by: Tyler Englander - WRIC

Updated: Aug 17, 2023 / 06:37 AM EDT
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$550K stolen from Va. ABC stores so far in 2023

RICHMOND, Va. (WRIC) – Liquor thieves are targeting Virginia ABC stores in large numbers. 
Data obtained by 8News shows there were 2,881 shoplifting incidents at ABC stores from January 1, 2023 through June 30, 2023. Over 9,700 bottles of alcohol were stolen with a total value of $551,662.
“Retail shrink is a growing national issue and Virginia ABC sadly is not immune to that problem.” Virginia ABC Public Relations Specialist Pat Kane said. 

Less than a month ago, Richmond Police Chief Rick Edwards told reporters that shoplifting at ABC stores was contributing to a rise in crime in Virginia’s capital city. 
“ABC stores, for whatever reason, are being targeted and thieves are walking in and just walking out,” Edwards said. 
One store in Portsmouth was robbed 116 times, losing over $21,000 in liquor. Meanwhile, in Williamsburg, a thief made out with a bottle of Remy Martin Louis XIII Cognac worth $4,699.99. Kane says, as a result, security changes are being made. 

“Another item that we are doing is really looking on a store-by-store basis, what are those top stolen, top pilfered items and can we move them within the store to make them less visible to thieves, to reduce the inventory of those specific items,” Kane said. 
Despite the high number of thefts, ABC has no plans to lock up valuable products. 
“This is a balancing act that all retailers are looking at, which is how do you make the store open, friendly, a positive shopping experience versus how you reduce those theft opportunities,” Kane said. “Locking up products is part of that discussion, but we are not moving in that direction at this specific time.” 
It’s important to note that these statistics only include thefts by the public. ABC says it doesn’t keep track of employee thefts. 

Author: Matt Pusatory (WUSA9) Published: 2:20 PM EDT August 16, 2023
Updated: 2:20 PM EDT August 16, 2023
Here are some of the biggest changes to the lottery system.
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RICHMOND, Va. — If you're a connoisseur of fine liquors and spirits in the Commonwealth, chances are you have heard of the Virginia Alcoholic Beverage Control Authority's online lotteries. Throughout the year, Virginia ABC offers special releases of products, including highly sought bourbons, whiskeys and other small-batch spirits offerings, for purchase by lottery. Some big changes are coming to the lottery process. 

​To enter a lottery, an entry form is available online for a period of at least three days. Odds depend on the number of entries received and the number of bottles available. At the close of the lottery period, Virginia ABC uses a random drawing process to select the winning entries for each product code offered in the lottery.
The next lottery is being held Aug. 21-25. Here are the changes taking effect:

1. Multiple members of the same household may now enter. The one-per-household entry restriction has been removed. 
2. Proof of ID will be restricted to: Virginia Department of Motor Vehicles-issued driver’s license, DMV-issued ID card or military ID. Use of passport and utility bill, or work badge and a utility bill, as proof of identification, will no longer be allowed. 
3. Entry will require submission of the last four digits of ID (driver’s license, ID card, military ID)
4. Every entrant must have a unique email address.
5. Winners can now purchase bottles online

More details can be found here.
The next lottery is for 72 bottles of Reservoir Hazmat Rye Whiskey. Winners and non-winners will be notified on Sept. 1. 

The Tidewater News - August 14, 2023

Up to about 1891, Franklin was a typical “wet” town. Going back in time to the mid 1830s, when Franklin was first established as a village, liquor manufacture, distribution and consumption was not controlled. However, starting in the latter part of the 1800s, it was controlled to some extent through Southampton County licensing of establishments. In 1891, though, the citizens of Franklin, led by the Women’s Christian Temperance Union (WCTU) and the churches, petitioned Judge Barrett of the Southampton County Court to refuse liquor licenses for Franklin, which petition was granted. As a “no-liquor” town, Franklin was a failure and it returned to its previous ways — blatant production, distribution, and consumption. Liquor was being brought in weekly by the buckboard-load and every known “wet person” knew where in town he could get all the liquor he wanted.   In 1892, after the no-license system had been in effect for a year, a local option election was held — whether to re-establish licensing of alcohol. The “wets” won by one vote. A prominent worker for the “dry” cause was Rev. C. C. Werenbaker, pastor of the Methodist Church; but he, having failed to register, could not vote. Had he been in a position to vote, there would have been a tie; and it was generally thought that Judge Barrett would have decided in favor of the “dry” element. Illogically, though, had the “drys” won, alcohol production and use, would have still existed – but illegally!   So, local licensing of establishments to legally dispense alcohol was reinstituted and this system was in place right up to the early 1900s. Around about that time, the Commonwealth of Virginia, following the lead of other states, especially South Carolina, decided to consider STATE-controlled liquor STORES. So, for the first time the Commonwealth of Virginia got involved with the liquor business. 

