Liquor Trends - LiquorWise traced an interesting article about the surprises whicy 2012 may hold – “ liquor wise”. 2011 was a most interesting year and, from all reports, 2012 promises to be even more so.

In 2011, Cognac came roaring back. Craft beer grew more eclectic, more expensive and overwhelmingly more popular. Mixologists began raiding their pantries for all sorts of culinary cocktail ingredients. Vodka makers found a bevy of new flavourings, from smoked salmon to cupcake frosting. And Champagne, of all wines, continued its comeback by building on its unexpectedly strong growth in 2010.

The following are the opinions of some well-known professionals on they see rising on the 2102 horizon :

Doug Frost, wine consultant: “Portugal may be due for its coming-out party. The relatively cooler conditions along its coast create wines with a bit more freshness and crispness than many of Iberia’s other offerings, [and] as consumer awareness lags behind quality, prices for Portuguese wines are very good.”

Sandy Block, vice president of beverage operations for Legal Sea Foods: “Not sure if I’m behind the curve, but we’re seeing rising interest in aged tequilas [añejo and reposado] in cocktails, providing the spirit has enough zip, structure and pure agave flavor to balance the sweet elements.”

David Wondrich, author of “Punch: The Delights (and Dangers) of the Flowing Bowl”: “The biggest trend I see is bringing mixology down to the fun/dive-bar level — making new bars that are casual and unpretentious but will serve you a real drink, like The Prizefighter in Emeryville, Calif., Viktor & Spoils in New York City, and a bunch of other places whose names escape me.”

Jim Meehan, head mixologist at New York’s PDT and author of the new “The PDT Cocktail Book”: “Cocktails on tap, wine on tap, vermouth on tap — 10 years after many bars abandoned the soda gun, it seems as though many are growing trigger happy.”

Noah Rothbaum, editor-in-chief of Liquor.com and author of “The Business of Spirits”: “In the coming year, more people will be drinking local spirits made by the hundreds of craft distilleries that have opened around the country.”

Christine Sismondo, author of “America Walks into a Bar”: “While Americans are probably never going to be won over to the anise category, there is hope for caraway. We’re starting to see aquavit being taken up by bartenders as a cocktail ingredient. Kümmel [liqueur flavored with caraway, cumin and fennel] is all the rage in England and will hit here eventually.”

Michael Roper, co-owner of the beer-focused Chicago bar-restaurant The Hopleaf: “I think that high-flavor/lower-alcohol beers are going to be on the rise. There has been so much emphasis on huge, high-gravity beers that there is a great thirst for beers you can actually drink in a quantity of more than one. Bars and restaurants also want good beers that they can make some money on, too, [since] the patron who lingers over a 13.9-percent double imperial stout is not a profit center.”

Kip Snider, director of beverage for the beer-oriented Yard House chain: “I see an increase in the blends of styles already making a splash, like amber pale ales, Belgian [India pale ales], black IPAs and white IPAs — beers that please the taste buds with two flavor profiles.”

John Szabo, wine consultant: “For wine, thin is in, so expect to see the end of 15-percent alcohol, unbalanced prune juice and an embracing of lightness.”

John Hansell, editor and publisher of The Whisky Advocate magazine: “Whiskey companies have maxed out capacity, [and] producers don’t want to put barely legal product on the market, [so] they blend it with some of their older stuff to make it taste better. Since the age statement on a bottle has to be the age of the youngest whiskey in the blend, they will give the whiskey a name, instead. We’ve been seeing a lot of whiskey with names instead of age statements, and we will continue to do so.”

(Article from Beer, Wine & Spirits, edited by LiquorWise)

