the The Alliance of Beverage Licensees Publican Spring 2016

Featuring The Surging Popularity of ONE20 Public House p20 Craft Products p8 40026059 # • Service, Selection, Social p14 • Creative Recruiting p22 AGREEMENT AGREEMENT • Staying Ahead of the Game p28 Lemon Lime: Refreshing lemon and lime flavours ENJOY IT Sku: 503318 HOT OR COLD PER $7.42 4PK WPP* JAN 31-FEB 27 $6.42 Grapefruit: Crisp and light refreshing flavours. Sku: 821652 PER $7.42 4PK WPP* April 1-30 $5.89 Mixed Berry: Bursting with field berry flavours. Sku: 152033 PER $7.42 4PK WPP* FEB 28-MAR 31 $6.42 MUDSHAKE CARAMEL MUDSHAKE STRAWBERRY MUDSHAKE CHOCOLATE Rich, sweet, engaging Smooth and creamy Rich, creamy milk caramel flavours that with the taste of chocolate blended with a Iced Tea stimulate your taste buds. fresh strawberries. sophisticated touch of vodka. Sweet tea with citrus. Sku: 751776 SKU: 374850 SKU: 824490 SKU: 824490 Try One PER PER PER PER 4PK $7.28 4PK $9.79 4PK $9.79 $9.79 4PK Today! WPP* APRIL 1-30 $5.75 WPP* JAN 31-FEB 27 $7.89 WPP* FEB 28-MAR 31 $8.29 WPP* JAN 31-FEB 27 $7.39

Honesty Box NAUGHTY COW CHOCOLATE delivers great taste, Smooth and creamy not too dry and ready-to-drink liqueur with not too sweet. intense chocolate flavours. $16.49 Pear SKU: 473298 SKU: 418988 WPP* APRIL 1-30 $14.49 Sweet flavours NAUGHTY COW CAKE and aroma of a Chocolate and delicious vanilla cake bartlett pear. flavours for an experience that’s a celebration all on its own. Apple PER PER $12.99 SKU: 584060 $2.18 CAN $2.20 CAN SKU: 743161 Light, well balanced CIDER WITH PEAR APPLE CIDER crisp apple WPP* FEB 28-MAR 31 WPP* FEB 28-MAR 31 flavour. $1.68 $1.70

ALL THE PRODUCTS SHOWN ABOVE ARE GLUTEN FREE

BC Interior – Teresa Olson, [email protected] Tri-cities / South Vancouver – Vito Maracic, [email protected] Vancouver Central / North Shore – Naomi Hawksworth, [email protected] Vancouver Island – Lonnie Eckardt, [email protected] BC Sales Lead – Curry Scott, [email protected] www.independentdistillers.ca

*WHOLESALE PRICE PROMOTION. PRICES SUBJECT TO CHANGE WITHOUT NOTICE. ADVERTISED PRICES AND PLANNED DISCOUNTS CORRECT AS OF ADVERTISING DEADLINE. Lemon Lime: Refreshing lemon and lime flavours ENJOY IT Sku: 503318 HOT OR COLD PER $7.42 4PK WPP* JAN 31-FEB 27 $6.42 Grapefruit: Featured Crisp and light refreshing flavours. Sku: 821652 PER Publican $7.42 4PK WPP* April 1-30 $5.89 Michael Lehnert ONE20 Mixed Berry: Public House Bursting with field berry flavours. Sku: 152033 PER $7.42 4PK WPP* FEB 28-MAR 31 $6.42 MUDSHAKE CARAMEL MUDSHAKE STRAWBERRY MUDSHAKE CHOCOLATE Rich, sweet, engaging Smooth and creamy Rich, creamy milk caramel flavours that with the taste of chocolate blended with a Iced Tea stimulate your taste buds. fresh strawberries. sophisticated touch of vodka. Sweet tea with citrus. SKU: 374850 SKU: 824490 SKU: 824490 Quarterly Publication for the Sku: 751776 Alliance of Beverage Licensees Try One PER PER PER PER 4PK $7.28 4PK $9.79 4PK $9.79 $9.79 4PK 2nd floor 948 Howe Street, Vancouver, BC V6Z 1N9 Today! WPP* APRIL 1-30 $5.75 WPP* JAN 31-FEB 27 $7.89 WPP* FEB 28-MAR 31 $8.29 WPP* JAN 31-FEB 27 $7.39 T 604-688-5560 F 604-688-8560 Toll free 1-800-663-4883 [email protected] www.ablebc.ca @ABLEBC

2015-2016 Board of Directors & ABLE BC Staff President Poma Dhaliwal Vice President Al Deacon Treasurer & Director Steve Smith 20 Directors Brady Beruschi, Michael Brown, Patrick Greenfield, Trevor Kaatz, Al McCreary, Danny Rickaby Executive Director Jeff Guignard Membership & Communications Danielle Leroux

The Publican Editorial Committee: Dave Lindsay, Chris Mahony, Brian Riedlinger, Marilyn Sanders 8 14 22 28 Honesty Box NAUGHTY COW CHOCOLATE delivers great taste, Designed, Produced & Published by: Smooth and creamy EMC Publications the not too dry and 19073 63 Avenue, Surrey BC V3S 8G7 ready-to-drink liqueur with not too sweet. Ph: 604-574-4577 1-800-667-0955 intense chocolate flavours. Fax: 604-574-2196 [email protected] $16.49 Pear www.emcmarketing.com Spring 2016 Publisher Joyce Hayne Publican SKU: 473298 SKU: 418988 WPP* APRIL 1-30 $14.49 Designer Krysta Furioso Sweet flavours Copy Editor Debbie Minke ABLE BC Editor Jeff Guignard NAUGHTY COW CAKE and aroma of a Features bartlett pear. Departments Chocolate and delicious vanilla cake Copyright EMC Publications flavours for an experience that’s a 8 The Surging Popularity of Craft 4 President’s Message celebration all on its own. PUBLICATIONS MAIL AGREEMENT NO. 40026059 Products: Seizing the Opportunity Apple RETURN UNDELIVERABLE CANADIAN ADDRESSES 5 Executive Director’s Report PER PER TO CIRCULATION DEPT EMC PUBLICATIONS 13 ContainerWorld: Caring for Craft Beer $12.99 SKU: 584060 CAN CAN 6 LRS & Hospitality Sales $2.18 $2.20 19073 63 AVENUE 14 Service, Selection, Social: How to SKU: 743161 Light, well SURREY BC V3S 8G7 7 Product Showcase balanced CIDER WITH PEAR APPLE CIDER email: [email protected] Compete in BC’s Changing Retail crisp apple WPP* FEB 28-MAR 31 WPP* FEB 28-MAR 31 Environment 18 LDB Report flavour. $1.68 $1.70 20 Profile - ONE20 Public House 19 Wine Report 22 Creative Recruiting: Thinking 27 Names in the News ALL THE PRODUCTS SHOWN ABOVE ARE GLUTEN FREE Outside the Box 31 What's New? 26 Joint Venture Drinking: Who’s At Fault? 34 ABLE BC Benefits BC Interior – Teresa Olson, [email protected] 28 Staying Ahead of the Game: Regular 35 Upcoming Events Tri-cities / South Vancouver – Vito Maracic, [email protected] Equipment Maintenance is Key Vancouver Central / North Shore – Naomi Hawksworth, [email protected] The statements, opinions & points of view expressed in 36 BCHF Update published articles are not necessarily those of ABLE BC. 32 What is a Good Pour Cost? Vancouver Island – Lonnie Eckardt, [email protected] Advertisers are not necessarily endorsed by ABLE BC. 38 Spotlight on Flavoured Rum BC Sales Lead – Curry Scott, [email protected] www.independentdistillers.ca 37 Pricing Drinks the Right Way

