News Release Contact:Virginia ABC Communications - (804) 213-4413
David Alfano Named Chief Administrative Officer at Virginia ABCThe Virginia Alcoholic Beverage Control Authority (ABC) has chosen David Alfano as its Chief Administrative Officer. In this role, Alfano will lead the authority's finance, human resources (HR) and procurement teams and functions.
He brings with him over 25 years of executive leadership in a wide range of financial and accounting functions across various industries including information technology, financial service, telecommunications and commercial real estate.
In 18 years with the Federal Reserve System’s National Information Technology Division, Alfano served as Senior Vice President and Chief Administrative Officer; Vice President, Treasury Service; and Vice President and Controller. He was responsible for establishing organizational strategies and financial oversight for a $900 million operating budget, and he led a division comprised of more than 100 employees with responsibility for financial management, governance, risk and compliance, procurement, vendor management and communication functions.
Alfano also oversaw a technical team that provided IT infrastructure services for United States Treasury business applications supporting online purchasing, collections, payments, accounting and reporting services.
In addition to his prior responsibility over financial management and procurement functions, Alfano was a member of the Federal Reserve National IT Executive Team that partnered with the Federal Reserve Bank HR team in defining HR strategies and processes for a 2,000-employee organization.
“These responsibilities have many elements in common with my new role as Virginia ABC’s Chief Administrative Officer," Alfano said. “Working at the Federal Reserve for 18 years gave me a true appreciation for the value of working for an organization that has a public servant mission, and my work ethic, coupled with my drive for performance excellence, are attributes that align with the values at Virginia ABC.”
“Virginia ABC is invested in its continued growth as a top employer in the commonwealth, dedicated to public safety and responsible sale of alcohol, providing a consistent stream of revenue to the commonwealth,” said Chief Executive Officer Travis Hill. “David’s outstanding experience in finance, technology and human resources will contribute substantively to the authority’s progress, providing new perspectives and a solid framework to secure ABC’s position as a top retailer, wholesaler and regulator of the sale of distilled spirits.”
Prior to his work at the Federal Reserve, Alfano spent more than 11 years at Verizon’s Enterprise Solutions Group as controller and assistant controller. He led a division that was comprised of over 40 employees and was responsible for all aspects of accounting, financial reporting / analysis, budgeting and internal controls for the $1.2 billion Verizon subsidiary. He started his career in public accounting as an external auditor, prior to serving as an assistant controller for a commercial real estate developer.
Alfano graduated from Drexel University in Philadelphia with a Bachelor of Science degree in accounting and is a Certified Public Accountant.
September 01, 2022
Source - Virginia ABC News Release
Virginia ABC Announces Fiscal Year 2022 RevenueMore than $622 million contributed to the commonwealth
The Virginia Alcoholic Beverage Control Authority (ABC) released its unaudited draft financial results for fiscal year (FY) 2022 to the Virginia Department of Accounts and the Auditor of Public Accounts showing gross revenue of $1.4 billion, up $60 million over FY 2021. ABC revenues include the sale of distilled spirits, Virginia wines and mixers and the collection of license fees and other miscellaneous revenues which include a one-time net gain on the sale of ABC’s former central office and warehouse facilities in Richmond.
Each year, per the Code of Virginia, Virginia ABC remits earnings to the commonwealth for designated state programs and services. For FY 2022, ABC contributed a total of $622.8 million, an increase of $6.4 million over the previous year. This reflects $243.6 million in profits from retail sales, $294.8 million in taxes (retail) and $84.4 million collected in wine and beer taxes.
“The shifting landscape of a post-pandemic economy and our ability to continue adjusting our response to consumer demand demonstrates the resourcefulness of our ABC teammates, particularly those in retail and distribution,” said Chief Executive Officer Travis Hill. “Having completed our first year in the new facilities in Hanover County, we are looking forward to greater growth and capacity to meet the changing e-commerce needs of our retail industry in FY 2023 and beyond.”
During FY 2022, ABC store sales increased 3.1%, from $1.3 billion in FY 2021 to $1.4 billion in FY 2022. This growth was driven by sales to licensees, with sales to retail customers declining by 2.4%. Sunday sales declined for the first time since being authorized in FY 2015, from $104.9 million in FY 2021 to $98.9 million in FY 2022 but was 24.5% higher than pre-pandemic Sunday sales of $79.4 million in FY 2019. Commercial property owners and contractors impacted by the pandemic and supply chain disruptions put a damper on ABC’s FY 2022 plans to increase their retail footprint across the commonwealth, resulting in two new stores generating $3.7 million in sales. ABC also oversaw six store expansions/remodels and 10 store relocations to growing market areas, enhancing customer service and accessibility.
