| Distilled Spirits Program |
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| Welcome |
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The Distilled Spirits Program regulates the sale of bottled distilled spirits while producing revenue in support of state and local government. The program centrally purchases, warehouses and distributes distilled spirits to Oregon's 243 liquor stores. It appoints the liquor agents who are contracted to operate the stores providing a varied and balanced inventory of distilled spirit brands to the public.
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| Product Listings |
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The forms below have been made available as downloadable files in Portable Document Format (PDF). In order to view and print the PDF files, you need to install the appropriate Acrobat Reader on your PC, Macintosh, or UNIX workstation.
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| Merchandising Liquor in Oregon |
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The retail liquor agent, the Oregon Liquor Control Commission and the State of Oregon are members of the same merchandising team. Each plays a vital and different role in the sale of alcoholic beverages.
State Contributions:
Compensation to agent for operating the store
Liquor inventory
Supplies
Price Tags
In-Store Signs
Deposit Slips
Forms
Price Books
Business Reply Mail Envelopes
Tort liability coverage
Audit services
Payment for relocating inventory and agent's liquor fixtures and equipment
Agent Contributions:
Sells state-owned liquor at the retail level
- Provides customer service
- Provides product information
- Handles refunds and exchanges
- Supervises and compensates store employees
- Receives deliveries and stocks shelves
Provides, maintains and improves store site
- Pays for store's utilities and rent
- Provides store fixtures and equipment: shelving
counter, cash register, signs, etc. (Agent recovers
value of fixtures and equipment when retiring.)
Maintains financial and inventory controls
- Manages and provides security for store liquor inventory
- Provides security for state funds
- Prepares and transports bank deposits of state money
- Provides initial change fund
Liquor Commission Contributions:
Purchases, warehouses and distributes liquor to agents
- Provides monthly pricing and statewide product selections
- Manages statewide liquor inventory system
Provides statewide merchandising system and expertise
- Conducts market research, proposes and establishes new stores
- Recruits and selects new agents
- Ensures proper merchandise mix and turnover
- Provides holiday schedule
- Develops and revises Administrative Rules and operating guidelines
- Sets standards for store appearance and operations
- Upgrades computer information service
Supervises agency operation
- Works with agents to improve customer service
- Monitors and evaluates inventory management system for each store
- Reviews signs, pricing and displays
- Suggests improvements for in-store layouts
- Audits and determines inventory overages/shortages
- Investigates burglaries, robberies and fires
- Approves and supervises agency relocations
- Orders and provides forms and supplies
Promotes on-going communication with the public
- Provides and facilitates communications with industry groups, agents' associations governmental bodies and the public
- Holds meetings with agents and prepares informational newsletters
- Prepares, conducts and distributes surveys
- Supplies stores with product information
- Maintains public files for each store
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| Retail Liquor Stores |
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Link between State, Customer
In 1933, when national prohibition of liquor was repealed, Oregon legislators decided Oregon would be a liquor control state. In a control system, the state is responsible for the sale of packaged liquor to the consumer. The legislature created the Oregon Liquor Control Commission to sell distilled spirits by the bottle to consumers.
The link between the state and the customer is the retail liquor store. The stores are run by Commission-appointed agents who are responsible for their daily operation. The stores' inventory is owned by the state. The Commission pays agents monthly compensation for their retail services. The agents' compensation is based on a formula which includes monthly sales volume. Agents use the compensation to pay for daily operating expenses, personnel, and capital improvements.
Types of Stores
More than 150 of the Commission's 243 agents run exclusive liquor stores. Exclusive stores are high volume businesses whose primary function is to sell liquor. Exclusive stores can sell some related items such as glassware and foods used in drinks.
There are more than 80 non-exclusive liquor stores which are operated in conjunction with other businesses like hardware, drug or grocery stores. Most non-exclusive liquor stores are located outside of metropolitan areas. Usually, non-exclusive stores sell less than $750,000 of liquor a year.
To ensure adequate services, we require liquor stores to be open a minimum of eight hours a day, except Sundays and legal holidays. Stores must be open between 12 noon and 6 p.m., but cannot open before 7 a.m. or close later than 10 p.m. Agents have the option of being open on Sundays and legal holidays. Hours of operation, if applicable, vary from store to store.
Merchandising
The Merchandising Program consists of three divisions.
The Retail Services division oversees the daily operations of liquor stores. Retail Services personnel work closely with agents to help them understand and follow liquor regulations and store operating procedures. They also assist in managing the state's liquor inventory to make sure merchandise is readily available to customers.
The Purchasing division works closely with Retail Services to provide distilled liquor to customers. Purchasing orders liquor from distilleries throughout the world. Purchasing also watches trends in sales, reviews new liquor items each month, and eliminates slow-selling liquor products from inventory every six months.