*WHOLESALE PRICE PROMOTION. PRICES SUBJECT TO CHANGE WITHOUT NOTICE. ADVERTISED PRICES AND PLANNED DISCOUNTS CORRECT AS OF ADVERTISING DEADLINE. President's Message by Poma Dhaliwal

It is perhaps the most tumultuous liquor policy for BC. We have been sharing these results with inventory demand; and how the LDB is working environment in recent memory. As the voice government and our members. We continue to with vendors to ensure industry customers get of BC's private liquor industry, the Alliance of fight to allow BC’s private liquor stores to sell to access to the products they need when they need Beverage Licensees (ABLE BC) remains committed the province’s pub and restaurants, the next step them. While we all agree there is much to improve, to what matters most: advocating for your in a “level playing field”. it is clear that the new team understands our interests and protecting your investments. industry’s challenges and has set a goal of being our industry’s “vendor of choice”. We look forward With all of the legislative, regulatory, and policy Marijuana Sales in Licensed Establishments to continuing our discussions with LDB Wholesale changes taking place in our industry, we spend on your behalf in the days ahead, to ensure LDB much of our time meeting with Ministers, MLAs, In November, we surveyed our members on the fully understands the needs and concerns of BC’s municipal councils, and other government sale of marijuana in BC’s liquor primaries and private liquor industry. officials, to share our members’ concerns and private liquor stores. The poll results were clear: achieve workable solutions. To ensure you’re up- an overwhelming majority of ABLE BC members It is a time of transformative change in our industry. to-speed on our policy priorities for 2016, here’s support using BC’s existing liquor licensees to It’s no secret that we are all stronger when we work a list of some of the key issues we are advocating: sell recreational marijuana. together, and that our membership base of nearly ABLE BC has had preliminary discussions about 1,000 licensees is a significant strength when the necessary policy framework with government advocating for your interests with government Allowing Licensee-to-Licensee Sales officials, including the LCLB and LDB. If the federal and businesses. For more information about BC’s private liquor retailers are still prohibited from government legalizes marijuana, ABLE BC will be ABLE BC, our Member Benefits, and what we are selling products to BC’s pubs and restaurants. In recommending to government that BC’s age- doing to protect your investments, please visit our many cases, private retailers are better suited controlled liquor primaries and licensee retail website (www.ABLEBC.ca) and consider joining and better situated to supply these customers. stores are best equipped to sell marijuana. the Alliance, if you’re not already a member. Allowing “licensee-to-licensee” sales could be If there is anything else we can do to help, or if you an important business opportunity for private Improving LDB Wholesale Operations have any questions about liquor policy changes, retailers, and generate millions of dollars in I hope you won’t hesitate to get in touch. You additional revenue for government. ABLE BC has had several positive meetings can contact us any time at [email protected] or This fall, ABLE BC received the results of our with the new senior management team at LDB 604-688-5560. economic analysis, proving that “licensee-to- Wholesale. We have discussed solutions to stock licensee” sales would be economically positive outages; how the LDB manages and forecasts

4 The Publican Executive Director's Report by Jeff Guignard

As members know, ABLE BC meets regularly with simplifying existing policies, and streamlining senior government officials to discuss solutions processes in BC’s liquor industry and small to current challenges in BC's private liquor business communities. industry. I want to assure you that your issues are absolutely at the forefront of our discussions with our government partners, and that ABLE BC Upcoming Member Meetings is proposing several positive, workable solutions. Throughout 2016, ABLE BC is hosting a series In our recent meetings with government, we of member meetings, networking events, and have been very encouraged to hear government liquor policy workshops to help you grow your express a sincere desire to support BC’s private business and manage some of the changes from liquor industry. We are also gratified that they are the Liquor Review. Whether you own a pub, sympathetic to our concerns about fairness in liquor store, hotel, or simply have a professional the marketplace and the need for new business interest in the liquor industry, these meetings opportunities for our members. are a critical opportunity for us to answer your concerns directly and to hear face-to-face about the issues that matter most to you and Improving Business Opportunities for your business. Liquor Primaries Non-members are always welcome. You can While a new wholesale pricing system was find more details about upcoming events in our introduced on April 1, 2015, Liquor Primaries were biweekly Industry Update e-newsletters, or on our left out of the new system. LPs must continue to website (www.ABLEBC.ca), Twitter and Facebook purchase at the full LDB established retail price (@ABLEBC). through BCLS, the LDB’s Wholesale Customer Centre, or from private manufacturers. Being I am also excited to announce ABLE BC’s first forced to purchase from BCLS at full price is not Industry Expo in Kelowna on May 9 and 10, only unfair, it goes against the government’s goal 2016 featuring preferred industry suppliers and of creating a “level playing field”. educational seminars for hospitality owners and managers. Stay tuned for more details. ABLE BC believes that LPs should be able to purchase directly from private retailers and at the very least be offered a discount off LDB New Online Private Retailers Buying retail. We are currently modeling the economic Program implications (both for government and the In January, we launched our new online private sector) of various discount levels. purchasing portal buyABLE. This dynamic web- For a summary of the other issues we’re based platform saves Liquor Buyers and Agents advocating, read the President’s Report on time, money, and effort. page 4 or visit our website at www.ABLEBC.ca. buyABLE is designed to give our Licensee Members access to exclusive products and Connecting with Licensees discounts that protect your profit margins; and offer our Associate Members the opportunity to In January, we were pleased to host Hon. Coralee post complimentary regular listings and connect Oakes, Minister of Small Business and Red Tape directly with hundreds of licensees. Contact our Reduction, Minister Responsible for the LDB, at office to learn more at 1-800-663-4883. our 2nd annual post-holiday Industry Networking Event in Vancouver. We wanted to ensure the As always, if you have any questions, comments, Minister could hear directly from members or concerns you’d like to discuss, please don’t about how policy changes are impacting their hesitate to get in touch with me directly at jeff@ businesses. ablebc.ca. Since her appointment, the Minister has been very receptive to our concerns and ABLE BC is encouraged by her intent focus on supporting BC’s small businesses and reducing red tape for business owners. ABLE BC continues to work with Minister Oakes on helping reduce red tape, The Publican 5 LRS & Hospitality Sales Licensee Retail Stores - Net of CRF, Discount & Commission and General Merchandise