While the rate of online orders declined over the course of the year as customers returned to in-person shopping, online ordering remained materially higher than pre-pandemic levels. As expected, following the pandemic, licensees re-opened and restocked their bars and consumers returned to dining out, resulting in FY 2022 sales to restaurant and hospitality businesses exceeding pre-pandemic levels. Licensee sales reached $229.5 million in FY 2022, 43.2% higher than FY 2021 sales of $160.3 million, and 22% higher than pre-pandemic sales of $188.1 million in FY 2019, demonstrating significant post-pandemic recovery and growth in this segment of the commonwealth’s economy.
According to FY 2022 sales, the top five brands purchased in Virginia ABC stores were:
These five brands repeated their FY 2021 standing as the top five brands in Virginia. Of the five top sellers, Tito’s Handmade vodka saw the most impressive leap in sales, from $57.9 million to $66.9 million, a 15.6% increase, followed by Jim Beam from $23.2 million to $24.2 million, a 4.3% increase. Sales of Hennessy VS and Patron Silver fell in FY 2022 due to supply chain disruptions. Hennessy VS sales went from $52.8 million in FY 2021 to $42.5 million in FY 2022, a 19.4% decrease. Patron Silver sales went from $28.9 million in FY 2021 to $28.6 million in FY 2022, a 1% decrease. Jack Daniel’s Old No. 7 Black sales were unchanged at $30.4 million for both years.
Suppliers and Virginia ABC continued to be impacted by supply chain issues in FY 2022 and worked mightily to fully meet the ongoing increased consumer demand level. Greater demand for aged products quickly depleted inventories manufactured years ahead of the pandemic with no ready supply to supplement inventories. Packaging issues, workforce availability, ingredient shortages and shipping bottlenecks are just a few of the challenges that presented additional pressures on performance throughout the supply chain, from manufacturer to retailer.
During FY 2022, Virginia ABC completed projects, made significant institutional changes and invested in its employees to support continued growth. This included:
•The successful move from the Richmond warehouse to a new distribution center in Hanover County, enabling retail operations efficiencies such as automating shipment of our highest volume products and greater shipping volume into the future. During FY 2022, the distribution center set a new production record, shipping over 36,000 cases in a single day.
•The addition of a chief transformation officer to drive sustainable infrastructure changes that build upon ABC’s capabilities to demonstrate higher responsiveness and deeper impact for their customers and community.
•Employee wage and salary increases, and the permanent implementation of pay adjustments instituted at the start of the pandemic. In addition to across-the-board state pay increases, Virginia ABC used its status as an authority to make targeted investments in compensation to remain competitive as the labor market tightened, enabling it to recruit and retain a workforce that is essential to generating revenue for the commonwealth and supporting ABC licensed businesses.
Virginia ABC’s final, audited results will be released in the fall. For more information about ABC’s sales and revenue, visit www.abc.virginia.gov.
News Release Contact:Virginia ABC Communications - (804) 213-4413
Starting Friday, July 1, five laws impacting the Virginia Alcoholic Beverage Control Authority (ABC), its licensees and applicants for ABC licenses will take effect. The Virginia General Assembly passed the following Virginia ABC-related legislative proposals during the 2022 session, and Governor Glenn Youngkin signed them into law.
Third-Party Delivery License/Cocktails To-Go (HB 426 and SB 254) – Both bills create a third-party delivery license which will be necessary to deliver alcoholic beverages purchased by consumers from retail licensees. Created to address safety issues including age verification and food requirements, the new license requires delivery personnel to pass an alcohol delivery safety and responsibility course and certify their compliance with the regulations annually. In addition, the bills extend from July 1, 2022, to July 1, 2024, the sunset of prior legislation that allowed certain licensees to sell mixed beverages for off-premises consumption.
Alcohol Licenses for Casinos (HB 455 and SB 519) – Both bills create a new mixed beverage casino license for the sale of alcoholic beverages for on-premises consumption in areas designated by ABC during all hours of operation. It also authorizes the licensee to provide gifts of alcoholic beverages to patrons and establish loyalty or reward credit programs under certain conditions.
Funding for Virginia Distilleries to Market their Products (HB 20 and SB 196) – Both bills allocate from the General Fund an amount equal to 20% of the 20% tax levied on the sale of Virginia-distilled spirits to the Virginia Spirits Promotion Fund.
Bringing Alcohol from Out of State (SB 325) – This law increases the amount of alcoholic beverages that a person may transport into the commonwealth from one gallon to three gallons.
Removing Sunset Clause for the Sale of Grain Alcohol (SB 527) – This bill removes the sunset clause from the authorization for the sale of neutral grain spirits or alcohol up to a proof limit of 151 in ABC stores
New Third Party Delivery License
June 09, 2022 News Release
Contact:Virginia ABC Communications - (804) 213-4413
New ABC License Effective July 1 Looks to Ensure a Safe Means for Alcoholic Beverage Delivery
A new license designed to ensure a safe and secure way for licensed businesses to deliver alcoholic beverages will take effect on July 1. The new third-party delivery license, which was part of legislation passed by Virginia’s General Assembly and signed into law by Governor Youngkin earlier this year, requires delivery personnel to pass an alcohol delivery safety and responsibility training course.
