Summer 2014

The Alliance of Beverage Licensees

the

Publican

• The Power of a Private Label• Increasing Beverage Sales

• Leveraging Festivals

SquamishLiquor Store

Featuring

Ag

reem

enT

# 400

2605

9 LoyaltyBuilding

For more information, please contact:Sherry Page, BC Sales ManagerBruce Ashley Group Inc.250-418-1680

Please drink responsibly

ORIGINAL SKU NUMBER: 188821SPICED ORANGE SKU NUMBER: 830307

REFRESHING GINGER BEER IS HERE

Features6 Building Loyalty

12 Leveraging Festivals

16 Liquor Policy Review

19 BC Court of Appeal Maintains Status Quo with Administrative Roadside Prohibition Judgment

20 Featured LRS - Squamish Liquor Store

22 Increasing Beverage Sales

28 The Power of a Private Label

31 Gaining Cooperation and Compliance from Customers

34 How to Create Effective Management Incentive Plans

Quarterly Publication for the Alliance of Beverage Licensees

2nd floor 948 Howe Street, Vancouver, BC V6Z 1N9T 604-688-5560 F 604-688-8560Toll free 1-800-663-4883info@ablebc.ca www.ablebc.ca

2013-2014 Board of Directors

President Poma DhaliwalVice President Mariana FiddlerVice President Al McCrearyVice President Gavin PerryTreasurer Jonathan CrossDirectors Brady Beruschi, Sandy Billing, Rick Browning, Al Deacon, Roger Gibson, Don Lutzak, Danny Rickaby, Steve Smith

The Publican Editorial Committee Damian Kettlewell, Ralf Joneikies, Gary McPhail, Brian Riedlinger, Cheryl Semenuik, Jeff Tennant

Designed, Produced & Published by: EMC Publications19073 63 Avenue, Surrey BC V3S 8G7Ph: 604-574-4577 1-800-667-0955 Fax: 604-574-2196 info@emcmarketing.com www.emcmarketing.comPublisher Joyce HayneDesigner Krysta FuriosoCopy Editor Debbie Minke Copyright EMC Publications

PUBLICATIONS MAIL AGREEMENT NO. 40026059RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION DEPT EMC PUBLICATIONS19073 63 AVENUESURREY BC V3S 8G7email: info@emcmarketing.com

The statements, opinions & points of view expressed in published articles are not necessarily those of ABLE BC. Advertisers are not necessarily endorsed by ABLE BC.

20

Departments4 President’s Message 5 Spotlight on Cider9 LDB Report10 Product Showcase15 LCLB Report18 Liquor Sales & Trends25 What's New?26 Wine Report32 Names in the News32 Upcoming Events33 ABLE Benefits38 BCHF Update

Publicanthe

Summer 201424 286 12

Featured LRS

SquamishLiquor Store

Cover photo courtesy of Train Station Pub

4 The Publican

by Poma DhaliwalPresident's Message

The BC government has announced its recommendations from the Liquor Review, and there are lots of changes coming to the BC liquor industry. Throughout the review, we advocated very hard for the needs of our members, and while we don't agree with everything government has planned, there are many key victories for ABLE BC, and our industry as a whole.

In fact, seven of the measures announced were directly based on recommendations ABLE BC made to the Liquor Review last fall:

1. Keeping the moratorium on new LRS licenses

2. Retaining the 1 km distance requirements between LRS locations

3. Strengthening competition by applying this 1 km requirement to government-run stores

4. Allowing transfers of product between licenses under the same ownership

5. Allowing storage of liquor in secured off-site locations

6. The introduction of Happy Hour in BC

7. New programming to protect and enhance social responsibility

In addition to these victories, we also want to highlight two important issues of concern to us:

• The changes being proposed to VQA wine licenses, which could see wine being sold on grocery store shelves

• The elimination of a 5 km restriction on LRS relocation, which could see stores from rural areas relocate to urban centres, flooding certain markets

On these two issues, ABLE BC is pressing government for more information. We need to know about their intentions - we are committed to being at the table to inform government on these issues, and to make sure any changes are truly in the best interests of the liquor industry.

We would also like to thank you for all your

work on these issues. By taking time to write letters, meet your MLAs, and engage with your customers, you have helped us accomplish many positive things for the private liquor industry. We are strongest when working together, and your support has always been, and always will be, critical to our future.

As a member of ABLE BC, you know firsthand what kind of power we have together. Our record speaks for itself. Here are some things ABLE BC has delivered over the past five years:

• We pushed government to enact the 1 km separation between LRS locations, up from 0.5 km. Prior to our advocacy, there was no limit on the location of LRSs in BC.

• Rural Agency and Private Wine are stores now subject to the same enforcement criteria as LPs and/or LRSs.

• Certain trade practice provisions have been relaxed.

• The minimum wage increase was staggered and a tip differential for liquor servers was implemented.

• Pre-mixed drinks can now be sold (e.g. using Bellini machines).

• Late night working-alone hours are now between 11:00 pm and 6:00 am, rather than between 10:00 pm and 6:00 am.

• The LRS discount increased from 10 to 16%.

If there's anything you'd like to discuss with us, please don't hesitate to reach out. We're here to serve you, however you might need us.

Next Issue• Online Reputation Management • Improving Store Layout • Creating Inspiring Menus• Motivating & Retaining Staff

Call 1-800-667-0955 to book your ad by June 27.

Publicanthe

Fall 2014

5 The Publican

by Trevor Kallies

Spotlight on Cider

In the 1990s and early 2000s, there were only two big cider brands in BC. These ciders are approachable, sweet, and highly drinkable. The game is changing though, and it is changing fast. There is a major movement for cider to get back to its humble roots with a focus on quality.

You may find it hard to believe, but cider is one of the fastest growing beverage categories in Canada and around the world. It’s growing at such a rate that at the Nightclub and & Bar Show in Las Vegas in March, 15% of the roughly 80 booths offered cider of one form or another. The LDB’s Quarterly Market Review December 2013 shows sales in litres for 2013 up 9.5% for domestic ciders, and up 20.6% for imported ciders.

Major brewing companies are creating cider brands to keep up with this trend. One of the most notable cider brands in the world is Strongbow, which will now be distributed by Molson Coors. Also look for Foundry Golden Cider, which is Diageo’s new brand coming into the market.

Carlsberg has recently brought their European brand, Somersby, into the Canadian market. This apple cider offers a different style than Strongbow, as it is much sweeter and suggested to be served over ice. Their approach to branding and marketing is geared to the modern consumer, whereas Strongbow continues to market to the classic pub goer.

Some BC ciders are making a splash in the market as well. Ward’s Cider has been made since the 1920s, pulling apples from the same orchard that George Washington Ward planted 90 years ago in the perfect growing climate of Kelowna. With contemporary branding and a liquid that is

craft-friendly and dry, there is a definite pleasure to this brand.

William’s Cider, another Canadian product, is both ripe with history and flavour. Their Sir Perry offers a wonderful twist on cider (pear) without being a cloying, overly-sweet product. It’s a definite favourite for patios and summer imbibing.

With such a massive interest in the category as a whole, the spotlight is definitely pointing towards the smaller, craft cider houses that are emerging. The West Coast alone has multiple cider brands that are beloved by craft beer enthusiasts. These smaller, cider brands are highly visible in the craft beer shows. BC’s Merridale is a great example of a craft brand that is close to booming. Their traditional apple cider comes in at 7% abv and is packed with great apple flavour. Their Scrumpy Cider is a style that will take many by surprise, and at 11% abv, it’s a knockout. Duke’s and Red

Roof are two other craft brands that are getting a lot of attention.

Craft cider drinkers, much like craft beer drinkers, want to know what goes into their drink. They are curious about the apples, where they came from, how they were treated, and the yeast used. (Some cideries are using Champagne yeast or brewer’s yeast.) Reverend Nat’s Cider, a cider company based out of Portland, uses Saison yeast to create their unique style of cider, adding all the great clove and earthy flavours you’d find in your favourite Saison.

Cider styles vary, and so do the costs. The price tag that accompanies craft brands can seem extreme, but the ciders are delicious. As with any drink category, the sales will come from preference of flavour with a little dose of brand recognition and flash. Offer cider tastings in your LRS or pub to educate your customers on the vast array of choices.

6 The Publican

by Carol Schram

Photo courtesy of Liquor Planet

KeeP ‘eM CoMINg BaCKBuILDINg LoyaLty

6 The Publican

7 The Publican

In the hospitality industry, it’s every owner’s goal to create a positive on-premise experience for his or her customers - one that will lead them to speak highly of the establishment and return time and time again.

“It just goes back to the simple basics,” says Operating Partner Steve Carroll of Kelowna’s Train Station Pub. “Good service, good food, good atmosphere. Try to provide all those things and get people in the community on board.”

Savvy owners and managers can go one step further to draw repeat business from their customer base.

Loyalty Programs and Email Marketing ListsTraditional email marketing lists and customer reward programs still have their place in a business. The Loghouse Pub opened its new Liquor Planet store in Victoria in December - the largest LRS in BC at 13,600 sq. ft. The loyalty program was a big hit at the old LRS and continues to run strong at the pub, so customers have been clamouring for the same features and benefits at the new Liquor Planet.

Manager Diana Kresier has just started rolling out her brand new program. “When you sign up you get a monthly newsletter. It features liquor store and Loghouse Pub events, specials and community events,” she describes. “It's a point system, so as you purchase, you get points, which you can trade in for merchandise: anything from a pen to a hat to a shirt, all the way up to big items like fridges, golf bags - we might even do trips.”

To help stay compliant with the new anti-spam laws now in effect, Kresier uses a third-party vendor. “They update our website and send out

the newsletter and they take all the responsibility.”

Owner Michael Kompass runs a similar program at the Blackcomb Liquor Store. “We have a fidelity discount for regulars. Even people who are here for a week and come back every day can fill out an application. You can redeem your points for in-store value on product, and we do monthly draws for prizes, usually in conjunction with a manufacturer. You can enter [the draw] in the store, but anyone who’s on the purchase program gets an entry as well, so the more you shop, the more times you get in.”

Running a new establishment that’s been around for less than four years, Carroll has introduced an innovative new program called LoyalBlocks at The Train Station Pub. “It’s an app for iPhones and Androids and it’s a modern-day loyalty card. They give us a little transponder that we place in the pub, and as soon as someone walks in the door, it recognizes them, welcomes them, and makes discounts available to them.”

The LoyalBlocks app greets customers and offers custom-tailored information to every program member. It’s easy to set up, manage, and optimize, providing businesses with valuable information about their customers, while also helping to drive traffic and build business during slow periods. “I highly recommend it,” enthuses Carroll.

Social Media Rules the DayMore and more, pubs and LRSs are relying on Facebook and Twitter to get timely messages out to their customers. “We have email contacts, but Facebook and social media get more traffic,” describes Kompass. “I let my staff do all the Facebooking and tweeting because they’re good at it,” adds Kresier. “They tweet our tastings, new

As soon as someone walks in the door, the app recognizes them, welcomes them, and makes discounts available to them.

Photo courtesy of Loghouse Pub.

8 The Publican

products that come in, and special events.” They also post that information on Facebook.”

“We’re now Instagramming on a daily basis,” explains Carroll. “We just started about a month ago, posting a few pictures of what’s going on every day. If there’s a big party going on, we’ll post that. We’re slowly building followers.”