Net Sales $

Sept 2015 Oct 2015 Nov 2015 Dec 2015 YTD

Wine $16,283,852 $23,036,904 $15,710,581 $25,231,858 $160,386,657 Spirits $17,650,275 $24,056,591 $18,603,229 $30,842,898 $184,025,301 Beer $29,960,792 $39,673,991 $27,473,906 $39,205,777 $347,210,950 Refreshment Beverages $5,791,015 $6,480,707 $4,476,960 $6,108,692 $71,922,571

Total $69,685,934 $93,248,193 $66,264,676 $101,389,225 $763,545,479

Litres (L)

Sept 2015 Oct 2015 Nov 2015 Dec 2015 YTD

Wine 1,449,757 2,060,813 1,417,197 2,212,915 14,561,407 Spirits 665,956 915,815 697,539 1,150,834 6,981,058 Beer 8,496,262 11,301,013 7,729,459 11,146,310 98,863,556 Refreshment Beverages 1,379,051 1,537,973 1,068,594 1,494,861 17,592,957

Total 11,991,026 15,815,614 10,912,789 16,004,920 137,998,978

Hospitality - Net of CRF, Discount & Commission and General Merchandise Net Sales $

Sept 2015 Oct 2015 Nov 2015 Dec 2015 YTD

Wine $14,445,489 $16,687,446 $12,173,368 $17,758,881 $128,164,583 Spirits $8,239,315 $9,483,375 $7,866,628 $11,393,040 $81,011,434 Beer $19,419,534 $22,477,273 $17,171,955 $20,674,429 $184,765,047 Refreshment Beverages $1,147,303 $1,277,228 $919,367 $1,115,500 $11,590,890

Total $43,251,641 $49,925,322 $38,131,318 $50,941,850 $405,531,954

Litres (L)

Sept 2015 Oct 2015 Nov 2015 Dec 2015 YTD

Wine 809,399 915,763 687,225 961,821 7,321,823 Spirits 246,519 286,090 229,825 339,470 2,455,704 Beer 5,071,484 5,873,638 4,467,407 5,347,586 48,306,390 Refreshment Beverages 224,262 250,328 179,212 216,643 2,307,865

Total 6,351,664 7,325,819 5,563,669 6,865,520 60,391,782

Source: BC Liquor Distribution Branch

6 The Publican Product Showcase

AUGEY RED BORDEAUX BRAVE LIVER SCOTCH ALE CIRCUS PINOT NOIR 2015 RED TRUCK IPA Red Wine Scotch Ale Red Wine Northwest India Pale France Canada ARGENTINA Ale Great value from a great A full-bodied strong ale also New R/Spec Canada region! known as a “Wee Heavy”. Produced by Escorihuela 1884 A bright IPA filled with Scottish Pale Ale malts are lovely floral, pine, and citrus Augey wines are from the artfully crafted to impart hints A new addition to the best- aromas and flavours. A soft most famous appellation in of oak, Scotch and caramel. selling speculative listing Circus sweetness followed with a France - Bordeaux. Augey Smooth. Malbec. lingering bitterness makes Red Bordeaux is a 75% Merlot this beer an easy-drinking and 25% Cabernet Sauvignon Brave Liver Scotch Ale is best Circus Pinot Noir is light ruby friend suitable for all blend that has dark plum and served in a thistle glass at in colour with fruity aromas of occasions. spice on the nose with a hint 10-13°C. Enjoy it with roasted plums and cherries. Smooth of mint. Savour black currant, beef, lamb, game, smoked yet full-bodied, this Pinot Noir Appearance: A light clear plum, and spice on the palate salmon, aged cheeses, offers freshness with a velvety orange with just a hint of with subtle oak notes. Its toffee pudding or chocolate texture. haze. This 6.3% IPA with 69 elegant, velvety texture is soft desserts. IBUs is an unfiltered beer for and easy to drink. Other Spec wines available maximum flavour impact. 22 IBU 6.5% ABV from Circus include Malbec, Aroma: Lemon zest, pine, Augey Red is perfect with any Torrontes & Cabernet sweet orange red meats and hearty meals, Sauvignon. Flavour: Floral, pine, and but excellent on its own too. citrus aromas Finish: A strong citrus and bitterness give a dry finish Hops: Cascade, Centennial, Columbus, Amarillo, Augey White +660126 Athanum $11.00 Whsl R/Spec 750ml +775437 650ml +758094 750ml +635920 6 x 355ml +525659 $11.00 Whsl $4.35 Whsl $10.50 Whsl $9.43 Whsl

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The Publican 7 THE SURGING POPULARITY OF CRAFT BEVERAGES SEIZING THE OPPORTUNITY by Tim Vandergrift

8 The Publican Craft beverages are the hottest, trendiest category for 2016, with consumers flocking to local small-batch and artisanal beer, cider and spirits. The word “craft” inspires consumers, particularly younger ones. A recent Nielsen online poll had 35% of drinking age adults say they’re more interested in trying an adult beverage labelled “craft”, with the number jumping to 46% among men 21-24. It's an excellent time to please your customers - and drive your business - with craft products. Beer - According to Beer Canada's 2015 Annual Statistical Bulletin, Canada went from 290 breweries in 2009 to more than 520 in 2014, an increase of more than 70%. Of the 520 breweries, 420 produced 5,000HL or less in 2014. Domestic breweries with annual production up to 15,000HL showed an increase in retail dollar sales of 51.75% over the previous year as of March 31, 2015, according to the BC Liquor Millennials look for authenticity, flavour, and Distribution Branch’s Quarterly Market Review March 2015. Volume sales were up 47.46% for history in their drinks, seeking out local and the same period. artisanal products Cider - Beer might seem like the growth star in the craft category, but that title belongs to refreshment beverages, including cider. While Spirits - Craft spirits are growing as well. Changes BC-produced) are the strictest in the world, and sales numbers were lower than for beer, the to liquor laws in 2013 opened the floodgates, set the definition of craft at a very high level for BCLDB reported a 15.38% increase in retail dollar with the number of distilleries in the province local distillers. sales over the previous year as of March 31, 2015. increasing from 17 in March 2012 to 48 as of Despite these restrictions, the artisanal and craft Volume sales were up 9.46%. Statistics Canada August 2015, with more applications currently spirits scene is growing and trendy specialty characterizes the growth in this category as in progress. Limits on production volume (500HL cocktails are an excellent fit for BC craft spirits. “dynamic and sustained”. per year) and restrictions on raw materials (100%

