EXPANDING THE NUMBER OF OREGON’S LIQUOR RETAIL LOCATIONS€¦ · EXPANDING THE NUMBER OF...
Transcript of EXPANDING THE NUMBER OF OREGON’S LIQUOR RETAIL LOCATIONS€¦ · EXPANDING THE NUMBER OF...
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EXPANDING THE NUMBER OF OREGON’S LIQUOR RETAIL LOCATIONS
OPEN RECRUITMENT FOR INDEPENDENT CONTRACTORS
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OPEN RECRUITMENT
• A market-driven open recruitment process for appointing approximately 10 new liquor agent contracts in the Southern Oregon and Washington County areas
• Objective is to improve customer convenience by adding retail liquor locations with a measured, but consistent approach to growth
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*Portland State University Population Research Center**PSU Population Research Center estimates applied to 2016-2021
STATEWIDE LIQUOR OUTLET DENSITY
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• 30 years ago, one liquor store for every 12,000 Oregonians• (1 to 12,000 ratio statewide)
• 2015, one liquor store for every 16,000 Oregonians*• (1 to 16,000 ratio statewide)
• 9-county area is 1 store for 9,800 Oregonians• Washington County is in excess of 1:22,400
• Current population (9 Counties) = 609,000*
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EXPANSION GOALS
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• Increase convenience; decrease distance between retail liquor locations
• Maximizing travel & tourism revenue
• Increased market share trend for distilled spirits nationally
• Access to distilled spirits in rural areas
• Moderate growth of stores to maintain public safety goals
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PROPOSED PHASES OF RETAIL EXPANSION
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Southern OregonPhase 4
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Washington CountyPhase 4
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OREGON SPIRITS CONSUMER TRENDS
• More sophisticated consumer
• Oregon’s renowned mixology culture
• Greater demand for modern, consumer-friendly shopping
• Higher expectation of convenience
• Desire for wide selection of spirits• 2,100 regularly stocked
• 2,000 special order
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DIFFERENCES FROM EXISTING PROCESS
• Applicants may apply for multiple locations• Each will be considered separately
• Existing liquor store agents can apply for more than two contracts under Open Recruitment
• Minor control plans • Applies to proposals that do not have a separate entrance for spirits
OAR 845-015-0148
• Open to a variety of different business models where customers can purchase spirits • Could include: adding a spirits section inside existing business, a
traditional liquor store, a boutique retail location, etc.
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EXISTING RETAIL LIQUOR MODELS
Types of Retail Locations
1) Stand-alone – Sells only distilled spirits and related items or
sells distilled spirits, wine, beer and related items
2) Located in another business
a) No separate entrance – Under the roof of another business
b) Separate entrance – Under the roof of another business
Beer and Wine sales need a separate liquor license10
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STAND-ALONE LIQUOR STORE
Cedar Mill Liquor Store
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Same Entrance for Liquor
Separate Entrance for Liquor
Sunriver, OR
Sisters, OR
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Union, OR
Godfrey’s STORE #????? 678???
Crescent, OR
Sheridan, OR
Deli, Convenience, & Liquor Hardware, Espresso & Liquor
Pharmacy & Liquor Sporting Goods & Liquor
Lakeview, OR
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MARKET-FOCUSED CREATIVITY
• Innovation
• Entrepreneurs
• All types of retail models
• Widening range of choices for customers
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SELECTION CRITERIA
• Business proposal
• Timeline – detailed opening date
• Capital investment and financing
• Retail or business experience
• Knowledge of alcohol industry
• Location• Impact on existing agents
• Convenience
• Estimated sales and revenue
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TIMELINE• Applicant Informational Meetings
• Open Recruitment Period
• Application Review
• Applicant Interviews
• Commission Selection
• Public notice at Commission-approved location
• Final approval of store opening • If no significant public opposition
• If significant public opposition
• December 19
• 12/01/17 to 2/15/18
• 2/16/18 to 3/15/18
• 3/16/18 to 4/15/18
• April/May Commission Meeting
• After Commission Selection
• 14 days after posting
• Return before the Commission for final decision
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More info on the web:Oregon.gov/OLCC
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Application Information
Sign up for email alerts
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Oregon.gov/OLCC
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Application Forms
• Individual Application• Single person applying for a Retail Sales Agent Agreement• An Individual Application is required with a detailed business plan
• LLC Application• LLC applying for a Retail Sales Agent Agreement• An LLC Application is required plus:
• An Individual History packet from one managing member • An Individual History packet from the premises manager (if applicable)
• A detailed business plan
• Corporation Application• Corporation applying for a Retail Sales Agent Agreement• A Corporation Application is required plus:
• An Individual History packet from one individual who supervises the premises manager (i.e. Regional, District, Area Manager, other)
• An Individual History packet from the premises manager
• A detailed business plan23
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Oregon.gov/OLCC
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COMPENSATION
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COMPENSATION ESTIMATES
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*Based on distilled spirit sales of $10,000 per month or more. The fixed base amount will be less when sales are below $10,000 per month.
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OTHER BENEFITS• OLCC pays for shipping from warehouse to the retail
location
• OLCC pays for credit card fees associated with spirits sales when using state bankcard system
• OLCC owns the distilled spirits inventory – the liquor agent sells it
• OLCC will ship a split case of products to the retailer• Allows retailer to carry small quantities of new or high-end
products• Allows retail location to offer a wider selection
• Special orders are available to help customers find just the right product
• Uniform pricing across the state28
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WHAT YOU CAN DO
• Identify location(s)
• Create a detailed business plan• Submit completed application before February 15, 2018
• Include a control plan describing how you will prevent access to minors and theft of distilled spirits
• Contact OLCC Retail Services staff with questions• 503-872-5020, [email protected]
• (Southern Oregon) 541-944-2804 [email protected]
• Contact local government • Check for local zoning, permitting, & business license
requirements
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Questions?
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