Liquor & Wine - LiquorWise are always looking for articles which may interest liquor licence holders or potential liquor licence holders. Although not always strictly related to liquor licensing itself, articles on affordability and making it easier to choose is part of the LiquorWise philosophy. Picking a wine that you’ll enjoy can be a daunting task, whether staring down the aisles of a liquor store or glancing at the wine menu at a restaurant. Therefore, we found the South African Wine Index (SAWi) a great help to consumers and liquor licence holders. The Index is a multi vintage wine rating, deducted from the combined preferences of a diverse group of wine judges from various wine competitions, providing a condensed result point. Other considerations include quality consistency while a nominal point is added for additional accolades like a trophy winner. Top wine producers met at the Twelve Apostles Hotel in Camps Bay at the end of November to celebrate the extraordinary achievements attained by a category of wines as identified by the latest Index results. The Top 24 Wines selected are the following : Bouchard Finlyson Galpin Peak Pinot Noir, Eagles Nest Shiraz, Hamilton Russell Chardonnay and Kanonkop Paul Sauer, Klein Constantia Vin De Constance, Rijks Private Cellar Pinotage, Kanonkop Pinotage, Saronsberg Shiraz and Hamilton Russell Chardonnay, Mulderbosch Barrel Fermented Chardonnay, Saronsberg Full Circle, De Krans Cape Tawny Port, Bouchard Finlayson Hannibal and Cederberg Sauvignon Blanc, La Motte Shiraz Viognier, Paul Cluver Chardonnay, Neethlingshof Noble Late Harvest Riesling, Groot Constantia Gouverneurs Reserve and Kleine Zalze Barrel Fermented Chenin BlancOak Valley Pinot Noir, Lomond Pincushion Sauvignon Blanc, Stellenzicht Cabernet Sauvignon, KWV Mentors Shiraz, Paul Cluver Noble Late Harvest Riesling. LiquorWise trust that readers will agree with the wine producers that the wines are worth buying (and drinking, of course!)

Liquor Board - The Western Cape Liquor Conference will be hosted at the Old Mutual Auditorium, Mutual Park, Pinelands on 15 December 2011. LiquorWise will report on matters of interested to licence holders and the general public raised at the conference.

In South Africa, as in many other parts of the world, Sunday liquor sales are always a much disputed talking point. When the Free State Liquor Act was launched last year, it catered for Sunday trading by liquor stores. Just as Free Staters were getting use to this, the regulations were amended and Sunday trading is no longer allowed! It may be of interest to South African consumers and liquor store owners to read about the perception of the public and traders in Grand Rapids, a county in the US state of Michigan. We at LiquorWise were surprised how much the reaction of the folks in Grand Rapids concurred with the feedback we received last year from the Free State public and liquor store owners. Dudley Larson, a liquor store owner in Grand Rapids, said that he didn’t have much choice but to open Sunday mornings. "I’d rather be closed, but everyone else is doing it, so you have to do it and I would be losing money otherwise," said Larson, owner of Dudley’s Party Store. “The sales have been ok”. Michigan Liquor Control Commission statistics show Larson is in good company with his decision to sell alcohol on Sunday mornings. The State has allowed Sunday sales before noon since December 2011 in terms of an annual $160 permit. They could previously only sell on Sundays after 12h00. 5,974 businesses now have Sunday morning sales permits. Data from the Michigan Liquor Control Commission shows that across the state, In Kent County, 281 places have Sunday morning permits, compared to 575 with Sunday afternoon permits. In Ottawa County, 88 businesses are permitted to sell on Sunday morning, while 178 have the afternoon permits. Statewide, the Sunday morning permits have generated $950,000 for the state. "It’s been a success," said Justin Hermiz, owner of Fulton Party Store at 734 Fulton St., near National Avenue. "We open at 10 a.m. instead of noon." Hermiz said the sales offset the $160 fee and employee costs. "After a couple of Sundays, you have your money back," he said. "You’re going to profit. There’s no way you can’t." But for Larry Lawrence, owner of B & B Liquor Store on 28th Street SE near Breton Road, the potential profits are not worth it. He would rather stick with tradition and give his employees a break on Sunday morning. "I would never ask any of my employees to work it," he said. He says people already have lots of opportunity to buy alcohol. "Do you have to be selling booze 24 hours a day?," he asked. "It just doesn’t seem necessary. They have Saturday night up until 2 a.m." Lawrence said that he considers the $160 permit fee a money grab for the state, particularly since liquor stores already pay a separate fee for selling Sunday afternoons. "It seems to me if you pay one license for Sunday, that should be enough," he said. Paul DeBartolo, owner of Bottlenecks, said some people still don’t know that stores are allowed to sell alcohol on Sunday mornings. A couple of customers who came into his store last Sunday were surprised to hear about the change. Bottlenecks opens at 9 a.m. on Sunday mornings, he said, mostly because it offers convenience to those who want it. The law allows sales as early as 7 a.m. "I can’t say it’s been a huge increase in sales," he said. "But it’s good for the people who want to buy alcohol." (Article in GRPress, edited by LiquorWise)