Good Old Word of MouthNestled among Whistler’s hotels and placing a strong emphasis on BC wines and craft beers, Blackcomb Liquor Store strives to provide an enhanced cultural tourism experience for visitors to Whistler, cultivating loyal relationships with all front-line staff in the village to drive traffic.

“We’re on good terms with the front desk staff in the area,” explains Kompass. “When a guest asks, ‘Where can I grab a beer?’ hopefully the first answer from the front desk agent or the concierge staff is ‘Just across the street. There's a little pub and a beer store right there.’

“Because we have such a quality wine focus, we get word-of-mouth recommendations from a lot of the nicer restaurants and the hotel restaurants,” Kompass adds. “It’s especially true for people from out of town that have dinner somewhere and then are looking for a specific BC product from some of the smaller boutique wineries, which usually aren’t available in the government stores.”

Promote Group BusinessWith a more stable, core clientele in Kelowna, The Train Station Pub has worked to encourage local groups to make regular visits. These groups organize themselves, then Carroll ensures they feel welcome and appreciated when they arrive.

“On Thursday nights, we have a group of guys and gals who call themselves the Beer Club. Last year, we had an anniversary party for them featuring a giant cake in the shape of a keg. Another group has an email list and meets here every Friday for their ‘board meeting’. All they’re doing is drinking,

Staff tweet our tastings, new products that come in, and special events.

but it’s a good way for them to get out of the office early. Anywhere from 40 to 60 people show up every week, so we provide an area for them. On their anniversary we have a blowout party for them and we have a Christmas party for them too. They’ve become really loyal and have been a great group for us.”

Manager Candace Bitonti also likes bringing in group parties to build repeat business at The Loghouse Pub. “Four years ago, we started encouraging customers to book their birthdays or special events. If they book a party of six or more, everyone in the party receives an entry form to win a vacation for two. This year, we’re giving away a trip to Cabo.” Other offerings for birthdays include

free balloons and a seat in a king-size Crown Royal chair for the guest of honour.

The Loghouse literally brings its regulars from door to door, with a free shuttle service running on the hour on weekends as well as for special events. “We want everyone to be able to come in, enjoy themselves and have a safe way to get home at the end of the night,” says Bitonti. “On average, we have 30-40 people take advantage of the shuttle on Friday and Saturday nights. It is used a lot.”

Building your loyal customer base is vital to your business success. Be sure to treat every client like royalty and employ every initiative to keep ‘em coming back!

Photo courtesy of Liquor Planet

9 The Publican

Summer Trends 2014When the weather is fabulous and the days are long, it’s the perfect time to fire up the barbeque, round up family and friends, and pair a cold beverage or cocktail with a beautiful summer day. If you’re wondering what will be in the hands of thirsty consumers - the Liquor Distribution Branch has prepared a go-to guide for a few trends that could make a splash this summer.

Look for carbonated and fresh refreshment beverages with funky artwork and all-natural ingredients. In addition, boutique ciders, European white, rosé, and light red wines - along with flavoured spirits - continue to be popular, while the significant growth of BC craft beers remains unstoppable.

Carbonated, Crisp, and Refreshing Ready-to-Drink BeveragesHigh on everyone’s list this summer are fresh and crisp tasting refreshment beverages. Watch for eye catching graphics in this competitive category to make a striking first impression. Coconut water, grapefruit, lemon, and jasmine peach will mix in with old favourites and new entries. Just pour over ice and enjoy!

Tea is EverywhereLast summer, tea-infused beverages were hot sellers almost everywhere in BC. This year, watch suppliers ride the heat wave with a wide variety of tea-infused beverages. Don’t be surprised if you see a new tea beverage with a twist this summer - half lemonade, half tea.

The Craft Beer Craze Summer is shaping up to be another exciting time for BC craft beer. Consumers have fully embraced craft beer. Driven by the proliferation of independent brewers opening their doors, consumers are diving headfirst into hand-crafted, artisanal beer. Often boasting quirky, eye-catching packaging, craft brewers continue to introduce their beer to new audiences, broadening the appeal of craft. The selection of craft beer will be on everyone’s shopping list this summer and you can expect to see phenomenal growth in this category.

Boutique CiderCider continues to be a popular choice for many with strong sales year-round. The BC market is still dominated by mainstream ciders, but new boutique ciders are gaining ground. Boutique ciders have a distinct artisanal style and include cideries experimenting with barrel aging, fermentation techniques and in many cases, organic products. Watch for ciders infused with ginger, blackberry, and more on the shopping list this summer.

Flavoured SpiritsThe flavoured spirits category remains strong with new products introduced frequently; consumers are not showing signs of flavour fatigue yet. This year, flavoured expressions will continue to be the trend-setters. Last year, various spices, berry, confectionary, and maple flavours flourished. This summer, watch for products infused with cinnamon, coconut, peach, and tea to show up in the spirit category. These new, high-quality items are perfect for sipping or for mixing in premium cocktails.

European WinesHot weather is perfect for bringing out the European whites - Pinot Grigio, Moscato, Prosecco, and more! Lighter reds like Beaujolais from France and Tempranillo from Spain are popular and will continue to be so in the coming months.

by Tony McPhate

LDB Report

10 The Publican

Product Showcase

LA PODerOSA reSerVA CABerneT SAUVIgnOn 2012red WineChile

For the motorcycle rider, this line of Best Buy wines from Chile is your best bet.

90pts. Winescores.ca“Cabernet offers sweet and supple aromas of vanilla and chocolate. The palate is equally generous with plush flavours of raspberry and vanilla. This is an excellent wine for summer barbecue meats and full-flavoured cheeses.”

restricted/Spec750ml $14.99SKU 206300

Also available:restricted/SpecSauvignon Blanc reserva 2012750ml $14.99SKU 206326

reserva Syrah 2012750ml $14.99SKU 206318

604-737-0018www.dhs-wine.com

rOnDO HILLS CABerneT SAUVIgnOnred WineSpain

Rondo Hills Spanish wines are specially crafted to bring out the best of the autonomous region of Castile La Mancha at an incredible value.

This Cabernet Sauvignon is an easy drinking, modern, red-style wine with well-ripened blackberry fruit. Gentle with soft tannins and a complex finish, it’s a perfect match for a wide range of foods, particularly tomato-based pasta dishes, poultry, and grilled meats.

Chardonnay (SKU 480301) and Sauvignon Blanc (SKU 58487) are also available at the same incredible value.

Spec750ml LrS $10.98SKU 464537

604-556-7875www.bar-global.com

10 The Publican

HOneSTY BOX APPLe CIDerCiderNew Zealand

Honesty Box Apple Cider is light and well-balanced with a crisp apple flavour.

From a farm where you can purchase fruit from an unattended stand at the end of a laneway by simply putting your money into an honesty box, we bring you this crisp and refreshing cider. It’s lovingly crafted by our cider makers with the tastiest fruit - the sort you might find with an honesty box. Of course, we paid for ours.

440ml can $2.99SKU 584060

604-365-4861www.independentdistillers.ca

SLAVIC gOLD DeLUXe VODKAVodkaBelarus

Warm up Your Soul with Slavic Gold - a deluxe vodka from Belarus based on the best Slavic traditions of vodka production that took centuries to perfect.

Distilled using the finest grains from the pristine wheat fields of Belarus and fresh water sourced from a 590-foot deep well located in the vast green lands of the magnificent forests of Belarus, it is commonly known as “liquid gold”.

To produce this exquisitely smooth vodka, we use traditional local recipes through a 9-stage purification process utilizing cutting-edge technologies and equipment.

750ml LrS $34.80SKU 771808

604-531-5633www.spltrade.biz

UnO mAS TeQUILA rePOSADOTequilaMexico

Uno Mas Tequila starts with 100% Blue Agave steam-roasted in stone walled ovens, slow-fermented, and double-distilled in stainless steel pot stills, then aged 6 months in ex-bourbon barrels for an ultra-premium tequila at a value price. Vibrant, yet mellow, with hints of vanilla, spice and caramel. Wonderful straight or in your favourite cocktail.2010 SF World Spirits Competition - SilverBeverage Tasting Inst - 92 pointsBlanco, Añejo, & other Tequilas and Mezcals also available.

Listed750ml $44.98 SKU 356188

mixed 6-Pack (2 Blanco, 2 reposado, 2 Añejo)6x750ml $281.70SKU 403386

604-836-4319www.agavespirits.com

11 The Publican

KUCHH nAI SCOTCH WHISKYScotch WhiskyUnited Kingdom

Kuchh Nai – an award winning blend of superior Speyside & Islay whiskies, finished in Sherry cask. Distilled, blended & bottled in Scotland, its superior taste and distinctive smoothness are attributed to its significant malt content.

The top nose is estery and sweet, indicating the substantial quantity of Speysides in the blend. The primary taste is smooth and sweet with scents of fruit while being balanced by elements of treacle. Delicate hints of smoke in the finish suggest the Islay in the blend.

Amazing Value!

750ml LrS $27.95SKU 227470

604-556-7875www.bar-global.com

HOneSTY BOX CIDer WITH PeArCiderNew Zealand

Honesty Box Cider with Pear features the sweet flavours and aroma of a Bartlett pear.

From a farm where you can purchase fruit from an unattended stand at the end of a laneway by simply putting your money into an honesty box, we bring you this crisp and refreshing cider. It’s lovingly crafted by our cider makers with the tastiest fruit - the sort you might find with an honesty box. Of course, we paid for ours.

440ml can $2.99SKU 418988

604-365-4861www.independentdistillers.ca

mArIACHIBeerTurkey

Mariachi is the only rice-based, wheat-free tequila beer in the market that has agave and lemon flavours. It’s clean and crisp, with only 4.2% alc./vol.

The unique brewing technique using low temperature pasteurization makes Mariachi extremely fresh and easy to drink. It’s enjoyed by non-beer drinkers as well as craft & commercial beer lovers.

Add fresh lemon to this Mexican-style beer, brewed in Turkey, for an extra refreshing finish.

restricted6x330ml $10.99SKU 799254

778-388-7642sebucom@telus.net

11 The Publican

FIVe LAKeS VODKAVodkaRussia

Five Lakes, winner of multiple International Gold Medals,became 2012’s №1 vodkain Russia. Only pure, naturalwater from Taiga Lakes is usedin the distilling process. Thiswater also contains silver andis renowned for its healingproperties. People call it the“Life-Giving Water”.

Five Lakes Vodka is distilled 8times from 100% grain, filtered7 times, and then chilled 48hours before a final filteringand bottling.

Selling in 55 countries, theultra-smooth taste puts FiveLakes Vodka at the top of itsclass.

40% alc/vol750ml $32.90SKU 826669

604-864-1666www.westernshoretrading.com

TAIL WHIP - mUnICH HeLLeSBeerCanada

Tail Whip is a pale-golden, straw-coloured lager. It is full-bodied, yet finishes crisp and refreshing.

The traditional yeast lets the malt flavours shine through, while the traditional hallertauer hops leave a subtle spiciness and fruitiness in the finish.

Of course the 100% BC-grown malt and hops add a local touch to this classic European style.

650ml $5.10SKU 863332

250-837-2756www.mt-begbie.com

12 The Publican

How to BooSt youR BuSINeSS aND youR BRaNDLeVeRagINg FeStIVaLSby Joanne Sasvari

12 The Publican

Photo courtesy of CelticFest Vancouver

13 The Publican

Think about it: You’ve got a bunch of happy people all in one place, buying your beer, eating your food, and thinking about your establishment. Sounds like a great opportunity to improve business and increase recognition, doesn’t it? Well, that’s exactly why supporting a community festival can be such a great idea for a pub or liquor retail store.

