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Procedures
and Policies
for Vendors
Bureau of Product Management
Pennsylvania Liquor Control Board
February 2010
LCB-23
FOREWORD
The Pennsylvania Liquor Control Board is proud to fulfill an obligation
of value and service to our customers and all the citizens of the
Commonwealth. If we are to continue to meet this obligation, it is
essential that we keep abreast of consumer demands and the rapidly
changing concept of modern American merchandising.
We cannot overstate the importance of utilizing the best business
practices and maintaining the highest standards in procuring products
to stock the shelves of our Pennsylvania Wine & Spirits Stores.
This booklet should serve as a reference guide for vendors
presently conducting business with the Board and should also acquaint
new and prospective vendors with the Board’s marketing policies
and procedures.
All inquiries relative to the Board’s marketing policies and
procedures should be directed to:
Director of Product Management
Pennsylvania Liquor Control Board
Room 202, Northwest Office Building
Harrisburg, Pennsylvania 17124-0001
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BUREAU OF
PRODUCT MANAGEMENT
MISSION STATEMENT:
To seek out best practices and translate them into a
profitable and efficient business model that strives
to meet the needs and preferences of the beverage
alcohol consumer.
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TABLE OF CONTENTS
Listing Policies ……………………………………………………………5,6
Size Listing Consideration ………………………………………………….6
New Item Follow-Up ……………………………………………………….7
Listing Calendar …………………………………………………………….8
Removal of Listed Stock Items …………………………………………..…9
Special Purchase Allowance (SPA) ……………………………………….10
Mail In Rebate Requirements ……………………………………………...11
Instant Redeemable Coupon Procedures ……………………………….12,13
Changes in Cost …………………………………………………………....14
Changes in Specifications/UPC Requirements…………………………14,15
Special Liquor Orders ………………………………………………….….16
Standard Quotation and Specification Form ………………………..17,18,19
Instructions and Conditions ……………………………………………….20
New Item Request Form Sample ………………………………………21,22
S.P.A. Notification Form Sample …………………………………………23
On-Pack Request Form………….…………………………………………24
Rebate Offer Form Sample…………………………………………….......25
Special Liquor Quotation Sample………………………………………….26
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Listing Policies
The Pennsylvania Liquor Control Board reviews listing proposals in the months shown
on page 7 to consider new stock items for the Pennsylvania Wine and Spirits Stores.
Listing proposals will only be accepted during these months. The Board reserves the right
to alter this policy when conditions warrant.
In order to submit a listing proposal, you must have a Pennsylvania Vendor Permit. If
you do not have a Commonwealth of Pennsylvania Vendor Permit, the first requirement
is that you have a license from the Alcohol and Tobacco Tax and Trade Bureau. Check
your telephone directory for the office nearest you or visit www.ttb.gov.
After obtaining your Federal permit, you may request the necessary applications from the
Bureau of Licensing at (717) 783-8250. A vendor’s permit fee of $265.00 and a filing fee
of $700.00 are required when submitting the completed application.
Payment of the licensing fees does not guarantee the listing of your product.
If you are presently licensed by the Commonwealth of Pennsylvania as a vendor
representative, a listing proposal for each item must include the following elements:
1. A non-refundable listing proposal fee of $150.00 per item, per size, in the form of a
check made payable to the Pennsylvania Liquor Control Board. This fee covers all of our
administrative costs in reviewing the feasibility of the product, and getting the product
ordered and into store distribution. If your item is for the Chairman’s Selection Program,
we will not require a fee of $150.00. For all other One Time Buy programs, we do
require this fee of $150.00. Payment of the listing fees does not guarantee the listing of
your product.
2. Two (2) presentation packets. Each packet must include the following: A properly
completed New Item Request Form (see example on pages 19 & 20), a properly
completed Standard Quotation and Specification Form (see examples on page 17 & 18),
two copies of the front and back label of the product, and any other information the
vendor deems appropriate.
