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 – Restaurants. The top three most Googled restaurants in 2011 were all pizza chains - Pizza Hut, Domino's and Papa John's . LiquorWise picked up on this on Google’s 11th annual Zeitgeist list. This list ranks the most popular and the fastest-rising search terms.

As part of the broader lifestyle category, the top 10 restaurants searched in the U.S. this year were:

1. Pizza Hut
2. Domino's
3. Papa John's
4. Starbucks
5. McDonald's
6. Olive Garden
7. Subway
8. Applebee's
9. Jimmy John's
10. Buffalo Wild Wings

Up and comers

Globally, a couple of quick-service and fast casual brands were listed among the fastest-rising food and drink terms searched. Wendy's topped the list, Little Caesars is No. 3, followed by Chick-fil-A. At No. 7 is Jimmy John's, followed by Buffalo Wild Wings (No. and Popeyes' Louisiana Kitchen (No. 9).

The global search included countries in Africa, Asia, Europe, North and South America and Oceania (Australia and New Zealand).

Search results of note

Pizza, in general, was the top searched food and drink item in Singapore, Germany and Mexico. This is likely good news for California Pizza Kitchen andChuck E. Cheese's, both of which have expanded their footprints in Mexico in the past few months.

The top searched item in the food category in New Zealand was the "Double Down Burger”, a KFC bun-less burger, which has become the most successful sandwich launch in KFC history. More than 10 million Double Downs were sold in the U.S. in the first month alone.

(Article from www.fastcasual.com, edited by LiquorWise)

Restaurants and guesthouses were the biggest beneficiaries of the COP17 conference in Durban during the past twee weeks. The accommodation industry expected to benefit by the tune of R500m, but the acting head of Durban’s strategic projects unit, Sue Bannister, said that it was closer to R1billion. Liquor sales at both restaurants, hotels (including guesthouses, B&B’s, lodges), pubs and bars were reported to be excellent. Restaurants (including coffee shops) provided 495000 meals, while accommodation was fully booked during the 14-day conference with approximately 160000 bed-nights. (Article by Times Live, edited by LiquorWise)

LiquorWise noted an SA Breweries project which would improve life for residents in Tshirunzini village in Limpopo as a sustainable water project got off the ground there. Minister in the Presidency Collins Chabane unveiled the solar-powered Tshirunzini Water Project, which will improve the villagers' access to clean running water. "There are many challenges associated with poverty but key among a nation's health is provision of clean running water. The provision of water prevents waterborne diseases like cholera from threatening the health of the nation," said Chabane, adding that water was a necessity and not a privilege. "Every community and individual must have access to safe and clean water for sanitation, basic use in the household, and to drink but most importantly for their health and the community of Tshirunzini is no exception." He explained that the village, which is made up of 47 households, had a 95% unemployment rate. There is no electricity, clinic, sporting activity and no running river near the village. The community and its livestock rely on one borehole equipped with a diesel driven mono pump and two 10 000-litre storage tanks. All 47 households contribute a certain amount to buy diesel so that water can be pumped from the borehole, but because of the unemployment rate, many fail to raise the money and are denied access to the water. "With the intervention of South African Breweries (SAB) Limited, a sustainable water provision project to supply clean running water using solar energy and increased water storage was implemented. This was made possible through the thought leadership of Chief Tshikundamalema," said Chabane. Chabane said he had been touched by the community's poverty when he first visited the area as an MEC. He then approached the SAB Limited for help. "Today we are proud to formally handover to you an additional borehole and a bigger storage tank with an alternative sustainable energy sources through solar energy." Chabane praised SAB for choosing not to deliver liquor, but water to the remote village, saying although this would help the community, there were still many challenges. "The piece of land is fertile and people here are hard workers irrespective of the heat. As government, we are urging the private sector to begin to look at simple sustainable initiatives that can make a difference in rural areas. "With this project, these villagers are no longer going to raise money for diesel and they are not going to pay Eskom or government, but they will be getting water free using environmentally friendly energy," he said. Chabane advised the local leadership to skill three or four villagers to repair the solar system as this will be in full support of a sustainable economy. Mutale Mayor Tshitereke Baldwin Matibe said: "Today I am seeing a different village. All the time when I come here, I was always see faces that look hopeless, but today everyone is happy." Representing SAB, Dr Vincent Maphai said they were grateful to have been given the opportunity by the community to partner with the community and bring them water. "All challenges in our areas like Tshirunzini need partnership between the private sector and government." The villagers received a further gift when Chabane and Maphai announced that they would be handing over food parcels and school uniforms to the 47 needy households. A villager and mother of three, Mercy Mudimeli, told BuaNews: "We are humble to have leadership who care about us and now we want them to create jobs for us." - BuaNews (Article by Nthambeleni Gabara - Edited by Liquorwise)

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)

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.