However, you have to do it right. Supporting a festival can be expensive, and if it doesn’t drive revenue, it can be a waste of time as well as money. It’s even worse if the event rebounds with bad publicity for your business.

It starts with choosing the right event to support. Doolin’s Irish Pub, for instance, has sponsored CelticFest Vancouver each March for the last decade. “We work very closely with the Canadian Irish Heritage Society as well as new Irish Vancouverites when possible,” says Tania Richards, Director of Sales, Marketing and Promotions for the Granville Entertainment Group. “We feel it's very important to stay involved and support our local Irish community. What better way than to celebrate with a week of festivities?”

She adds, “My only advice is to make sure the partnership mutually works and that the festival is truly on brand for your establishment.”

Some examples that work: Spinnakers Gastro Brewpub is actively involved with the Island Beer Festival as well as BC Craft Beer Week. The Strath Liquor Store gets behind the Victoria Whisky Festival and Art of the Cocktail. Legacy Liquor Store offers space for seminars during the

Vancouver International Tequila Expo. Dubb Linh Gate hosts beer-pairing events during Cornucopia. The Kettle Valley Station Pub and Barking Parrot Bar support the Fest-of-Ale in Penticton.

All are good fits - after all, those beer drinkers and spirit lovers need somewhere to go once the last sample is poured. But if the right festival doesn’t

exist, there’s no reason why you can’t create your own. That’s just what the Gibbons Hospitality Group, owners of Whistler’s Longhorn Saloon & Grill and Tapley’s Neighbourhood Pub and other establishments in Whistler did. In September 2013, they launched the Whistler Village Beer Festival and immediately had a hit on their hands.

By offering attendees food vouchers to local pubs, the festival drove business directly to them.

Photo courtesy of Whistler Village Beer Festival

14 The Publican

“It’s long overdue,” says Liam Peyton, the festival producer. “Whistler hosts some world-class events and what better place to stage this, especially with the resurgence in the market? And we definitely felt we had the market. Vancouver is huge on craft beer right now.”

Last year, Whistler Village Beer Festival sold 2,000 tickets; this year, they plan to double that number. And it isn’t just the festival or the participating breweries that benefited. By offering attendees food vouchers to local pubs, the festival drove business directly to them. “These pubs went absolutely insane. It was one of the busiest days of summer,” Peyton says.

Note that this crazy-busy weekend was held just after the Gran Fondo, and two weekends after Labour Day, when tourism in Whistler traditionally falls off a cliff. “We’re trying to make it a destination weekend,” Peyton explains. It sounds like it’s working. It helps that the organizers worked so closely with Tourism Whistler, which got fully behind the event.”

The response to the new fest iva l was “overwhelmingly positive,” with no real problems aside from a few minor tweaks and an unexpected shortage of ice. Richards, though, notes that there can be downsides to festival sponsorship. “It’s a large financial investment for us,” she says, pointing out that Doolin’s contributes both money and contra in return for exposure and the opportunity to host CelticFest events. “It’s also the largest, single-marketing initiative the pub does annually. So the hope is that it pays off.”

So far, she’s seen increased sales during the entire week of CelticFest, and plenty of business thanks to the live entertainment the pub hosts. “It’s less about the general branding and more about solidifying our commitment to the local Irish and Celtic community,” she explains. And she’s always glad to do it. “This past [event] speaks for itself. We’ll be back.”

How to work a Festival

Getting your pub or liquor store involved with a festival can be a great way to raise your profile and drive new business to your door. But before you sign up for the local harmonica fest, make sure you’re supporting the right event, for the right reason, and in the right way. Here are five tips to get you started:

1. Boost Your Brand. Choose a festival that aligns with what you’re known for. The Strath Liquor Store, for instance, gets behind the Victoria Whisky Festival, which not only drives customers back to the store to pick up rare drams, but reinforces the retailer’s reputation as a purveyor of fine single malts. It wouldn’t make as much sense for them to sponsor, say, a yoga festival. Alternatively, you can choose a music, culture or sports festival that is complementary to your brand, such as Doolin’s Irish Pub supporting CelticFest.

2. Love What’s Local. If you support local farmers, producers, winemakers, brewers, distillers, and cultural institutions, they’ll support your business in return. That reinforces a regional brand as well as an individual one - and can drive business in both directions. For example, at the Whistler Village Beer Festival, the winning breweries get taps at local pubs. That gives the breweries exposure and increased sales; at the same time, it drives their fans to the pubs and boosts business there. Everyone wins.

3. Work with Tourism Partners. Tourism boards often have budgets to support festivals, especially in the booming area of culinary tourism, which includes beer, wine and spirits. Destination marketing organizations can assist with promotional support, discounted hotel accommodation, volunteer help, and media coverage. However, if your local tourism organization

is a membership-driven one - such as Tourism Richmond or Tourism Victoria - you will have to join up before they can support your establishment. It’s worth the cost though, because they’ll then be able to send local and visiting journalists your way, and will promote your establishment in visitors’ guides and on destination websites.

4. Be Creative. Even if your establishment doesn’t have the budget for a big sponsorship or the space to host a major event, you can still align yourself with a festival if you think outside the box. The Saltair Pub in Chemainus provides free camping for RVers attending the Chemainus Bluegrass Festival - and welcomes them to drop by the pub for jam sessions, where they are certain to enjoy a pint or two while strumming their mandolins. Legacy Liquor Store, on the other hand, uses its demonstration area and kitchen to hold seminars and dinners during festivals like the Vancouver International Tequila Expo or Tales of the Cocktail. These events bring in some revenue, but more importantly, they cement the store’s reputation as a source for fine spirits.

5. Be Socially responsible. Avoid supporting anything that might link your establishment with social problems like underage drinking or drunk driving. In other words, sponsoring a BMX rally or motocross event may not be the best way to brand your business. And beware of any legal restrictions on what you can and can’t do, especially while the BC liquor laws are undergoing so many changes. Be sure you obtain permits an off-site event and address security concerns. Know what proportion of food to alcohol you are allowed to serve, and always make sure that if you’re hosting an event, your guests have a safe way to get home.

15 The Publican

Liquor Policy Review Update

In the spring issue of The Publican, I wrote about Happy Hours, minors in LPs and liquor in grocery stores. As you can imagine, bringing to fruition Parliamentary Secretary John Yap’s recommendations requires time and a lot of work. While we will implement a large percentage of the recommendations this year, we don’t expect all of the recommendations to be implemented until 2015.

Implementation RequirementsChange of this magnitude brings with it considerable complexity. Some recommendations require change to branch policy, which can be done internally by the LCLB. Some recommendations require changes to the Liquor Control and Licensing Regulation, which requires legal language drafting that must be approved by cabinet. Other recommendations require a change to The Liquor Control and Licensing Act, requiring the introduction of changes in a legislative sitting followed by debate by all elected MLAs from all parties.

Often, changes to the Act also require changes to the Regulation, and usually both require changes in written branch policy. In addition, many recommendations require extensive consultation.

To help in the management of implementation, the recommendations are being bundled into packages. In this article, I will only touch upon

by Douglas Scott

LCLB Report

those LCLB recommendations that I believe will be of interest to ABLE BC members. I will not discuss recommendations that fall under the jurisdiction of the Liquor Distribution Branch.

What follows are recommendations put into as much of a timeline as we know at present:

Spring/Summer 2014:

• Happy Hours, accompanied by a minimum drink price.

• Licensees will be able to store liquor in secure off-site locations, subject to notifying LCLB.

• Individual establishments belonging to the same company will be able to transfer small amounts of liquor between locations.

Fall 2014:

• The LCLB will be able to require social responsibility public education material to be posted in all licensed establishments and liquor stores. However, this may not happen right away as these materials will be developed in consultation with industry.

Unsure of the Timeline at Present:

• Minors should be permitted in certain liquor- primary establishments accompanied by a parent or guardian, until a certain time in the evening (9:00 pm for instance) and provided the atmosphere is suitable - such as no

gambling, adult entertainment or imagery inappropriate for minors present. Liquor primaries will be able to continue to bar minors at all times if they wish to do so.

• Patrons will be able to carry liquor between adjoining licensed establishments (e.g., from the pub to the adjoining restaurant) without having to have a staff member carry it across for them.

• Working with police to encourage greater use of ticketing and fines for those under 19 who are caught possessing liquor, using false ID or being in restricted premises. Work should already be underway to help liquor retailers and the public become more aware of the severity of these penalties.

• Liquor primary licences made available to other types of businesses, such as spas, cooking schools and art galleries to offer liquor to their clientele as an additional service.

• Liquor primary establishments being able to offer more liquor-free, all-ages events.

• Licensee Retail Stores selling growlers and operating refilling stations.

As for liquor in grocery stores, the BC government has outlined a two-part model, which will include a store-within-a-store and also separately accommodate the sale of VQA wines, off designated shelves, to be purchased at designated grocery store check-out tills. Work continues to determine further details. The goal is to implement this two-part model in early 2015.

16 The Publican

LIquoR PoLICy ReVIewby Bert Hick and Dennis Coates

Recent changes to BC’s Liquor Policy have raised many questions, so The Publican asked two industry experts for feedback on three key issues: liquor in grocery stores, minors in Liquor Primary establishments (LPs), and Happy Hours.

Bert Hick, from Rising Tide Consultants, and Dennis Coates, from MJB Law, comment on these issues:

Liquor in Grocery StoresRecommendations 19-20 will change the liquor retailing model in BC, with liquor stores being allowed to locate inside a grocery store.

BerT: Grocery and convenience stores could have been in the liquor business years ago. All they had to do was purchase an LRS license and relocate it beside their store.

Issues:

• With the 1 km distance criteria, it will be virtually impossible to move an LRS into an existing store in an urban area.

• Major municipalities require specific zoning for an LRS, involving a lengthy rezoning process.

• A liquor licensee must have a valid interest in property at the site inside a grocery store.

• Will the liquor store size be sufficient, including secure storage separated from the grocery storage?

• Will public access to the liquor store be strictly through the grocery store because:

- Grocery store hours are often shorter than LRS hours and close on some statutory holidays.

- How do customers access your store in the event of a labour dispute?

• Parking and office space as well as the sale of lottery and convenience items will be issues to be addressed.

• If you sublease, will the grocery store owner dramatically increase the rent at renewal time? Can you then move your LRS out of the grocery store? Where would you move it to?

17 The Publican

DennIS: There are many operational problems with the store-within-a-store model - such as achieving volume, getting enough shelf space at a reasonable cost, personnel and union issues, hours of operation, difficulty and cost of deliveries, storage and filling shelves within the grocery store, security of product, and minors.

There may be occasions where the actual sale of an LRS to a grocery operator may be workable, particularly in more rural environments.

The current model, which allows a liquor store to exist beside a grocery store is still, in my opinion, the best model. This is what exists in Alberta, without the protection of the 1 km rule. Grocery operators may elect to follow this template.

Minors in LPsRecommendation 34 suggests that minors, accompanied by a parent or guardian, could be permitted in LPs up to a reasonable time (i.e. 9:00 pm) if the licensee chooses.