And, for whatever reason, Franklin was chosen as the first Virginia location, in 1902, of what was called a dispensary. It was located in a building on First Avenue, right next to the alley that ran behind the stores that faced Main Street. Later, the dispensary building was used for other purposes – including William Branch’s first shoe repair store.   The Franklin Dispensary was managed by three commissioners, some of Franklin’s most prominent and best citizens: Cecil C. Vaughan Sr., R. S. Fagan, and John C. Parker Sr. Mr. Fagan was designated as the purchasing agent for the dispensary. The profits from liquor sales were divided as follows: three-eighths to the Town of Franklin, three-eighths to the District, and two-eighths to the State. From the profits received by the town were built concrete sidewalks on Main, High and Clay streets and First, Second and Fourth avenues. Some of the residents were at first loath to use the sidewalks, claiming they had been built with “blood money”. And, the fine and grand Franklin Elementary School, built in 1905 and located at 516 West Second Avenue, was made possible through funds derived from the dispensary. Many people were especially upset by the fact that the education of the town’s children was being accomplished through the sale of evil spirits.   All along, the Southampton County WCTU was vehemently opposed to and disdained alcohol in general; and, in particular, the presence of the liquor dispensary in the community. The public outcry against any official town connection with alcohol became so great that, in 1907, the Franklin Dispensary authorization was abolished. Franklin was the first town in the state to have a state-controlled liquor store and was the first town to abolish it. After the abolishment, there was very little control of alcohol, at any level, for many years.   

​All the foregoing, of course, was much before the national institution of prohibition. The 18th Amendment of the United States Constitution (to establish prohibition), as of Jan. 16, 1919, was ratified by two-thirds of the states and was effective Jan. 17, 1920. However, actual enforcement of the legislation was slow in coming about. In some cases, for an extended period of time, enforcement was non-existent in some areas of the country.   Although prohibition was established and was supported by many people, in actuality, millions of Americans were STILL drinking alcoholic beverages. Because the law did not specifically outlaw consumption, many people stockpiled alcohol and figured out ways to obtain it. This gave rise to bootlegging (illegal production, sale, and distribution) and “speakeasies” (illegal and secret drinking establishments) which were capitalized upon by organized crime. Gangsterism and turf battles between criminal gangs were prevalent.  In the long run, it became obvious that prohibition had caused far more problems than it had solved. Of much concern, was the increase in criminal activity, public corruption, and, in general, a prevalent casual disregard of law. An organization called “Women’s Organization for National Prohibition Reform” was at the forefront of the movement to REPEAL the prohibition law. 

As of Dec. 5, 1933, the 21st amendment (to repeal prohibition) of the United States Constitution was ratified by two-thirds of the states — which automatically and officially repealed the 18th amendment of the United States Constitution (the establishment of prohibition). Virginia Governor John Pollard called the General Assembly into special session — to legalize 3.2 % alcoholic beverages.   On March 22, 1934, the Virginia General Assembly voted to adopt a liquor control plan – and created the Virginia Department of Alcoholic Beverage Control. And, even though the Virginia ABC system was establishing stores in communities across the state, Franklin did not have an ABC store until 1950; before that, people from this area had to go to Suffolk to purchase legal liquor.  CLYDE PARKER is a retired human resources manager for the former Franklin Equipment Co. and a member of the Southampton County Historical Society. His email address is [email protected].

‘I haven’t heard anybody in the state say what we need to do is put more money into the alcoholic beverage commission’

BY: MEGHAN MCINTYRE - JULY 27, 2023 12:04 AM

​Four years after Virginia transitioned its Department of Alcoholic Beverage Control into an authority in an effort to make the state agency run more like a business, Gov. Glenn Youngkin’s administration says ABC isn’t generating the additional funding for Virginia as originally intended.

