards desire to provide the best service possible to their customers

10. So, What Is The Big Deal? • Special Orders often generate revenue for state jurisdictions without tying-up value warehouse floor space • As the Oregon Liquor Control Commissions website suggests, Special Orders can serve as a proving grounds to see if items are accepted by consumers and could eventually lead to full listings

11. So! What Is The Big Deal? • With only 6 states reporting, there were almost 27K orders of special orders handled annually • In those 6 states reported almost 50K cases of special orders being handled • In those 6 states special order cases generated almost $4.5M in sales.

12. So, What Is The Big Deal? • Special Orders can help to quiet critics of the Control State system who would argue that a monopoly is antiquated, cumbersome and not as consumer friendly as a private enterprise.

13. What We Hope To Share(When This Presentation Is Over) • Reinforce the importance of a consumer driven and user friendly Special Order Process • Demonstrate how some states have increased consumer access to Special Order products • The benefits of accessible Special Order process to all interested parties, the State Liquor Boards, Industry and most importantly our customers!

14. Panelists • Mike Hogan-Commissioner for the State of Vermont • Steve Pharo–Executive Director for the Oregon Liquor Control Commission

15. Panelists • Steve Pharo–Executive Director Oregon Liquor Control Commission As executive director of the Oregon Liquor Control Commission, Steve Pharo oversees the 221-employee state agency’s day-to-day operations, including two major program areas – the public safety services and distilled spirits programs. This includes liquor licensing and law enforcement, distilled spirits sales, and protecting public health and safety. The 14-year OLCC veteran has also worked as the distilled spirits program director, as well as director of wholesale operations and distribution center manager. Previously, he held management positions in private business in Portland and Vancouver. Steve has a B.A. degree from the University of Alabama and an MBA from George Fox University. He served 31 years in the U.S. Marine Corps Reserve, retiring as a colonel.