A student film production at a Hollywood liquor store on Monday night was a bit too realistic for one resident, who dialed 9-1-1 around 11:20pm and reported a robbery in progress. The LAPD responded to the scene of the "heist" on the 3300 block of Barham Avenue with several patrol units and began removing the "criminals" from House of Ambrose liquor store. After several interviews, police realized that the "suspects" were actually three University of Texas film students shooting a school project. Their "weapons" were identified as fake guns. The students did obtain a permit for the production but failed to alert the LAPD of their movie magic. No arrests were made, and no liquor was stolen. End scene. (Article by Lauren Lloyd - 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)

Tsogo Sun Holdings, which owns and/or operates around 100 casino resorts and hotels in Africa, the Middle East and Seychelles, has warned that proposed regulatory changes by the South African Government may discourage it from further investment in the industry. It stated in its six month-report till the end of September : Despite a difficult trading environment for gaming and hotels, the group remains highly cash-generative and has significant opportunities to invest capital in its growth strategy at attractive rates of return. The ability to continue to pursue such investments will depend on the final outcome of, and impact from, the variety of proposed regulatory changes by Government.”It warned: “Regulatory risks represent a threat to the group with possible changes to tax regulations and an increased cost burden of compliance with various imposed regulations being the most significant. The integration of the Gold Reef properties into the Tsogo group was largely complete. It also recorded the purchase of The Grace (shown above) in Rosebank for R85-million and said it had also reached agreement for the acquisition of an additional 16.5% effective interest in the Suncoast Casino in KZN for R510 million, bringing the total ownership of that operation to 90%. This acquisition remains subject to approval by the KwaZulu-Natal Gambling Board. TheTsogo Sun Emonti, a subsidiary company of the group, started trading under its new gaming licence on 26 September and construction has begun on the R400 million redevelopment of the Hemingways casino, East London. The first half of the financial year saw accelerated growth in revenue across many of the group’s casinos. Hotels, which benefited from the World Cup in June and July 2010, had shown revenue decline on the prior period, as would be expected, although the effect was exaggerated in the six-month reporting period and would have less impact on the full year. The underlying operations of the group remain highly geared towards the South African consumer (in gaming) and the corporate market (in hotels) with both sectors experiencing difficult trading conditions and increased administered costs. “The group is poised for growth if these sectors of the South African economy improve. “Regulatory risks represent a threat to the group with possible changes to tax regulations and an increased cost burden of compliance with various imposed regulations being the most significant. “The group continues to engage with the various regulatory bodies and other Government departments to ensure that proposed changes are warranted and capable of being implemented without having a negative impact on both current and new investment in the industry and consequently on employment levels.” Tsogo Sun reported that the hotel industry in South Africa was still experiencing the dual impact of depressed demand and over supply, with overall industry occupancies of around 52% for the six months to September. “The group`s hotels are likewise affected. However, as a result of the strong sales and distribution channels available within the group, a significant occupancy and rate premium is being achieved in the segments in which the group operates. “With little recovery in the core corporate market, the group`s system-wide occupancies remain under pressure in South Africa at 58.9% (2010: 59.3%).” Average room rates in the total South African operations declined by 16% to R760, with virtually all the decline attributable to the higher achieved rates during the World Cup in the prior period. Operating costs were well controlled with a 3% increase on the prior period, despite regulated utility costs and property rates increases.The offshore division of hotels achieved total revenue of R153-million for the six months, representing a 21% improvement on the prior year, assisted by the inclusion of Southern Sun Nairobi as a leased hotel (previously managed) with effect from 1 August 2010. Looking ahead, Tsogo Sun said: “Despite a difficult trading environment for gaming and hotels, the group remains highly cash-generative and has significant opportunities to invest capital in its growth strategy at attractive rates of return. The ability to continue to pursue such investments will depend on the final outcome of, and impact from, the variety (Article by Hotel & Restaurant, edited by LiquorWise)