The Publican 9 progression. This causes them to track styles over brands, as seen by the ongoing popularity of hoppy IPA-style beers. Your Reputation and Bottom Line - When you add craft products to your LRS or pub, you’ll attract a loyal following, one that gets its recommendations via word-of-mouth, whether in person or on social media sites. When people drink craft beer, cider or spirits, they feel virtuous and have a sense of discovery and insider knowledge that they will transfer to your establishment. Craft beverage enthusiasts are loyal to the category. Few people who pursue craft decide that they no longer appreciate it and switch back to mass-market products; this makes them excellent long-term prospects. The idea that cocktails are sexy, creative and visually And there's good reason to court craft consumers. According to GuestMetrics, a service that analyzes beautiful carries on. guest check data from restaurants, the average guest check that includes food and a mainstream drink is about $73, while craft drinkers average Women also comprise a large stake in the craft Who Benefits? $86 - and the higher price of craft beverages is market, and while craft consumers tend to be of only part of the difference. More detailed analysis Craft Consumers - Millennials are driving higher socioeconomic status, that is changing as shows that craft consumers spent $1 per check the craft industry. Defined as people born the industry broadens. between 1981 and 2000, they number 8.9 million per minute, versus $0.86 per minute for non-craft. Canadians. The number of Millennials of drinking Market surveys show that craft drinkers are age is peaking - those from the peak birth year better informed than mass-market consumers, are now 25 years of age, and they represent a and they choose what they perceive to be higher Marketing to the Craft Category powerful demographic for the future. This group quality beverages. They are less brand-oriented, By definition, craft drinkers view themselves as looks for authenticity, flavour, and history in their experimenting instead and exploring within better informed and more savvy than average. drinks, seeking out local and artisanal products. the craft category without an easily predictable This makes it difficult to put together a sales

10 The Publican Rare, limited release or seasonal beers, small batch spirits, and seasonal cider blends all bring their own followings.

and marketing program to capture their attention. To take advantage of this dynamic and growing category, you'll need to carefully focus your efforts beyond standard discounting, promotions, or POS materials. Look at the selection you provide and the engagement and product knowledge you bring to your customers, in order to focus on ways to create excitement with rare and desirable releases. POS - Mass-market beers rely on POS material for in-store promotions and marketing. Craft producers rarely have the kind of marketing budgets that billion-hectolitre breweries and beverage conglomerates do, but craft enthusiasts don't associate POS material with the values they attach to their beverages. Stores with strong planograms and good shelf discipline rarely have the floor space or share of mind for bulky POS anyway. This makes it fortunate that labels and tap handles are where craft producers spend their time on design and messaging. “A good label jumps off the shelf,” says Jesse Bannister of Huxley Supply, a craft beverage distributor. “After having a good product with a connection to its grassroots supporters, a well-designed label with strong graphics has the biggest influence on purchase decisions.” Craft labels are typically more striking than traditional ones, and they often have a quirky twist or a socially relevant message. This leads to the “cereal box effect”, named for the way someone sitting down to a bowl of cereal will inspect the box and read it. Craft consumers inspect the artwork and read the labels for the back story of the product. Choosing visually strong products for your shelves and constructing a good-sized, well- maintained display from among them will increase sales. At the bar, craft tap handles reflect their artisanal production and unique aesthetic. Craft fans are more likely than other users to scan the handles, looking for favourites as well as new beers or ciders to try, and an attractive label on the premium shelf will draw them to spirits with equal interest.

Embracing Craft Selection Be careful of the temptation to carry every craft product you can source. Sometimes overwhelming choice is less of a motivator than a smaller, “curated” selection of products that have a direct appeal to the Craft drinker. Having

The Publican 11 too many SKUs not only complicates inventory the spirits versus mainstream offerings. Servers management and turnover, it also makes keeping who feel burdened by this, or who fail to keep abreast of product knowledge more difficult, and abreast of changes or new offerings, are effectively product knowledge is key to both thoughtful declining to sell and are rejecting the opportunity curation and consumer engagement. to increase their average cheque and your Adding even a few craft taps to your bar or lounge profitability. menu can open up new opportunities, and if you Bartenders have a golden opportunity to use craft don't have draught service, a selection of craft spirits to tie into the ongoing artisanal cocktail bottles and cans will keep seekers happy. Some trend. The modern North American cocktail scene pubs will alternate their craft taps on a regular was a product of popular culture, in particular basis to satisfy their customers’ desire to explore the television show, “Sex and the City”, which new products. portrayed chic, empowered women drinking Match your beverages to the season. Summer Cosmos and other mixed drinks. While the show means lighter, straw-coloured beers and the is no longer around, the idea that cocktails are introduction of fruit, herb or citrus flavouring as sexy, creative and visually beautiful carries on. A well as cider features, especially for premises with bartender with a mixologist's flair can parlay well- outdoor seating. But don't neglect spirits in the made cocktails into star features with the addition summer season. Craft gin and tonics and vodka of craft spirits matched to signature drink recipes. drinks, especially from flavoured/fruit vodkas, have extra appeal in the heat. Winter calls for heavier drinks - stout and full- Craft for Profit bodied ales, more full-bodied ciders with higher The market for craft products is growing ahead of ABVs, and craft whiskies matched to richer- all other categories, and consumers can become flavoured cocktails. devoted or even evangelical about their favourites, paying premium prices, seeking out novelty, Don't neglect your menu when choosing your craft coveting the treasures and searching out liquor lineup. Your suppliers will be happy to match their stores to get the products they want. With a strong, products to your menu items, which can help with well-curated selection of craft products presented cross-selling, and craft drinkers will appreciate in high-traffic areas of your store as well as support your creativity. from producers and the knowledge cultivated and Part of your curated selection should cover rare fostered within your staff, you can bring strong and high-demand products, the ultimate taste returns and keep customers returning to your sensations that craft enthusiasts seek out. Rare, store as a source - and bring a reputation for good limited release or seasonal beers, small batch retailing and great service with it. spirits, and seasonal cider blends all bring their own followings. Recently a Vancouver craft brewery released a $1,000 beer in limited edition bottles. While that garnered a lot of publicity, you needn't go that far. Craft Lemon-Rosemary Find out which producers make limited release or Gin and Tonic seasonal products, and get on their lists to receive an allotment. This is where “baked-in” marketing • 1 1/2 oz. craft gin - choose one with comes in, as consumers seek out the LRSs and pubs strong citrus and botanical characters • 1/2 oz. rosemary simple syrup* that have the rare and desirable craft products • 2 lemon wedges they seek. • 3 oz. tonic water • lemon twist Engagement and Product Knowledge 1. In a cocktail shaker filled with ice, Craft consumers will come to you for suggestions combine gin and rosemary simple syrup, on cross-purchases and similar products, so your and squeeze in the two lemon wedges. staff needs to be knowledgeable. Craft producers 2. Shake vigorously for about 10 seconds and distributors can provide educational and strain into a martini glass. opportunities, but if you can hire someone who already has enthusiasm and knowledge, they can 3. Top with tonic water and garnish with a lemon twist. be a secret weapon in increasing sales. Having staff who can talk to craft enthusiasts on their *To make rosemary simple syrup, combine 1 cup level validates these enthusiasts and increases the of sugar, 1 cup of water, and 4 sprigs of rosemary security they feel about their purchasing decision. in a small saucepan and bring to a boil. Remove the pot from the heat and allow the syrup to cool Informed servers are crucial in pubs and bars. completely before straining out the rosemary They need to be up to speed with your craft list, and using it. knowing what each beer style is, the sweetness/ dryness of ciders, and the relative character of