This is something uncommon to South African citizens, although liquor stores are allowed to deliver liquor during their normal business hours. Apart from a few liquor stores offering this service, liquor stores don't offer this service as a rule. The Pennsylvania Liquor Control Board is now shipping specialty wines and liquors directly to customers. In the past, orders from the board's online store were shipped to state liquor stores to be picked up. This home-delivery service has been in operation since 21 November 2011. The service will be evaluated by the board after Valentine's Day to decide if it will continue. About 2000 to 3000 items not generally available in state stores are sold through its website in this way. (Article from Erie Times-News, edited by LiquorWise)

Hard cider sales are growing rapidly, with sales up 25 percent in the year ending October 30, the Advertising Age has reported. Hard cider sales reached $49.6 million for the year, according to SymphonyIRI. They track grocery sales excluding those at Walmart and liquor stores. The major brewers don't offer cider brands, though they appear to be watching the category in the U.S. AB InBev launched Stella Artois Cidre in the U.K. SABMiller (which owns 58% of MillerCoors) sells one cider brand, Sarita, in South Africa. Cider is "a category we're watching with interest," said a MillerCoors spokesman. The largest U.S. cider player is the privately owned Vermont Hard Cider Co., which controls roughly 60 percent of the cider market with several brands, including Woodchuck, which has a 47% share and whose sales grew 37%, according to SymphonyIRI. Hard cider relies on grass roots marketing, just like craft beer, which attracts consumers seeking new tastes and brand stories. While it used to skew to women, more men are drinking it today. According to Vermont Hard Cider, its customer base is now 50 percent male. "People used to feel it was just a sweet product. Now it's a lot more complex," said Vermont Hard Cider President-CEO Bret Williams. "We're doing new things and pushing the envelope, and that's bringing in the men." Craft beer pioneer Boston Beer Co, maker of Sam Adams, sells a cider brand called Harcore, whose sales were up 21% in the year ending October 30. And it has a new offering named Angry Orchard that is also coming to market.

Amongst the Cape Town Hotels, the five star One&Only Cape Town Resort in South Africa takes dinner at the famous Reuben’s Restaurant up a notch with a Sommelier’s Table that is a fascinating showcase of the resort’s extensive wine collection. There’s no denying that aside from the world-class facilities at the luxurious One&Only Cape Town Resort that a large part of the attraction at this urban hotel is the prospect of dining at two of the best restaurants in the city namely Nobu Cape Town and Reuben’s. A new development at the One&Only Cape Town is the launch of its top Sommelier’s Table at Reuben’s. Guests up to 12 at any one time are offered a private dining experience at the restaurant while being hosted by internationally renowned sommelier Luvo Ntezo or his well-versed colleague Tinashe Nyamudoka. With a plus-5000 bottle strong wine and Champagne collection at his disposal and a healthy thirst for discovering new and interesting wines, Luvo is a fascinating host and warm raconteur of cellar tales from his many wine adventures. The Sommelier Table experience has a delightful laidback flavour to it that both aficionados and enthusiastic new wine lovers will appreciate. On arrival at Reuben’s, Sommelier Table guests will meet their host in the impressive three-floor, all-glass, climate-controlled cellar. Here they will enjoy a ‘blind tasting’ ice breaker – perhaps sampling an interesting new find or a wine that is perfectly primed for enjoying that day. Guests will be given a cellar tour and will be able to ask Luvo or Tinashe any questions they may have about this impressive collection of both local and international wines and Champagnes. Light tapas-style snacks will be served in the cellar before guests move to the nearby private dining table for their dinner. Consulting with Reuben and his chef lieutenant Maritz Jacobs as to the best dishes of the day and the latest fresh produce that has been sourced is very much a part of the One&Only sommelier approach and one that has led to these popular dinners. An ideal entertainment opportunity for epicureans, business persons and their clients and people looking for an out of the ordinary experience, the Sommelier Table has proved exceptionally popular and a welcome addition to the offerings at the hotel. Each evening will follow the format of a traditional tasting menu, with four carefully conceived courses, each paired with an equally special wine. Guests will be afforded the opportunity to learn about some lesser-known wine gems, to savour some of the world’s ‘big hitters’ and to enjoy an evening relishing the finer things in life in five-star surrounds. In keeping with the bespoke nature of the events, guests may also request their wine appreciation evening follows a theme or may leave things entirely in the hands of Luvo and Tinashe. Sommelier Table guests will also be given a bottle of wine of the wines tasted that evening as a keepsake. With Reuben’s star rising thanks to the success of his second cookbook, numerous TV appearances both locally and abroad and the fact that national airline carrier South African Airways recently announced a partnership with him for their business class in-flight menus, there’s no doubt that a chance to dine at his eponymous restaurant is a special occasion. Dining at the One&Only Cape Town Resort is a memorable experience. (Article by South African Hotels - Edited by Liquorwise)