The forth Hooters restaurant in SA will open its doors in December 2011. It will be the first such franchise restaurant fully operated and owned by Chanticleer Holdings Inc., a Charlotte(USA) company. It will be featured in the Emperor’s Palace, close to the OR Tambo Airport in Johannesburg. The other restaurants are in Johannesburg, Cape Town and Durban. The company plans to open three more Hooters Restaurants within the next 5 years in SA. Chanticleer secured credit for an amount of $2milliom with Paragon Commercial Bank of Charlotte to finance growth of the Hooters chain. Chanticleer owns more than 450 restaurants in 44 states and 28 foreign countries. (Article in Charlotte Business Journal, edited by LiquorWise)

STARTING UP When Mike Russell put together a business plan for his westside restaurant, the Cowboy's Bar-B-Que and Country Club, he knew nothing would wash down a smoky rack of ribs like an ice-cold brew."Barbecue and beer is just like a national pastime -- the way football and beer go together," he said with his long, Texas drawl. "It's like peanut butter and jelly." And so, Russell turned to his Realtor for help. A restaurant beer and wine license used by a restaurant that recently shut down was available. Russell was in luck. That was more than a month ago. Originally thinking he would own a license in 90 days, Russell knows it will be at least three months before he can begin serving alcohol in his new restaurant, which has yet to open. As many would-be restaurant owners across Montana have discovered, navigating the state's process for obtaining an alcohol license is a rigorous, confusing test. The process, which often hinges on a decades-old quota system, is driving away new restaurants in Helena and in other cities, some say. "To get a beer and wine license, it's hard," Russell said. "It's like pulling a tooth out of an elephant's mouth." SIZING UP THE SYSTEM In 1947, the state passed a law that provides for a population-based quota system that plays a large role in deciding how many alcohol licenses are available across Montana. "In Helena, our quota is full, but in Lewis and Clark County, there are several licenses available," said Shauna Helfert, administrator for liquor control division of the Montana Department of Revenue. There are several kinds of licenses. There are the off-premises licenses, used by businesses like grocery stores that sell alcohol, but don't allow a person to consume on the property. Then there are the on-premises licenses, which restaurants, casinos and bars vie for. ON CONSUMPTION LICENCES – 3 MAIN GROUPS: A Restaurant beer and wine license -- commonly referred to as a "cabaret license" -- where the business must serve food to the patron who orders a drink. Hours of operation are limited from 11 a.m. to 11 p.m. and a majority of the restaurant's income must come from food sales. A Beer license (with a $200 fee, wine can be added) allows an establishment to serve beer and wine. It must serve food if it has opted for the wine amendment (a basket of popcorn would qualify) but the person served doesn't have to eat and can simply be sitting at a bar. An All-beverage license allow all types of liquor are allowed to be served, without a food requirement. Allowable hours of operation are 8 a.m. to 2 a.m. It is the most common license in place at casinos and bars. There are liquor licenses that allow gambling and those that don't; and, any establishment that does allow gambling must have at least a beer-wine license. Gambling is not allowed with a cabaret license. That's just the start. DIFFERENT LICENCES FOR DIFFERENT PREMISES AND USES – A TANGLED WEB! Some off-premise licenses only allow for beer and wine, others for hard liquor. There are also catering and concessions stipulations. Meanwhile, brewery taprooms do not have to hold an alcohol license and are regulated under completely different rules. On-premises licenses used by restaurants, bars and casinos are often the misunderstood, expensive and contentious. Among those, there are licenses to be used in the city (in this case, Helena and East Helena are combined) and a five-mile bubble around it, and those that are used in the county. For the Helena licenses, 23 all-beverage licenses are allocated and 42 are issued (those extra licenses were grandfathered in during the 1947 legislation). There are 19 beer licenses allocated and 20 issued, and 19 cabaret licenses, which are all that can be issued. For Lewis and Clark County, 44 all-beverage licenses are allocated with 34 issued. Meanwhile, there are no quotas on beer and wine licenses in the county, outside the five-mile bubble. To make it a little more confusing, the number of licenses available is often in flux. Since the quotas are based on population, cities like Butte, which has shrunk over time, have lost available licenses. Those taken away are often redistributed around the state, which means areas of growth, like Billings, Bozeman, Missoula and the Flathead Valley, have been getting them. A lottery system is used to determine who is awarded the available license. Those that are transferred from one area of the state to another are not allowed to offer gambling. Each license is treated as personal property and supply and demand determines the market price. Still, any deal involving an alcohol license transfer must be approved by the Department of Revenue, and a license cannot sit idle for more than a year. No individual can own more than one all-beverage license, by far the most valuable of them all. "I can only guess that they didn't want just one person to gobble up all the licenses in the city," Helfert said. LICENSES AREN'T CHEAP – A LIMITED QUOTA ONLY The quota system is sore spot for some folks, Russell among them. "That's why your big national restaurant chains do not come to Helena, (it) is because you cannot get a license," he said. Cathy Burwell, the president of the Helena Area Chamber of Commerce, tends to agree. "We have a lot of the chain restaurants that want to come into Helena," she said. "Helena is an eat-out town with higher income levels." But, many turn away because of either a lack of licenses, or the cost, she says. While an increase in licenses would certainly help businesses looking to start a new restaurant, the problem is that a sudden increase in availability would hurt the value of existing licenses, an asset that in which many current holders have a substantial investment. "We want growth and we want new businesses to come to Helena, but at the same time, we don't want our current businesses to lose their asset," Burwell said. "It's their retirement fund for a lot of bars." JUST HOW MUCH IS A LIQUOR LICENSE WORTH? According to the Department of Revenue's website, the Red Garter Casino on Prospect Avenue purchased its all-beverage license for $650,000 in August. Drae's Station Casino on Custer Avenue bought one about a year earlier for $400,000. The most recent beer and wine license transaction in June was for $107,000. The more-restrictive cabaret licenses are far less pricey. Russell is paying roughly $28,000 for his carbaret license. He sees it as a worthwhile investment considering the price of other types of licenses. But he knows that there are other states, like his native Texas, where there is no quota system, only yearly license renewal fees. Selling alcohol is far less expensive there. Just to get around the problem, some Helena businesses are going in on a liquor license together. Chili's and Macaroni Grill, which have a common owner, share a building and an alcohol license. The same goes for Lucca's restaurant and the neighboring Rialto Bar downtown. "In Montana, I think that's become a common way to do business," said Joe Hrella, co-owner of Cafe Organica, for which he bought a cabaret license for $20,000 in February. "There are several of them in Bozeman that do it that way." A BETTER WAY? The process for purchasing a license can be lengthy. Cafe Organica, on Park Avenue, received its license nearly nine months after beginning the process. Hrella thought it would be easier since he had previously held a license. "You would think it would be able to happen relatively fast and it should be a pretty streamlined system," he said. He was happy to pay the cost for his license, feeling it adds to his cafe. However, Hrella would like to see something done to address the high cost and limited availability of licenses. But he also understands the complexity of equitably unwinding the quota system. "For those with the more expensive licenses, I would have to take their side, even though we would like to see more variety of restaurants across the state," he said. He suggests a buy-out program that would compensate some license holders and allow for less costly licenses to be made available. Though it has its problems -- licenses in different areas are certainly worth more than others, likely leading to an appraisal system -- Hrella says revamping the quota system would eventually mean more revenue for the state, and more establishments competing with each other. "More competition is better," he said. Dax Cetraro, who owns numerous bars and restaurants, including the Rialto Bar in Helena and Grand Plaza Casino in Butte, doesn't mind the competition. But, he sees the definite benefits of a quota system beyond just personal gain for his family, which has been in the bar and restaurant industry since the 1960s. "There's a big push out there to control drunk driving, serving of minors, responsible drinking, etcetera," he said. "If there wasn't a quota system, then everybody would be able to sell liquor or beer. It makes it a potential problem because you don't have the control." Establishments with liquor licenses require their staff to go through training and take steps to make sure they are serving alcohol responsibly. If the state wanted to open up and increase the amount of licenses, it had better make sure it increases those serving programs and law enforcement as well, Cetraro said. "We're under their guidelines, we're monitored, and that, to me, is responsible," he said. (Article by Independent Record - McClatchy-Tribune Information Services via COMTEX - Edited by LiquorWise)

