Nick Fede, Jr., Director, Rhode Island Liquor Operators Collaborative.

By Nick Fede Jr., Director, Rhode Island Liquor Operators Collaborative

As veterans of the beverage alcohol industry, we are no strangers to trends. In any given year, a certain spirit may start to overtake a category, a new beer style may begin to outperform the field and certain items may begin to leave our shelves without being paid for. WAIT … WHAT?! Yes, you heard that right: Retail theft is on the rise.

Over the last few years, our affiliate associations in American Beverage Licensees (ABL) have seen a significant rise in organized retail theft within their states. In Memphis, Tennessee, Buster’s Liquors & Wines has been targeted three times in the past 18 months, with the most recent incident resulting in a pickup truck driving through their front window.

A dozen masked suspects then piled into the store, ransacking tens of thousands of dollars’ worth of luxury items. (Google “Buster’s Liquors Break-In” to see the shocking footage.) Luxury liquor items have a very high black-market value; it is estimated that in the Memphis area alone, more than $2 million of alcohol product has disappeared from store shelves and has been sold on the black market over the last two years.

Having heard this story firsthand from Buster’s owner Josh Hammond, who also serves on ABL’s board with me, I took this issue to our congressional delegation in the form of the Combating Organized Retail Crime Act of 2023. Congressman Seth Magaziner not only co-sponsored the legislation, he took the issue and ran with it, securing a hearing in front of the House Subcommittee on Counterterrorism, Law Enforcement, and Intelligence, of which he is the Ranking Member.

At the time, I was unaware of any of these issues in Rhode Island. All I knew was I didn’t want what was happening in Tennessee to happen anywhere near us. Over the following months, Rhode Island retailers began using a WhatsApp group called RILOC REPORT to warn other retailers about theft happening in their stores. As usage of the app increased, patterns began to develop and some of the same faces kept popping up in different stores. Sure enough, we had a real problem on our hands.

Starting last summer, two large stores in Kent County began to be targeted by an organized crime ring from Connecticut. The ring was focusing on luxury items, with an emphasis on high-end cognacs, tequilas and Scotches. As these thefts continued to occur, the stores began to work together, pooling resources and communications with both the Warwick and East Greenwich police departments. In December, the thief struck again, only this time retailers were ready to put a stop to it. Using the relationships built through RILOC REPORT, the thief was caught, detained and is still in jail.

Following December’s success, we are still seeing a massive problem with theft in the alcohol retail community. This problem isn’t specific to an area. It is happening statewide and not one store is immune to this happening to them. We are seeing repeat offenders all over the place, oftentimes behaving in a brazen, aggressive manner. Some stores have hired security—not to stop theft but to make their employees feel safe.

Unfortunately, as this issue has persisted, we’ve seen retailers “harden” their stores. Premium, high-risk items are being put behind glass, away from consumers. The romance of the premium purchase experience is being sterilized; retailers simply cannot risk seeing these items walk out their door unpaid for. Ultimately, consumers suffer, with the quality of their in-store experience being hindered due to the behavior of bad actors.

Action needs to be taken and it starts with a grassroots effort. To join RILOC REPORT, please reach out to RILiquorOperatorsCollaborative@gmail.com. When theft happens, engage the local police department and inform your neighboring stores of the occurrence. There is no shame in getting stolen from; it is a very personal, upsetting experience that needs to be nipped in the bud. Communication and collaboration are essential, especially in this arena. May we all find success in unity.

Contact riliquoroperatorscollaborative@gmail.com to get involved.

Nick Fede Jr. serves as Executive Director of the Rhode Island Liquor Operators Collaborative and is a third-generation liquor retailer.