BerT: Customers and the pub’s location will determine if this will increase or detract from the business. Some pubs in tourist or high residential areas may want this option. However, most pub owners I’ve talked to do not want minors because their current customers don’t want minors in the pub.

Other factors:

• Notification and process will need to be established to ensure minors are removed by 9:00 pm.

• Supervision to ensure alcoholic products are not handed off to a minor.

• Do you create a family area separate from your main bar area, with washroom access, so minors don’t go through the adult section?

• What entertainment and games will be permitted?

DennIS: The clientele of many pubs is such that the intrusion of minors and their parents would not be suitable. However, some establishments, such as the Bard and Banker in Victoria, represent opportunities to accommodate family units during the day and early dinner hour, and then transform into the LP operation they currently enjoy. I don’t think separation of areas will be that easy or appealing to operators, but to protect themselves, they may have to institute some protective measures like wrist bands to assist in the service of alcohol and to ensure that minors exit at the required time. I don’t see the gaming exposure to minors as a big issue as every gas station and grocery store already has these opportunities.

Happy HoursRecommendation 16 proposes time-limited drink specials, provided the price is not below the prescribed minimum.

BerT: Many people think that Happy Hours are back already because of media coverage. The Liquor Control and Licensing Branch has to first amend Section 41 of the regulations, so for now it’s “appie hour” only. When Happy Hour is up and running, you should advertise start and end times and be consistent so staff and patrons are aware of your policy. Promote Happy Hour with in-store signage, on your website, and in social media. Licensees will need to be extra diligent about drinking and driving, so review your safe ride home programs and ensure proper due diligence. A licensee could also increase drink prices during the evening to cover entertainment costs.

DennIS: Happy Hour will allow operators to try and fill their seats at slow times, and also give them an opportunity to cater to groups that can be offered specials. In some operations, it will impose a need for extra diligence in monitoring the overconsumption of alcohol. There may be restrictions that would prevent liquor discounting later in the evening and confine it to afternoon and dinner hours.

DennIS & BerT: The 73 recommendations of the Liquor Policy Review are very broad and general. Many details must be worked out, hopefully with consultation with industry stakeholders.

18 The Publican

LIquoR SaLeS & tReNDSFor Total BC Market. Year-to-Date Ending Period March 31st, 2014

Volume % Change Gross Sales % Change Marketshare Litre Sales

BC Liquor Stores 79,960,500 0.9% $329,761,827 -2.7% 30.0%

LRS 117,446,140 0.6% $480,977,283 -3.2% 43.8%

Licensee 60,429,120 0.6% $225,568,119 -0.4% 20.5%

Other 14,911,414 3.4% $61,724,650 5.7%

Product Total from All Sources 272,747,174 0.9% $1,098,031,879 -2.3%

Beer

Volume % Change Gross Sales % Change Marketshare Litre Sales

BC Liquor Stores 11,361,428 -0.1% $363,726,143 -3.1% 48.3%

LRS 8,253,615 0.7% $255,950,789 -0.9% 34.0%

Licensee 3,050,190 0.1% $97,849,854 -1.5% 13.0%

Other 1,504,331 -0.8% $36,162,840 4.7%

Product Total from All Sources 24,169,564 -0.3% $753,689,627 -2.1%

Volume % Change Gross Sales % Change Marketshare Litre Sales

BC Liquor Stores 32,349,521 1.4% $450,596,940 -0.1% 46.4%

LRS 17,041,216 5.1% $219,023,290 3.6% 22.6%

Licensee 8,495,292 3.7% $141,383,627 2.8% 14.6%

Other 7,752,834 6.7% $159,389,367 16.4% Product Total from All Sources 65,638,863 3.3% $970,393,225 1.7%

Spirits

Volume % Change Gross Sales % Change Marketshare Litre Sales

BC Liquor Stores 10,133,720 10.6% $46,315,444 8.6% 31.4%

LRS 16,815,538 16.9% $79,023,344 14.2% 53.6%

Licensee 2,508,869 11.3% $12,366,241 9.1% 8.4%

Other 2,058,556 15.3% $9,762,435 6.6%

Product Total from All Sources 31,516,683 14.3% $147,467,464 11.9%

Refreshment Beverage

Note: (1) Measured in Gross Retail Sales Dollars. (2) Report includes all liquor sales from BC market. Source: BC Liquor Distribution Branch

wine

19 The Publican

BC CouRt oF aPPeaL MaINtaINS StatuS quo wItH aDMINIStRatIVe RoaDSIDe PRoHIBItIoN JuDgMeNtby Shea Coulson

The BC Court of Appeal released its judgment on the constitutionality of the province’s administrative roadside prohibition regime (or ARP regime) on March 3, 2014. The Court upheld the judgment of BC Supreme Court Justice Jon Sigurdson who declared the “fail” (above 0.08) portion of the regime to be in violation of the protection against unreasonable search and seizure guaranteed by section 8 of the Charter of Rights and Freedoms, but who dismissed the drivers’ argument that the regime was criminal law and created an offence that violated the presumption of innocence.

The court held the ARP regime was not criminal law because it was related to the licensing of drivers, a provincially regulated activity. This was regardless of the fact that thousands of drivers were no longer being sanctioned under the criminal law, but were now being diverted into the administrative scheme. The drivers argued this was done to save the time and expense of the procedural and Charter protections afforded accused individuals in criminal trials. However, the Court of Appeal held that choice of police and Crown counsel to enforce one law over another does not determine whether the ARP regime is criminal law or create an offence that violates the presumption of innocence.

The ARP regime violated section 8 of the Charter because it did not provide drivers with an adequate review mechanism to challenge the results of a search of breath by an approved screening device. The province amended the ARP legislation in the summer of 2011 to respond to this criticism, instituting an improved review procedure that allowed drivers in theory to challenge their actual blood alcohol content amongst other things.

The Court of Appeal’s judgment has no immediate impact on the constitutionality of the 2011 amended legislation. This is because the Court rejected the drivers’ arguments on the criminality of the ARP regime, which applied equally to the old and the amended regime. The Court of Appeal added nothing to Justice Sigurdson’s reasoning with respect to section 8 of the Charter, and so did not provide any new perspective on how the amended legislation might be unconstitutional.

Contrary to what has been reported in many news outlets, the Court’s judgment does not mean that the amended legislation is constitutional. It remains to be seen whether the modified review mechanism is sufficient to meet the requirements of section 8 of the Charter. Thus, the amended legislation may still be challenged as violating section 8 of the Charter, though the arguments will have to be modified and may have a lower likelihood of success.

With respect to drivers who were sanctioned under the “fail” provisions of the old ARP regime, government has refused to reimburse their fines, clear their driving records, or compensate them in any other way. This dispute over the appropriate remedy for these drivers found its way to the BC Supreme Court in 2012, where Justice Sigurdson denied all remedies for drivers sanctioned under the unconstitutional regime. This decision is now under appeal to the Court of Appeal. A successful appeal could result in the province having to repay millions of dollars to impacted drivers.

BC’s ARP regime will likely be a template for provinces across Canada to implement similar regimes. This means that hundreds of thousands of drivers across Canada may be impacted by the Court of Appeal’s decision that the legislation is not criminal and so does not attract the

presumption of innocence guarantee of the Charter. These drivers, who used to be sanctioned under the criminal law, will find themselves facing an administrative regime with virtually no Charter protections.

Given these country-wide repercussions, it is possible that the unsuccessful drivers will be granted leave to appeal the Court of Appeal’s judgment to the Supreme Court of Canada. If leave is granted, the constitutionality of the old and amended regime will be before Canada’s highest court, which is less constrained by precedent and the status quo than the provincial courts.

What does this mean for licensees? The amended ARP regime remains in force, so patrons will still be subject to searches and automatic roadside prohibitions issued by police officers on the sole basis of a portable approved screening device. The reported practice of police camping outside some liquor establishments will likely continue unless the Supreme Court of Canada declares the ARP regime to be criminal law and so invalid. However, even if that court upholds the ARP regime, it may be unlawful under the Criminal Code, the existing ARP legislation, or police policy for police to arbitrarily demand breath samples from people exiting licensed establishments. This issue has not yet been addressed by any court in Canada.

Shea Coulson is a litigator at Gudmundseth Mickelson LLP and specializes in constitutional law, administrative law, and commercial law. He was co-counsel with Howard Mickelson, Q.C. on the constitutional challenge to the ARP legislation. He regularly acts for clients in the wine and liquor industry in commercial disputes and regulatory matters.

20 The Publican

Instant ImpactJust a year after opening, the team found that it had outgrown the Station Square Mall location. “We were having such success that we needed to expand,” describes Lynda. “It wasn’t planned - it was about demand and opportunity.”

“The new location is only a block away, but our mall is unique,” Phil explains. “We’re in the Chieftain Plaza, which is right on the main drag on Cleveland Avenue, but right behind us is another mall, with a Save-On-Foods. The government liquor store used to be in this area, but they moved further north, so we filled a void in the market in the southern area of Squamish.”

“When I did the interiors, I really tried to incorporate a feel for the natural environment of Squamish. I wanted to reflect the beauty of the area,” adds Lynda. “Our location is very important. I redesigned the space so that we’d have a double entrance - one off of Cleveland Avenue and one off the Save-On-Foods parking lot. That’s been very successful.”

SquamishLiquor Store by Carol Schram

In just five years, the Squamish Liquor Store has become the region’s largest private liquor store - an important draw for locals and tourists alike.

Lynda Johnston is regional manager of the Heartland Group, which oversees that store and seven others around the province. A former school teacher, Lynda operated a pub and liquor store in Vancouver before partnering with Fred Hamel to form the Heartland Group in 2006. Based in Kelowna, Lynda laughs, “We took on the Vernon Square Liquor Store together and we haven’t looked back.”

The Heartland Group entered Squamish in June of 2009, purchasing the Chieftain Hotel’s liquor store license and moving into a new location in the Station Square Mall. Squamish resident Phil Salazar was named general manager.

“I had worked in the private liquor industry since 1995, and then took a hiatus,” says Phil. “I’d been living in Squamish for about five or six years when I saw they were opening a new liquor store here and Lynda hired me.”

21 The Publican

Focus on Service and Product KnowledgeIt’s not always easy bringing a specialty-store focus to a store that’s so large. Staff members offer service and advice on a selection of more than 1,000 different wines and over 300 single craft beers, most of which are not available at government stores.

Phil emphasizes that specialty items don’t have to be pricey. “When we first opened, we were right in the middle of the recession. We focused on value - not cheap product, but giving customers the biggest bang for their buck. Our goal was finding spec products that weren’t in the government store but that over-delivered. When people mistake us for a government store, we try to direct them to fantastic, unique items that cost the same or less than what they have in their basket.”

Technology is helping to offer customers on-the-spot details on more obscure products and varietals. “We purchased iPads to help with staff training as well as assisting customers,” Phil shares. “People can comparison-shop right in our aisles with their mobile phones these days, so we train the staff to use the iPads to assist customers, offering them instant answers right on the floor.”

Locals vs. TouristsDoing business in Squamish means catering to both locals and the tourists driving the Sea to Sky Highway to Whistler. “During the week, it’s about 50/50,” Phil muses, “But on the weekends, we get more tourists. If they’re staying in Whistler for an extended period of time, they tend to stop in Squamish to do their grocery shopping and stop in the liquor store.”

