The mission of the Virginia Alcoholic Beverage Control Authority is to generate a reliable stream of revenue for Virginia and promote public safety through the responsible sale and regulation of alcoholic beverages.

The vision of the Virginia Alcoholic Beverage Control Authority is to bring good spirits and excellent service to Virginia.

The Virginia Alcoholic Beverage Control Authority (Virginia ABC) was formed in 1934 after the repeal of Prohibition. With the passage of the 21st Amendment to the Constitution, power for the regulation of alcoholic beverages reverted to individual states. Virginia’s model was patterned after the Canadian provinces where a government agency assumes a role in the distribution of alcoholic beverages. In Virginia’s case, ABC became the sole wholesaler and retailer of distilled spirits and the primary regulating authority for the manufacture, distribution, transportation, sale and consumption of other alcoholic beverages.

The primary intent was to use public policy as a way to moderate consumption and keep the number of establishments selling alcohol and the related ancillary impacts to a minimum. Temperance and ethical business practices, particularly where the distribution and consumption of distilled spirits (or hard liquor) was concerned, were valued above all other goals including the generation of revenues and equitable service. 

The primary mandates for agency operations are found in state statutes. Title 4.1 of the Code of Virginia is known as the Alcoholic Beverage and Cannabis Control and Subtitle I Alcoholic Beverage Control Act includes:

Chapter 1: Definitions & General Provisions

Chapter 2: Administration of Licenses

Chapter 3: Prohibited Practices: Penalties; Procedural Matters

Chapter 4: Wine Franchise Act

Chapter 5: Beer Franchise Act

Virginia ABC operates over 388 retail stores and ten regional offices across the Commonwealth. Made up of a team of nearly 4,500 statewide employees, the Authority is a leading revenue producer for Virginia and a source of future economic growth and innovation for the Commonwealth. The profits that Virginia ABC contributes are collected from sales of distilled spirits at Virginia ABC stores, taxes on beer and wine sales, violation penalties and license fees. This revenue provides much needed funding for use in programs across all secretariats, thus benefiting citizens in all areas of the state whether or not they choose to drink alcoholic beverages. During the last five years, Virginia ABC has contributed more than $2.2 billion to the general fund in, which supports major education, health, and transportation initiatives, as well as other state-funded operations. Profits transferred to the Commonwealth during fiscal year 2019 were $499.5 million from gross revenue of $1.1 billion in store sales.

Virginia ABC’s Bureau of Law Enforcement is charged with enforcing the alcoholic beverage control laws and regulations governing the manufacture, distribution, sale and consumption of alcoholic beverages and tobacco, while utilizing innovative education and community partnerships

The Authority’s Education and Prevention Section reaches thousands of Virginians across the Commonwealth with responsible use messaging and education through its fifteen programs. Each program is customized to meet the needs of individual groups such as high school students or licensees.

It should be noted that the Department of Alcoholic Beverage Control became the Virginia Alcoholic Beverage Control Authority in 2018.  The intent of this legislatively-mandated transformation was to provide the agency the opportunity to operate more like a business by achieving greater efficiency in all of its operational areas.

Virginia ABC's Strategic Plan FY2020-FY2022 (Please note: The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.)

Between September 2017 and May 2018, Virginia ABC staff and a consultant hired through the Community College Workforce Alliance facilitated a strategic planning process in which more than 100 employees provided input. Five strategic pillars were developed and approved by the Board and a champion and process coach were assigned to each of the pillars. The pillars were Employee Experience, Infrastructure, Public Safety, Sales & Profitability, and Brand. More than 200 ideas and initiatives were identified to operationalize the strategic plan through fiscal year 2022. The organization chose a total of 22 ideas for implementation. 

As fiscal year 2020 commenced, Authority Leadership recognized a number of initiatives had commenced and some were well on their way to being operationalized or completed. Leadership determined it was time to review and refresh the strategic plan. The five strategic pillars were collapsed into three high-level goals accompanied by a series of objectives. 

Goal 1: Invest in our people to foster an inclusive, flexible and engaged workforce.

Goal 2:  Enhance public safety, education, health and welfare.

 Goal 3. Deliver exceptional customer experiences in a trusted and innovative environment. 

Following a successful transition to an authority structure over the last two years, Virginia ABC will continue to allocate resources and focus on workforce development, performance management, compensation practices, and cultural inclusivity at all levels of the organization. Using employee- related key performance indicators and the evaluation of employee surveys to measure change, ABC strives to create an environment where employees flourish and achieve high levels of engagement, leading to higher levels of productivity and overall job satisfaction.

Virginia ABC strives to define the intended and desired Authority culture, one that provides an environment conducive to learning and a positive work experience for all employees; emphasizes results; and exceeds expectations of a responsible community partner. To achieve the ideal state, Virginia ABC will define the cultural attributes of the Authority, including why employees want to work at Virginia ABC; stress the benefits of leading by example; allow for efficient workflows and continuous process improvement, and promote diversity and inclusion. Virginia ABC values inclusivity and diversity and recognizes the benefits both contribute to identifying, implementing and fostering the desired culture within the Authority. Traditionally, diversity has been defined to address only federal and state protected classes (e.g. race, ethnicity, disability, gender, age). ABC will define diversity to ensure it encompasses additional factors valued by ABC such as thinking and learning styles, life experiences, education, and generation. Inclusivity means valuing the knowledge and skills each employee brings to the Authority and ensuring all the right individuals are at the table when making decisions

Virginia ABC takes an authority-wide approach as it endeavors to enhance public safety, education, health and welfare across the Commonwealth. From ABC agents working with licensees, to the creation of a new alcohol abuse prevention program and ABC store employees checking IDs, the Authority remains committed to its public safety responsibilities while responding to an ever-changing alcoholic beverage marketplace. ABC takes pride in responding to customers and has embarked on a number of initiatives to more swiftly and accurately respond to a diverse set of stakeholders throughout Virginia.

In fiscal year 2021, a new public facing technology initiative will be implemented as technology and relationships with industry partners serve as primary drivers of change for the Authority. Development of a new licensing system will enable license seekers an automated method to apply, renew and pay for the most appropriate license for their business.  Further, several divisions will continue to work with their constituents to refine programs in the areas of skill gaming, college-aged substance abuse prevention, and legislative and regulatory changes.

Throughout FY 2021, Virginia ABC will implement license reforms passed in the 2020 legislative session, and pending completion of the new licensing system, will establish an Outstanding Licensee Program (OLP) to spotlight some of the Commonwealth’s leading alcoholic beverage retailers. OLP provides an incentive for Virginia ABC licensees to improve their standards of operation to the level of commonly agreed upon benchmarks. OLP also strives to increase communication between Virginia ABC and licensees when it comes to compliance, training and regulatory/ legislative matters.

Technical and physical infrastructure will play a large role in customer service improvements. Most notable is the relocation of ABC’s Central Office and Warehouse. The aging infrastructure in both the warehouse and administrative headquarters has necessitated the move, as not updating the facilities will further constrain operations in the current buildings.

Many of the Authority’s applications, hardware and operating systems managing various facets of the business for collecting, managing, reporting, reconciling, processing information are at their end of life. 