Administration officials told ABC’s Board of Directors last week the authority’s profits and contributions to state coffers have declined in recent years while operating costs have increased $135 million since 2017.
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Virginia Chief Transformation Officer Eric Moeller said ABC’s contributions have declined from a peak of $229 million in 2021 to $227 million in 2022 and $221 million in 2023 even as revenue generated by the authority increased by nearly $100 million over the same time period. 

“All that growth has not resulted in bottom-line cash to the economy,” said Moeller at the July 20 Board of Directors meeting.

While ABC officials say they don’t dispute the administration’s findings, they argue the authority’s financial transfers to Virginia’s general and other funds continue to “exceed the expectations” of General Assembly budget projections. Additionally, they say the rising costs can be attributed to investments in authority operations and employees that are intended to yield long-term benefits. 

“We understood that doing these investments would come at a cost for reduced profit growth,” said ABC CEO Travis Hill during the meeting. “It was certainly understood that it was going to help us in the long term.”

‘Investments should have a return’

Key to the administration’s criticism of ABC last week was what it described as several years of declining profitability and rising costs to the commonwealth.

According to the administration, ABC’s annual profitability has been steadily declining ever since peaking in 2019. At the same time, annual operating costs increased by $123 million and revenues grew from $903 million to over $1.2 billion.

Virginia Deputy Chief Transformation Officer Tony Lee told the Board of Directors ABC should be able to currently achieve greater profitability because “the company has grown, stores have grown and the inflation on alcohol prices has exceeded the inflation at the operating cost level.”

While Moeller acknowledged that ABC has undergone significant change in recent years, he said the authority needs to justify how money is being spent.

“Investments should have a return,” he said, adding, “I don’t know that we’ve always had a rigorous process for ensuring they’ve been evaluating the priority before, during and after the investments that we really got a return on all the things that we’ve done.” 

“Whatever we’ve done – whether they were right or wrong – it’s water under the bridge and the money’s been spent,” he continued.

While ABC had previously proposed a budget of nearly $340 million for the next fiscal year, the Youngkin administration put forward a proposal for $21 million less, a suggestion that received particular pushback from Board of Directors member Mark Rubin and was ultimately rejected by the board on a 3-2 vote.

“I saw today there’s $5.2 billion of additional money in Virginia,” Rubin said to Moeller at the July 20 meeting. Losing $21 million in the authority’s budget “may make us less productive and take us off of the path we’re on in terms of the future,” he continued.
Moeller replied, “With all due respect, it’s not your money. It belongs to the people of Virginia, and there are a lot of things to do with it at this time.”

“I haven’t heard anybody in the state say what we need to do is put more money into the alcoholic beverage commission,” he added.


Striking a balance

ABC officials agreed with the administration that the authority’s goal is to generate increased amounts of profit for Virginia but emphasized investments were and are still needed for long-term success.

Hill told the Board of Directors that ABC required major investments after transitioning to an authority to address issues like technical debt, outdated information technology systems and an inefficient distribution center. 

The CEO said the authority’s investment “has succeeded” in terms of decreasing employee turnover, increasing transfers to the commonwealth and ensuring ABC remains a competitive employer. 

ABC Chief Administrative Officer David Alfano told the Mercury employee salaries and benefits are one of the biggest contributors to ABC’s expenses and increase every year. 

Despite these rising costs, Alfano said ABC has transferred $40 million more to Virginia than General Assembly projections called for since 2021 – contrary to data presented by Moeller during the board meeting showing a decline in transfers.  

Administration officials told the Mercury their figures appear smaller than what’s listed on ABC’s annual reports because they didn’t take into account the “noise” of non-operating activity – like the sale of the authority’s old Hermitage Road warehouse in Richmond – in order to provide a more accurate picture of operating profitability. 

Hill told the Board of Directors ABC needs to “strike a balance between achieving even greater profitability” while “making sure we keep pace with business investments” so that the authority doesn’t find itself in a similar situation with the administration next year.
Board Chair Tim Hugo said concerns will continue to be raised about ABC if its profitability does not stop declining. 

​“If you explode your costs and explode your cost structure and your profitability goes down, people are going to ask the question why,’” Hugo said. “And they’re not going to stop and they’re going to start looking under every rock you’ve got.”