“When we first opened up, locals were excited that there was a new store with a broad selection of products not typically found in a small town liquor store. The store is evolving very fast, especially with the craft beer. When we first opened, we wanted to expand our selection of craft beer. Now we’re adding even more choices.”

The success of the Squamish Liquor Store has left customers, owners, and managers all smiling. Phil has been made a part owner and says he couldn’t ask for a better situation. “It happened about a year ago. As far as the products that are carried and the direction that we’re taking, they pretty much let me have full say over everything that happens. Short of knocking down more walls, they’ve given me the ball and said ‘Run with it’. It’s been great.”

We focus on value - not cheap product, but giving customers the biggest bang for their buck.

21 The Publican

22 The Publican

goINg BeyoND tHe BaSICSINCReaSINg BeVeRage SaLeSby Gerry Jobe

23 The Publican

There is a long list of techniques and methods to consider when you are looking to increase beverage sales. Upselling, staff incentives, customer giveaways, and daily specials all have their merits and have been proven effective time and again. Anyone who has spent a substantial amount of time in the industry knows these methods inside and out. So instead of retreading familiar ground, here are some other methods of increasing sales that are just as essential, but not often practiced.

Read Your MetricsIn sports, you would never put a team on the floor with little knowledge of the statistics of the game. The same attitude must be adopted by managers and owners when it comes to their own service teams. Metrics reveal the truth about the trends pertaining to your establishment, the flux and flow of what sells and when. Tracking hourly sales reports and comparing peak times of service to slower times will provide insight as to where to focus your efforts.

The same metrics apply to sales items. Cocktails that are outperforming others can be identified and you can make necessary adjustments to your list or run features to highlight the underperformers. If classic cocktails perform higher closer to the end of service, try running a few as a feature for the after-work crowd earlier in the evening. If your beer sales seemed to have spiked on certain dates, what caused that spike? Was it the burger feature that evening? If so, then consider running that feature again when the taps seem to slow down.

Metrics will show you the stats of your team, the strengths and weaknesses of your program, and will often illuminate a disparity between what you perceive and what is actually affecting your sales. Learn to read your metrics correctly, and you will have a great advantage in leveling the playing field.

Listen To Your StaffA good manager recognizes that he has hired a team that understands what is selling well and how to resolve the issues behind what isn’t selling. A wise manager understands that in order to access that knowledge, he must put ego and job title aside and listen to his team. If you have an outstanding server in your establishment who sells more 9 oz glasses of wine than anyone else, odds are that server has perfected a technique that you and the rest of the staff aren’t aware of.

Consult your metrics and take note of who is upselling the most, who is selling the premium wines, and who is selling the most cocktails per guest. Ask each of your team members how they are able to achieve these sales and then share the knowledge with all of your staff. If a server has an approach that they use at a table that always guarantees a second round of drinks, then sharing that information with the whole staff just got you a second round at every table. If another server has great tasting notes on higher-priced wines and a sure-fire way to romance a table about them,

then imagine the possibilities of empowering your entire staff with that knowledge. All employees have developed their own tricks and style of service. Tapping into that knowledge and empowering your staff to share their wisdom with you and their teammates will not only increase sales, but also raise your staff confidence, morale, and ability to perform.

Offer Bottled WaterOn average, one glass of tap water - after labour, washing, and breakage - costs an establishment one dollar per serving. Instead of losing a dollar per glass on tap water, insist on your team suggesting sparkling or still bottled water right away to guests. This is almost always a preferable choice to the guest and you will profit rather than lose money simply by default.

Develop a Unique Cocktail ProgramWork with your bar team to create signature cocktails that are unique to your establishment. Whether they are modern twists on classics or a new style of cocktail you discovered on a trip to South America, make your bar program stand out from the rest. Customers can get a Manhattan anywhere. What makes yours unique enough to cross the street for?

A memorable cocktail is as big a draw to an establishment as a memorable dish, and if you

A memorable cocktail is as big a draw to an establishment as a memorable dish.

24 The Publican

consider it in these terms, it is also more profitable. So why aren’t you considering your cocktails with the same customer appreciation as your meals? You wouldn’t design your menu with the exact same dishes as your competitors, would you? Then why take that approach with your cocktail list? A unique cocktail program will give you a competitive edge, return customers, and if it’s done correctly, great word-of-mouth marketing. This of course all leads to increased sales.

Build In Your UpsellWhy didn’t we think of this one before? How many years have we wasted prodding our staff to ask the guest “Do you want a double?” and then explaining to the guest that the second shot is half the price while nodding like a broken bobble-head doll?

Instead, create an attractive cocktail list, properly priced with one little sentence under the title: “Our cocktails are all 2 oz. pours.” I have never heard a

guest complain about a 2 oz. cocktail, but I’ve seen plenty refuse a second shot upsell request, so make your entire cocktail list 2 oz. pours and price them accordingly.

Wine in Six SizesOffer wine in 3 oz., 6 oz., 9 oz. pours, flights, half litres or bottles. Wine will often upsell itself. It usually starts with a glass, moves to a half litre between friends on the second round, and maybe with some encouragement to a bottle. Those not wanting to have another bottle after the first one will probably still opt for a 9 oz. pour. Your competitors offer 9 oz. pours, and you should too.

PairingsWhether it’s suggested wines on the menu for each course, or a burger/beer combo feature, these initiatives work. Don’t limit offers to food/beverage

pairings; there is no easier sell for a patio table of four on a hot summer’s day than a bucket of beer/round of shots combo. Reps are usually more than eager to set up this style of promotion as well, so reach out to your local reps for support.

Staff TrainingIf it’s your job to know your metrics, then it’s your staff’s job to know your products. From ingredients to techniques, your service team should understand the cocktails/beer/wine/spirits as well as the kitchen team understands the food program. A server without a comprehensive understanding of the bar program is like a car salesman who has no idea what vehicle he is selling. This usually plays out rather poorly during service when a customer inquires, only to be met with “I don’t know” or “Let me go ask” a.k.a “Let me waste your time and lose your confidence.” The guest will be less likely to order anything from your cocktail list and will probably settle for something safe and familiar (which they can also get anywhere else, and will in the future).

It is not just the bartender’s job to know the cocktails, just as it is not just the server’s job to know the wine and food. Staff training and product knowledge is essential. Arrange tastings with winemakers, distillers, brewmasters, and coffee roasters, and take field trips to where these products are crafted. A server well versed in the products they are selling will gain the confidence of customers, and in the service industry, guest confidence in your program equates to increased sales.

Customer EducationIf you want your customers to make informed choices, you first have to educate them. Providing samples of your craft beer selection and your wines-by-the-glass is an excellent way to educate guests on what their options are. This is a great avenue to break down the intimidation gap between what your patrons are comfortable ordering and the unknown. With your staff properly armed with tasting notes and confidence in pairing options, offering samples to guests and guiding them to make an educated choice will often result in them paying a little extra for a new experience. Setting up a tasting station for an evening through a wine, spirit, or beer rep is also possible in most markets, and it will cost you nothing to increase your establishment’s sales and enhance the guest’s experience.

While upselling, features, specials, and incentives all make a great difference in increasing sales, it really comes down to the strength of your team and the confidence that the guest has in them to make their evening exceptional. Staff education and empowerment leads to a more confident salesforce. If you can bolster that confidence with metrics, unique programming, built-in pairings and automatic upselling, then you will certainly enjoy an increase in sales.

Providing samples of your craft beer selection and your wines-by-the-glass is an excellent way to educate guests on what their options are.

25 The Publican

by Debbie Minke

Beer

Refreshment Beverages

education & training

what's New?

Lazy mutt Alberta Wheat Ale is refreshing and slightly tart with citrus aromas. It has a low hop and bitterness character. 6x330ml bottles $11.99 +616268 or 650ml bottle $3.95 +29686 Lazy Mutt Authentic IPA, Alberta Red Ale, and Alberta Brown Ales are also available. All Spec

Cortes Beer is flavoured with Tequila, offering an intriguing aroma and a warm golden colour. Delicate sweetness and hints of lemon on the palate finish with bitter notes for a refreshing, thirst-quenching brew. 330ml $2.50 +8557 Spec

Bell Bird Strong Beer is crafted in India with the finest quality European barley, malt, and hops. It boasts a unique aroma and flavours that offer good drinkability. 8% abv 500ml cans $2.25 +406736 Spec

Picker’s Hut Premium Cider is the new cousin of Ward’s Hard Apple Cider. Crafted in a historic orchard in Kelowna with handpicked, cider-specific European apples, it’s robust, full of flavour, character, and pleasing aromatics. 650ml bottles

Jack Daniel’s Country Cocktails have arrived in BC. Try Lynchburg Lemonade +687608 Spec, Downhome Punch +33167, or Watermelon Punch +667790 Spec, for refreshing blends of juicy fruit teamed with smooth Jack Daniel’s Tennessee whiskey. 6x296ml bottles $13.99

go2hr has launched Leadership 2 go, a new online resource centre designed for front-line team leads and their managers. The resources can be accessed online and completed at any pace. Leadership 2 Go includes a number of assessment tools, templates and resources to improve leadership skills, from developing an understanding of personal strengths, to leading teams and defining goals. It is available at no cost for BC tourism and hospitality industry employers and employees.

The ned Pinot gris 2013 (New Zealand) offers notes of pear and stone fruit enhanced by florals and sweet baking spice. It shows a mouth-filling richness with subtle tannin nuances from increased skin contact, and a somewhat spicy concentration of fruit flavours. 750ml $15.99 +854240 Spec

Craggy Range’s Kidnapper’s Chardonnay 2012 (New Zealand) is a pale straw colour with vivid green hues. Gunflint, almond, and lemon zest fill the nose. With a steely-edge structure, the mid-palate is filled with white peach and oyster-shell flavours. 750ml $29.99 +39297 Spec

matua Sauvignon Blanc marlborough 2012 (New Zealand) is zesty, tropical, with citrus fruits with herbaceous undertones. Crisp, fresh acidity balances with great structure and length. 750ml $16.99 +309591 Spec

Yalumba Y Series riesling 2010 (Australia) is light bodied, and opens with aromas of orange blossom, grapefruit and stone fruit. The palate is fine and delicate with layers of grapefruit flavours and mineral acidity. 750ml $17.99 +241109 Spec

Adelsheim Pinot gris 2012 (Oregon) boasts crisp, bright flavours with hints of papaya, apples, and pears. It offers a rich, mouth-filling texture and long finish, while still being crisp and clean. 750ml $25.99 +764936 Spec

emotivo Sparkling rosé (Italy) is delicately fruity with soft strawberry aromas. It’s dry, soft, and well-balanced on the palate; round and full-bodied structure with a clean, refreshing finish. 750ml $14.99 +064865 Spec

Hungaria extra Dry rosé (Hungary) has a clean and intense aroma with strawberry and raspberry notes. The palate is fresh and lively with a fine mousse and a lingering, creamy finish. 750ml $14.95 +379214 Spec

2013 ehrenfelser from Summerhill Pyramid Winery (Summerland) is the first BC wine made with the use of a nitrogen generator for the purpose of reducing unnecessary sulphite addition in winemaking. The wine is crisp and bright with a gentle fizz from the natural CO2 preserved from the fermentation. 750ml $19.95 + 440016 Spec

Santa Ana Sparkling malbec rosé (Argentina) is a lively, fruity sparkling wine showcasing a bright pink colour, rich aromas, and delicious flavours of strawberries with just a hint of baked bread. It’s refreshing, with persistent and fine bubbles. 750ml $12.99 +405241 Spec