Virginia ABC’s OmniChannel Business Plan is in its second iteration and the plan is focused on achieving a seamless user experience across all channels relevant to the buyer’s journey to enhance customer service and increase sales and profits. This form of a business plan approaches Virginia ABC’s ecommerce and store capabilities from the perspective of customers, and seeks the full availability of products, frictionless ecommerce, and a rich, content experience. The OmniChannel Business Plan is based on both consumer and licensee journey maps (inclusive of both online and brick-and-mortar experiences) and will undergo a second phase in 2020, following the addition of curbside pickup and next day delivery service to retail customers. 

As ABC continues to open new stores, expand its’ product selection and increase the number of licenses issued and licensees to manage, the authority has identified a need to explore the creation of a customer service department or call center devoted to responding to the numerous ad hoc questions from license applicants and the general public. This will be a major effort requiring the authority to answer a number of questions to determine what is required to implement a customer service department or call center that will reduce the number of calls fielded by all divisions and units, ensure consistency and timeliness of responses and exceed customer expectations.

 Most of the applications and operating systems were installed to meet the needs of the authority 15-20 years ago and have limited functionality and were not developed to work together. As the Authority’s operations and business needs expand these systems need to be replaced. These applications and systems will be decommissioned as new functionality is delivered to Virginia ABC, to reduce security risks posed by out of date systems and to improve customer service, reliability, compliance, flexibility and the ability to manage and report data.  The systematic collection, capture and user-friendly presentation of data enables data-driven decision-making, streamlines the decision process, increases stakeholder knowledge and engagement and fosters a collaborative environment. Data based analytics serve as the foundation for process improvement and performance measurement.

A key initiative to assist with system replacement is IT Independence. The initiative is multifaceted and allows the business to take full advantage of its status as an Authority by migrating all systems and services from Virginia Information Technology Agency (VITA) to systems and services owned or contracted for by ABC. VITA has never been truly able to align support for ABC’s 7-days-a-week operations – from the warehouse opening early to stores closing at ten o'clock and peak business over every weekend – ABC’s business needs have been at odds with the services required by the rest of the Commonwealth. As a result, the Authority requires a smaller and more nimble technology footprint than VITA can support. The authority is half way through the process of transforming out of VITA with a number of key facets in the coming months: implementing our own identity, network and security models, moving our core infrastructure to Private cloud, public cloud and ‘Software as a service’ models that are far more flexible and responsive than VITA can provide. The overall program objective will be achieved by a number of small, related initiatives, as well as major milestones – such as moving out of CESC by Summer 2020 and taking over the retail network by late fall of 2020 with the new Point of Sale (POS) rollout. The new POS system includes a touchscreen system and will support Sales and Audits’ sales, settlement activity and reporting, Loyalty and our Ecommerce business going forward.

The SWOT analysis conducted in FY20 identified the following weaknesses and threat related to the Authority workforce:

•  Difficulty recruiting and retaining technical, highly specialized and competitive jobs (e.g. IT, sworn agents, Procurement). 


• Turnover is higher than historical rates.


• Employee engagement below the organization's desired level.


• Recruitment and retention of sworn agents due to retirements and significant competitive salary issues with other local, state and federal law enforcement agencies.

In order to increase employee retention in FY20 and FY21, Virginia ABC will define the employee life cycle to better understand employees and their needs throughout their career. By analyzing current employee turnover through the collection of baseline information from exit interviews, an employee engagement survey and other internal resources, the Authority can develop new strategies to increase retention, including developing a formal succession planning program, especially in mission-critical positions. Virginia ABC will also benchmark employee turnover statistics and identify strategies used at other companies to boost employee retention.

In order for Virginia ABC to remain a competitive employer while also achieving company goals, the Authority will research and develop a “pay for performance” strategy to provide performance incentives for employees. By identifying Virginia ABC’s compensation philosophy and assessing the current performance evaluation process, the Authority can determine how to link performance and pay more closely to promote behaviors and results aligned to Virginia ABC strategic goals.

A year-long program for leadership and management will be re-instituted. The leadership and management program will have a curriculum and activities based on the strategic direction of the Authority. The Supervisor Academy will continue. The Supervisor Academy is an annual three-day conference addressing management knowledge and skills for employees with direct reports or employees who manage processes. 

Staffing statistics in the table below identify fiscal year 2020 data. The Authority's updated strategic plan for FY2023-FY2025 will be released in the first quarter of 2023. 

Technical and physical infrastructure will play a large role in customer service improvements. Most notable is the relocation of ABC’s Central Office  and Warehouse. February 4, 2020  ground was broke to mark the beginning of construction for the future 315,000-square- foot warehouse and 95,000-square-foot headquarters. The aging infrastructure in both the warehouse and administrative headquarters has necessitated the move, as not updating the facilities will further constrain operations in the current buildings. Without a new facility, future revenues will be reduced, product selection will be limited and very old electrical and HVAC systems would still require modernization. The new warehouse will include ample room for the products, as well as provide a platform for future growth and expanding capabilities, especially in the e-commerce space. It will also feature a new warehouse management system and material handling equipment. The headquarters will have a modern design with more room for ABC’s growing workforce needs. 

In fiscal year 2020 Retail Operations with the assistance of Real Estate and Facilities Management opened 12 new stores which generated nearly $18.3 million in sales. The Authority also oversaw six store remodels and 13 store relocations, enhancing customer service and accessibility. 

In fiscal year 2021 Retail Operations with the assistance of Real Estate and Facilities Management will open 11 new stores to better service the Commonwealth with Spirits.

Risks include continued economic stressors related to the COVID-19 pandemic and weather fluctuations, particularly during the holiday season, projected increases in expenses due to personal protective measures put in place in all stores and facilities, as well as, in improving information technology infrastructure and the central office and warehouse facility reaching capacity. 

The Authority’s operating expenses increased 12.6% in fiscal year 2020. Personal service cost increased by $17.0 million from fiscal year 2019, primarily due to increased staff and pay to run stores during the pandemic. In addition, contractual service cost increased $9.1 million primarily due to increased IT contractor support to assist with the implementation of internal projects, particularly POS and the new financial management services (FMS) system.

On the expense side, ABC is faced with mandated salary and benefit costs, energy inflation, automatic rent escalation, telecommunication and technology costs and growth in credit card discount fees that are all very difficult to influence in the short run. Personnel costs account for 57% of ABC non-merchandise expenditures, 16% are for continuous charges such as rent and utilities, 22% are for contractual services such as credit cards fees, shipping product to stores and telecommunications, and 5% are for miscellaneous expenses such as

supplies, materials, equipment and depreciation.

Increases in expenses are exacerbated by the need to make significant ongoing improvements in order to improve our IT infrastructure. Currently, several of ABC’s systems are outdated and have reached their end-of-life. ABC must invest in upgrading its systems to maintain viability, increase efficiency, and provide service excellence to its internal and external customers. Upgrading the outdated systems also addresses a Commonwealth of Virginia’s Auditor of Public Accounts’ audit point, ensuring that ABC complies with state and industry security standards. Changes in salary and benefit cost rates, as well as mandated Appropriations Act disbursements, can also significantly impact the accuracy of ABC’s expense forecasts.