3. Both the New Item Request Form and the Standard Quotation and Specification Form
can be downloaded from www.lcb.state.pa.us. Click on “For Industry Partners” and
“Supplier Information.”
4. Special notice should be taken of the Standard Contract Terms and Conditions for
Purchase Orders, which must be read and agreed to before the Standard Quotation and
Specification Form can be accessed. Imported items can be quoted F.O.B., a U.S.
shipping point, destination freight paid, or on an In-Bond basis.
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5. The presentation packets and check must all be mailed together to Alma Kocher
(Room 218, Northwest Office Building, Harrisburg, PA 17124). The Board reserves the
right to return incomplete packets. Late submissions will not be accepted.
6. If a listing presentation is deemed necessary, it must be presented to the Category
Manager responsible for that product category (see page 7). All personal presentations
must be completed by the end of the Listing month stated on the Listing Calendar
(Example: All Sept. listing presentations must be completed by Sept. 30th). Samples of
the product being submitted must accompany the presentation or must be submitted with
the required listing material. Please submit samples according to the following guide:
Samples needed for a New Listing:
Wines – 2
Spirits – 1
Samples needed for a Line Extension Listing:
Wines / Spirits – 1
7. The Category Manager will attempt to discourage vendors/suppliers from presenting a
product that does not meet the needs of the Pennsylvania Liquor Control Board.
However, the vendor/supplier may still wish to submit the product, with the
understanding that the Category Manager will present the product with a recommended
rejection.
8. The Category Managers will make their recommendation to accept or reject an item
based on several key factors, including price segment growth, category growth, projected
annual profit per store, and marketing support being provided by the vendor/supplier.
9. The Director of Product Management will submit recommendations to the Board for
official decision.
10. Vendors who have submitted items for consideration will be notified in writing of the
results of the Board’s decision with respect to their individual items. Telephone requests
for information will not be honored prior to Board decision.
Size Listing Consideration
The Board will entertain all sizes for consideration with the smallest size of 50ml (1.7
oz.) to the largest size of 5.0L (169.0 oz.) for still wine and 6.0 L (202.8 oz.) for
Sparkling Wine and Champagne.
Size extensions will follow the same listing calendar as all other items.
6
New Item Follow-Up
Newly listed items will be reviewed three periods after the Board approval date to ensure
that inventory has arrived in the appropriate stores.
New products will be reviewed again six periods after the product is listed. The Category
Managers will be checking to make sure that all marketing support that was initially
offered by the vendor on the New Item Request Form has taken place. The Category
Managers will contact vendors who have not followed through on their initial
commitments.
Marketing support follow through will be reviewed again at 13 periods. The Category
Managers may recommend that a product be delisted at that time if it is underperforming
and/or marketing support commitment has not been executed. To determine if a product
is underperforming, the Category Managers will compare the actual cases sold per store
to the projected cases per store indicated on the New Item Request Form. Other factors,
such as case and profit share and item trend, may be considered.
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Removal of Listed Stock Items
Product categories are reviewed according to the published listing calendar on page 7 and
evaluated against performance standards. This allows for more efficient management of
assortment and space, while providing reasonable time to remove delisted products prior
to the introduction of new listings.
To have the ability to offer new products and to increase supply chain efficiencies, it is
necessary to remove products that do not contribute significantly to the Board’s profits
and do not enhance the overall product selection.
If an item is determined by the vendor to be unprofitable or inconsistent with its present
marketing philosophy, the vendor may request that an item be delisted. The Board will
not willingly delist any item that has been well received by the public in Pennsylvania. If
the vendor, however, has decided to withdraw the item from the national market, the
Board will, of course, comply with a request for delisting.
The Director of Product Management will submit recommendations for delisting to the
Board for official decision. Vendors will be notified in writing of the delisting of their
respective items.
The Board also reserves the right to request a voluntary delist of listed codes which have
consistent out of stock situations for more than two periods. Suppliers are encouraged to
allocate sufficient stock of listed codes to the Commonwealth.