Eli Callaway, inventor of the revolutionary "Big Bertha" golf club, is now offering Callaway wines in BC. They offer quality and style at great value. Callaway Cellar Selection Cabernet Sauvignon 2011 (California) is big, luscious, and juicy with aromas of blackberry, cassis, and dark cherry. 750ml $14.99 +133199 Spec Chardonnay also available. 750ml $14.99 +131157 Spec

Tussock Jumper Wines choose varietals from 11 different origins around the world to become part of their “herd”. Distinctive labels feature animals of each wine’s region, dressed in a red “jumper”. Tussock Jumper Touriga nacional - Aragonez 2010 crafted in Portugal, presents a well-balanced and rounded flavour with a rich taste of fruit and spices. 750ml $18.99 +898320 Spec Tussock Jumper Chardonnay, Pinot Noir, Cabernet Sauvignon are also available. All Spec

Bodegas nexus Vega murillo 2012 (Spain) has hints of light, roasted vanilla. It’s elegant and fresh on the palate, with round, silky tannins. 750ml $14.99 +90530 Spec

TILIA malbec 2013 (Argentina) offers aromas of black cherries and plums with notes of violet and vanilla. Rich and full-bodied, flavours of blackberries, cranberries, and cassis emerge with hints of vanilla and sweet spice. 750ml $14.99 +055467 Spec

Angostura 7 Year-Old Caribbean rum is packed with mouthwatering flavours that include maple, chocolate, honey, and toffee, providing a rich, full-bodied taste that tapers off into the classic rum finish. 700ml $49.99 +60210 Spec Angostura 5 Year Old, Angostura 1919, and Angostura 1824 are also available.

Van gogh Coconut Vodka is now available in 50ml miniatures. They are perfect for customers who want to sample this bold, tropical, coconut-flavoured vodka that stands alone or morphs into fabulous cocktails. 50ml $3.70 +348029 Spec Van Gogh Dutch Chocolate is also available in miniatures. 50ml $3.70 +039081 Spec

Agavero Tequila Liqueur is 100% blue agave tequila blended with natural Damiana flowers, which enrich the character adding substance to the flavour profile. It’s similar to tequila, but lighter, smooth, and delicately rich. 750ml $35.99 +466060 Spec Agavero Orange adds a fresh twist, infused with agave nectar and natural orange essence. 750ml $35.99 +292284 Spec

wineSpirits

26 The Publican

by Tim Ellison

wine Report Rosé Wine? It’s Time! Cherry blossoms signal the time to renew our wine list to include offerings for the warmer months. Note sure what to include? Think pink!

This year's featured region at the Vancouver International Wine Festival 2014 was France, and the global focus was bubbly. Featuring French bubblies give us a great opportunity to explore a wine type that we should all be including on our spring/summer wine lists: rosé.

Rosé wines are an ideal addition to any wine list, especially in the warmer spring and summer months. The cool service temperature and firm acidity makes these wines a great pairing with the lighter offerings we see on menus this time of year, like salads and cold appies. The slight skin contact, gentle tannins, and red berry fruit tones of rosé can appeal to red wine drinkers too.

When it comes to rosé, one must consider age, glassware, and service temperature. Rosé wine should almost always be youthful, and should be no more than a year or two old at most. The vibrant, primary fruit character that makes rosé so appealing can be lost with extensive bottle aging. The exception can be traditional-method sparkling wines that can keep their freshness due to lees contact during aging. Older vintages of these wines can still be quite fresh and appealing.

In order to emphasize its fruitiness, rosé wines should be served in white wine glasses (naturally, serve sparkling rosés in flutes) that focus the floral and fresh-fruit nature of the wines on the nose and palate.

Service temperature is also key; rosé wines should be served at 7-10°C. The richer the wine, the warmer it should be served. If you serve a rosé at too cold a temperature (like straight out of the fridge at 4°C), the crisp acidity will mask the gentle berry fruit and floral tones that can make rosés so interesting. Lighter grapes such as Pinot Noir will support a lower service temperature, but for more structured grapes like Syrah or Cabernet Sauvignon, consider serving rosés slightly warmer to showcase the complex fruit elements and structure these grapes bring to this wine style.

As your chef develops the summer menu, encourage her to design menu items to complement the red berry fruit tones and gentle tannins that are such a calling card of this wine style. Have the staff and chef work together to create pairings that your service staff will feel confident promoting and your guests will enjoy.

Some of the producers featured at this year’s Wine Festival had wonderful rosés in their portfolios that are certainly worth consideration.

27 The Publican

European RosésStarting with France, there were great champagnes and still rosés at a variety of price points that make sense for both service and retail environments.

For bubbly, consider Nicolas Feuillatte’s Brut Rosé. Aged on lees for three years, it is fresh and fruity. Red fruit, blueberries, and black currants round out this delicate offering. Their 100% Pinot Noir Palmes d’Or prestige blend gets five years of aging and that allows biscuity and brioche notes to add lots of complexity. It’s slightly more expensive, but certainly worth it. Other French Champagne houses that have wonderful rosés in their offerings include Taittinger (Prestige and Nocturne - raspberry, cherry, and black currant flavours – with full body and a velvety texture) and Laurent Perrier (mostly Grand Cru Pinot Noir and aged four years - delicate and refined).

Still French rosés came from all over the country and styles are markedly different. Fruity and slightly sweet examples come from the Loire Valley’s Famille Bougrier. Made from Cabernet Franc (Cabernet d’Anjou) or Grolleau, Gamay, and Cab Franc (Rosé d’Anjou), these wines feature a touch of sweetness from residual sugar giving them a round, rich taste. The Rothschild’s entry-level brand, Mouton Cadet, shows its rosé with rich red currant and raspberry tones from the blend of Merlot, Cabernet Sauvignon, and Cab Franc.

Traditional dry rosés are the mainstay of the southern region of Provence. Michel Chapoutier's Tavel is a classic Grenache-based rosé made in the saignée method and shows red stone fruit character like cherry and plums. Gérard Bertrand also fashions a delightful example in the Hérault department from a blend of Grenache, Syrah, and Cinsault. This wine sees minimal oak aging and the result is nuances of vanilla and ginger. It's ideal for weightier BBQ dishes like pulled pork.

Another great rosé from then Old World is Segura Viudas Brut Rosé Bubbly from Spain. Made in the traditional method from Trepat and Garnacha, this wine is like mini champagne at a quarter of the price. Twelve-months lees contact and 9 grams of sugar per litre result in a fruity wine that shows delicate and soft cherry and red fruit character. It’s a steal at the price and an ideal match for brunch.

BC’s BestFrom the New World, rosés are made in still and sparkling incarnations. BC makes a good selection of still and sparkling versions. The top sparkling version at this year’s festival was the Blue Mountain 2009 Brut Rosé. Made in the traditional method from Pinot Noir and Chardonnay grapes, this wine is whole cluster pressed for delicacy, rested “sur lie” for 36 months for complexity, and receives an additional 9 months bottle aging for refinement. It’s fresh and fine, with red fruit and brioche. It offers amazing value at half the price of champagne with all the finesse. Another good example from BC is the Haywire Pink Bub rosé. Finished under crown cap to preserve the bright green apple and cherry notes, it’s a real treat from Okanagan Crush Pad.

Still versions of rosé abound from our province. Some of my faves include the always reliable and value-driven Mission Hill Five Vineyards offering rosé, which is mostly Merlot. With a pinch each of Cabernet Sauvignon and Pinot Noir, this wine gives an off-dry palate of cranberry, rhubarb, and white pepper. It’s a real crowd pleaser - perfect for summertime weddings and such.

New World RosésOther regions in the New World make very serviceable rosés from just about everywhere. From Israel’s Galilee Valley comes Galil Mountain Winery’s Rosé made from 70% Sangiovese, with Grenache and Syrah playing supporting roles. Strawberry, plums, and blood oranges round out the palate on this saignée method-produced wine. Australia’s Yalumba Winery also has a Sangiovese-based version made from all free-run juice that features delicate watermelon, red apple, and honeydew tones enhanced with flowers and pomegranate. Another not-to-be-missed sweet rosé from Down Under is Innocent Bystanders’ Moscato. It’s not too sweet, but it’s amazing with dessert and offers super value too.

From South America, Domaine Bousquet makes a very nice Argentinian rosé based on organic Malbec from Tupungato Valley that has rich red fruit with plumes rounding out the palate.

Your options for rosé span the globe in excellent still and bubbly versions. It’s time to feature some of these seasonally-correct wines on your list or in the store. The temperature is rising and people are thinking about eating lighter. Ensure that you have a wine to match.

Tim Ellison is a Certified Sommelier and Chef-de-Cuisine with almost 40 years of hospitality industry experience in Vancouver. Currently, he is the Sommelier - Director of Food and Beverage Service for Pacific Institute of Culinary Arts at Granville Island. Visit www.picachef.com to find out more about wine and beer study programs and other the professional development opportunities.

28 The Publican

tHe PoweR oF a PRIVate LaBeLby Chris McBeath

CuStoMIzINg tHe exPeRIeNCe

28 The Publican

YOUR

HEREBrand

29 The Publican

Creating a strong brand is the ultimate marketing achievement. These days, it doesn’t get much better than owning your own label - especially when it holds the potential of increasing sales and profit margins.

You need look no further than the grocery trade. It has long finessed the concept to the point where a store’s generic product competes head on with top-branded lines in packaging, price, and quality. Safeway is one example. According to an AC Nielsen study, the chain makes 35% gross margin on private label sales versus 25% on branded product sales, and notes that private labels can account for as much as 26% of unit sales and 20% of dollar sales.

Customizing liquor products in a commercial sense, however, is only now gathering momentum. The fairly recent proliferation of small wineries, craft breweries and distilleries - especially here in BC - is enabling an opportunity to market like never before. For those liquor retailers who have taken the private label plunge, the rewards speak for themselves.

A Case Study“10 years ago, when we introduced our first custom label, Fear the Beer, there just wasn’t the variety or choice that there is today,” explains Troy Bilodeau, Director of Operations, Berezan Hospitality Group, one of the early adoptees of this type of branding initiative. The line then grew to include additional products: Fear the Vodka and Fear the Rye. “Fear the Beer has been so successful that as of March, we’ve made it available for distribution to other private outlets outside of the Berezan family,” Bilodeau notes.

Packaging CountsAC Nielsen research also reveals that consumers now regard Own Label merchandise in almost the same league as their Big Brand counterparts. So, as competition intensifies between private and supplier brands, the quality of packaging is becoming ever more stylish and eye-catching.

For example, Berezan rebranded its rye and vodka,

and in a matter of months turned flattened sales into a dramatic upward climb. “We gave our vodka a more Russian look by changing its name to Berezanski and incorporating the family crest into the label’s design. In three months, we quadrupled sales,” Bilodeau beams. “For rye, we held an in-house naming contest and re-launched the line as Red Neck Rye, packaging the bottle with a red solo cup attached with duct tape. We sold more in the first month than in the entire 12 months of last year. It’s really given us the impetus to broaden our horizons.”

In 2014, Berezan is looking to introduce private label coolers and wines. “Private labeling has provided Berezan with a real point of differentiation,” Bilodeau shares.” I’m surprised that there aren’t more people doing it, especially now with so many craft suppliers.”

