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LCB's wine kiosk experiment may be ending | Philadelphia Inquirer | 2011-08-05

HARRISBURG - The state Liquor Control Board's one-year experiment with wine kiosks may soon be coming to an end at a supermarket near you.

The LCB claims the Conshohocken-based contractor that provided the kiosks owes the state nearly $1 million.

The contractor disputes this. But the liquor board has warned that if its differences with Simple Brands L.L.C. can't be resolved within the next 45 days, it will "cease all kiosk operations," according to letters between the board and the company obtained by The Inquirer.

Though ending the kiosk era would deliver a hard knock to the board's effort to operate more like a business, particularly as it tries to fend off threats of privatization, it might ease some criticism leveled at the agency. The LCB has endured jokes and ridicule for the 10-foot-high machines that require customers to blow into Breathalyzers.

Asked about the money dispute Thursday, Joe Conti, the board's chief executive officer, said: "We are going to continue working in good faith to try to make this program work . . . but it appears the working relationship [between the LCB and Simple Brands] has diminished in recent weeks."

Calls to Simple Brands officials were not returned Thursday. A woman who said she was unaffiliated with the company answered the door at its office in Conshohocken and said nobody from Simple Brands was there. The office looked empty. The lettering on the glass door said "Simple," and that aptly described the reception area.

Under the contract, Simple Brands was to provide the machines at no cost to the state but would share in the proceeds. The LCB contends it was to be reimbursed for any expenses it incurred, such as for stocking or wiring the kiosks.

That has not happened, according to a letter sent Wednesday by Faith Smith Diehl, chief LCB counsel, to the lawyer for Simple Brands.

Diehl wrote that the LCB and the company had ironed out an agreement designed to minimize any risk for the state in "undertaking this novel and exciting - but clearly untested endeavor." Pennsylvania is the first state to experiment with wine kiosks.

The attorney's letter went on to state: "Please be advised that if Simple Brands does not cure the problems within 45 days of this notice," which would be Sept. 20, "the board will terminate the contract . . . and cease all kiosk operations."

Not so fast, Simple Brands countered.

Liquor sales surge to record | SeacoastOnline.com

CONCORD — State liquor officials announced Monday record-setting sales for 2010.

The New Hampshire Liquor Commission reported a 4.5-percent increase in net sales, which translates to an increase of approximately $23 million over the previous year.

The year in sales helped the commission reach a new record of $534 million.

State Liquor Commission Chairman Joseph Mollica said approximately $140 million generated went to the state's general fund, which is the largest contribution in the commission's history.

Mollica said the commission saw an increase of 4.6 percent at their 76 New Hampshire Liquor & Wine Outlets. Sales to restaurants went up 2.7 percent, while wine sales surged 3.5 percent at grocery stores.

The Liquor & Wine Outlets on both sides of Interstate 95 and the Portsmouth traffic circle store were the top three sellers in state, Mollica said.

The Hampton store on I-95 northbound led the state with $31 million in sales in 2010, an increase of 5.23 percent over 2009. The Hampton store on the southbound side of I-95 was second with more than $27 million, a 3.74-percent increase. The Portsmouth traffic circle store was third at more than $23 million, up 3 percent.

The Portsmouth liquor store located in Plaza 800 on Islington Street generated $6.2 million last year, up 5.72 percent. Mollica said that store is the biggest seller in the state to licensed operations such as restaurants and convenience stores.

Mollica credited aggressive out-of-state marketing efforts, new in-store programs and the modernization of New Hampshire Liquor & Wine Outlets.

Earlier this year, the New Hampshire Liquor Commission launched Outlet Power Buys, a program that offers consumers up to 70 percent off name brand wines. The commission also relocated and updated stores in Manchester, Lebanon, Peterborough and Nashua.

This year, the New Hampshire Liquor Commission will renovate approximately seven New Hampshire Liquor & Wine Outlets throughout the state, including a new store being relocated to a different building in Plaza 800. In addition, plans for a new store at Manchester/Boston Regional Airport are under way.

"We continue to expand our buying power, enabling us to offer our customers lower prices on fine wines and spirits," he said. "In addition, the revitalization and rehabilitation of stores delivers an innovative shopping experience that consumers appreciate.

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