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Category Managers/Contact Information/Categories
Tim Fringer Christine Gerberich Pamela Bernd
tfringer@state.pa.us cgerberich@state.pa.us pbernd@state.pa.us
717-772-2166 717-783-7604 717-787-6191
Cocktail Mixes (NA) Beverage New Zealand
Bourbon Economy Australia
Blended Whiskey 5L Box French
Canadian Whiskey Wine Coolers Italian
Scotch Cider German
Irish Whiskey All US Chile
Brandy PA/NY Argentina
Cognac WA/OR Other Imports
Vodka 4 Packs Asian
Gin All Sparkling/Champagne Spanish
Rum South Africa
Tequila Kosher
Cordials Dessert
Prepared Cocktails Alternative Size Box
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Vendor Allowances (formerly Special Purchase Allowances)
Following are the details of the Board’s monthly Vendor Allowance (VA) program:
1. A code can only be entered by the vendor once per quarter or 4 times per year. Newly
listed items may go on sale up to 6 times per year. Check with your respective category
manager for more information.
2. For products going on VA 4 times per year, a VA will not be approved for consecutive
months.
3. For new products going on sale more than 4 times per year (up to 6 times), the Bureau
of Product Management will allow two of the VAs to fall on consecutive months between
quarters.
4. Each month a limited number of selected codes will be designated for floor displays.
Selection of these items will be based on volume potential, profitability and marketing
support. All other approved promotional items will be for shelf-only sales.
5. The final decision on when and what products will be on sale within each quarter is at
the discretion of the Bureau of Product Management. Category managers may decide to
assign consecutive month VAs when deemed to be an advantage to the Board.
6. All VA offers must be submitted monthly through the PLCB Industry Partners Page.
If a vendor does not currently have online access, VA offers should be submitted
quarterly to the Bureau of Product Management on the proper VA Notification form (see
example on page 21). New monthly deadlines will be 5 months before the start of the
sale. During our transition to the new allowance system, the deadlines will be as notated
below for the next year.
Due Date for
Year Sale Period Entry
2010 May 2/1/2010
2010 June 2/16/2010
2010 July 3/1/2010
2010 August 3/15/2010
2010 September 3/23/2010
2010 October 4/27/2010
2010 November 5/25/2010
2010 December 6/29/2010
2011 January 8/3/2010
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Mail-In Rebate Requirements
The following guidelines have been established for rebate offerings:
1. All mail-in rebates must be issued for a period of at least 90 days and must be
submitted to Lori Motter in the Bureau of Product Management 60 days prior to the
requested initiation date. Rebates will not be accepted without completing the Request
for Manufacturer’s Rebate Offer Form (see example on page 23). This form can also be
found on the PLCB website www.lcb.state.pa.us under “For Industry Partners,” “Supplier
Information.”
2. All mail-in rebates shall only be available through Pennsylvania Wine and Spirits
Stores after approval and must contain the following:
Expiration date of the rebate (preferably on front side and in large print).
The rebate value.
Provision for the name and address of the individual redeeming the rebate.
The identity of the manufacturer or manufacturer’s agent.
A description of the product including but not limited to the Brand name and size.
A warning statement that the purchase of the product and the rebate offer is to
persons 21 years of age or older.
NOTE: All rebates must be distributed to all stores with distribution of the product,
either delivered by the vendor representative or mailed.
3. All mail-in rebate offers must require submission of proof of purchase in the
form of a cash register receipt.
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Instant Redeemable Coupon Procedures
1. Coupons should be submitted 90 days in advance to be considered for floor priority.
All other coupons should be submitted 60 days in advance.
Coupons should be submitted in PDF format to: Alma Kocher, email address:
akocher@state.pa.us.
A completed Instant Redeemable Coupon (IRC) worksheet should be attached to
include information about the quantity of coupons to be distributed, contact
information and vendor-of-record. This form is available at www.lcb.state.pa.us
under “For Industry Partners,” “Supplier Information.”
Coupons will not be accepted for Licensee orders or SLO products.