12 The Publican CONTAINERWORLD CARING FOR CRAFT BEER by ContainerWorld

It’s no surprise to our industry that the BC Craft “The considerable increase in the number of understand that with such an amazing variety of Beer market has been increasing significantly SKUs for both packaged beer and kegs in the styles and selection available in our marketplace, with continuous double digit growth over the past few years brought us to a point where we the breweries face greater competition for those past five years. This phenomenal development is needed to plan to provide each SKU its own taps, and product freshness is increasingly critical supported by the fact that over 20 new breweries specific inventory location in our racking system to to a brewery’s reputation in the marketplace.” opened for business in BC in 2015, and an ensure efficient handling. As well, we operate on Furthermore, ContainerWorld is launching additional 15 are planning to start up in 2016. a first-in, first-out process, so the oldest inventory new technology that will track complete keg With this rise, the focus of the brewers who make gets shipped first to ensure proper inventory inventories by scanning each keg to a unique serial up this emerging market is to provide a greater rotation,” states Geoff Barlow, ContainerWorld’s number system. Every keg will now be scanned at variety of creative styles and flavours for the Director, Marketing and Business Development. each stage of movement through the distribution discerning tastes of the expanding audience of “We also provide 24/7 real-time web report access system, and even at the point of delivery at the craft beer enthusiasts. The other key priority for to our customers, providing full visibility of their licensee location. As well, empty kegs being these brewers is to ensure that those customers inventory and tracking the inventory aging status returned from the licensee will be scanned to are being served their products at their freshest, instantly. What is key to ensuring that the product ensure that proper keg credit management is optimal state. is being managed properly while in inventory maintained at all times. Customers can have is identifying the specific date that the brewery As the variety of craft beer has increased immediate and complete visibility of their entire monitors its freshness and stale date by. Many dramatically, and the critical requirement is to keg inventory through ContainerWorld’s website, breweries want to ensure that the production deliver “fresh on demand”, the challenges for the ensuring that their beer is being tapped on time to date, shipment date, or some other internal date is logistics providers who warehouse and deliver provide optimal freshness to that very last glass. craft beer products to BC licensees continue to used to monitor product freshness. It is critical that ContainerWorld’s newly created Customer Care grow. As the majority of product is unpasteurized each brewery clearly identifies that information to Team is available to address any questions or in the brewing process, the requirement to our Customer Service and Inventory Control teams concerns from customers. They also conduct keep the product refrigerated at an optimal so that information is locked into our systems ongoing licensee post-delivery surveys to monitor temperature of 4°C to ensure ongoing freshness for consistent monitoring. This information will performance and address any changes or issues has resulted in ContainerWorld expanding its cold ensure that the freshest beer is delivered to the in order to better serve the craft brewers and storage from 12,000 to 20,000 square feet. licensee establishments, and ultimately served to the standards that the brewery expects. We fully licensees throughout BC.

The Publican 13 SERVICE, SELECTION, SOCIAL HOW TO COMPETE IN BC’S CHANGING RETAIL ENVIRONMENT by Joanne Sasvari

14 The Publican the same opportunities that once applied only to private stores, such as longer opening hours and cold product selection. “It’s time for LRSs to stop being convenience stores. That model is dead. It’s time to compete,” says Darryl Lamb, brand manager of Vancouver’s Legacy Liquor Store, a shiny model of what an LRS can be. “It’s all about Spec. It’s all about selection and service. It’s not about being what older British Columbians believe private stores to be, which is a rip-off.” So where do you start? Begin right here with these five strategies.

1) Better by Design Jack Lonsdale’s Liquor Store in North Vancouver is in a sweet spot. It’s located on busy, booming Lonsdale Avenue, between the new Loblaw’s City Market and the soon-to-open Whole Food Market, with its nearest competitor more than a dozen hilly blocks Photo courtesy of The Strath Ale, Wine & Spirit Merchants away. But not every store is so lucky, especially with Photo courtesy of NitroBrew the potential of grocery stores selling wine looming It’s time for LRSs to stop being convenience stores. on the horizon. The reality is there’s only so much you can do to control what’s going on outside your doors. Inside, though, is another matter. Look at how your store The ground has shifted. The rules have changed. BC Liquor Policy on April 1, 2015, private retailers is laid out. Is it inviting? Does it promote your most Now, more than ever, BC’s private liquor store had hoped for a levelling of the playing field. Since profitable products by placing them at eye level? owners need to find a new competitive advantage. then, the business landscape has indeed flattened Does traffic flow easily? Is the cash register really in out. However, it has also been tipped in favour When the province began enacting changes to the best location? Do you offer big shopping carts of the government retail stores, which now have

The Publican 15 “Slow shopping” - or “fauxsumerism” - is a hot trend where customers are encouraged to spend more time in a store without being pressured to buy. Studies have found that the more time customers spend in a retail environment - say, getting a free facial, enjoying a coffee or reading a book - the more money they will ultimately spend. Then there’s the idea of “mood maintenance”, where the ambience is designed to match or even elevate the consumer’s mood, encouraging them to spend more. One intriguing aspect is the influence of aroma. The American company ScentAir, for instance, creates billions of scent impressions each year for clients such as Bloomingdales, wafting the aroma of baby powder through the infant department or coconut in swimwear to boost sales.