Cape Town stands proudly as one of the biggest draws to the entire continent. With attractions like the Cape floral kingdom and its natural wonder Table Mountain, millions of tourists have made the trek to this beautiful location, and millions more inevitably will in the years to come. Cape Town’s picturesque scenery and uniquely blended culture aside, another big draw to the region in general is the food. And when it comes to world-class cuisine, Cape Town wins out in spades with some of the finest restaurants on the globe. Here are five of the best restaurants Cape Town has to offer. 1: The Test Kitchen The Test Kitchen is a relatively new restaurant opened up over the summer by world renowned chef Luke Dale Roberts. Although it’s a fairly new spot, it has quickly become one of the hottest restaurants in Cape Town and attracts people from all over. This 30-seat restaurant truly started out as a “test” for chef Dale Roberts, looking for ways to take his cuisine to new heights. The public has taken to this approach well, flocking in droves to this semi-formal eatery for fantastic dishes. The Test Kitchen has a beautiful old-world-meets-modern setting, with rich woods and bright art, brought to life by subtle globe lighting. Overall, it can be a little pricy, with the average meal coming in at around R350, but this quaint little spot is one of Cape Town’s finest. 2: La Colombe Executive chef Luke Dale Roberts’ original restaurant, La Colombe, is an Asian-inspired French fine-dining establishment in Constantia Uitsig featuring a seven-course tasting menu that draws in crowds from across the globe. The ambiance is incredibly unique, with a diner-like feel about it with chalkboard menus, but a very formal atmosphere with the table settings, custom-designed plates and food items like foie gras, bush tea-preserved quince, and rabbit confit. The restaurant is on the pricy side, so it’s definitely one of those special occasion places for most, but from the unique setting to the blended fusion cuisine, La Colombe stands out for many reasons. 3: Aubergine Aubergine stands out as Cape Town’s most complex restaurant in terms of menu and ambiance. Located in the former home of Chief Justice Sir John Wylde built in 1930, this restaurant is the epitome of traditional meets modern. From the beautiful wood ceilings and soft lighting, to the open, airy space and polished service staff, this restaurant is a winner before you even taste the food. The cuisine at Aubergine, prepared by world-renowned chef Harald Bresselschmidt, is described by many as pure genius. They have an a la carte menu plus a traditional menu, and diners can mix and match their items for a two, three, four, and even five-course meal. From a goat’s milk cheese soufflé to venison medallions and date confit, Aubergine is a very special establishment. It’s a high-end restaurant that will cost on average about R350 (400/450 with wine), but everyone walks away from this restaurant satisfied. 4: The Roundhouse Located in Camps Bay, Cape Town, The Roundhouse is a formal-dining establishment that has made it their mission to make every diner feel like a VIP. As soon as you’re seated, you’re instantly greeted by a member of the impressive wait staff asking what you’d like to drink. With contemporary French cuisine brought to life by chef PJ Vadas, The Roundhouse is always near the top of everyone’s list for best restaurants in Cape Town. The actual restaurant is very attractive, nestled snuggly in the beautiful Glen on the slopes of Lion’s Head, offering picturesque views of Camps Bay. Inside the restaurant, the redwood immediately catches your eye, and the openness of the restaurant is accented well by the light-colored walls and natural light. Although The Roundhouse is a fine-dining restaurant, it’s not overly expensive. Averaging around R400 per full meal, it is still a little pricy, but compared to other elegant establishments, it’s quite a steal. 5: 95 Keerom Made famous by chef-owner Giorgio Nava, 95 Keerom is one of Cape Town’s finest restaurants and has been known as such for years due to Nava’s insistence on cooking only the freshest ingredients possible. He catches his own fish, farms his own beef, and grows his own vegetables where he can. Serving Milanese cuisine, 95 Keerom is a beautiful Italian-inspired establishment with plenty of South African influence. With bentwood chairs and Eames-inspired interior and exposed stone, the restaurant looks exactly like what it is – a fine-dining Italian restaurant in Cape Town. The service is friendly, the food is delicious, and the prices are very competitive. Overall, 95 Keerom is a standout establishment. We only covered five of the top restaurants in Cape Town, but there are many, many more wonderful places to eat in this beautiful historic location. There’s only one way to find out about other restaurants in Cape Town: You have to visit! (Article by Safari Guide Africa – Edited by Liquorwise)