2. Coupons submitted should conform to GS1US (formerly Uniform Code Council)
guidelines for coding purposes. The UPC coding on the coupon must match the offer
described on the front of the coupon. If there is a graphic on the coupon, it needs to
“match” the wording.
Coupon bar codes must be at least 1 inch wide and 10/16 inches in height. A bar
code must be printed on all coupons.
All coupons must be Type 5. (See the diagram at the end of these instructions.)
Each IRC must indicate that it is a manufacturer’s coupon with a clearly visible
expiration date.
“No double couponing” must appear either on the front or back of the coupon.
The word INSTANT should appear prominently on the front coupon.
Coupon should include the description of the product, specifically brand name
and size.
The identity/address of the manufacturer must appear in the “Retailer” section of
the coupon.
A warning statement regarding age to purchase alcoholic products must appear on
the coupon.
Coupons must be printed on glossy paper, not standard cardstock, to avoid
unauthorized or fraudulent duplication.
Coupons must be designed to hang on the bottles. Coupons that stick to bottles
with adhesive or involve rub-offs to expose the value of the offer are not
acceptable.
A statement regarding restrictions, if applicable, should appear.
The minimum value of a coupon offer on alcoholic products is $1.00. “Buy One
Get One Free” offers are not allowed.
Item Family Code information must be entered by the vendor through the Industry
Partners link on the www.lcb.state.pa.us website. Failure to enter item family
code information may result in scanning errors and loss of information for
vendors. Family codes must be between 010 and 989.
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NOTE: These digits represent place, not the value that should be entered, except for the
Coupon NSC number. That should always be a “5.”
A copy of the final printed coupon must be sent to:
Alma Kocher
Room 218
Northwest Office Building
Harrisburg, PA 17124
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Changes in Cost, Specifications and Labels of Listed
Items
The Board must be advised of any changes in cost, specifications or packaging before
shipment of such merchandise is made to the Board’s distribution centers. In the event,
however, that such unauthorized shipment is made, no distribution to stores of this “new”
merchandise will be made until the Board has approved all changes. In some instances,
this merchandise will be put into the vendor’s private account in the Board’s warehouses
until arrangements have been made to return merchandise back to the vendor.
Changes in Cost
A completed Standard Quotation and Specification Form must be submitted to the
Bureau of Product Management whenever a vendor desires to change the invoice cost, or
any element that makes up this invoice cost, of any listed item. The Board will accept
cost increases on a quarterly basis, and they must be submitted based on the following
schedule.
COST INCREASE DATE SUBMISSION DATE
May 1 February 1
August 1 May 1
November 1 August 1
February 1 November 1
Cost increases will not be accepted on newly listed items until they have been in our
system for at least one year. The Board reserves the right to reject any price increase.
Cost decreases may be submitted at any time and are effective when approved by the
Board.
Changes in Specifications / UPC Requirements
A change in a listed item other than cost that would affect any of the descriptive
information that appears on the Standard Quotation and Specification Form constitutes a
change in specification.
For each specification change, a completed Standard Quotation and Specification Form
indicating the change and two copies of the front and back label must be submitted to
Alma Kocher in the Bureau of Product Management.
Some changes may be considered minor and the new product can replace the existing
product immediately.
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The following are examples of minor changes:
The product has a minor change in proof level.
The product inside the bottle is the same, but the artwork on the label changes.
Other changes may be considered more significant and could make the product “unique”
from its predecessor in which case a request for a new listing may be necessary.
The following are examples of significant changes that make the product unique from the
predecessor:
The product has a significant change in proof level.
The product is the same varietal but from a different appellation.
Final determination of what constitutes a significant change will be made by the
Director of Product Management.
If the new product is determined to be unique from its predecessor and the
changes are considered significant, a new UPC should be assigned to the new
product.
The PLCB reserves the right to reject a product if a new UPC is not assigned.
The PLCB may choose to allow the supplier to begin shipping the new product
immediately in place of the old one if it is deemed to be in the best interests of the
PLCB. This will be determined on a case by case basis and will likely only be
granted to category leaders.