Photo courtesy of Legacy Liquor Store Researchers have also found that maze-like layouts, bigger shopping carts and slow music all encourage people to buy more. For even more techniques, LRS owners can learn a great deal The more time customers spend in a retail environment, from retail theorists and experts like Storesupport the more money they will ultimately spend. Canada.

3) Step Up Selection and baskets throughout the store? Are you really 2) Listen to the Experts When a store’s only distribution source and encouraging lucrative impulse buys? Design is only one aspect of the whole psychology biggest competitor are one and the same, it’s Spend some time studying what works in your of how and why people buy. There is, for instance, almost impossible to compete based on price. As competitors’ stores and adapt those elements a booming business in “experiential shopping”, Lamb says, “It doesn’t make any sense to sell your for your own - just the way Walmart founder Sam which transforms a financial transaction into an competitor’s product at a higher price when your Walton once did at Kmart. emotional one. competitor is two blocks away.”

16 The Publican Instead of relying on low-margin blockbusters, private stores should look to the gems buried Photo courtesy of The Strath Ale, Wine & Spirit Merchants amid the Liquor Distribution Branch’s speculative items. There they can discover unique grower champagnes, small lot wines, funky craft brews and ciders, and cocktail-essential liqueurs that rarely find space on BC Liquor Store shelves. Don’t forget that plenty of young urban couples who’ve developed a taste for artisanal products are leaving Vancouver in search of more affordable digs in small-town and suburban BC. They are a growing market, thirsty for what a private retailer can offer. An LRS can also develop a reputation as the go-to source for certain types of products. The Strath Ale, Wine & Spirit Merchants in Victoria, for instance, carries nearly 200 different single malts, and is Vancouver Island’s only retail outlet for the Single Malt Whisky Society. Meanwhile, the Brewery Creek Liquor Store in Vancouver is a must-visit destination for beer lovers, offering more than 800 local and international craft beers. The Strath Ale, Wine & Spirit Merchants carries nearly 200 4) Get Social different single malts. Once you’ve redesigned your store’s layout and improved your selection of craft products, you still In any case, given the shifting retail landscape in “Think of what happened to convenience stores need to get the word out. BC, LRS owners have to change with the times to when grocery stores started to open on Sundays,” Social media is a good tool for targeting younger succeed. With few exceptions, simply offering cold Lamb suggests. “Don’t keep doing the same thing, customers in particular with promotions, contests, beer and Sunday openings is no longer a model watch your customers dwindle, and wonder why. and event notices. An even better technique is for success. Don’t think it’s the same old, same old. You’ve got offering free in-store tastings, seminars, winemaker to do something.” dinners, and social events. These are not so much about one-off sales as they are about building customer loyalty, creating better-educated consumers, and turning casual shoppers into advocates for your store. Legacy Liquor Store, for instance, hosts frequent events around a 36-foot-long harvest table that Lamb describes as “our most effective marketing tool since we opened, bar none.”

5) Focus on Service What makes all of these strategies succeed or fail comes down to one thing: service. Investing in well-trained, experienced, and service-oriented employees is the best way to gain the edge over your competitors. The Strath, for instance, has wine, beer, and whisky specialists who can explain exactly why a customer should drop $150 on a bottle of single malt. So does Legacy, Brewery Creek, and West Vancouver’s 16th Street Liquor Store. And it’s not just the folks on the floor who matter. Knowledgeable wine, beer, and spirits buyers who can dig those gems out of the Spec lists are also crucial. Smart retailers also offer services that make life easier for customers, such as home delivery. Liquor Express, with six locations on Vancouver Island, is one of a growing number of stores to offer delivery, as is the Clayton Liquor Store in Surrey.

The Publican 17 LDB Product LDB Report Warehousing Definitions by Todd Cooper To simplify your experience and easily navigate through all the products, it’s beneficial to review our product warehousing Tap Into an Agent definitions; they are labelled as Listed, LDB- stocked and Agent-stocked products. In BC, there are over 35,000 beverage alcohol Step One products available and the majority are inventoried • Contact the Agent that represents the product Listed Products in the Liquor Distribution Branch (LDB) and you are interested in. Agent’s warehouses. But while the large number Listed products are available to all retailers • If the Agent has stock of the product in B.C. and of available products may seem overwhelming, and hospitality establishments in the the product is open to all customers to order, the province, including BC Liquor Stores, and finding out information about these products is Agent can complete an order form. are generally stocked in the LDB’s Vancouver not as challenging as you may think. and Kamloops warehouses. Whether you operate an LRS or pub, you’ll need Step Two a steady stream of information about products • The Agent will send the order form by email LDB-Stocked Wholesale Products currently on your shelves, for your menu, and new to the WCC and also send a copy via email to the products entering the market. To find out first-hand LDB-stocked wholesale products customer. are available to all wholesale retailers information, we recommend you tap into an Agent. and hospitality establishments and are Agents can help you build your product selection inventoried in the LDB Vancouver and Step Three and keep you up to speed on their BC inventory Kamloops Distribution Centres. Stocked availability. • The customer must approve the order by email. wholesale products are ready to ship when ordered, and represent the top-selling To locate an Agent for a specific product, contact • Once that is complete, the WCC will process the products in the wholesale portfolio. our LDB Wholesale Customer Centre (WCC) or order. research the product online to find out who • The products ordered will be shipped according represents the brand in BC. In addition, our WCC Agent-Stocked Wholesale Products to the customer’s established order and delivery provides Agents an opportunity to order the schedule. Also available to wholesale retailers and products they manage on your behalf. hospitality establishments, Agent-stocked wholesale products are stocked in the The benefit of ordering from an Agent’s portfolio is Should you have any questions about the LDB’s Agents’ warehouse and not stocked in the that it allows you to build and retain a relationship Agent ordering process, please contact the LDB Vancouver or Kamloops Distribution with them, maintain case volume of top sellers and Wholesale Customer Centre at 604-775-0681 or Centre. These were previously referred to as learn about new and trending products. email [email protected]. The Agent order ‘back-ordered wholesale products’. Please keep in mind the extra lead time involved In three easy steps, WCC customers can get started form is available for download on the Resources when ordering Agent-stocked wholesale right away and order product from an Agent’s page of www.ldbwholesale.com. products. portfolio.

