StateWays Winter 2024 | Page 5

TRIP REPORT

The 2024 NABCA Administrators Conference

by KYLE SWARTZ
Surrounded by rolling mountains of green and gold , the 2024 NABCA Administrator ’ s conference took place this October in Missoula , Montana — home state of chairman Becky Schlauch .
Control state executives and others from the alcohol business convened for several days at this annual conference , participating in panels that covered pertinent topics . What was on the minds of these industry leaders in 2024 ?
For one : the noticeable rise in sales of smaller formats . In recent years , consumers have increasingly reached for 50− and 375−ml . bottles .
“ They are by far the largest growth category at the Virginia ABC ,” reported Tyler Moore , VABC director of distribution , during a panel on the topic .
The VABC was up 1.9 % overall in the past fiscal year , with smaller formats outperforming with an 8.3 % gain . Naturally , this consumer shift has consequences . “ 50−mls are growing at the expense of 750s and 1.75 liters ,” Moore explained . “ Smaller formats now represent one-third of VABC bottle sales , but less than 5 % of our SKUs .”
“ So there ’ s a lot of opportunities around this category ,” he added . “ These are not huge margin drivers , but they do bring in consumers .”
Who exactly buys these smaller formats ? In particular : younger LDA consumers , according to the panel . Millennials
Top : The panel " Display and Shelf Merchandising " discussed handling allocated whiskeys and theft deterrents , among other topics . Below : another panel touched on the rise in sales for miniature formats .
and Gen Z are hardly known for brand loyalty , preferring to experiment around categories instead . Miniature bottles let these customers try new products more affordably .
Data presented by panelist Amanda Moreland , senior space strategy and insights manager , Sazerac , found that 81 % of smaller-format sales were driven by customers spending more — not less — by adding to their carts . Again , this implies experimentation .
“ This is not a new trend , it ’ s been a consistent trend year over year , but it ’ s become a hot topic because it ’ s such a sizeable piece of sales now that you cannot ignore it ,” Moreland said . “ This is going to continue for the next several years .”
On the panel “ Display and Shelf Merchandising ,” Mark Roy , NHLC division director of marketing , merchandising and warehousing , discussed New Hampshire ’ s successful , newly launched program of “ ghost drops .” These are large , unannounced placements of sought-after Buffalo Trace products .
“ We ’ ll do them in six locations spread out throughout our state ,” Roy said . “ They come in black wrap . Only four people in the entire organization know where and what is going out . Special trucks deliver these pallets to the stores an hour before opening . The manager and store staff are already there , so they know what ’ s happening . We do a six-bottle per-person limit . This raises all ships through all stores .”
Whiskey social media in New England explodes every time one of these ghost drops goes out . Through this and other
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