By Epiphany Communications: Coaching & Consulting
Kristin Beltzer brings a wealth of executive management experience to her position as Chair of the Michigan Liquor Control Commission (MLCC), an experience she hopes will help move the industry forward.
“MLCC is focusing on being a good partner with all our licensees and those in the industry, with an emphasis on providing excellent customer service, fair competition, and product choice,” said Beltzer. “The MLCC is responsive to changes made through legislation, gubernatorial executive orders, and MLCC administrative orders.”
Beltzer recognizes the value independent retailers bring to the State of Michigan. “Business owners, both large and small, are vital contributors to Michigan’s hospitality and tourism industry, job growth and economy,” she
said. “Building strong partnerships with
independent retailers is vital toward growing
the beverage alcohol business in Michigan. The MLCC looks forward to working with MIRA in providing retailers with the knowledge and resources necessary for them to be successful and thrive.”
From Grand Rapids, Michigan, Beltzer is CEO and founder of KB Collaborative, a business and executive management consulting business. She holds a Bachelor of Arts in Communications and Public Relations from Michigan State University and a Master of Public Administration from Western Michigan University.
Before her appointment to the MLCC as an Independent by Gov. Gretchen Whitmer in 2022, she served as the director of gubernatorial appointments for Gov. Rick Snyder, and executive vice president and chief marketing officer for the Lansing Regional Chamber of Commerce where she had led the advocacy, events, and business development divisions.
One of the challenges MIRA members face today is acquiring product. There are 23,199 total retailer licensees (9,120 on-premises retailers and 14,079 off-premises retailers) who are ordering products every day, which may explain times when some higher-demand products become unavailable, and licensees can’t always get the products they’re looking for,” Beltzer explained. In addition, “The MLCC must follow the statute for issuing licenses,” said Beltzer. “The types of licenses available and licensing requirements are set by State law. The number of certain types of licenses is governed by population quota for that local governmental unit.”
In 2022, Michigan’s Liquor Control Commission was looking at ways to ease liquor supply shortages for small liquor shops, restaurants, and bars after the pandemic worsened problems that have left smaller retailers scrambling for products. “Current supply is good and pretty much back to pre-Covid-19 pandemic levels,” said Beltzer. “We are keenly aware of how frustrating the out-of-stock situation can be and that it can adversely affect licensees’ businesses. However, the reality is, there is just not enough product produced or supplied to Michigan to cover every licensee request.”
According to the MLCC, Michigan ranks first among the 17 control states in having the largest selection of distilled spirits products available for retailers to sell to their customers. More than 12,500 distilled spirits products are available (almost double from eight years ago). This past year as the MLCC celebrated its 90th anniversary, it was noted that just 19 liquor brands were available in the State’s liquor warehouse in 1933. The growth in available products has been phenomenal.
“Current challenges for the MLCC include the continuing crackdown on illegal alcohol shippers, prohibiting the sale of alcohol to those who are underage, and working to help bring more products into Michigan”, added Beltzer.
The MLCC’s Enforcement team’s work with the Michigan Attorney General’s Office has resulted in more than $100,000 in fines levied against illegal alcohol shippers, along with thwarting hundreds of these entities’ efforts to violate state liquor license laws. These unlicensed, out-of-state companies are illegally shipping wine and other excessively low-priced products directly to Michigan consumers. This illegal activity not only robs our state of tax revenue it also hurts retailers across Michigan.
The Michigan Liquor Control Commission, earlier in 2023, issued administrative order no. 2023-01, which requires all wholesale beer and wine deliveries to retailers to be paid by electronic funds transfers (EFT). “This change created some confusion to MIRA members who questioned why this change was necessary and wondered how it might affect their businesses,” said Mary Ann Yono, MIRA Director of Business Relations.
“EFT for both the State and wholesalers has worked well. EFT was the MLCC’s latest modernization for convenience, safety, and security,” said Beltzer. “We were seeing an increase in delivery trucks being held up not only on the road but in parking lots. So, for the safety of all, EFT eliminated the cash available on the trucks or in a licensee store on delivery day. EFT also streamlined the process as well as wait times for drivers. Both the State and wholesalers had a good percentage of licensees already using EFT. EFT for purchasing spirits products became effective in November 2021, so it made good business sense to transition to EFT for beer, wine, and mixed spirit drink purchases in March 2023.”
The MLCC remains committed to partnering with the association. “Our relationship with MIRA is very important. The MLCC and MIRA have a mutual customer base, thousands of retailers – the convenience stores, grocery stores and service stations, the wholesalers, manufacturers, and others,” said Beltzer. “We share mutual goals of helping our customers thrive and grow in a competitive marketplace. We both share a long history of service to our customers, MIRA since 1910 and the MLCC since 1933. The MLCC values its long-standing partnership with MIRA and looks forward to continuing our collective efforts that support retailers across the state for many years to come.”
According to Beltzer, MLCC’s goals for 2024 are to continuing to provide excellent customer service and proactively make innovative changes that make it easier for licensees to do business with us. “We want to get the word out that the MLCC is a great resource for licensees; any time they have a question or need help, just give us a call,” she said. “We have a wonderful team at the MLCC that is extremely knowledgeable and completely focused on customer service. We also want to grow the beverage alcohol industry in Michigan, and support entrepreneurs who want to start a business. Currently, Michigan ranks #7 in beverage alcohol sales, so there’s a lot of growth potential.”