18 The Publican Wine Report Photo & article by Tom Firth

Portugal - The Next Big Thing Portugal is one of the last frontiers of modern wine. As with most of Europe, Portugal has a history of winemaking that goes back several thousand years. Most well-known internationally for its fortified Port wines, and to a lesser extent, Madeira, it is only recently that the country is regaining an international reputation for its table wines. Unlike most European countries, Portugal uses a host of uncommon or unusual indigenous grape varieties rather than those most familiar to North American wine drinkers. There are also 31 current DOCs (Controlled Denomination of Origin) producing wine in 14 different regions, crafting a wide range of wines. In the year ending March 31, 2015, Portuguese wine sales in BC totalled $4,518,000. One drawback for Portuguese table wines on the world stage is the lack of definitive cuisine that is readily identifiable to consumers. Italian, French, and even Spanish cuisine is relatively well-known to wine drinkers and their wines pair easily with their foods. However, the Portuguese simply don’t have many recognizable dishes known to Canadians. The good news is that the Portuguese do love to eat, and a lot of what they eat would be right at home any night of the week for most Canadians. They enjoy a lot of seafood (primarily cod - called “bacalhao” in Portuguese) as well as pork, cheese, breaded or fried dishes, and poultry. On the whole, Portuguese cooking doesn’t involve a lot of processed foods. Simple and fresh ingredients are made into dishes that are not afraid of Tejo and Lisboa - Although they are still a little uncommon to our market, these a little fat or richness. As a result, a lot of their wines can and do pair well with coastal and near coastal areas are well suited for varied agriculture and wine the foods Canadians enjoy - fresh and salt water fish, red meat and game of all making. Single DOC Tejo produces a number of softer, more quaffable wines types, and even the classic grilled cheese sandwich. suitable for ready drinking, while Lisboa is made up of 9 smaller DOCs making a Wines from some of the more common Portuguese regions available in BC are: range of wines. Several regions use more international grapes such as Syrah or Vinho Verde - Vinho Verde comes from the Minho region just north of Porto Chardonnay, but several are using Portuguese varieties as well. Enjoy these wines in northern Portugal. Sadly, Vinho Verde is still shaking a several decades-old with seafood and poultry dishes as well as custards and desserts. reputation for cheap plonk. These days, the wines are some of the finest whites to Alentejo - A large region in the southern half of Portugal, the Alentejo is a “hot” grace the table. Many still have some residual sweetness or a light effervescence. spot (pun intended) for some well-made reds and a few whites available in BC. Modern (and some of the best) Vinho Verde are single varietal whites made from This region is also well-known for its cork industry. Beef and pork are on the grapes like Alvarinho, Arinto, and Trajadura. Vinho Verde works well with fish, menu in the region but charcuterie, tomato sauces, and turkey or chicken are poultry (including turkey), and soups. solid matches with these wines. The red grapes of Aragonez and Trincadeira as Douro - Inland from Porto, the Douro region is only recently exporting significant well as the white grape Arinto are worth trying from this region. quantities of high quality reds to our market. The winding river has carved out slopes that have been built up with terraces to allow viticulture. Though the fortified wines of the region are best known, the table wines are exciting and interesting. Grapes used are the same varieties as those used in Port, but it is the Douro blends that are often the tastiest wines. Food-wise, the Douro pairs well with ham, sausage or beef dishes, while the whites work with cod, cream sauces, and poultry. Dão and Bairrada - A hilly region in the centre-north of Portugal, the Dão region can be a difficult region to narrow down. Here in BC, we are seeing some producers, but not a lot. The white Encruzado grape is garnering attention along with well-balanced Touriga Nacional and other red ones. Sheep, duck, and full- flavoured cheeses work well with these wines. Seaward from the Dão region, Bairrada seems to be best known for its use of Baga - an incredibly difficult grape to work with that can age for decades. The region does see some international grapes, but also the white grapes of Arinto and Maria Gomez. Food-wise, these wines pair well with pork, goat, and lamb dishes.

The Publican 19 ONE20 Public House by Kathy Eccles

Gastropub Concept Thrives at ONE20 Public House vegetables over white bean ragu), and Stuffed Yorkies (Yorkshire pudding filled with mashed potatoes, roast beef, gravy and horseradish mayo, served au jus). Delta’s popular gastropub, ONE20 Public House, emphasizes fresh, innovative Signature dishes added for the winter include Roasted Cauliflower with Spiced and local cuisine, making it an attractive stand-out in the suburban Pepper Cheese - available to order as a half or whole head - and Fried Arancini, neighbourhood. “We’re located on Scott Road, a bastion of chain-style risotto balls stuffed with mushrooms and chorizo, topped with truffle mayo and restaurants. We’re one of the few individual restaurants on the strip not following shaved parmesan. Even optional $5 sides are high-end, among them short rib, the franchise model,” notes Manager Michael Lehnert. He and his wife Ramona salmon fillet, seared tuna, and gourmet penne ‘n cheese. have been operating this family business for 18 years. “We pride ourselves on making food as from scratch as it can be. From our Michael, who spent time in the kitchen of a Michelin star restaurant in Germany, mayonnaise to our sauces to our soups; everything is made from scratch. We brings quality rigour to the menu at ONE20 Public House. “Food is one of our peel our own carrots, slice our own tomatoes, and source from local purveyors, strongest points. I’m still on the line in the kitchen and currently have a chef in whenever it is economical,” Michael explains. The pub’s Fresh Sheet changes charge as well,” describes Michael, adding that “We call him Tony, because I’m every Friday. Michael and Tony use what’s available at the market, recently a Michael too.” Chef Michael Anthony Ferreira, aka Tony, has roots in Guyana featuring fresh finds of pork cheeks and quail. and Portugal, and his cultural stamp on the menu is clear. The bar menu complements the pub’s focus on food. Michael reports, “We’ve Currently, seasonal dishes on the menu include a Charcuterie Board (with seen our biggest increases in signature cocktails and wines by the glass.” The cheeses, cured meats, and house pickles), Vegetable Cassoulet (market hand-crafted cocktails at ONE20 Public House are made with freshly squeezed