Residents around Gauteng will be spoilt for choice as more township restaurants and other leisure establishments are going the legal route and improving their standards. The Gauteng Liquor Board said that it had noticed an increase of about 50% in the number of restaurants applying for liquor licences in townships like Soweto, Katlehong and Sharpeville. Monga Phaladi, secretary-general of South African Leisure Tourism & Hospitality, said that there was an increase in black people who were legalising their establishments. “Now black establishments want to be legalised and display their licences and health certificates so that they can benefit from tourism,” she said. Phaladi said that the legalisation of establishments led to professionalism and a higher quality of products on offer. She said Tiger Brands had offered cooking courses for a year to 10 emerging restaurants in Ekurhuleni, Tshwane and Johannesburg. Bally Chuene, chairperson of the Gauteng Liquor Board, said they had noted a increase in outlets in the townships. “Our inspectors went to see that equipment like stoves and proper kitchens are there,” he said. Chuene said that they conducted thorough inspections before granting licences. Phaladi called on the government to bring business to restaurants in townships. “We are grateful for the support and funding they give us, like the project with SA Tourism whereby they adopt and market a restaurant, but they need to start utilising township establishments themselves,” she said. Phaladi said that by using these establishments, the government would also be promoting tourism in that area. “Mainly restaurants in heritage sites benefit, but they can come to us and we will tell them about other places,” said Phaladi. (Article by The New Age – Edited by Liquorwise)

SAB, the South African subsidiary of SABMiller recorded good growth in emerging markets, but complains of the government dragging its heels to lift the Gauteng moratorium on new liquor licences. The would-be tavern owners will be hurt by the current moratorium on granting new liquor licences in Gauteng. Norman Adami, managing director and chairman of South African Breweries (SAB), said that the lack of capacity was frustrating. "We want to see a healthy industry that is normalised, but in order to have a healthy, normalised industry, you need to have an appropriate number of licences to serve the broader society," said Mr Adami. He compared South Africa to Poland and Colombia, which have similar figures for gross domestic product per capita and population size. Colombia has 480000 licensed liquor outlets and Poland more than 300000, but South Africa has only 60000, which suggests there could be as many as 180000 unlicensed outlets alongside the country’s legitimate resellers. "It’s very much a vestige of the past — an overhang from the Nationalist government," Mr Adami said. He added it was a form of "reverse discrimination", and that although SAB did not expect to sell any more or any less beer in the short to medium term as a result, the industry needed certainty to attract long-term investment. "The previous government tried to police the shebeens out of existence for 40 years without success. Why would this government be any different from the last?" he said. The global brewer expects emerging markets to account for most of its growth over the next few years. In the US and Europe, earnings before interest, tax, depreciation and amortisation moved down 6% in the period. "Within each business they are optimising their performance — we don’t foresee that in the next six months conditions are going to change materially, but we also believe emerging markets are going to perform and will be able to offset any temporary weakness," he said. In South Africa, the company increased revenues and profits, despite steady beer volumes and a fall of 3% in soft-drink sales. "We were very pleased with our performance given relatively soft economic conditions in South Africa with the consumer under pressure," Mr Adami said. "Castle Light performed particularly well selling at a premium price," he said. Analysts had expressed concern about whether margins in South Africa would hold, but Mr Adami said the company had been able to grow margins for the past two years. "The South African business reflects a consolidated margin of the beer, soft drinks and Appletizer business and our share of Distell . That would give a lower margin than the beer business," he said. (Business Day Article, edited by LiquorWise)