All other new products must be submitted for listing consideration based on the
published PLCB listing calendar. New listing submission guidelines apply and a
listing of the new product is not guaranteed.
15
Special Liquor Orders
Under the provisions of the Liquor Code, the Pennsylvania Liquor Control Board is
required to obtain any available brand or type of liquor/wine that is not stocked by the
Board for customers in Pennsylvania in the vendor’s minimum shipping quantity. The
vendor’s minimum shipping quantity is the least number of bottles that the vendor is
willing to ship to any location in this state. The minimum quantity may be as small as one
bottle or as large as a case. Vendors are strongly encouraged to participate with less than
a solid case minimum quantity.
Any merchandise which is not stocked by the Board can be offered for sale via
Special Liquor Order by the vendor. Items offered for sale by vendors authorized to
operate in Pennsylvania are listed on the PLCB website.
If a vendor wishes to offer a product for special order sale, a quote form must be
submitted to the Special Liquor Order Division. This form can be obtained by calling 1-
800-332-7522. If a vendor has been approved for online access, the quotation must be
filed online. A separate quotation is required for each product and for each size of the
same product.
As stated on the quotation, the cost quoted by the vendor must be the delivered cost to
any point in Pennsylvania. Delivery charges must be paid by the vendor and must be
listed separately as indicated on the quotation. The delivery charges must be uniform to
any point in the state. The delivery charges may include only the actual cost of delivery
from the F.O.B. shipping point to receiving point. Delivery may be made by a licensed
carrier selected by the vendor.
For more information, please contact one of the Special Liquor Order Product
Coordinators at (717) 772-2393, (717) 787-8370, (717) 787-2846 or (717) 787-2405.
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INSTRUCTIONS AND CONDITIONS
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SHIPPING INSTRUCTIONS:
1. Permit numbers and appointment times are required for all shipments to each
Pennsylvania Liquor Control Board (PLCB) Distribution Center. Each delivery vehicle
must include a manifest. Each manifest must include the following:
a) PLCB requested delivery date
b) PLCB permit number
c) PLCB purchase order number
d) Number of cases by PLCB code number
e) Total number of cases on the manifest.
2. Each case shipped to the PLCB must be labeled with the following:
a) Shipping Container Code (SCC) – EAN/UCC-14 barcode and readable must
appear on two adjacent sides of each case
b) PLCB code number must appear on one end of each case
c) A brief product description (including brand name, size, proof or vintage) must
appear on one end of each case
d) Universal Product Code (UPC) barcode and readable must appear on one end of
each case
NOTE: Details on case code label requirements and examples can be found on the PLCB
website at www.lcb.state.pa.us under “For Industry Partners,” “Supplier Information.”
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S.P.A. NOTIFICATION FORM – REQUEST FOR APPROVAL
INSTRUCTIONS:
Each code must be submitted on a separate form.
Send completed form to:
Pennsylvania Liquor Control Board
Bureau of Product Management – Room 218
Northwest Office Building
Harrisburg, PA 17124-0001
Date Submitted: ____9/19/2005___________
Vendor of Record for Product: ___ABC Winery________________________
Contact Person: ___John Smith________________________
Phone: _________555-555-5555________________
Circle one: Domestic Import
CASE DISCOUNT REQUESTED PASS-
CODE BRAND NAME SIZE
AMOUNT THRU MONTH
___0000_________ ____XYZ Shiraz_ ____750ml________ $____12.00_______ __January 2006___
Retail $ __17.99__ Suggested Discount $ _2.00____ Suggested Sale Price $ __15.99___
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ON-PACK REQUEST FORM
Rev. Dec-2006
Instructions:
1 All requests must be submitted with an actual picture or sample.
(All on-packs with a 50 ml attached must submit a sample.)