Virginia Alcoholic Beverage Control Authority’s (ABC) Education and Prevention team has created the Responsible Alcoholic Delivery Driver (RADD) online public safety course, which is offered at no charge for licensees and businesses seeking a third-party delivery license. The course includes a pretraining survey, four training modules and a success survey. Training topics include alcoholic beverage delivery strategies to prevent underage sales and promote responsible consumption.
The third-party delivery license is the result of a stakeholder study group that met during the summer of 2021 to address safety concerns about the new alcohol delivery service. Representatives from food and beverage delivery businesses; alcoholic beverage manufacturing, retail and wholesale companies; and restaurant and hospitality industries; as well as Virginia ABC leadership contributed to the collaborative effort to create the license designed to protect public safety and health.
As part of the study, representatives from third-party delivery services participated in a workgroup to create a licensing structure for Virginia. The group brought experiences from other states and industry best practices, which were significant in the creation of the license.
“Virginia ABC was most appreciative of the earnest and candid input from the approximately 40 stakeholders in this group,” said Virginia ABC CEO Travis Hill. “We were pleased that state lawmakers took the two-pronged approach of continuing the cocktail to go privilege while also creating the license for third-party delivery entities to better assure safe and lawful delivery of alcohol. In the ensuing years, ABC will continue to monitor delivery of alcohol to determine if further policy changes are required.”
The new third-party delivery license, which addresses issues including age verification and food requirements, stipulates that licensees annually certify their compliance with the new regulations, including delivery personnel’s completion of the training course.
Seller Training Approval Program (STAP) for alcohol delivery personnel trainings developed by entities other than Virginia ABC are also accepted for certification. Virginia ABC's certification of delivery driver public safety trainings started June 1 and will continue through July 15, 2022. The application form, training criteria and submittal instructions are available on ABC’s website. For more information about these trainings, contact ABC Education and Prevention at firstname.lastname@example.org or 804-977-7440.
More information about the third-party license requirements is available on Virginia ABC’s website.
ABC will allow two telework days per week for HQ workers
Virginia Business, Kate Andrews
Employees at the Virginia Alcohol Beverage Control Authority’s Mechanicsville headquarters will be returning to in-person work three days a week, not the four or five days a week that will be required of many state workers beginning July 5, following Gov. Glenn Youngkin’s telework order earlier this month.
Virginia ABC CEO Travis Hill sent an email to ABC employees Thursday, noting that the plan to work in person at the authority’s new Hanover County office three days a week, with two days working remotely, is “the final part of our return to office strategy, originally announced in August 2021 and reaffirmed last December. This approach was based on survey feedback from employees and our long-term operational needs and completes a six-month effort on returning to the office.”
Hill, who was appointed by former Gov. Ralph Northam to lead the ABC in 2018, notes that as an authority instead of a state agency, the ABC has “greater latitude in how we manage our telework and hybrid work status.” The memo also says that the authority will use a new telework agreement form distributed by Youngkin’s office, and that all applications will be due June 15.
“All employees choosing to work a portion of the week remotely will need to complete the agreement and submit to human resources,” Hill wrote.
Currently, most of ABC’s roughly 500 administrative staff members are working two days a week in the office and three days remotely. The authority employs about 5,000 part-time and full-time employees, some of whom can’t telework due to the nature of their jobs, such as staffing retail ABC stores. In January, the authority changed its daily opening hours to noon in part due to retail workers being affected by COVID-19, which created a staffing shortage. In fiscal year 2021, Virginia ABC brought in a record $1.4 billion in gross revenue, including $237.3 million in profits from retail sales.
Youngkin’s mandate requires state workers who have been working from home since March 2020 to return to the office in person starting July 5, and it renders all prior telework agreements null and void, even for employees who live outside the immediate region of their workplaces and were hired with the understanding that they could work remotely. Agency heads can approve one telework day a week, while a cabinet secretary must approve two days a week. Anything above that will require the approval of Youngkin’s chief of staff, Jeff Goettman.
In a memo released May 5, during Virginia’s Public Service Week, Goettman announced the order and said that the governor’s office’s goal is “completion of all telework agreements by June 3.”
Some state employees and Democratic legislators have denounced Youngkin’s telework policy, saying that it will cause some workers to leave their jobs for more flexible opportunities in the private sector, and that the new policy is more restrictive than pre-pandemic standards.
Some state employees — including those who are among faculty and professional staff at state universities — are not subject to the policy, and it doesn’t apply to legislative or judicial agencies.