Visit the LiquorWise Website – The Most Comprehensive Liquor Licensing Website in SA! Vanessa Clark explores growth opportunities for the South African spirits market over the coming year. Spring has sprung in the South African spirits market. Windows are being flung open, images revamped, and new markets introduced to novel ways of enjoying spirits. This is despite a Euromonitor report, Spirits in South Africa, says that contrary to expectations that the 2010 FIFA World Cup would increase sales of alcoholic drinks across all sectors, beer was the only market to see any significant growth as a result of the event. The report found that volumes of spirit sales were heavily impacted by the economic downturn in 2010, but that this is expected to reverse as consumers start seeing increased disposable income. Distell, South Africa's leading producer of spirits with a 32% market share, has a slightly different spin on this. The company believes the conspicuous consumption patterns of pre-2007 have been replaced with "more mindful consumption in line with today's tougher times" and that this has resulted in premium brands that offer quality, luxury and value doing well with consumers. This certainly touches on two significant trends emerging in the South African spirits market: the rise of the premium and super-premium brand and a more sophisticated consumer realising spirits are not just for mixing with ice and a slug of soda. These have in turn led to a rise in popularity of sipping spirits, artisan distillers and spirits and food pairing, in line with international lifestyle trends. The South African spirits staple, 'burnt wine' or brandy, provides a good insight into the rise of the premium spirits sector. The brandy renaissance Poor old South African brandy. Just like the Biblical prophets who were accepted everywhere except their home countries, at home brandy all too often still conjures up a picture of beer-bellied men standing around a braai knocking back brandy with lashings of Coke. Around the globe however, South African brandy is recognised as being among the world's best, winning the International Wine and Spirits Competition's (IWSC) Best Worldwide Brandy trophy ten times in the past 13 years. Most recently this was won by Van Ryn's 20 Year Old Collector's Reserve in 2011, making this the fifth consecutive year a South African brandy has held this title. In addition, this year South African spirits won seven best-in-class golds and nine additional gold awards. South African brandies also scooped six gold medals at the Concours Mondial de Bruxelles wine and spirit competition this year, up from two last year. In South Africa, which is the fifth largest brandy producer in the world, traditionally wine-orientated Veritas added a brandy category to its awards in 2010. In addition, the Fine Brandy Festival, now in its fourth year, underwent a makeover, 'adding more luxe and fun lifestyle features which will appeal to the 'cool' crowd,' says Reade-Jahn. The plan is to extend the festival from its Gauteng base to other cities in South Africa over the next few years. Distell's head of spirits, Caroline Snyman, sings from the same song sheet when it comes to South African brandy, saying the local changes in the brandy market mirror the resurgence of cognac in emerging markets such as China, where VSOP (very special old pale) brandy products are considered a trade up from 12-year-old Scotch whisky. She points to the rejuvenation of one of South Africa's most popular brandies, Oude Meester, via an ad campaign featuring Oscar and Grammy award-winning Jamie Foxx; as well as the alignment of Flight of the Fish Eagle alongside hip-hop artists and an imaginary executive airline Eagle Air, which takes invitation-only guests to glamorous cosmopolitan destinations. What about whisky? Snyman says the whisky market also continues to grow, but that this is not at the expense of the brandy market. South Africa is one of the leading global markets for whiskies and we have also seen some highly regarded local brands emerging, such as Three Ships, which are being well received both locally and internationally. International brands such as Scottish Leader, Black Bottle and the specialty Bunnahabhain range are starting to establish themselves in South Africa as well, she says. A more discerning palate The SA Brandy Foundation's Reade-Jahn also sees consumers trading up to premium and super-premium brands, with most growth taking place in the luxury sector. South Africa's super-premium spirit sector is worth around R1.52 billion, with premium brandies amounting to a quarter of that. From Russia with love 'The great northern concept of drinking spirits neat, but always with food and friends, is finding credence here: chilled premium vodka with Cape sushi, or yellowtail gravad lax, or oysters, for example,' says Jorgensen. 'Following the craft revolutions in the US and Europe, there are more and more local producers of spirits daring to put their toes in a traditionally difficult market.' 'The flavour and subtlety of sipping vodka, like a pot still brandy, or Cognac, and many single malt whiskys, is better appreciated with an alcohol content lower than in a 43% spirit. At the higher level the fine flavour and delicacy of the product is masked by the burn of high alcohol content,' says Jorgensen. 'Given that vodka is a highly rectified and relatively neutral tasting product, these flavours are indeed subtle, and tend to be significantly masked at 43% alcohol.' In addition, this ruling is at odds with international standards, and in order to import vodka into South Africa, international distillers may have to produce a South Africa-specific version of their spirit, reducing our exposure to the premium end of the market. Finally, South African distillers, obliged to produce a 43% product, are prevented from entering international competition where the maximum alcohol level required to compete is 40%. What is certain is that the South African spirits market is in the middle of a massive transformation, starting from a very solid base. With more variety and more choice, we may just start viewing our local market in the same way our spirits are viewed abroad. What's your favourite flavour? It probably started with Patrón XO Café, the tequila and coffee liqueur. Suddenly tequila wasn't only for slamming or mixing, but instead for rather civilised sipping. Since then, a deluge of flavoured spirits has entered the South African drinks market. Most recent to follow in Patrón's footsteps with a flavoured tequila is Pernod Ricard's Olmeca Fusion Dark Chocolate Tequila. Released in September, the drink has a relatively low alcohol level at 35% and is described as having "a smooth, silk-like texture that perfectly accompanies the rich dark chocolate flavour, balanced with a dash of tequila." Serving suggestions include as chilled shooter, on the rocks, or as the basis for a cocktail. Two flavoured vodkas have recently been launched into the South African market:Local brand Lovoka offers a caramel and chocolate flavoured vodka-based liqueur that is aimed at both the shooter and the cocktail markets. Europe's Thunder Toffee Vodka has also made it to South African shores. With its roots in après ski society, the producers claim to have developed a recipe that delivers a silky smooth, balanced flavour. (Article by Food Review, edited by LiquorWise)