2 Each item must be submitted on a separate form.
3 Submit request thirty-days (30) prior to shipping date with all information requested.
4 Send complete information to: Pennsylvania Liquor Control Board
Bureau of Product Management - Room 218
Northwest Office Building
Harrisburg, PA 17124-0001
DATE SUBMITTED
VENDOR OF RECORD FOR PRODUCT
COMPANY SUBMITTING FORM
CONTACT PERSON TELEPHONE
CODE NUMBER SIZE
BRAND NAME WITH DESCRIPTION
NUMBER OF CASES AVAILABLE
SCC #
CASE WEIGHT (LBS)
CASES PER PALLET
CASES PER LAYER
CASE HEIGHT (INCHES)
CASE WIDTH (INCHES)
CASE LENGTH (INCHES)
SHIPPING POINT DATE SHIPPING
** Failure to provide complete information may cause cases to be re-labeled or returned
at Supplier expense.**
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PENNSYLVANIA Request for BUREAU OF
LIQUOR CONTROL BOARD
Manufacturer's Rebate Offer
PRODUCT MANAGEMENT
INSTRUCTIONS:
1. Each brand must be submitted on a separate form
2. Original coupons must be attached
3. Must be submitted sixty (60) days prior to requested starting date
4. Email completed form and attachments to Lori Motter ∙ lmotter@state.pa.us
5. If you do not have email capability, send completed form and materials to:
PA Liquor Control Board
Bureau of Product Management
Room 202, Northwest Office Building
Harrisburg, PA 17124-0001
REQUESTED STARTING MONTH: January 2006 EXPIRATION DATE: June 30, 2006
VENDOR OF RECORD FOR PRODUCT: Generic Wine Company
COMPANY SUBMITTING FORM: Generic Wine Company
CONTACT PERSON: John Smith TELEPHONE: 555-555-5555
REBATE START DATE: January 2006 REBATE EXPIRATION DATE: June 30, 2006
CLEARING HOUSE NAME & ADDRESS: Generic Wine Refund Offer
PO Box 12345 Offer #ABCD1234
Anytown, USA 12345
LIST ALL CODES INCLUDED IN THIS REBATE PROGRAM BELOW:
CODE BRAND SIZE REBATE AMOUNT
9999 Generic Cabernet Sauvignon 750ml $3.00
9998 Generic Pinot Grigio 750ml $3.00
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351 8/PLCB-351
COMMONWEALTH OF PENNSYLVANIA SPECIAL LIQUOR BUREAU OF PRODUCT
PENNSYLVANIA ORDER QUOTATION MANAGEMENT
LIQUOR CONTROL BOARD SPECIAL PURCHASES SECTION
Date: ___Today 2005_____________________ PRICES PER UNIT
Quoted below is the cost per unit to any point in Pennsylvania – including prepaid express delivery, all federal taxes and other
charges as per information requested. No state taxes are included in quoted costs.
BRAND NAME_____Anyone Chardonnay______________________________ UNIVERSAL NUMERIC CODE NO.__9999999999__
CLASS: Whiskey, Gin, Wine, etc.______Wine________________________ PROOF or ALCOHOLIC CONTENT_________________
TYPE: Bourbon, Rye, Port, etc__California Chardonnay___________________ AGE or VINTAGE_____________________________
SPECIFICATIONS, if a blend___________________________________________________________________________________
PRODUCED BY_____Anyone Vineyards_____________________________ ADDRESS____Anywhere Drive_________________
BOTTLED BY______Somewhere Else Company_______________________ ADDRESS____Any City State Zip________________
Please submit herewith one (1) front and one (1) back label.
MINIMUM ORDER______________________ BOTTLE SIZES
Actual ml per bottle 750ml
Unit Pack 12
Net Cost FOB Shipping Point 10.00
Total Cost FOB Shipping Point 10.00
Delivery Cost 1.50
Total Invoice Cost 11.50
FOR PLCB USE ONLY
FEDERAL ID#__00-0000000________________
Type
VENDOR____Anyone Vineyards___________________
Code
ADDRESS____Any City, State Zip_____________
____________________________________________
Released
SIGNATURE__ ______________________________
Price File
TITLE______President_______________________
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