Customized BlendsCustom blends, particularly in wine, are almost the requisite of any decent dining establishment, especially when they can underscore an already branded name, philosophy, and story.

“We needed to find a style of wine that suited our food, and also provided us with a branding opportunity,” says Eric Pateman, President and Founder of Edible Canada, which partnered with Okanagan Crush Pad. “It was also important to partner with a winery that shared Edible Canada’s philosophies on sustainability and understood the importance of local ingredients.” Producing about 100 cases of its Market Red per year, costs are about the same as if they were buying wine at market price. “We’re certainly not in it for the money. It’s

Consumers now regard Own Label merchandise in almost the same league as their Big Brand counterparts.

Labels courtesy of the Sylvia Hotel

30 The Publican

more of a branding exercise for us. It gives us another touching point with our customers.”

At the Terminal City Club, where a strong wine program already exists, their sommelier was highly involved in creating an exclusive signature club blend with Pentage Winery. The resulting TCC Reserve White (currently a Pinot Gris) and TCC Reserve Red (a Montage) are exclusive to the club as is their custom-blended, limited-edition

15 year-old Scotch from Benrinnes in Scotland. “Members are very proud of these products,” notes Karen van Schie, Director of Operations.

Some BC wineries offer private labeling programs. Clients experience the benefits of owning a winery without purchasing the land, equipment, vines, or the operational headaches. By making traditional varietals and blends available for private labeling, these wineries are able to cater to small batch orders.

Finding the FitSylvia’s Lounge at the Sylvia Hotel in Vancouver introduced its own signature wines in 2006. They are used as house wines, and have also been popular as souvenirs. “Guests buy them as gifts and keepsakes of their trip and stay at the Sylvia Hotel,” says Ross Dyck, Manager. “We also change labels every so often because we’ve found that people collect the different labels. The key to anyone looking to retail their own private label is that the partner shares the same business philosophy, and that they can keep the product

year over year,” he advises. “You need to establish and maintain consistency in quality and taste from one year to the next. The downside is that you have to commit to bulk buy or minimum cases, plus the cost of the labels in some cases. We do buy in bulk so that the lower per-unit price generates higher profits and overall good margins. For us, it’s been a great decision.”

Since many Okanagan wineries and cideries cater only to small batch production, usually restricted to their own cellars, spec wines from further afield are often a more viable option. For example, Markat Wines from Spain not only has its own labels, it specializes in creating custom labels for an individual outlet or group of outlets. Orders involve a minimum of 56 cases, and with affordable price points that can include storage if necessary, customized spec wines offer good profit margins and an excellent branding opportunity on traditional, house wine products.

Whether it’s simply buying a keg from a local brewery and renaming the blend as your own, a turnkey option partnering with a winery, or taking on the adventure and investment of developing your own brand, there’s little doubt that private labels can take your marketing and customer service to another level.

We do buy in bulk so that the lower per-unit price generates higher profits and overall good margins.

why private label?• Extend your brand• Reduce inventory costs• Increase drink profits• Associate your brand with quality• Provide a competitive edge• Support local craft brewers and winemakers• Demonstrate innovation• Enhance customer experience

31 The Publican

Taking a little extra time to use the LEAPS method in communication may save a great amount of grief and time to resolve a situation that can escalate out of control.

Charlena Radic is President & CEO of Sting Investigations and can be reached at 1-877-717-8464.

gaININg CooPeRatIoN aND CoMPLIaNCe FRoM CuStoMeRS

by Charlena Radic

In the hospitality world, there will be times when customers challenge your staff and attempt to persuade them to overlook a fake ID or serve drinks when intoxication is suspected, thus breaking the law and company policy. A server’s first tactic should be to use verbal communication skills (enhanced by appropriate non-verbal communication) to resolve the situation. A method known as LEAPS - Listen, Empathize, Ask, Paraphrase, and Summarize - is intended to help staff gain cooperation and compliance.

Listen - First, be an active listener. Make eye contact with guests, nodding or acknowledging them. Let them speak without interruption, watching for any signs of distress, injury, illness, intoxication, bootlegging, or any other suspicious behavior. Pay close attention and never get too close.

empathize - To empathize with people means to understand the situation from their perspective.

It’s not feeling sorry for the person; it’s simply trying to figure out why the person is behaving the way they are.

Ask - Ask clarifying questions to ensure that you understand what the person is saying. Always be polite and careful that you don’t make the guest feel stupid or inept.

Paraphrase - When you paraphrase, you are taking what the customer said and repeating it in your own words. This shows him you were listening and verifies that you have understood correctly.

Summarize - At the end of the conversation you should summarize what has been discussed, and repeat any action steps that you will be taking. By summarizing, you have made your expectations clear and you have presented options (e.g. provide 2 pieces of ID or leave the bar) to the individual. It provides a polite signal that the matter is no longer up for discussion.

32 The Publican

ABLE BC welcomes a new LRS member, Value on Liquor, Vancouver.

AA Impex’s magic moments Vodka (original and all flavours) and morpheus Brandy are now certified by the Gluten-Free Certification Program - the first spirits to be certified in Canada. This achievement is the culmination of an intensive two-year process. Congratulations!

Victoria’s Strathcona Hotel celebrated 100 years of sport, charity, beer, and music with four consecutive days of events. The Centennial Fundraiser Gala sent proceeds to Power To Be, a charity that provides adventure-based programs designed for youth and families in need of support. A wine tasting event, beer festival, and musical performances rounded out the celebrations, along with a Centennial Ale brewed by Lighthouse Brewing, with proceeds donated to Power To Be.

Vancouver Island Brewing celebrated their 30th anniversary on May 3 with an Open House for the public. Free brewery tours, tastings, contests,

MAY

may 13 IVSA New Product SalonVictoriawww.ivsa.ca

may 27 IVSA New Product SalonVancouverwww.ivsa.ca

may 30 - June 1 EAT! VancouverBC Place Stadium, Vancouverwww.eat-vancouver.com

may 30 - June 7 Vancouver Craft Beer WeekVancouverwww.vancouvercraftbeerweek.com

may 31 Vancouver International Tequila FestivalVancouverwww.vantequilaexpo.com

JUNE

June 6-8 Tofino Food and Wine FestivalTofino www.tofinofoodandwinefestival.com

June 13-14 East Kootenay Beer FestFairmont Hot Springswww.fairmonthotsprings.com/events

June 14 WAM! Wine, Art & MusicKelownawww.rotarycentreforthearts.com

JULY

July 12 Canada Cup of Beer FestivalBurnabywww.tourismburnaby.com

July 14 BC Hospitality Foundation Golf TournamentVancouverwww.bchospitalityfoundation.com

July 24 – 27 Taste: Victoria’s Festival of Food and WineVictoriawww.victoriataste.com

July 27 Colwood Rotary Art & Wine FestivalColwoodwww.colwoodrotaryfestival.com

AUGUST

August 9 Galiano Wine & Beer FestivalGaliano Islandwww.galianowinefestival.com

August 9 Romancing the DesertOsoyooswww.desert.org

Names in the News

upcoming events

by Debbie Minke

live radio broadcasting and other highlights marked the celebration.

great Bear Pub hosted their third “Rock Out Cancer” event on May 3. Participants enjoyed dinner, craft beer, a silent auction, head or tails draw, DJ music, and karaoke. 100% of the proceeds went to Kids’ Cancer Research at BC Children’s Hospital.

BC Wine and Grape Industry Facts Source: British Columbia Wine Institute

• The BC wine industry's $2.0 billion economic impact is a significant driver to the BC economy. For every bottle of wine produced in the province, there is $42 of economic impact generated.

• BC has 235 grape wineries and over 864 vineyards on more than 9,800 acres of land.

• More than 10,000 people have jobs in BC as a result of the wine and grape industry.

• The BC wine industry generates $476 million in tourism and tourism employment-related economic impact.

33 The Publican

aBLe Benefits

Have Your Say on New Liquor RegulationsThe Liquor Review is now well into its next phase as government looks towards implementing some of their regulations. Will you be a part of this process?

ABLE BC Members were critical in delaying refrigeration in government liquor stores and educating their local MLAs on the private liquor industry during the Liquor Review. We collectively brought to our MLAs’ attention how small business would be affected by possible changes. Our efforts didn’t go unnoticed as many of our recommendations have been praised and supported by government. Our membership influenced change and will now be critical in helping shape a stable industry.

The government has been reaching out to ABLE BC for our opinions on wholesale pricing and Happy Hours, and we look forward to discussing these issues - among many others - with them to create a responsible liquor industry. Our membership will be involved every step of the way.

To ensure that you are engaged in this process for the benefit of your business, you too should join ABLE BC. Together, we can accomplish so much more than we can alone.

If you would like more information on how to join or would like to discuss the current (and possible) situation in our industry, please visit www.ablebc.ca or call our office at 604-688-5560.

Member Benefits ProgramsAre you taking advantage of ABLE BC’s many programs to save your business money? Over the next few issues of The Publican, we will be highlighting a few different programs that pubs and liquor stores can take advantage of. For more information on any of these programs, please contact the ABLE BC office at 604-688-5560.

Hospitality Insurance Program

The Hospitality Insurance Program, administered by Western Financial Group, provides ABLE BC members with a cost-effective solution for purchasing commercial insurance. Insuring more than 1,300 hospitality businesses in Western Canada, the program provides industry-specific coverage tailored to meet the needs of each member, while providing initial premium savings and long-term rate stability.

This insurance program covers property insurance, general liability insurance, host liquor liability insurance, business interruption, and crime. Many members have taken advantage of this program, and will continue doing so due to its great value.

Staples Advantage Program

Very few businesses can survive without pens, paper, and various other office supplies. The Staples Advantage Program makes your life easier by providing next business day delivery on office products, copy paper, or toner cartridges. ABLE BC Members receive a substantial discount on most purchases, saving them time and money.

For more information on these programs, please contact the ABLE BC office at 604-688-5560.

34 The Publican

by Ken Gillie

How to CReate eFFeCtIVeMaNageMeNt INCeNtIVe PLaNS

34 The Publican

35 The Publican

There’s a reason why everyone in the hospitality industry is talking about Management Incentive Plans (MIPs). Highly successful when used effectively, they motivate managers to stay laser-focused on the most valuable, controllable, profit-enhancing elements of your business. With the right balance, you can structure a MIP to pay a portion of salary according to performance, giving you the flexibility to recoup losses if they occur.

The Keys to Successful IncentivesSuccessful MIPs start with the right objectives, and they include an appropriate and adequate financial reward. The plans that truly motivate are applied fairly and consistently, plus they involve regular monitoring and communication.

An effective MIP will give your manager a sense of ownership, providing the motivation to focus on correct, controllable measurements, despite the many distractions of a busy pub or LRS.

When incentive plans set unrealistic objectives, pay out only once a year, or lack regular discussion and revision, the effect can be quite different. Handled without due care and attention, a MIP can become demoralizing and demotivating to your staff, and fail to accomplish the primary objective of improving profitability.

A Valuable Recruitment ToolNowadays, many large chains offer their management teams pension plans, health benefits, training, education, and even ownership options. Implementing an MIP places you in a competitive position, so you can tap into a prospective employee’s entrepreneurial spirit. It will help you attract and retain the best talent available, because top performers welcome the opportunity to control salary, and thrive on the motivation to earn more by reaching objectives.