The Virginia Alcoholic Beverage Control Authority (ABC) operates as a component unit of the Commonwealth of Virginia, which means the cost of providing goods and services are recovered solely through the sale of alcoholic beverages, license fees and other revenues. The state budget gives ABC the authority to spend money in four service areas: enforcement and regulation of alcoholic beverage control laws, administration and support, alcoholic beverage retail stores, and alcoholic beverage purchasing, warehousing and distribution. The Appropriation Act mandates a series of profit transfers to other state agencies, as well as the Virginia State General Fund.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Biennial Budget Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of  calendar year 2023.

ABC's strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of 2023.

The vast majority of the Authority’s revenue comes from the sale of alcoholic beverages. This revenue is generated through state run stores located throughout the Commonwealth. During the fiscal year gross alcohol sales, including state tax on sales, reached an all time high. License and permit fees decreased this fiscal year due to COVID. Federal grant revenue, penalties collected and wine wholesalers’ tax all decreased during the year.

Despite the pandemic, Virginia ABC continued its record-breaking fiscal year achievements. In fiscal year 2020, Virginia ABC produced $1.2 billion in revenue, up $117 million over fiscal year 2019. The Authority disbursed $545.3 million to the Commonwealth’s general fund, an increase of $45.8 million over the previous year. These disbursements reflected $212.1 million in profits from retail sales, $251.4 million in retail taxes and $81.8 million collected in wine and beer taxes. In fiscal year 2020 Virginia ABC opened 12 new stores which generated nearly $18.3 million in sales. The Authority also oversaw six store remodels and 13 store relocations, enhancing customer service and accessibility. 

Statistics in the table below identify fiscal year  2020 data. The Authority's updated strategic plan for FY2023-FY2025 will be released in the first quarter of 2023. 

Statistics in the table below identify fiscal year 2020 data. The Authority's updated strategic plan for FY2023-FY2025 will be released in the first quarter of 2023. 

Virginia ABC serves its citizens through a diverse range of activities including distilled spirits distribution, and sales, alcohol related regulation and law enforcement, judicial services to Virginia ABC licensees, and education and prevention services to many Virginia communities. Virginia ABC operates over 388 retail stores and 10 regional offices across the Commonwealth. 

The Authority is a leading revenue producer for Virginia and a source of future economic growth and innovation for the Commonwealth. The profits that Virginia ABC contributes are collected from sales of distilled spirits at Virginia ABC stores, taxes on beer and wine sales, violation penalties and license fees. This revenue provides much needed funding for use in programs across all secretariats, thus benefiting citizens in all areas of the state whether or not they choose to drink alcoholic beverages.

Virginia ABC’s Bureau of Law Enforcement is charged with enforcing the alcoholic beverage control laws and regulations governing the manufacture, distribution, sale and consumption of alcoholic beverages and tobacco, while utilizing innovative education and community partnerships

The Authority’s Education and Prevention Section reaches thousands of Virginians across the Commonwealth with responsible use messaging and education through its fifteen programs. Each program is customized to meet the needs of individual groups such as high school students or licensees.

The Virginia Alcoholic Beverage Control Authority has a very diverse mission with an even more diverse customer base. Value creation activities, or those that provide direct services to customers, include: the control and distribution of alcoholic beverages, processing license applications, conducting enforcement and adjudication activities.

In fiscal year 2020, Virginia ABC operations contributed a record $212.1 million in profits. These profits combined with $251.4 million in retail taxes as well as $81.8 million collected in wine and beer taxes resulted in an all-time high of $545.3 million transferred to Virginia’s general fund, $45.8 million above last year’s contribution. A major source of revenue for the Commonwealth, ABC has contributed more than $11.4 billion to the general fund since 1934.

Marketing, in partnership with Retail and Logistics will continue to refine and enhance existing marketing programs and develop new and innovative programs to increase sales through targeted store displays focused on consumer consumption occasions, recipes, promotions and product education which includes in-store tastings. Content development supports Spirited Virginia email and social media, website (Promotions, Virginia Products, Cocktail Recipes) and provides ABC customers with the information and knowledge they seek to make more informed purchase decisions and provides new, innovative ways to use our products. Consumer program planning and implementation consists of proactive consumer engagement activities to drive traffic to stores and ecommerce, promote “extra bottle”, and help us compete with other Beverage Alcohol channels – Mini Monday, Spirited Thursdays, front counter programming, Door Busters, seasonal campaigns (e.g. holidays, Black Friday, Cyber Monday, Cyber Mom & Dad Days, summer, National Bourbon Heritage Month, Virginia Spirits Month), and partnerships. (e.g. Virginia Tourism, Wine Board).

Logistics conducts forecasting and demand planning for all promotional activity for ABC retail locations for both Marketing and supplier driven promotional programs. Improved accuracy forecasting and demand planning ensures the authority has the right levels of inventory in the ABC warehouse and retail stores to support marketing programs and promotions that drive profitability and exceptional value to customers through minimizing both out of stock and over stock in inventory. Even with the challenges of COVID -19  warehouse employees were able to meet holiday-levels of production and broke records along the way. From March 20 to April 2, the warehouse shipped 242,619 cases. On March 31, the crew shipped 26,485 cases in a single day, with all but three days between March 20 and April 2 surpassing 22,000 cases shipped.

Virginia ABC takes an authority-wide approach as it endeavors to enhance public safety, education, health and welfare across the Commonwealth. From ABC agents working with licensees, to the creation of a new alcohol abuse prevention program and ABC store employees checking IDs, the Authority remains committed its public safety responsibilities while responding to an ever-changing alcoholic beverage marketplace. 

One of ABC's strengths is its employees. ABC’s personnel are exceptionally dedicated and possess a high degree of knowledge. The work environment encourages a work/life balance and offers job security in a family-like atmosphere. A testament to these affirmations is the length of employee tenure, many employees with 30 to more than 40 years of service to the commonwealth and ABC. As many employees become eligible to retire, ABC is taking steps to ensure it will continue to meet its goals and objectives by developing models and tools to provide ample time to forecast the fiscal and human capital needed for the ideal future workforce. This effort will include analyzing ABC compensation strategies, hiring processes and workforce needs in order to attract and retain talent.

Analyze current hiring processes from sourcing to on boarding to attract talent and identify most qualified candidate in an effective and efficient manner.

• In order to attract great talent, we will analyze current sourcing, recruiting, hiring, and onboarding processes, including a new strategy that identifies the most qualified candidate and provides an effective and efficient hiring process. This process will also be implemented in projects such as our summer internship program and the employee referral program.

Analyze employee turnover in order to gain a better understanding of the workforce's wants and needs.

• 

Develop a pay for performance strategy in order to retain ABC's top talent

• In order for ABC to remain a competitive employer while also achieving company goals, we need to research a pay for performance strategy to provide performance incentives for employees. By identifying Virginia ABC’s compensation philosophy and assessing our performance evaluation process, we can determine how to link performance and pay more closely to promote behaviors and results aligned to ABC strategic goals. Additionally, we need to develop a compensation strategy for retail employees to continue increasing sales through up-selling and increasing the number of items per transaction. Finally, we need a cost model for implementing the revised payment philosophies.

Analyze employee turnover within Enforcement Division and develop hiring strategy to accomplish agency's mission.