In line with its aggressive African expansion plans, retailer Pick n Pay (PIK) on Friday announced the opening of its second Mauritian store at Cascavelle in Mauritius. The company opened its first Mauritian store in Bagatelle's Mall of Mauritius at the end of September and said one more store opening in the country was on the cards for 2012. “We are set to continue along this expansion path in a planned and deliberate way,” Pick n Pay's head of group enterprises, Dallas Langman said. Pick n Pay's expansion into Africa has been made easier with the establishment of a centralised distribution system. The company was the last of the country's big grocers to roll out centralised distribution when it opened an expanded warehouse in Longmeadow in July. Pick n Pay's strategy into Africa has mainly been through partnering with locals and the franchise route where local experts own the franchise in their own communities. However, there are instances such as with stores in Zambia, where the company will develop corporate-owned stores. The Mauritian stores will be run by franchisees who are familiar with the Mauritian market, providing Pick n Pay with further significant insight into this market, it said. Mauritius has, in three decades, transformed from a mono-crop sugar dominated economy, to a services-orientated one, with a growth rate of 3% per annum. According to the World Economic Forum's latest Global Competitiveness report the country was one of two sub-Saharan African economies in the top half of the Global Competiveness Index rankings. Located off the southeast coast of the African continent, Mauritius is ranked 54th on the index this year, up one place since 2010, and is the second-highest ranked country in the region after SA. “The country benefits from strong and transparent public institutions, with clear property rights, strong judicial independence, and an efficient government,” the report noted. Pick n Pay's expansion into Mauritius follows its first store opening in Mozambique in June and its second store opening in Zambia in March. “We have received official notification from the Indigenisation Board of Zimbabwe that the purchase of a further 24% of the Zimbabwean operation TM Supermarkets, has been granted,” Langman said. He added that the company had expressed a strong interest in the new Mall of Zimbabwe and that its investment would be via TM Supermarkets. “It will be a Pick n Pay-branded store but our investment is still via TM Supermarkets,” Langman noted. Earlier this month, Pick n Pay reported that headline earnings per share had plummeted to 54.7 cents for the six months to end-August, from 90.17 cents in 2010, on the back of start-up costs for its Smart Shopper loyalty programme and investment in its centralised distribution system - initiatives taken up by the group as part of its turnaround strategy in the face of increased competition. Over the next six months, Pick n Pay aims to open five more stores in Africa - among SA's big retailers, the Cape Town-based company has the smallest portfolio outside SA, while rival Shoprite (SHP) has the largest. - I-Net Bridge (Article on I-Net Bridge, Edited by LiquorWise)

