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6 <br /> LETTER FROM THE CHAIRMAN <br /> November 2013 <br /> North Carolina's Alcoholic Beverage Control Commission is the regulator for all alcoholic <br /> beverages in the state. As such, the Commission works to promote a healthy hospitality <br /> r Irl industry and takes an interest in raising awareness about the growing number of legal <br /> f distilleries, wineries and breweries now operating in North Carolina. <br /> itai <br /> At the same time, the Commission, along with the 168 local ABC boards, long has focused <br /> lir resources on mitigating alcohol's harms. During the fiscal year that ended June 30, 2013, <br /> the local ABC boards spent more than $10 million dollars on alcohol education. And the <br /> James C. Gardner local boards sent more than $7 million back into their communities in the form of alcohol <br /> law enforcement spending. Since February 2013, when I was named Chairman and our <br /> two commissioners, Joel Keith and Kevin Green, joined me at this state agency, we have <br /> increased the standard penalties for sales of alcohol to underage persons, we have disapproved alcohol packaging that <br /> would appeal to youth, and we have extended the period that businesses hold temporary permits, so that we can be <br /> confident they are complying with ABC laws. <br /> This is important work and represents an impressive achievement. But I believe we can and should do more. That is <br /> why I have asked the Governor, other state agencies, private industry and community organizations to join with the ABC <br /> Commission in focusing on the problem of underage drinking in North Carolina. We are beginning our efforts as this new <br /> fiscal year opens. One of the feature articles in this year's annual report will provide a preview of this initiative and <br /> its goals. <br /> Gross sales at ABC stores — both sales to individual consumers and to businesses that sell mixed drinks —were up <br /> 4 percent over the last fiscal year to more than $829 million. Net proceeds to state and local governments from ABC <br /> board sales exceeded $316 million. <br /> The ABC system is wholly funded by the sale of liquor in the ABC stores. No funds come from the state General Fund for <br /> Commission or store operations. During fiscal year 2013, the Commission has been a careful steward of these revenues. <br /> We have streamlined our operations, trimmed staff in some areas and added positions in others to support our core <br /> business, which is regulating permit holders. <br /> The state ABC Commission is in close communication with the local ABC boards that conduct the retail sales of <br /> spirituous liquor in North Carolina and with the leadership of the board association, both past president <br /> Shelly Willingham and current president Sara Brewer. The ABC boards serve an important role in their communities, <br /> and their work helps address alcohol education and law enforcement funding and programs at the local level. <br /> I'm pleased with the results and invite you to look at the attached report for more detailed information about Commission <br /> initiatives and local board results. <br /> fris,LIN, <br /> FATAa, AB C <br /> es C. Gardner <br /> jE <br /> f4:q w�a;:.':oPd C O M M I S S 10 N <br /> �� } , NORTH CAROLINA <br /> hairman, North Carolina Alcoholic Beverage Control Commission <br /> 2 I <br />