• We need to attract and retain Enforcement employees, assess reasons for the turn-over rate, and plan for remediation. Ideally, we will be able to increase the ratio of agents to licensees and enhance regulatory training for licensees to reduce the workload on Enforcement agents. We also need to define Enforcement’s strategy and philosophy and integrate it into practice and a career development program for our Enforcement employees. Finally, we will work to identify opportunities to use non-sworn personnel to also help decrease the workloads of Enforcement employees.

Analyze current hiring processes to determine areas of improvement in order to attract new talent which best augments current workforce and will easily acclimate to the Authority's culture.

• The authority should retain the necessary expertise to develop an appropriate strategic workforce planning model and tool to accurately forecast the fiscal and human capital necessary to achieve an ideal workforce in the coming years. The model should be comprehensive of the organization and driven by future revenue forecasts with planned organizational objectives. It should factor existing personn

This is based in the Management Scorecard that grades agencies on six criteria: Human Resources Management, Government Procurement, Financial Management, Technology, Performance Management, Environmental & Historic Resource Stewardship

• Annually in October review management letters from the APA audit and implement corrective actions in order to avoid audit points in future.

• Continue to analyze causes of turnover for wage employees through increased exit interviews and revise plans to address priority issues.

• Continue to provide SWAM procurement training and ABC Vendor Fair.

• Provide education for managers about DOA Compliance Report and the significance for compliance.

• Review quarterly DOA compliance report and take immediate corrective action.

Quality customer service for ABC involves many of its service areas. In the retail stores, ABC has focused on providing convenient locations to Virginia’s growing population. Enhanced store design contributes to the current trends in the retail marketplace. ABC offers a wide product selection throughout the store network with each store having a customized product mix based on its demographics and sales patterns. In addition, ABC offers a special order catalog for new and high-end products not currently available in individual stores. This goal also addresses quality customer service beyond retail stores to licensees, online customers, vendors, suppliers, citizens, law enforcement and municipalities, in addition to internal employees as customers of each other.

Develop a retail and corporate brand for the Authority.

• We will conduct and apply market research to brand a new Retail and Corporate (Communications, Enforcement, EPS, etc.) brand position, using the website, domain, email, and social media communication vehicles to announce changes.

• Our rebranding plan will include changing the retail environment (What do we want to look like?), assessing store names, and reconsidering employee dress. In order to accomplish this rebrand, we will hire a retail design consultant to help us consider store layout, lighting, shelving, racks, signage, traffic flow, and general aesthetics from both a supplier and employee point of view. Additionally, we will determine how we want to measure employee adherence to the new brand by way of using GoSpotCheck, mystery shopper, etc.

Improve customer experience, both internal and external, taking good customer service to the next level.

• Virginia ABC needs to change from providing good customer service to creating a superior customer experience. This enhanced experience should apply to internal and external customers. For external customers, we will conduct market research to understand what is included in and expected from a superior customer experience. For internal customers, we will create an internal training as well as increased employee training.

Quality customer service for ABC involves many of ABC’s service areas. In the area of retail operations, ABC has focused attention on providing convenient retail stores to Virginia’s growing population. Using a sophisticated planning model that utilizes GIS mapping technology, ABC opened 12 new stores, oversaw six store remodels and 13 store relocations in FY 2020 and plans to open 11 more in FY 2021. ABC offers a wide product selection throughout the store network with each store having a customized product mix based on its demographics and sales patterns. Over the past ten years, Sunday hours have been expanded and stores with significant evening retail traffic have had operating hours extended to as late as 9 PM. ABC measures customer satisfaction in several areas and continues to remodel stores and expand operating hours where appropriate.

• ABC agents to train new ABC store employees about underage buyer compliance.

• Annually conduct in-store customer surveys.

• Annually visit all ABC stores for underage buyer compliance and customer service delivery.

• Continue development of a product knowledge web site and electronic training program that would reward employees for completion.

ABC is systematically making changes to the internal structure needed to most effectively and efficiently meet strategic and operating objectives. Numerous upgrades to software systems and business processes will enable ABC to behave more like a private business. New facilities for the warehouse and central office are major priorities for this planning period. Further, newer systems will enable more automation, access to data and efficiencies to provide best-in-class internal and external customer service.

Reinvest in our processes, technology and facility infrastructure to create a more efficient and sustainable organization

• 1) Point of Sale Update: The current Point of Sale (POS) system will expire in 2020 and will no longer be supported. Current reconciliation applications sitting between POS and Performance do not allow us to aggregate and dimensionalize POS data in a way that provides us with the reporting necessary to understand trends and make data-based decisions. We need to replace the existing POS system by purchasing and implementing a new one which will not only provide us with increased functionality, but will also take advantage of changes in Industry standards and technological advances. This new POS system will also have functionality encompassing reconciliation and will capture the data required for better reporting capabilities. It will also have a loss-prevention tool

• 2) Financial System Integration: The new system will replace core financial functions, budgeting, Accounts Payable, Accounts Receivable, project/dimensional accounting, fixed assets, inventory evaluation, procurement (transition to eVa) and purchase card transition to Bank of America. In addition, many current applications and hardware will be decommissioned as new functionality is delivered to ABC.

• 3) Data Warehouse and Business Intelligence: Virginia ABC has multiple systems for reporting and numerous homegrown structures in place. Creating a central point for all of this information is of high importance, as it provides a single source of the most up-to-date and accurate data available for reporting purposes. In order to better the organization’s policies and process as we transition from VITA, we must provide a centralized data source in the form of a reconstructed data warehouse that confirms there is a single version of this data. This will give the ability to evaluate how departments, services, and the organization as a whole are functioning. Identifying trends in data will ensure immediate corrective action occurs to guarantee that production, delivery, or service statistics never fall. By utilizing data to drive business decisions, the organization should show elevation in its overall performance.

• 4) Central Office and Warehouse Move: The Central office and Warehouse move will include office, conference room and parking space constraints and warehouse management and security concerns. There also needs to be a focus on warehouse and inventory management.

• 5) Tax Management System: A new system will allow customers to submit payments, franchise agreements, and labels online. Additionally, product approval analysts would be able to review and make changes to submissions made by customers. This would greatly increase the reliability and integrity of the data being submitted and would reduce the processing time significantly due to ridding the need to mail in documentation and process paperwork.

• 6) Identity Management: We need to implement an LDAP compliant identity management solution that provides standard logging and reporting capabilities to meet the agencies security needs. By being LDAP compliant, this solution should be able to support integration with all standard products the authority will acquire and insulate ABC from upcoming changes with Active Directory as VITA migrates off NG services. This will allow ABC to manage the identity role and lifecycle of all contractors and employees from a single solution with appropriate controls and logging in place. Additionally, there should be separation between internal and external users. Currently, all identities are stored in the same system, sharing internal and external credentials. Additionally, our server environment does not participate in active directory and users have up to 100 accounts and passwords to remember that reset quarterly because they are not tied to a central single identity.

• 7) Store Security: The current Sonitrol contract has expired and we are operating under an emergency contract extension. Equipment currently in stores, the warehouse, and offices need to be upgraded from analog to digital. Such equipment includes cameras, recording equipment, and associated installation.