Each Plan is DifferentEvery MIP should have fundamental elements that reward managers who control losses and expenses as well as increase sales. However, each operation will have priorities and circumstances that dictate the finer details. Success lies in creating a customized MIP that reflects the unique characteristics of your business, and the managers who work for you.

Best Practices for Management Incentive Plan Targets1. Losses and Controllable expenses

The lion’s share of your bonus plan should aim at limiting losses and controllable expenses. This directly impacts profitability and, more importantly, is something a manager can directly influence, given the right tools and motivation. Consider allocating 50% of your MIP payout to losses and controllable expenses.

Avoid Cost-of-Goods-Sold Targets - You should not include Cost of Goods Sold (COGS) in your MIP, unless you make the calculation based on your Optimal COGS - a variable rather than a fixed cost. Optimal COGS targets change for several reasons, the most prominent being sales mix. If you base your rewards on hitting a fixed pour-cost target, you could hurt your business in several ways:

• Your COGS target will often be too high, leaving thousands of dollars in losses undetected each month, with no motivation for a manager to react.

• Your COGS target could also be too low, depending on your product mix each period,

so you risk demotivation in the face of targets that become increasingly impossible to achieve.

• A manager could manufacture a lower COGS by discouraging upselling. Although premium products have a higher COGS, they also have a higher contribution margin. Cocktails bring in more money than well drinks. So, while discouraging upselling might lower your pour cost, it will also hurt your bottom line.

• A manager could engineer a low COGS by using cheaper ingredients in your recipes, which will impact customers’ perception of your value proposition. In this scenario, you risk cutting costs until there’s nothing left to trim.

Rather than use COGS in your MIP, use loss-variance measurements, such as revenue variance, efficiency ratings, and portion variances.

Revenue Variance - Revenue variance is the retail value of losses as a percentage of sales. By conducting precise weekly inventories, and comparing units used against units sold, according to your establishment’s unique recipes, you will be able to include this valuable measurement in your MIP. One of the benefits of using revenue variance as a measure of a manager is that it creates a culture of accountability, whereby lost product is valued at retail rather than cost. A common misperception in hospitality is that, "beer only costs 70 cents, so it's not a big issue that I gave it away." In reality, the bar lost $5.00 or more because the customer’s original intention was to pay for the drink.

A common revenue variance target range is 1.5 - 3%, and the amount of bonus associated with revenue variance and/or efficiency rating (described below) should be weighted heaviest.

The lion’s share of your bonus plan should aim at limiting losses and controllable expenses.

36 The Publican

The Efficiency Rating - This is also a good way to measure and control losses, because it compares actual COGS to the ever-changing optimal COGS, illustrating how much of the used product was accounted for. A perfect score is 100%, and a common bonus target for many bars is 97% or higher.

If you use POS keys that are not brand specific, such as domestic beer or well liquor, this should be your primary method of loss measurement.

Portion Variance - By including portion variance in your MIP, in addition to revenue variance and the efficiency rating, you can discourage under-portioning as well as reward or penalize performance in specific categories such as liquor, wine, bottled beer, draft beer, and food. For example, if your bonus range for liquor pours is +/- 2%, you can deduct from the bonus if liquor is “over” from short pouring. By separating portion variance from other bonus metrics, you can also reward or penalize based on performance in each class.

Common portion variance bonus targets are: liquor 1.5 - 3%, wine 1.5 - 3%, bottled beer 1%, and draft beer 2 - 4%.

POS Data - It is crucial to include guest comps, spills and void percentages in your MIP, because it prevents the padding of losses through overuse of the comp and spill tabs. Spills are inevitable, but keep them under control by including them in your MIP.

Common targets for these categories are: guest comps 2.5% of net sales, spills 0.4% of net sales, and voids 3%.

2. Sales Increases

Every MIP should have a mechanism in place that motivates managers to take action to increase sales. A good manager should at least pay for his or her salary by increasing sales through guest interactions, customer promotions, and staff motivation. Including revenue targets in an MIP keeps a focus on sales, and provides a payroll cushion in the event of a drop in revenue. However, don’t weigh this portion too heavily, as many factors can affect sales, and some of them will be outside a manager’s control. If a manager’s bonus is too closely linked to sales performance, and sales are down, it will significantly affect motivation to hit targets in other areas.

A common weight for sales increase targets is 25% of MIP payout, with the objective of hitting a 3% increase over the previous year or period.

3. Discretionary

Consider reserving 25% of your MIP for measurable, value-added management behaviour, such as avoiding health code violations, maintaining on-hand inventory levels, attaining ID checking targets, or achieving good attendance records. You can also add other qualitative measures to reflect the unique characteristics of your business. Not only is this a great way to shine the light on a wide variety of behaviours, it is also helpful to have part of your MIP in reserve to reward specific achievements.

37 The Publican

ABLE BC 31Bar Global Distribution 10, 11Barnet Logic Group 16BC Hospitality Foundation 18BC Hospitality Foundation - Golf 33Bruce Ashley Group IFCChocoVine 18CONNECT 30ContainerWorld 7David Herman & Son 10Empson Wines Canada 4Energy Wise 27Evolution Initiatives 8FreshTAP 26Harlan Fairbanks Co 24Homelife Benchmark 16James Bradley Consulting Inc. 22Johnstone's Benefits 36Labatt 17Lions Port Products 32Lorenz Agave Spirits 10

Matthews Campbell 35MJB Law 14Mt. Begbie Brewing Co. 11Northwest Stoves 37Prudential Sterling 19RBC Royal Bank of Canada 35Rising Tide Consultants 29Sebucom 11SPL Trade 10Stanley Park Brewery 38Sting Investigations Inc. 15Sysco Vanc/Vic/Kelowna 13The Kirkwood Group 10, 11, BCThe View Winery 5, 29Time Access Systems Inc 36Tinhorn Creek 37Western Financial Group Insurance Solutions IBCWestern Shore Trading 11Wine Cellar Depot 23 Yaletown Distilling 9

advertisers

Structuring a Management Incentive ProgramYou can either incentivize your managers with a bonus expressed as a percentage of profits or as a percentage of salary. There are advantages and disadvantages to both, but in many cases, the most successful is based on salary. Managers who are incentivized on profits may not make a bonus at all, despite working hard to hit predetermined targets. MIPs are most successful when people know how much money is at stake and believe there is a realistic chance of consistently making bonus. Basing incentives on salary also means you can budget for a predetermined bonus allocation. Equally, if your manager doesn’t make target, you are able to recover some of the losses.

A common MIP bonus value is 20% of budgeted salary. For example, rather than pay your GM $60,000, you might use a base of $50,000 with $10,000 in yearly bonus potential.

Putting a Management Incentive Program into PracticeStaff Buy-In

Start by outlining the basic structure of the MIP to ensure that all the best practices are in place. The next step is to get agreement to the terms of the incentive program, and ask your manager to help develop the finer details. This consultative process increases the chances of success, and in many cases enriches the program by uncovering more ways to add value.

regular rewards, Fair Assessments, and Frequent Updates

Timing and communication are critical when you’re creating a Management Incentive Plan. Don’t make the mistake of putting together an annual bonus plan. In an industry with high turnover, incentive periods need to be more frequent, with the prospect of reward in the near future. When you’re measuring performance against target, make sure you apply the rules consistently, and that you’re scrupulously fair. Communicate results quickly and schedule unmovable quarterly meetings with your management team to review MIP plans and results. Highlight exceptional performance, and act fast to make improvements in areas that need attention.

Ken Gillie is a Senior Partner at Bevinco, and he can be contacted at info@bevinco.com or 888-BEVINCO.

It is crucial to include guest comps, spills, and void percentages in your MIP.

38 The Publican

by Renee Blackstone

BC Hospitality Foundation

Do you remember the story of the BC Hospitality Foundation and why it was created in the first place? Some of you may know that the BCHF began in 2008 with just one beneficiary.

Michael Willingham, a well-known and respected wine agent, was driving to an appointment in October of 2004 when he was rear-ended. The accident led directly to a debilitating stroke four months later, and after more than a bleak year of struggling, Michael was given a helping hand by industry friends and colleagues who held fundraisers for him.

That marked the beginning of the work the BCHF has been doing for anyone working in the hospitality industry, across our province, who faces financial hardship due to a medical emergency or crisis.

To date, the BCHF has supported the industry with funds totaling more than $420,000 towards medical assistance and scholarships. Many of the recipients have come from pubs, bars and independent liquor stores from all across BC, including Lynn Skates, a

recent beneficiary, who worked in pubs for over 25 years before being diagnosed with cancer in December, 2012.

After her initial BCHF application, Lynn received a cheque within two weeks. “I also applied to CPP, but it takes five to six months to receive any assistance, so the money from the BCHF helped bridge that time gap,” she said. “It was a relief knowing I had that financial worry taken care of.”

Another recent BCHF recipient is Vicky Ralston, an employee at the Wellington Hotel Pub and Liquor Store in Nanaimo. The community banded together to support her and raised an incredible $36,000 for her medical fees in early February, with the BCHF contributing an additional $2,000, while working to spread the word about the event itself.

Meanwhile, Steve Lobsinger, Wine Director with Lift Bar and Grill in Vancouver, found himself deeply touched by the support of his colleagues as well as the BCHF. Steve was diagnosed with cancer, and following a fundraiser at Lift in late March, with the addition of funds from the BCHF, he was given a

cheque for more than $13,000 to help him through this difficult time.

“I wish my circumstances on no one, but I have to say [that] after this day, I saw the true meaning of friendship and compassion,” he posted on his Facebook page the day after the fundraiser. “I have always been a relatively private person and thought of myself as self-sufficient and it took a drastic turn of events [for me] to realize that you must let people in. I am still processing, but the positivity and genuine goodwill of many have created an event I shall never forget and will cherish forever.”

“It's people like Lynn, Vicky and Steve that make our work so rewarding,” says BCHF executive director Alan Sacks. “Who do you know that we can help? We ask every member of the industry to call or email two people they think need to know about the BCHF. We're ready to help when needed. Please spread the word.”

Renee Blackstone is a freelance journalist who sits on the BCHF Advisory Board.

1-855-382-3992

A refreshing tasting

in a tall can, made with real tequila.

$2.99 SKU: 149245GLUTEN FREE

PER CAN

APPLE CIDER SKU: 584060 • CIDER WITH PEAR SKU: 418988LTO JUNE 1-28: $0.25 OFF$2.99 PER

CAN

GLUTEN FREE

BC Interior – Teresa Olson, tolson@thekirkwoodgroup.comSurrey / Fraser Valley – Naomi Hawksworth, nhawksworth@thekirkwoodgroup.comTri-cities / South Vancouver – Vito Maracic, vmaracic@thekirkwoodgroup.com Vancouver Central / North Shore – Jordan Moore, jmoore@thekirkwoodgroup.comBC Sales Lead – Curry Scott, cscott@thekirkwoodgroup.com

Try One Today!

Sku: 152033 Bursting with field berry flavours

Lemon Lime:Sku: 503318Refreshing lemon and lime flavours

Grapefruit:Sku: 821652Crisp and light refreshing flavours

LTO MAY 4 – 31$2 OFF ALL 3 FLAVOURS

$9.99PER 4PK

$24.99 SKU: 29124

LTO MAY 4-31: $2 OFF SHOTBOX & $1.30 OFF SELECTED 4PKS

LTO JUNE 1-28: $1.30 OFF SELECT 4PKS