Tuesday, March 13. 2012LIQUOR LICENCES IN GAUTENG – WHAT TO EXPECT!The moratorium has been lifted on all liquor licence
applications. The department has embarked on a variety of measures to regulate
liquor trade. During the moratorium the following areas where addressed: • Curb fraudulent issuing of licenses Processes are now streamlined, and the
issuing of licenses has now been centralized to the Chairperson of the Board
and the Secretariat, and no officials are allowed to issue licenses at any
given point in time. The Board has made significant strides on the
issue of reduction of backlog. They have announced that the backlog of
applications dating back to 2006 has to date been eliminated. The current 2003 Act will be replaced by
the New Gauteng Liquor Act by the end 2012/ beginning 2013. The new legislation
will envisages drastic changes to the laws governing the sale of alcohol in the
province. In terms of the new legislation: • Every
license must be renewed annually within twelve months from date of issue (Article edited by Liquorwise) LIQUOR STORES SUPPLYING SHEBEENS WILL BE FINED – HELEN ZILLELiquor Stores – Helen Zille, in her
state of the Province address, warned liquor stores who supply the estimated 25
000 illegal shebeens that they can expect police to crack down on them and be
fined in excess of R500 000. The same
will apply to liquor wholesalers. Offenders may also be jailed and have their assets seized. Liquorwise has warned and advised liquor
stores over the past 2 years not to delay to apply for wholesale/distribution
licenses as they will face police action which may cripple their business. Liquor stores are advised to act without
delay in applying for wholesale/distribution licenses. Liquorwise will assist shebeens to apply for
liquor licenses, thereby helping liquor stores to ensure these clients become
licensed and remain clients for many more years. Contact Liquorwise for assistance
without Delay! (LiquorWise) DRINKING VODKA MAKES YOU MORE CREATIVE!LIQUOR – A new study suggest that a couple of swigs of Vodka will make a person more creative/attentive. Doesn’t sound like science? Well, researches mixed a moderate amount of vodka with cranberry juice. Twenty men drank the mix until their blood alcohol level reached 0.075 %. Twenty sober men and the 20 vodka
drinking men viewed an animated movie to allow the alcohol to set in. The men had to complete the same word
association test before and after having the mix. THE TEST? One had
to provide a word which could be associated with “peach, tar and arm”. The
Answer – “pit”. THE RESULTS ? Sober
men took 15.4 seconds to come up with the correct answer, while those who had
the mix only took 11.5 seconds! WHY? Researchers
suggest that a mild amount of alcohol loosens one’s focus, making it easier to
find connections. It may also make them less afraid to make mistakes. (Article by The Week.com, edited by
Liquorwise) Wednesday, February 8. 2012Gauteng Liquor Licence Moratorium NOT lifted as yet!Gauteng Liquor Licence Moratorium - Contrary to confirmed reports a few days ago, LiquorWise has been informed that the Gauteng Liquor Licence Moratorium has indeed not officially been lifted! Staff members had been ready to accept applications to be lodged on 3 March 2012, but have now stated that they cannot assist with new liquor licence applications until the MEC has officially declared the moratorium lifted. (Article by LiquorWise)
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Draft Gauteng Liquor Bill - Main IssuesLiquor Laws - The publication of the Draft Gauteng Liquor Bill has been commented on extensively during the past week. This isn’t surprising, given how many businesses rely on a liquor licence to generate their main or substantial additional source of income. The role of the general public has also become more prominent and will have to take note of the section of the Liquor Bill which applies to them.
The main issues which have been raised are the following :
Pregnant Women & School Children
Section 53 (1) of the Liquor Bill determines that a liquor licensee may not "sell, supply or give liquor to minors, anyone wearing a school uniform, anyone who appears intoxicated, or "a pregnant woman". This section is mainly the result of the concern over the foetal alcohol syndrome. However, it is anticipated that a number of court cases may be the result if it is contained in its present form in the final liquor act. The reason may seem “obvious”, but many women do not appear pregnant until they have been pregnant for 6 months.
BEE Status
Liquor Licence applicants will have to tighten up on their commitment to Black Economic Empowerment. Section 17 in the draft Bill authorises the MEC for Economic Development to "issue Regulations directing that all applicants must meet a certain BBBEE status within a determined period of time". This reflects on the main role of shebeens, which offers many black entrepreneurs the opportunity to start their own business.
Wine Industry
Powers of Inspectors
The powers of Inspectors have been increased. They will also have the status of “peace officers”, which is similar to the powers of the police. Licence holders will have to be very wary, as any licensed business can be closed at the whim of an inspector.