• 8) Human Capital Management System Replacement: After gathering the requirements, we can begin procurement and start developing a project plan for implementation.

ABC offers a wide product selection throughout the store network with each store having a customized product mix based on its demographics and sales patterns. In addition, ABC offers a special order catalog for new and high-end products not currently available in individual stores. Products are stored in a central warehouse at ABC headquarters in Richmond and shipped to retail stores throughout the state. Inventory turns measures the number of times capital invested in goods to be sold turns over in a year. Increasing inventory turns reduces holding costs and impacts profitability. Items that turn over more quickly increase responsiveness to changes in customer requirements while allowing the replacement of obsolete items. On average, ABC stores maintain a product service level over 97 percent. This translates into less than a three percent product stockout rate, based on each store’s list of products to be sold.

• Annually improve shipping accuracy

• Develop training program for Store Managers on inventory management

The public safety goals of Virginia ABC results directly from being the primary organization to regulate the manufacture, distribution, sales, transportation and consumption of alcoholic beverages. This goal is the cornerstone of services to ABC licensees, ensuring compliance with alcohol and tobacco laws particularly for underage persons, and responsible consumption by adults who choose to purchase ABC products. Prevention and education materials, programs and services developed by the agency are provided for all ages.

Develop Key Performance Indicators that measure the effectiveness of the agency's public safety efforts and benchmark accomplishments against industry best practices.

• We need to develop an authority-wide public safety plan that aligns with the mission of the authority and covers the breadth and depth of authority public safety efforts (Enforcement, EPS, Hearings, Retail, Marketing, Tax Management, Property, etc.). Also, we will create an internal and external communications strategy for public safety to include social media, authority responsibility initiative messaging, and internal awareness of public safety efforts. This will ensure that key stakeholders have a clear understanding of the authority’s current initiatives, future goals, and the potential impacts on the community. To help with informing the public, we will develop a standard curriculum to provide up-to-date, effective, and consistent messaging. Finally, we will implement a licensee needs assessment to determine specific areas of the licensee experience that should be enhanced and then launch the Outstanding Licensee Program.

Complete and maintain the initiatives to implement Executive Order 40.

• Initiatives relating to Executive Order 40 need to be completed and those initiatives that have already been enacted will be maintained. We will determine the requirements and timeframe for the completion of outstanding actions and identify if they are still strategic or if they can now be considered operational.

Restructure and transition changes within Judicial Affairs Division to meet agency's goals and objectives.

• Judicial Affairs needs to be transitioned to the Authority structure by implementing solutions to increase efficiencies and revisions to adjust for new authority structure.

Conduct a needs assessment on current public safety data to determine gaps and develop solutions to fulfill needed information.

• To increase data collected, we will determine key performance indicators that measure the authority’s public safety efforts and compare them to industry best practices. Then, we can identify data gaps and solutions to closing those gaps. We also need to streamline data reporting and accessibility, which should be aided by the completion of our implementation of our new Licensing System.

Analyze employee turnover within Enforcement Division and develop hiring strategy to accomplish agency's mission.

• We need to attract and retain Enforcement employees, assess reasons for the turn-over rate, and plan for remediation. Ideally, we will be able to increase the ratio of agents to licensees and enhance regulatory training for licensees to reduce the workload on Enforcement agents. We also need to define Enforcement’s strategy and philosophy and integrate it into practice and a career development program for our Enforcement employees. Finally, we will work to identify opportunities to use non-sworn personnel to also help decrease the workloads of Enforcement employees.

ABC issues licenses to retail establishments and restaurants for the sale of wine, beer and spirits. In addition, licenses are issued for one-time special events to sell wine, beer and spirits. The license process has multiple steps to complete that are required by statutes and regulations for the citizen requesting the licensee, the Special Agents conducting the investigation, and the Licensee Record Management managing the process. Process improvement efforts in the past year identified staffing of licensee technicians as a significant way to improve processing time. ABC monitors compliance of these licensees with Virginia ABC laws and regulations and issues violations for non-compliance. If violations occur or licensee applications are contested, ABC conducts administrative hearings to adjudicate these issues. The purpose of this objective is streamlining administrative licensing and adjudication processes while balancing the interests of public safety with customer service.

• 

• Begin cross training staff to expedite decisions through team editing and distribution of decisions electronically.

• Create more contiguous hearing dockets with less travel time for ABC staff.

• Develop standards and criteria for violation reporting and processing time prior to submission to Hearings.

• Expand the part time licensee technician positions to full time in eight regions.

• Increase the use of settlement options and use of video teleconference hearings.

The authority structure creates opportunity to improve agility and streamline operations throughout the organization. The agency, as it completes its transition to an authority, has the potential to grow incremental sales and profits through improved special order product management, enhancing the product portfolio for retail stores and the website and taking advantage of industry trends toward premium products. At the same time, ABC gives equal weight to maintaining the public’s trust through internal controls and compliance with generally accepted accounting principles and state administrative procedures.

As an Enterprise Agency, ABC operates much like a private business using performance metrics to monitor activity throughout much of the organization. ABC generates revenues in the form of profits and taxes including, state taxes, sales tax, wine liter tax and malt beverage tax. These funds are transferred to the General Fund and other state agencies on an annual basis. Estimates of these revenue collections are included in the Governor's Annual Estimate of Revenues, and are based on forecasts prepared by ABC.

• Develop an operating budget at the beginning of each fiscal year and monitor monthly.

• Added 5 new stores in FY 2018 and anticipate adding 15 FY2019.

Develop the ability to provide Retail Operations with necessary expenditure data to effectively and efficiently manage a retail store.

• We aim to open twenty new profitable retail stores in major metropolitan areas to help increase the number of customers served per labor hour. Stores will also be given access to expenditure tracking relevant to them. Utilities, payroll, and inventory CGS Process Improvement. Each store will have a supply budget not to be exceeded, allowing for supplies to be ordered on a shorter basis. By increasing data access to stores through the transition to eVA, there will be greater visibility into supply ordering and we can also reduce the amount of paper used in transactions such as closing reports and Regional audit needs. We also hope to implement Store Operational Efficiencies by tasking stores to own their expense management. This will be achieved by empowering their decisions with timely sales and expense data, supply budgeting, access to alternative procurement methods, and other means of directly managing store costs. We will be considering the use of equipment such as iPads in stores instead of registers, as iPads can also manage surveys and track inventory through the Next Gen POS project. To reduce shoplifting, we will install a theft sensor system in stores. We will also research how licensees pay now and how we can streamline the payment process by delivering email receipts to reduce paper and cut costs. Finally, we need a new contract with a company or an in-house resource to stamp plans for store layout with regards to lighting

Quality customer service for ABC involves many of ABC’s service areas. In the area of retail operations, ABC has focused attention on providing convenient retail stores to Virginia’s growing population. Using a sophisticated planning model that utilizes GIS mapping technology, ABC opened 12 new stores, oversaw six store remodels and 13 store relocations in FY 2020 and plans to open 11 more in FY 2021. ABC offers a wide product selection throughout the store network with each store having a customized product mix based on its demographics and sales patterns. Over the past ten years, Sunday hours have been expanded and stores with significant evening retail traffic have had operating hours extended to as late as 9 PM. ABC measures customer satisfaction in several areas and continues to remodel stores and expand operating hours where appropriate.