Some businesses has reacted with anger at the moratorium, calling it an exercise in futility. The MEC, Ms Mahlangu, said that her department now "had its house in order", but wanted to use its "new regime" to address the social and economic implications of liquor trading. The new system allowed for occasional and catering permits to be issued from 17 November and licensing renewals from 1 December 2011, but the moratorium on new licences would not be lifted. Businesses are saying that the Gauteng’s economic development department should have found a way to continue issuing licences while improving its systems as a lot of staff are sitting around, doing nothing." The CEO of the Federated Hospitality Association of SA, Brett Dungan, said the department should not have needed "to fix something that shouldn’t have been broken. Besides the loss of revenue for the hospitality industry, the moratorium had also been "massively inconvenient", he said. Ms Mahlangu said her department was also concerned about large retailers selling alcohol in traditionally black townships . When issuing new licences in townships for large retailers such as Spar , Pick n Pay and Woolworths, the department would "protect the interests of the small players out there", she said. "Why should we squeeze the small guy to give Woolworths a bigger margin?" she asked. However, she did not say how her department planned to do this. (Article by gernetzkyk@bdfm.co.za, edited by LiquorWise)

The Moratorium The moratorium (six month-ban) on the issuing of liquor licences in Gauteng was instituted unilaterally by MEC Mahlangu on 8 August 2011. Considering that Gauteng is the economic hub of South Africa (producing some 70% of its GDP), many businesses reacted to the news as an April’s Fool joke. They quickly realised that April had long gone! The province’s liquor board’s doors were shut to licence applications and according to Gauteng’s director of liquor Max Mothlake, they were to stay shut until well into 2012. Why a Moratorium? The Liquor Board wanted to use the moratorium to end the backlog of pending licence applications. The other big factor was that the corruption game at the board was fake licences. “If falsified licences weren’t being printed by corrupt staff internally they were being printed externally in collusion with staff members,” says Mothlake, who in March was charged with fixing the shambles. Reaction from Government MEC Mahlangu apologised for the “unforeseen” result of the moratorium on the Classic Government radio programme. She indicated that the necessity of the moratorium will be reviewed in October 2011. Reaction from Business Mr Brett Dungan(Fedhasa CEO) requested that burocratic hindrances be removed to allow business to grow. Less business activity means less tax, which impairs government (including The Liquor Board) from doing its job. Was (is) it Legal? The Application to Court Two separate applications were submitted and argued during September 2011 in the North Gauteng High Court in an effort to declare the moratorium illegal. Regrettably for business, they were unsuccessful by reason of technical legalities. However, this was enough to stop any further costly challenges by business. Effect on Business In General The applicants to court presented evidence of estimates that they will lose up to R350 000 per month due to the moratorium. This is due to the loss of liquor sales, as well as the public supporting licensed restaurants. The Moratorium has also brought development in Gauteng’s hospitality market to a halt. Sales of businesses involving liquor licences are frozen and opening of new establishments halted. Some active businesses have been waiting two years for their permanent licences. All functions requiring a temporary liquor licence (“occasional permit”) will not be able to serve liquor. Pretoria University’s annual spring day festival was cancelled because the organisers could not secure a liquor licence. Franchise Groups Keg Franchise - Food and restaurant franchise conglomerate Famous Brands’ efforts to revamp its Keg pub brand have been stymied by the Gauteng Liquor Board’s decision to freeze all new liquor licence applications until next year. Famous Brands bought 28 Keg and five McGinty’s franchised outlets from Kingco in late 2010 in a R27m deal that added a leisure component to the company’s mainly fast food offering. At the time Famous brands conceded the Keg brand needed “renovation and innovation”, but plans for a revamp have been put on hold. Famous Brands CEO Kevin Hedderwick says a newly re-branded