Miscellaneous
(Article by LiquorWise)
Tuesday, February 7. 2012Gauteng Draft Liquor Bill BadLiquor Laws - The Draft Gauteng Liquor Bill has met with harsh criticism from all major role players in the liquor industry. Some of the comments made were the following : “ill-conceived, impractical, one-sided, badly drafted and naïve”. The public has 30 days to comment on the Bill, which published in a Gauteng provincial gazette on 24 January 2012.
LiquorWise, national liquor licensing experts, is of the opinion that parts of the Liquor Act will be difficult to enforce. A lot of the issues could have been addressed had the Gauteng Government presented the industry bodies such as experienced consultants/lawyers and manufacturers with the draft for comment, before proceeding to publish in the provincial gazette.
LiquorWise referred to the section relating to the prohibition to sell liquor to a pregnant woman. The obvious problem is how one can tell whether a woman is pregnant. On the other hand, she may be buying liquor for the cocktail party she will be hosting!
Some of the comments from other industry role players : Lawyer – The Bill should be withdrawn and followed by a group discussion between municipalities and other role players in the liquor world. The industry should comment extensively to enable a practical law to be implemented. ARA (Industry Association for Responsible Alcohol Use) - “The prohibitions are enforced in principle, but some could be hard to enforce. SALTA - . "We believe unborn children have rights too, we cannot support the practice of drinking while pregnant ." Opposition politician - “The pregnant woman provision was likely to have "all sorts of unanticipated consequences in the law courts". READ MORE about some of the controversial sections of the Gauteng Draft Liquor Bill on the LiquorWise Blog tomorrow
Monday, January 23. 2012Wine & India – A Growing Market For South African Wine Producers WineWine – The boom in the Indian economy hasn’t bypassed the sale of liquor, especially wine. What is more pleasing though, for a wine producing country like South Africa, is that Indians are changing their traditional drinking patterns. Young adults use to migrate from consuming hard liquor to wine in their thirties, but are now doing so from a much earlier age. As a result, the sale of wine has nearly doubled in most regions in 2010. Even more pleasing to wine producers is the fact that it has become popular culture to attend wine tastings and to drink wine in restaurants. This will usually have a long term benefit. Wine distributors have been quick to catch on. They are now importing wines from South Africa, Chile, Russia and Italy. They sponsor activities around wine such as wines samplers, menus paired with wines and even piccolos (small pints or half bottles). Restaurants are finding that an increasing number of their clients order expensive foreign wines. Demand covers the full spectrum of wines, from sparkling wines to desert wines. Corporates and hotels host regular wine tastings to get their clients and employees to taste good wines. They sponsor employees to attend wine courses to learn how to appreciate wine when interacting with business clients. A few wine facts about India • It has become the 10th largest growth country for wine (Vinexpo study, 2010) • Wine consumption has grown from 4m litres in 2008 to 14m litres in 2010. South African wine producers can take note of the growth of wine consumption in India and cultivate a new market for the very good wines they are known to produce. (Article in Hindustan Times, Edited by LiquorWise) Monday, January 16. 2012Liquor License Approved for Fuel Service Centre - The First Of Many?Liquor Licence – The approval of liquor licences for convenience stores has been a much debated topic by liquor boards in South Africa. The reason being that it was generally thought not to be a good idea to offer liquor to drivers on premises close to main roads. There are many flaws in this reasoning, but it was accepted by most liquor consultants and attorneys. However, the situation has changed a lot and LiquorWise - national liquor consultants - suggests that the current approach should be revisited. A little over a decade ago, most fuel stations in South Africa were mostly doing just that – pumping fuel. Since then, there has been a proliferation of fuel stations as well as the services being offered on fuel station premises. This was mostly the result of retail companies, especially franchised ones, seeing the potential buying power of the public at fuel stations. They realised that it would seem much better to the public to enjoy something to eat, drink or even sit down in a restaurant, than to have to wait in your car while filling up. No one would mind having an excuse to rest those weary legs from driving – even if one had not been on the road that long! The most obvious example is the Engen One Stop deal with Wimpy. It didn’t hurt that Wimpy was basically re-launched at the time and was becoming very popular due to their new coffee recipe. Many others, such as Steers and Woolworths have followed suit. Initially the focus was on the fuel stations on national roads, which carry most long distance traffic. Other fuel stations on provincial and local roads have been quick to catch up and one now finds very well stocked convenience stores at most neighbourhood fuel stations. What has really changed the picture is the fact that a large number of fuel stations have become full blown supermarkets and/or neighbourhood shopping centres. An increasing number are offering other services and products that just fuel, food and drink. Ticket booking services, sit down restaurants, gaming areas and play areas for children have become very popular, to name but a few. One such fuel station owner says “ There is basically no difference between my fuel station when compared to other small/medium size supermarkets. Why should they or other liquor stores be able to get a liquor licence just because they aren’t selling fuel, although they are also situated in the vicinity of public roads? The entrance to some supermarkets may even be closer to public roads than my fuel pumps!”