• ABC agents to train new ABC store employees about underage buyer compliance.

• Annually conduct in-store customer surveys.

• Annually visit all ABC stores for underage buyer compliance and customer service delivery.

• Continue development of a product knowledge web site and electronic training program that would reward employees for completion.

ABC offers a wide product selection throughout the store network with each store having a customized product mix based on its demographics and sales patterns. In addition, ABC offers a special order catalog for new and high-end products not currently available in individual stores. Products are stored in a central warehouse at ABC headquarters in Richmond and shipped to retail stores throughout the state. Inventory turns measures the number of times capital invested in goods to be sold turns over in a year. Increasing inventory turns reduces holding costs and impacts profitability. Items that turn over more quickly increase responsiveness to changes in customer requirements while allowing the replacement of obsolete items. On average, ABC stores maintain a product service level over 97 percent. This translates into less than a three percent product stockout rate, based on each store’s list of products to be sold.

• Annually improve shipping accuracy

• Develop training program for Store Managers on inventory management

Virginia ABC's Strategic Plan FY2020-FY2022 (Please note: The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.)

Virginia ABC’s expertise in alcohol laws and regulations make its Bureau of Law Enforcement a valuable resource for future and existing ABC licensees. Special agents are ABC law educators and regulators, working directly with approximately 19,000 licensed businesses to address non-compliance issues and reduce criminal activities involving alcohol. These agents also initiate public safety investigations following incidents at licensed establishments, assisting and cooperating with other law enforcement agencies, civic leagues, residents, businesses and community stakeholders. All ABC special agents are sworn Virginia Department of Criminal Justice Services certified law enforcement officers within the bureau, which is accredited through the Virginia Law Enforcement Professional Standards Commission. Importantly, revenue generated from license fees and civil penalties goes to support industry regulation to ensure fair market practices.

The Bureau also manages License Records Management (LRM) which consists of two sections—Licensing and Records. These sections oversee the life of an ABC license from application submission through possible approval, suspension, revocation and surrender. The Bureau and its license records management division serve customers out of 10 regional offices throughout the commonwealth, as well as Virginia ABC’s central office located in Richmond.

Virginia ABC's Compliance Unit works with manufacturers, wholesalers, importers and out-of-state shippers in the alcoholic beverage industry. 

When there is a disciplinary matter involving a licensee (i.e., a business is charged with a Virginia ABC law violation), a contested ABC license application or an issue involving contract or performance disputes between beer or wine producers and their distributors, ABC will schedule administrative proceedings, which include hearings and alternate dispute resolution options such as consent and negotiated settlements, and mediation services. 

This service area directly aligns with the ABC mission to generate a reliable stream of revenue for Virginia and promote public safety through the responsible sale and regulation of alcoholic beverages.

The public safety mission of ABC results directly from being the primary organization to regulate the manufacture, distribution, sale, transportation and consumption of alcoholic beverages. Services include the issuance of licensees to sell wine and beer to retail establishments and restaurants for the wine, beer and spirits. Licensees are also issued for one-time special events to sell wine, beer and spirits. Extensive criminal background investigations are conducted on the individuals associated with the business license application, in addition to a thorough corporate investigation to insure suitability to be issued an ABC license.

The Bureau of Law Enforcement also includes licensing, compliance and records management staff who provide a number of services including:

• serve as liaisons to breweries, distilleries and wineries;


• inform and interact with alcohol manufacturers, importers and distributors;


• collect Virginia taxes;


• process invoices and renewals;


• conduct alcohol-related training about the commonwealth’s ABC laws; and


• maintain records for businesses with ABC licenses and individuals seeking licenses related to alcohol sale and consumption at private special events.

Virginia ABC’s Bureau of Law Enforcement has 10 regional offices and one satellite office that serve as points of contact for citizens and licensees.

Virginia ABC's Compliance Unit works with manufacturers, wholesalers, importers and out-of-state shippers in the alcoholic beverage industry. The unit is responsible for granting licenses and enforcing industry regulations, interprets applicable alcohol laws and regulations, offers training on industry matters and provides expert guidance on tied-house issues. Senior special agents (SSA) in the Compliance Unit offer leadership and guidance in addition to serving as a reliable resource for the alcoholic beverage industry.

ABC monitors compliance of these licensees with Virginia ABC laws and regulations and issues violations for non-compliance. If violations occur or licensee applications are contested, ABC conducts administrative hearings to adjudicate these issues. The administrative hearings process addresses disciplinary matters related to ABC law violations, contested license applications and franchise issues. Hearings are conducted by the Hearings, Appeals and Judicial Services Division, an independent adjudicatory division within Virginia ABC that schedules and conducts hearings on issues brought to the ABC Board for resolution.

In FY 2020:

• ABC issued 20,204 annual licenses to businesses and retail establishments for the sale of alcoholic beverages.  These licenses and their application fees generated $14.2 million.


• ABC issued 20,000 one-day banquet and special event licenses.


• ABC conducted background investigations for the issuance of 1,903 new retail, wholesale, and special permit licensees.


• ABC issued 535 hearings dispositions.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Product/Service Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023. 

The Virginia Alcoholic Beverage Control Authority operates as a component unit of the Commonwealth of Virginia which means the cost of providing goods and services are recovered solely though the sale of alcoholic beverages, license fees and other revenues.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Biennial Budget Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.

Administrative functions are those necessary to support the business of the Authority. The business units serving in a support function include: Information Technology, Internal Audit, Procurement and Support Services, Research & Planning, Education and Prevention, Marketing, Human Resources, Financial Management Services, Communications, Real Estate and Facilities Management, the Authority’s Executive staff.

Virginia ABC's FY20-22 Strategic Plan  (Please note: The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.)

Between September 2017 and May 2018, Virginia ABC staff and a consultant hired through the Community College Workforce Alliance facilitated a strategic planning process in which more than 100 employees provided input. Five strategic pillars were developed and approved by the Board and a champion and process coach were assigned to each of the pillars. The pillars were Employee Experience, Infrastructure, Public Safety, Sales & Profitability, and Brand. More than 200 ideas and initiatives were identified to operationalize the strategic plan through fiscal year 2022. The organization chose a total of 22 ideas for implementation.

As fiscal year 2020 commenced, Authority Leadership recognized a number of initiatives had commenced and some were well on their way to being operationalized or completed. Leadership determined it was time to review and refresh the strategic plan. The five strategic pillars were collapsed into three high-level goals accompanied by a series of objectives. Each Division was asked to identify its current and future initiatives and the goals and objectives the initiatives supported. C-suite reviewed and prioritized the initiatives while considering the following criteria: Strategic Fit, Rate of Return, Benefit of Change, Duration of the Initiative, and Level of Effort. The Viriginia ABC strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021. 

Goal 1: Invest in our people to foster an inclusive, flexible and engaged workforce.

Objectives: 

1. Recognize employee contributions and successes, and use employee feedback to increase employee retention and engagement.


2. Compensate employees consistent with competitive market principles, performance, experience, and skills.


3. Provide access to various levels of educational opportunities and incentivize participation.


4. Encourage innovation in processes that increase efficiency and improve service to the public.


5. Implement leadership and management development programs that empower ABC managers and supervisors to help all employees maximize their potential.