David Coutts-Trotter, Sun International CEO, has resigned from Sun International with immediate effect. Undisclosed personal reasons lay behind the decision. The group, which is blessed with a depth of management expertise, has appointed its gaming operations director, Garth Collins, as CE until a new CE can be appointed. Collins is a Sun International veteran, having been with the group for over 40 years. Coutts-Trotter served as deputy under Peter Bacon for three years from 2003 - 2006. However, he has been with the group for far longer, joining Kersaf Investments, once Sun International’s holding company, in 1994. He has enjoyed a successful tenure as CE. He has overseen the expansion of Sun International into both West Africa and South America. He has also overseen licence reapplications for various group properties, as well as major refurbishments, (notably the Boardwalk in Port Elizabeth) currently undergoing a R1bn expansion and the Wild Coast Sun, nearing the completion of a R400m upgrade Coutts-Trotter was a popular leader, particularly with middle management and the rank-and-file who liked his informal management style. That does not imply that he was a soft touch. He was “robust, frank and successful” and could at times be eye-wateringly honest. He dislikes the limelight. The company also released an update for the quarter to the end of September. Casino revenue was up 7% compared to the same period last year. This was driven mainly by rapid growth at Monticello, while GrandWest, Carnival City and Sibaya achieved revenue growth of 5%, 4% and 8% respectively. Rooms revenue was in line with last year at R223m but occupancy, at 62% was 3% lower. The Cape Town market in particular is having a torrid time with occupancies at the Table Bay declining from 40% last year to 30% this year. If there is a silver lining in this it is the fact that if one removed the FIFA World Cup effect last year, rooms revenues would have grown 7% in the quarter. The group achieved an EBITDA margin of 25.0% which was 2.4% lower than last year. This is unsurprising in the current environment, and reflects slow revenue growth and the fact that expenses are growing faster than revenue. “This performance is entirely market related,” says Stanlib’s Shawn Stockigt. He prefers to dwell on the positives however. While local growth is slow, the group’s Chilean operation, devastated by the earthquakes last year, is starting to make a contribution to profits. And other initiatives – such as the plan to build a hotel and casino in Nigeria – and bode well for future growth. “We don’t like it when management changes as suddenly as this, but this is a good company, with good prospects and management change happens,” he says. (Moneyweb article, edited by LiquorWise)