. The same question is also being debated abroad. A Mobil fuel station has just been granted a liquor license that would allow beer, wine and packaged liquor – such as vodka or whiskey – by the Plymouth Township Board. They do limit the licence to prohibit any drinking of alcohol on the premises and require that the liquor store be situated more that 20m from the fuel pumps. The approval of this liquor licence application confirms the trend which started when a Shell fuel station was granted a liquor licence recently after much opposition. The public seems to be divided on the issue, with most focusing on the perception that it will cause more road accidents. No one, however, is able to produce any comparable statistics which would make it easier for liquor boards to base their decisions on fact rather than perception. Only time will tell whether liquor boards will be willing, or be forced to, approve liquor licences for convenience stores in fuel stations. Article by LiquorWise - supporting responsible alcohol use. Don't drink & Drive!. Saturday, January 14. 2012Wine - What Does The Future Hold For The Worldwide Wine Industry?Wine - The global wine industry has changed dramatically over the last 3 to 4 decades. Initially being dominated by European countries(old world), the rest of the world(new world) have gradually increased their presence and competitiveness. All indications are that this trend will continue in the next decade as globalisation continues to make our world smaller.
Consolidation The advantages of consolidating buying power and marketing clout have and will lead to more mergers. The largest wine business in the world, Constellation, sells approximately 102 million cases per year, representing more of less 90 brands. Other well-known companies such as E& J Gallo and St Michelle exhibit similar patterns. However, it is clear that consolidation is happening across traditional product lines, meaning that tobacco companies are buying wine companies and such. Altria, the second largest tobacco company in the world, owns St Michelle.
Wine Farmers – Producing Grapes Only?
The tradition has always been that the wine farmer grows the grapes, makes the wine as well as marketing it. This has changed substantially. Initially, wine marketing companies took over the marketing side, which most wine farmers welcomed. However, recently businessmen have started to buy grapes and employ their own wine makers to produce wine. The advantages to these entrepeneurs are obvious. They can negotiate to buy the best grapes from different regions, thereby they are not tied to one region, which may have a bad year. Furthermore, they can select and employ the best wine makers without being stuck with one who has been with a wine farm for 20 years and will probably remain for another 20. One such wine entrepreneur buys grapes from 650 regions. Another employs 11 wine makers.
An example of the success which this has achieved, was a R20 Chardonnay which won a blind tasting competition against 350 other wines of which the average price was R300 a bottle. These wine businessmen are on the up. Wine Business Monthly reports that Castle Rock ranked is the 25th largest wine seller in the USA. It owns no vineyard and no winery, but more than 90 cellars.
What is even more interesting is that an increasing number of these wine entrepeneurs are buying and selling grape as well as wine. This has started at trend where grapes and wine may end up being traded as many other agricultural products – being sold before actually being harvested or made(which has been done, but on a small scale).
How does this affect you, the consumer?
Mostly in a positive way. Consumer will definitely have a larger variety to choose from in supermarkets. Private liquor stores (not part of a national chain) will become more resourceful and offer scarcer varieties, host more wine tastings and look after consumers in novel ways.
Which all means that wine will stay as interesting a topic as it has been, not to forget the actual reason for getting interested in the first place – enjoying it !
(Article by Elliott R. Morss, Ph.D., edited by LiquorWise)
Friday, January 13. 2012Liquor Licences - How Many Licences Should Be Approved?Liquor Licence Numbers - How many liquor licences should a liquor board approve for a given area? This question is raised regularly by communities when problems are experienced with a licence holder, most often when the licence holder does not enforce the liquor licence conditions.
LiquorWise have found that liquor boards differ worldwide on the way in which they decide to approve liquor licence applications. Some do not seem to take into account the number of existing liquor licences and other liquor boards strictly adhere to a pre-determined formula.