6. Cultivate inclusivity by supporting initiatives that emphasize and educate employees on the value of diversity.

 

Goal 2: Enhance public safety, education, health and welfare.

Objectives: 

1.  Maintain status as a premier law enforcement organization and accreditation through the Virginia Law Enforcement Professional Standards Commission (VLEPSC).


2. Develop agents with a fair and solution-oriented mindset when it comes to enforcement of laws regarding possession, sale, transportation, distribution, and delivery of alcoholic beverages in the Commonwealth.


3.  Focus on emerging trends in the beverage alcohol industry, building awareness of activities at all three tiers of the alcoholic beverage distribution system.


4. Implement and manage a state of the art licensing system that facilitates applications and continued operations of ABC-licensed establishments.


5. Conduct collaborative programs with partners to facilitate public safety efforts and increase awareness of the impacts of alcohol and compliance with the Commonwealth’s alcoholic beverage laws.


6. Ensure agents and employees are accessible and responsive to stakeholders in a timely and consistent manner.

Goal 3: Deliver exceptional customer experiences in a trusted and innovative environment

Objectives:

1. Invest in physical and information technology infrastructure that seamlessly supports the authority, providing accurate and actionable information.


2. Build a brand known for providing consistent superior service and an outstanding customer experience by empowering our people.


3. Maintain marketing programs that drive profitability and exceptional value to customers.


4. Provide product selection and availability that responds to market trends and customer demands.


5. Transact business in a fashion where we have a positive impact on our communities while meeting fiscal responsibilities.

This service area supports ABC's mission to generate a reliable stream of revenue for Virginia and promote public safety through the responsible sale and regulation of alcoholic beverages.

Revenue Growth and Internal Controls

Growing revenues and maintaining accountability and the public’s trust will be a priority for ABC. The growth in stores, new items and consumer engagement activities continue to produce record levels of sales and revenue contributions to the commonwealth and localities. ABC's operating revenues increased 10.8% in fiscal year 2020. This increase in revenue is primarily due to an increase in sales volume in existing stores, which generated an additional gross sales amount of $94.3 million, while the addition of twelve new stores added $18.3 million in gross sales. Thirteen stores were relocated to improve market coverage, and six stores were modernized. In addition, one pop-up store operated from November to January of fiscal year 2020. Since 1934, ABC has contributed more than $11.4 billion to the commonwealth’s general fund to support state services, including substance abuse prevention and treatment. At the same time, ABC gives equal weight to maintaining the public’s trust and protection of ABC assets through internal controls and compliance with generally accepted accounting principles. The accounting system of the Authority is dependent upon a strong system of internal accounting controls to ensure that financial information is both accurate and reliable. The Authority’s internal controls are designed to ensure that the assets of the Authority are protected from loss, theft or misuse, and to ensure adequate accounting data is compiled for financial statements.

Employee management and development

Virginia ABC's FY2020-FY2022 strategic plan has made investing in our employees one of our three goals.  In this area, ABC seeks to recognize employee contributions and successes, compensate employees consistent with competitive market principles, performance, experience and skills.  Additionally ABC wants to provide access to various levels of educational opportunities and incentivize participation, encourage innovations, implement leadership development programs, and cultivate inclusivity by supporting initiatives that emphasize and educate employees on the value of diversity.  ABC uses multiple modes of listening to develop a comprehensive picture of employee needs and satisfaction levels. ABC uses tools such as surveys, an employee suggestion program and utilizes a SharePoint communication platform. The leadership team reviews employee concerns and issues and develops an action plan for issues that can reasonably be addressed.

Education and prevention

The mission of Virginia ABC Education and Prevention Section is to eliminate underage and high-risk drinking by building the capacity for communities to educate individuals and prevent alcohol misuse. This is implemented through programming and resources offered for all age groups and community organizations.  Overall Education and Prevention Services initiatives saw a decrease in participation and reach rates in its programs from FY19 to FY20 due to the impacts of COVID-19. Note: Reach of substance use prevention efforts is defined as the estimated number of individuals reached through prevention efforts, including, but not limited to: programming and training, resources, educational information and marketing and media campaigns through engagements, reach and impressions.

Virginia ABC provides a grant to the Miss Virginia Organization, in which Miss Virginia visits elementary schools spreading a message of health, wellness and prevention with students and teachers. At each visit, students receive a copy of Virginia ABC’s elementary activity workbook. The Miss Virginia School Tour messaging aligns with the Virginia Standards of Learning of Advocacy and Health Promotion, Essential Health Concepts and Healthy Decisions. Through the Miss Virginia School Tour, students will: 

• Demonstrate knowledge of how to identify what is safe and healthy for their bodies 

• Learn what positive choices are and how to make them and how to say “no” when something is not healthy for their bodies 

• Learn what it means to be a leader in their community and among their friends 

• Be able to identify who is a trusted adult and understand the role they play in their lives

The Miss Virginia School Tour reached 16,001 participants in fiscal year 2020.

The Youth Alcohol and Drug Abuse Prevention Project (YADAPP) is a peer-led program for high school students to address underage substance use at the high school level. Teams of four students and one Adult Sponsor attend a week long summer kick-off conference to develop strategic prevention plans addressing underage alcohol and other drug use in their schools and communities. After the conference, students implement their plans utilizing leadership and prevention skills learned during conference sessions. Through YADAPP, program participants: 

• Broaden their knowledge of substance use prevention and work as a team to create a high school substance use prevention plan for their school 

• Learn leadership skills needed to address common issues among youth 

• Network and build supportive relationships with others from across Virginia 

The Youth Alcohol and Drug Abuse Prevention Project (YADAPP) hosted 248 students and adult educators with a reach of 15,205 through strategic prevention planning. In response to COVID-19, the Education and Prevention Section (EPS) modified its high school prevention program, Youth Against Drugs and Alcohol Prevention Project (YADAPP). In response to youth teams being unable to continue implementing their Strategies To Act Now (STAN) Plans in their original formats, EPS staff developed messaging for adult sponsors that included virtual collaboration and engagement resources, alcohol, tobacco and other drug education tools and information on virtual strategies, such as social media campaigns. While barriers of technology resources such as Wi-Fi and computer accessibility hindered some youth teams from redeveloping their STAN Plan, other teams were able to redevelop their strategies to be delivered virtually.

Project Sticker Shock aims to prevent underage youth from obtaining alcohol from adults 21 or older or using a fake ID to purchase alcohol by raising community awareness about Virginia laws. During an event, participants place stickers and window clings that warn about the legal consequences for providing alcohol to underage youth and using a fake ID to purchase alcohol on cases and coolers of alcohol at local retailers. This program encourages partnership between community organizations, youth, retail establishments, law enforcement, media, and other community members. In fiscal year 2020 Project Sticker Shock continued to raise community awareness about Virginia laws on social providing of alcohol and using a fake ID to purchase alcohol. There were seven groups with a total of 164 participants engaged this year. The estimated reach for these efforts is over 27,000 individuals. 