Try this experiment: Walk into the nearest wine shop and ask for an “everyday wine” recommendation. Refuse to give a price range, and see what the merchant suggests. My guess is you’re out 15 bucks. Critics seem to be pushing this price point as an appropriate range for “everyday wine”— even though the phrase can’t possibly be taken literally. If you and your significant other were to drink five bottles of wine a week, at $15 per bottle, your annual wine outlay would approach $4,000. That’s more than the average family spends on groceries. Granted, few Americans actually drink that much wine—annual consumption is around one bottle per month (PDF) per capita—but perhaps they would if the industry hadn’t taught them that truly affordable wine isn’t worth drinking. The evidence is right across the Atlantic: In Europe, consumption is 3-to-6 times higher than in the United States. But only the most affluent would spend 11 euros to drink a bottle of wine at home on a Wednesday night. Europeans seem perfectly comfortable cracking open a 1-eurotetra-pak of wine for guests. Germans, for example, pay just $1.79 on average for a bottle of wine. Not long ago, American wine-buying habits were very similar to the Germans’. In 1995, 59 percent of the wine purchased in the United States sold for less than $3 per bottle. By 2006, controlling for inflation, that share had dropped to 29 percent. Wines over $14 per bottle more than quadrupled their share of the market during the same period. Looking at raw consumption rather than market share, sales of over-$14 wine increased sevenfold. Sales of wines that cost less than $3 per bottle actually declined 28 percent, during a period when overall wine consumption was rapidly increasing. There are plenty of reasons to go back to our 1990s habits, and to start using 15 bucks to buy four or five bottles instead of just one. Ernest Gallo, who, along with his brother Julio, popularized wine among the American masses, understood the psychology of wine better than anyone. He used to pour two glasses of wine for potential buyers, telling them that one sold for 5 cents, and the other for 10. According to Gallo, his guinea pigs invariably chose the more expensive option. What they didn’t know was that the two wines were exactly the same. Researchers have recently reproduced Gallo’s results, proving that our appreciation of a wine depends on how much we think it costs. If you can break yourself of this psychological quirk—or have your spouse lie to you about the cost of your wine—you’ll save a small fortune. You’re also likely aware of the piles of studies showing that you can’t reliably pick out expensive wines in a blind taste test. Many studies show that laymen actually prefer cheaper wines (PDF). Professional wine critics are quick to point out that they, unlike you and I, can distinguish between high- and low-cost bottles in blinded experiments. Here’s the question they can’t answer for you: So what? The only thing these “successes” prove is that a small group of people have gotten very good at sniffing out the traits that the wine industry thinks entitle them to more money. If hints of cassis, subtle earthiness, and jammy notes don’t interest you, you are not a lesser person. Wine is not art. There’s no reason to believe that aligning your tastes with those of a self-appointed elite will enrich your life, or make you more insightful or sensitive. If wine critics want to spend lavishly on the wine they like, that’s great. Leave them to their fun. Be grateful that you can gain just as much pleasure, if not more, without bankrupting yourself. I’m not without sympathy for the American winemakers who keep wine prices high. Real estate is pricey in California, and some vintners claim they have to charge $20 or more per bottle just to break even. That’s a shame, but wine-buying isn’t an act of philanthropy. If you can’t tell the difference between an expensive wine from a small family vineyard and their cheaper competitors—or you think the cheap stuff is superior—save your money. You are under no obligation to keep vineyards afloat. A little consolidation might be a good thing. Do we really need tiny winemaking estates up and down the West Coast, not to mention Long Island, Michigan, Virginia, and Missouri? There’s also an enormous range in the retail price of a single bottle of wine, which means the $15 bottle you bought at one store might be a $6 bottle elsewhere. A recent studyfound that a wine selling for $695 in California went for $2,000 in Illinois. The Yellowtail Merlot offered for $4.99 in Buffalo cost more than twice that much in Jersey City. Such discrepancies are due not only to taxes and varying distribution schemes but to individual store owners trying to wring a few more dollars out of clueless consumers. Again, the key here is that higher prices do not reliably reflect quality. Finally, rest assured that cheap wine in the United States is good, to the extent that the term has any objective meaning. Falling market share over the last 15 years has forced discount vintners to compete with upmarket brands, and modern technology has enabled them to crank out consistent wines, case after case. So, if you win your $3 gamble on the first bottle, you know you’ll like the next. And, in a sense, we have an advantage over Europe, since our discount offerings are usually a notch better. European bargain wines can be hit or miss, because they’re made by cooperatives that sometimes have outdated equipment, poor inventory management, and even substandard sanitation practices. Charles Shaw and the best American box wines rarely have such problems. You’re probably hoping for some recommendations. You don’t need them. Reviews and recommendations are great for cars or televisions or overpriced wines, because bad decisions are expensive. If you hate your cheap bottle of wine, just uncork another. (Article by Brian Palmer, edited by LiquorWise)