Though ending the kiosk era would deliver a hard knock to the board's effort to operate more like a business, particularly as it tries to fend off threats of privatization, it might ease some criticism leveled at the agency. The LCB has endured jokes and ridicule for the 10-foot-high machines that require customers to blow into Breathalyzers.
Asked about the money dispute Thursday, Joe Conti, the board's chief executive officer, said: "We are going to continue working in good faith to try to make this program work . . . but it appears the working relationship [between the LCB and Simple Brands] has diminished in recent weeks."
Calls to Simple Brands officials were not returned Thursday. A woman who said she was unaffiliated with the company answered the door at its office in Conshohocken and said nobody from Simple Brands was there. The office looked empty. The lettering on the glass door said "Simple," and that aptly described the reception area.
Under the contract, Simple Brands was to provide the machines at no cost to the state but would share in the proceeds. The LCB contends it was to be reimbursed for any expenses it incurred, such as for stocking or wiring the kiosks.
That has not happened, according to a letter sent Wednesday by Faith Smith Diehl, chief LCB counsel, to the lawyer for Simple Brands.
Diehl wrote that the LCB and the company had ironed out an agreement designed to minimize any risk for the state in "undertaking this novel and exciting - but clearly untested endeavor." Pennsylvania is the first state to experiment with wine kiosks.
The attorney's letter went on to state: "Please be advised that if Simple Brands does not cure the problems within 45 days of this notice," which would be Sept. 20, "the board will terminate the contract . . . and cease all kiosk operations."
Not so fast, Simple Brands countered.