The Higher Education Alcohol and Drug Strategic Unified Prevention (HEADS UP) program now offers free resources including online trainings, promotional materials, educational flyers and trivia cards. In the past year, approximately 91 percent of all institutions of higher education in Virginia engaged with this program. There were approximately 3,500 downloads of free resources and an estimated reach of 5,290 students through the use of HEADS UP materials at campus events. 

Per the Code of Virginia §4.1 – 103.02., the Virginia ABC Board established and appointed members to the Virginia Higher Education Substance Use Advisory Committee (VHESUAC). The goal of which is to develop and update a statewide strategic plan for substance use education, prevention, intervention and recovery at Virginia’s public and private IHEs. The strategic plan must also meet the following requirements:

• Incorporate the use of best practices 

• Provide for the collection of statewide data from all IHEs on student AOD use 

• Assist IHEs in developing campus strategic plans by providing networking and training resources 

• Develop and maintain reporting guidelines for use by IHEs in campus strategic plans

Pursuant to HB 1291 and SB 678 of 2012 (Chapter 835 of the 2012 Acts of Assembly), enacted through § 4.1-103.02 of the Code of Virginia, the Governor's reorganization of executive branch of state government states: “The responsibility for the administration of a substance abuse prevention program transfers from the Governor to the Alcoholic Beverage Control Board. The bill gives the ABC Board the duty to (i) coordinate substance abuse prevention activities of agencies of the Commonwealth in such program, (ii) review substance abuse prevention program expenditures by agencies of the Commonwealth, and (iii) determine the direction and appropriateness of such expenditures. The Board is to cooperate with federal, state, and local agencies, private and public agencies, interested organizations, and individuals in order to prevent substance abuse within the Commonwealth. The Board must report annually by December 1 to the Governor and the General Assembly on the substance abuse prevention activities of the Commonwealth. [Enactments 103-104; HJ 49 #37]

The Virginia ABC Education and Prevention Section provides the public with free publications specific for elementary school, middle school, high school, college student, 21 and older, parent, older adult, licensee and health care provider populations. These publications can be ordered (free of cost) via ABC’s website. Additionally, EPS awards Alcohol Education and Prevention Grants to provide funding to coalitions, law enforcement, nonprofits, schools, colleges and universities, faith-based organizations and prevention-related groups. Applicants must address one or more of the priorities: underage drinking prevention, social hosting or social providing prevention and high-risk drinking prevention. Grant awards are limited to a maximum of $10,000. 

Additionally, Education and Prevention works with the Bureau of Law Enforcement to provide online and in person licensee training programs  

• Managers’ Alcohol Responsibility Training (MART): Trainings are held regionally and conducted by Virginia ABC special agents to help managers and owners of licensed establishments become more responsible and to better understand Virginia laws, rules and regulations.


• Responsible Sellers & Servers: Virginia’s Program (RSVP): Trainings are held regionally and conducted by Virginia ABC special agents to help alcohol sellers and servers in licensed establishments become more responsible and to better understand Virginia laws, rules and regulations.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Product/Service Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.

The Virginia Alcoholic Beverage Control Authority operates as a component unit of the Commonwealth of Virginia which means the cost of providing goods and services are recovered solely through the sale of alcoholic beverages, license fees and other revenues.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Biennial Budget Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.

Virginia ABC's Strategic Plan FY2020-FY2022 (Please note: The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.)

This service area aligns with the ABC's mission by promoting public safety through the responsible sale of alcoholic beverages by operating efficient, conveniently located retail outlets, promoting excellent customer service and generating revenue for the commonwealth.

Services include:

• Operating 388 stores throughout the commonwealth using a sophisticated store location process to maximize customer service and profitability.


• Providing more than 2,949 products for sale including non-alcoholic mixers and wine. Another 1,317 special order products and 671 special order non-catalog products are also available for sale.


• Servicing the 4,859 restaurants licensed to sell mixed beverages in the commonwealth.


• Conducting over 35.7 million customer transactions annually generating in excess of 1.1 billion in gross sales for fiscal year FY 2020.

This service area supports the public safety, customer service and revenue focus of the mission through the operation and management of retail stores.

This service area also supports the delivery of high-quality products to retail and licensee customers in a timely manner and encourages user-friendly online services for all citizens.

Services include operating more than 388 retail stores throughout the state and controlling access to distilled spirit products in the commonwealth; ensuring equitable service throughout the commonwealth using a sophisticated store location process to maximize customer service and profitability.

Store personnel provided 2,949 products for sale including non-alcoholic mixers, served 4,859 restaurants licensed to sell mixed beverages in the commonwealth.

Retail stores served more than 35 million customers and generated more than $1.1 billion in sales during the fiscal year.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Product/Service Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.

The Virginia Alcoholic Beverage Control Authority operates as a component unit of the Commonwealth of Virginia which means the cost of providing goods and services are recovered solely through the sale of alcoholic beverages, license fees and other revenues.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Biennial Budget Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.

Virginia ABC's Strategic Plan FY2020-FY2022 (Please note: The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.)

The logistics division, which includes warehouse operations, inventory control and transportation, special orders and business/system support, is responsible for the effective and efficient distribution of alcoholic products to all ABC stores. For the product distribution area, ABC is required to receive, store and ship distilled spirits, mixers and store supplies to over 388 stores. As a bailment operation, suppliers actually own the vast majority of inventory stored in ABC’s warehouse. ABC ships over 5.8 million cases annually. On a daily basis, ABC receives shipments from suppliers, prepares orders and ships over 22,000 cases with seasonal spikes exceeding 26,000 to 27,000 cases per day during the holiday season.  

This service area directly aligns with ABC's mission to generate a reliable stream of revenue for Virginia and promote public safety through the responsible sale of alcoholic beverages.  ABC offers a wide product selection throughout the store network with each store having a customized product mix based on its demographics and sales patterns. In addition, ABC offers a special order catalog for new and high-end products not currently available in individual stores. Products are stored in a warehouse at its Central Office in Richmond and shipped to retail stores throughout the commonwealth.

The primary services of this service area include product distribution including receiving, storing and distributing product through the warehouse; inventory management for standard and special order products; and demand planning for over 388 ABC stores.

• ABC manages a 300,000 square foot central distribution center in Richmond and an inventory of over 3,000 products and a volume exceeding 5.8 million cases annually. On a daily basis, ABC receives shipments from suppliers, prepares orders and ships over 22,000 cases with seasonal spikes exceeding 26,000 - 27,000 cases per day during the holiday season.


• For the product distribution area, ABC is required to receive, store and ship distilled spirits, mixers and store supplies to over 388 stores. As a bailment operation, suppliers actually own the vast majority of inventory stored in ABC’s warehouse. 


• Product Management Services include item setup, product pricing, product inventory, and central inventory management. ABC offers special order services such as in-store specialty catalogs and a special order catalog for merchandise not carried by ABC.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Product/Service Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.

The Virginia Alcoholic Beverage Control Authority operates as a component unit of the Commonwealth of Virginia which means the cost of providing goods and services are recovered solely through the sale of alcoholic beverages, license fees and other revenues.

While the strategic plan addresses initiatives occurring in fiscal year 2020 and planned for fiscal year 2021 the figures in the Biennial Budget Table below reflect the budget for the most current year. The Authority's updated strategic plan for 2023-2025 will be released in the first quarter of calendar year 2023.