The Distribution division receives the liquor shipments ordered by Purchasing. Warehouse crews organize, stack, arrange and store thousands of cases of liquor, keeping it secure until ordered by a liquor store. The crews fill merchandise requests and arrange for common carrier shipment to the store. Distribution also settles claims for damaged and defective goods returned by stores.
Establishing New Stores
From the 1980's through the year 2000, the number of liquor stores remained stable. The Commission is currently opening new stores, in recognition of the great population and tourism growth in the state. The general guidelines are:
- Population or tourism growth of the prospective city or county shows a need for additional service.
- The distance to the nearest store is excessive and an inconvenience to the public
- Requests for new liquor stores by general public supported by city, county or state officials
Our current retail business plan is to open an average of 2 new stores a year. Based on the above guidelines, Commission staff researches potential new locations and presents their findings to the Board of Commissioners, who make the final decision on establishing new stores.
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| How an Agent is Selected |
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Openings for Liquor Store Operators
We have openings for liquor store operators (who are contract agents) when an operator resigns or retires. We usually require a 120-day advance notice. However, the 120-day notice can be extended or reduced if mutually agreed upon.
If an agent dies or becomes disabled, a qualified spouse or child is given preference in selection of a successor agent. If there is no qualified spouse or child, we advertise the vacancy and follow the normal selection process.
Openings for agent positions may occur if we terminate a contract. If we propose to dismiss an agent or an agent is unable to operate the store, we can appoint a temporary agent until the agent resumes operations or we select a new agent.
Advertisements
When we have an agent vacancy, we advertise the opening in the business/financial section of the Sunday Oregonian. Advertisements usually appear the first Sunday of the month. We may also advertise in the local community newspaper.
We may also announce any available vacancies on our Retail Services hotline recording, which can be reached by calling 503-872-5280 or 800-677-3680 - or - click on Current Agency Vacancies to view infomation on current agency vacancies.
We accept applications for two weeks after the advertisement appears in the newspaper.
Applications
People interested in becoming liquor agents may call us at 1-800-426-2004 or 503-872-5015 or write to 9079 SE McLoughlin, Portland, 97222 for information on current vacancies or requesting applications.
Qualifications
We look for the most qualified person to operate a store. We only consider applicants 21 years or older for an agent's position. We evaluate applicants on:
- Retail business experience including responsibility in inventory control, cash accountability, supervising personnel and customer service.
- Knowledge of retail operations or business management, including study or training in those or related fields.
- Adequate finances to assume the lease at the present location or secure a more suitable location (subject to staff's requirement), purchase the equipment, pay the resignation buy out (specified in the agency information sheet), and meet the operating expenses of the store for two months before receiving compensation. Candidate must qualify for a fidelity bond.
- Any record of felony conviction, conviction of a crime related to money management fraud, or a history of conviction of crimes related to abuse of alcohol or controlled substance.
- Ability to operate an exclusive agency or non-exclusive agency and adjunct business on a full-time basis. The selection committee looks at any health problems that could prevent full-time supervision of the store.
- Applicants have equal opportunity for selection as liquor agent without regard to race, color, national origin, sex, age, physical or mental handicap or marital status. The ability to read, write and speak English are legitimate occupation requirements.
Restriction
A person cannot become a retail sales agent:
- If the person or any member of the person's household or immediate family has an ownership interest in, or business connection with the distilled spirits industry; (see ORS 471.710(3) and OAR 845-015-0118)
- If the person is a licensee or a director, officer or substantial stock holder in a business licensed by the Commission. However, a package store licensee may be a non-exclusive agent; (see OAR 845-015-0115)
Selection Process
A staff committee scores and rates all applications received by the deadline. Top scoring applicants are invited to our main office in Milwaukie for a personal interview. The Board of Commissioners make the final selection of the agent.
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| Special Order Process |
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A customer may special order any item that is not normally stocked in the Commission's product line if it is available from a source in the U.S.A. The customer is required to buy this item by the case. This is necessary since suppliers will not ship in less than whole case quantities.
The customer may go to any liquor store in the state and place a special order. It generally takes six to eight weeks for a customer to acquire a special order. The liquor agent writes up the customer request and submits it to OLCC liquor purchasing for processing. The customer's order is then placed to the distillery. The distiller ships the order to the Commission warehouse, which transfers the merchandise to the liquor store. The liquor agent calls the customer to advise him or her that the order is at the liquor store ready for pickup.
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| For Further Information |
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For further information, contact
Jim MacAlistaire
Retail Services Division Director
503-872-5020
Toll Free in Oregon: 1-800-426-2004
Fax: 503-872-5355
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