But what to do if the population of the area decreases? Does the Liquor Board have to cancel or revoke liquor licences to ensure strict compliance with the pre-determined formula? Luckily not. The liquor board doesn’t take away existing licenses in such cases. Instead, liquor licences are eliminated as they are turned in or revoked for other reasons. The result is that communities with declining populations where the pre-determined formula is used often end up having more liquor licence holders per capita.
LiquorWise, national liquor licence experts, have found that most communities do not mind it if the number of liquor licences increase (whether according to a pre-determined formula or not), as long as the liquor licence holder contributes its share to the community by adhering to liquor licence conditions, cleaning up the licensed premises and possibly assisting those less privileged.
(Article by LiquorWise)
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Thursday, January 12. 2012Liquor (Wine) Vending Machine - A FirstLiquor Vending Machine - A supermarket has introduced the first wine vending machine in the US. All you have to do is swipe your driving licence, look into the CCTV camera and blow into the Breathalyser. A successful trial will probably result in the supermarket installing similar machines in more than 100 stores.
The wine vending machine is the result of strict laws prohibiting the sale of liquor by any business other than state-owned business. An exception relates to beer - the public can by a maximum of two six-packs per customer from private businesses – but not wine. The liquor vending machines are quite unique due to not charging the store owner as its generates revenue from advertisements being displayed on flat-screen monitors on the vending machine. The whole process takes around 20 seconds. The liquor board chairman said the wine vending machine gave 'an added level of convenience in today's busy society'. The machine distributor/manager said that the machines are aimed at the average customer and not the wine expert.
The president of a wine school descibed the machines as 'well-intentioned failures.
Liquor board members are clearly detached from reality if they think these machines offer any value to the consumer.' However, a local winery ower said that he thinks it is a great way to offer wine to people.'
Beer vending machines are common in Britain and European countries, as well as in Japan. It will be interesting to follow the results of this project as success would surely lead to the spread of the machines to the rest of the world. Liquor Boards in South Africa have not been keen on allowing liquor vending machines and LiquorWise does not expect this to change soon.
(Article by Daily Mail(UK), edited by LiquorWise)
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Club - Pastor Wants To Spend R8m To Turn Club Into A ChurchLiquor Licence - A former strip club in Cross Lanes, West Virginia may be changed into a church if a local pastor has his way. The club lost its liquor licence in 2003 and was unsuccessful on re-applying in 2008 because it was to close to another licensed restaurant. It is estimated to cost in the region of approximately $800 000 and the conversion should take more than a year.
(Article by Mark Duell, edited by LiquorWise)
Liquor Store Robbers Drink Throughout Stand-Off With PoliceLiquor store - Liquor store robbers drank from the same liquor store which they attempted to rob when they could not escape, despite trying to do so after four hours. The robbers (3) held up the staff and members of the public with a large handgun and even tried to shoot an employee’s dog, but luckily missed. They demanded money from the till.
Two hostages escaped and a third was freed, subsequent to which the robbers gave themselves up.
The robbers luck ran out when members of the public stopped police officers passing by and the liquor store was soon surrounded by police. Negotiations ensued, with the mother of one robber and a girlfriend of other trying to assist. At that stage the robbers decided to share a bottle of Johnny Walker Whiskey, before giving themselves up.
(Article by Daily Mail(UK), edited by LiquorWise)
Tuesday, January 10. 2012LIQUOR LICENCES - "ALCOHOL AVENUE" REJECTS ANOTHER LICENCELiquor licences – 22 liquor licensed businesses line an area of 2 miles in Manchester City. These business fight for customers who smile because they can pick ‘n choose amongst some of the best priced liquor in the UK.
Residents were upset when another premises in the street applied for a liquor licence recently. More than 600 households signed a petition to object, resulting in the application being rejected by the local council.
The stretch has now been dubbed the city's 'alcohol frontline' by Manchester councillor Pat Karney. 'There is quite simply no benefit to it. It will turn Moston Lane into alcohol alley and it will all end up at the doors of the NHS and the courts.' Stephen Holt, chair of the local Trinity and District Residents' Association, was among those who opposed the licensing application from Moston News. He said: 'We share the views of the council. There are too many applications for liquorlicences in this small area.
(Article by LiquorWise)
Thursday, January 5. 2012Liquor Licence Cost - What should you pay for a liquor licence?Liquor Licence Cost - It is often debated what one should pay for a liquor licence. There are no hard and fast rules, as most business brokers will confirm. One of the best ways of establishing the value of a liquor licence is to have a look at the selling price of licensed businesses or offers for state liquor licences. An offer for $615 000 has been accepted for a liquor licence to sell liquor from a package store in West Cape May. (Article by LiquorWise)
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