Keg in Johannesburg’s northern suburbs, which is central to plans to convince franchise holders to convert to a new trading format, cannot open its doors until the board lifts the moratorium on applications for new liquor licences. Hedderwick says developments are most frustrating. “We’d love to show our franchisees how good the new look for the Keg is ... We wanted to show them where the new brand is headed.” Instead Famous Brands is lumped with a lease that has to be serviced and has incurred development costs with no way of generating cash flows. Hedderwick is hopeful the board will reopen applications in early February. However, the end of the moratorium in early February will begin with a phased reopening of licence applications — which means it might still be a long wait before first round is called in the new-look Keg. Spur Franchise group - “We planned to open up to 10 restaurants each with 60 staff before the end of the year,” says Spur Corp MD Pierre van Tonder. “Without liquor licences it’s impossible.” SAB Miller - Egoli region GM Leonard Volschenk says Gauteng liquor board estimates suggest there are 10000 fraudulent liquor licences in the province. About 15000 legitimate licences have been issued. Volschenk points to the problem SAB faces in supplying liquor outlets with suspect licences. “Only the liquor board [can] confirm whether a licence is valid and it has been unwilling to engage in a verification process,” he says. Some light on the Liquor Licensing Horizon ? The sixth-month liquor licence moratorium on temporary(occasional) liquor licences is to be lifted from 17 November. The moratorium on new liquor licences remains in place, economic development MEC Qedani Mahlangu told reporters on 15 November. She said stringent measures had been introduced to curb the issuing of fraudulent licences. The Moratorium had allowed the department to improve its efficiency and to solve problems relating to the liquor licensing process. These included the issuing of fraudulent documents. “Stringent measures have been introduced to curb the issuing of fraudulent licences [and] to date we are confident that no fraudulent licences have been issued,” Mahlangu said. The department was about halfway through dealing with a backlog of about 2450 applications. A new IT and business processing system had been designed to handle applications and would be in place for occasional and catering permits from Thursday. She said liquor licence renewals for 2011/12 would begin on 1 December 2011. Don’t get too excited Businesses hoping for normality to be restored next February 8 should prepare themselves for more frustration. The moratorium’s end will not result in the liquor board’s doors being opened in a business-as-usual way. It will be a phased reopening. “We don’t want to be flooded by an unmanageable volume of applications,” says Mothlake Have the floodgates been opened? The question on many people’s lips are whether the success enjoyed by the Gauteng Liquor Board now sets a precedent for any of the remaining 8 provinces to follow suit? The answer wasn’t long to be forthcoming – North West province announced a moratorium on tavern licence applications soon after the moratorium was unsuccessfully challenged in the Gauteng High Court. All have gone quiet from the other provinces for now, but don’t be surprised if the silence doesn’t last very long – the new Western Cape Liquor Act and the Kwazulu Natal Liquor Act will be implemented in 2012. Watch this space!

The sixth-month liquor licence moratorium on temporary(occasional) liquor licences will be lifted from 17 November. The moratorium on new liquor licences remains in place, economic development MEC Qedani Mahlangu told reporters on 15 November. She said stringent measures had been introduced to curb the issuing of fraudulent licences. The moratorium took effect in August to allow the department to improve its efficiency and to solve problems relating to the liquor licensing process. These included the issuing of fraudulent documents. The department was about halfway through dealing with a backlog of about 2450 applications. A new IT and business processing system had been designed to handle applications and would be in place for occasional and catering permits from Thursday. "Stringent measures have been introduced to curb the issuing of fraudulent licences [and] to date we are confident that no fraudulent licences have been issued," Mahlangu said. She said liquor licence renewals for 2011/12 would begin on December 1. (A News24 Article, edited by LiquorWise)