20 The Publican We’ve seen our biggest increases in signature cocktails and wines by the glass.

juices or flavoured syrups created in-house, and garnished with freshly chopped fruit. Watermelon sangria, garnished with kiwis, was a big hit on the pub’s summer menu. ONE20 Public House also owns the liquor store next door, allowing customers to buy wine there and drink it in the pub for a $15 corkage fee. Rotating beers are available on tap. “Our mantra is local and green. With so many excellent micro-breweries nearby, we serve as many local beers as we can.” The pub recently rebranded its website and graphics. “We modernized the logo, took on a creative group and made everything more uniform.” The new website at one20pub. com offers menus, special event notices, a photo gallery, and social media links to Facebook, Twitter and Instagram. One staff member is dedicated as the “social media guru” and writes a monthly blog, keeping customers up-to-date. A renovation went along with the pub’s new imagery. The Lehnerts teamed up to create the pub’s inviting new décor. Michael explains, “We sort of stayed away from glitzy neon beer signage and instead went for making the room warm. The footprint is the same, but we added a few elevations, and wound up with leather accents and brick.” Custom furniture pieces, stand-up tables and bar rail sections were all made from old barrel staves. “It’s the kind of place where you want to cozy up on the leather sofas.” Thursday nights are date nights with live jazz or blues music. “Couples can get a bottle of wine next door and enjoy complimentary corkage, buck-a-shuck oysters, and a chocolate fondue for $5 that is second to none,” Michael advises. Sundays are another hugely popular day at the pub. All food on the regular printed menu is half price on Sundays. As Michael recounts, “It started a few years ago, when we marketed it as ‘Give Back to the Community Day.’ It’s become very popular. It’s one of our busiest days and it builds and builds.” The pub also hosts fundraisers for local sports teams and charitable groups. A recent tapas night benefited the Burns Bog Conservation Society. An outdoor open house was held during the Movember campaign for prostate cancer. On top of that, ONE20 Public House avidly supports local hockey, soccer, baseball, rugby, and swim teams. Michael stresses, “We’re very community-driven.” It’s just another of the many ways this food-friendly gastropub makes its mark in the neighbourhood.

The Publican 21 CREATIVE RECRUITING THINKING OUTSIDE THE BOX

by go2HR

22 The Publican BC’s hospitality industry is experiencing a labour shortage in many areas, and pubs, bars and lounges are no exception. The solution? Thinking outside the box. Publicans and LRS managers throughout the province are using everything from social media to employee referral programs to find and keep the people they need.

Staff Retention The first step in great staffing is, of course, keeping the people you have. The Fountainhead Pub in Vancouver’s West End, for example, has few recruiting issues. A popular hangout in a tight-knit urban neighbourhood, the “Head” gets a steady stream of qualified applicants for relatively few vacancies. “We have one of the highest retention rates in Companies recognized as good workplaces typically Davie Village,” says managing partner Michel spend less money on recruiting than those with less Duprat. “Our average is two to four years and we’ve had some people here for more than ten.” polished reputations. How do they do it? “We keep wages competitive, we provide medical and dental, and we try to be “The kitchen can be more of a challenge, though,” resumés, but finding qualified kitchen staff can be a good, supportive employer.” That, and a location adds Duprat. While most front-of-house new hires difficult. Because we are a stand-alone operation, in an urban neighbourhood where a lot of people are walk-ins or referrals, Duprat often looks to we need people to have at least some experience live, means that the Fountainhead rarely has online resources such as the go2HR job board for when they start,” he explains. difficulty filling customer service positions. cooks. “We’ve always received an ample number of

The Publican 23 You can promote these aspects of your business through local and industry media, at job fairs and career events, and by applying for Best Employer awards. Of course, your own website, Facebook page and Twitter feed are easy - and free - platforms for raising your profile as an employer, especially if current staff members like, follow, and Photo courtesy of Liquor Planet share your social media posts.

Leverage Social Media Social media can be a great recruiting tool for both hourly and managerial employees. For finding customer-facing and entry-level staff, job boards - especially those specializing in hospitality, such as go2HR's Job Board - are good places to start. Have a look, too, at go2HR’s Facebook page “Move On Up With a Career in Tourism”, which also shares job openings from the industry. For managerial positions, LinkedIn is an excellent resource. This online professional network enables you to post vacancies, promote your business, and engage with potential employees, including many who may not be actively job hunting yet, Offer bonuses or other incentives to team members but could be valuable contacts in the long term. whose referrals lead to a successful hire. Either way, the key to using social media is to stay ahead of the game. Don’t wait for vacancies before looking for a new hire; instead, review applications on an ongoing basis and keep in Establish a Positive Employer Brand less money on recruiting than those with less touch with qualified candidates. That way, you’ll have a pre-screened shortlist when you need it. Two advantages the Fountainhead Pub has are polished reputations. its role as a popular community fixture and its All else being equal, job hunters will favour reputation as a good place to work. Positive businesses that offer professional development Start an Employee Referral Program word-of-mouth can go a long way in attracting opportunities, and score high points for health Your current workers are an excellent resource staff and can give an employer an edge in the and safety standards, community involvement, for attracting new talent. Vince Marino, whose competition for new talent. In fact, companies and sustainable environmental practices. company, Hogwartz Entertainment, operates recognized as good workplaces typically spend

24 The Publican two Vancouver pubs, estimates that about 20% of his staff is sourced through employee referrals. The process occurs naturally, of course, but you can also leverage it with an organized Employee Referral Program, or ERP, offering bonuses or other incentives to team members whose referrals lead to a successful hire. ERPs are a quick, low-cost, and effective way to find staff. Referred candidates are usually well-informed about the job and they tend to stay with the company longer. Also, hiring people who are already friends gives you a head start in team-building.

Hire Under-Represented Groups From persons with disabilities to new Canadians and Aboriginal people, there’s a wealth of talent among BC’s under-represented groups. BC is also home to 1.2 million 50 to 70 year-old baby boomers that can bring a lifetime of experience and interpersonal skills to customer-facing jobs.

Offer Professional Development Opportunities Pubs and bars awash in resumés can still find it a challenge to staff the kitchen. One reason for this, as Marino points out, is that cooks often want more professional development opportunities than liquor primary businesses typically offer. One way around that is to sponsor apprentices. If you’re in a position to do so, enabling cooks to become certified as a Professional Cook 1, 2 or 3 (Red Seal) while in your employ is a powerful way to attract and retain motivated and committed people. Also look at offering other professional development opportunities, such as extra training or a clear career path, to attract staff interested in making hospitality a career. However you choose to do it, whether boosting your business’s Facebook profile, checking out the job boards, or asking your staff to recommend their friends, now is the time to get creative about your hiring needs.

Is your company doing something innovative in hiring new employees? Share your stories with go2HR at [email protected]. go2HR is BC’s tourism and hospitality human resource association. As labour market specialists, go2HR coordinates the BC Tourism Labour Market Strategy and provides programs and resources in the areas of recruitment, retention, and training. To learn more, visit go2HR.ca.

The Publican 25 JOINT VENTURE DRINKING WHO’S AT FAULT? by Lorne Folick and Michael Bellomo, Dolden Wallace Folick LLP

All commercial alcohol providers have a legal duty involves not only considering the commercial host’s The Ontario Court of Appeal agreed that the jury to protect their patrons who become intoxicated liability for over-serving the driver, but also the first should have been instructed to assign liability on their premises and cannot care for themselves host’s responsibility for over-serving the plaintiff for the accident between only Knox (as driver) as a result. This includes ensuring that intoxicated passenger, thereby compromising the plaintiff’s and Finnigan’s (for “over-serving” Knox). The next patrons have a safe ride home. It is becoming ability to think rationally. step should have been, according to the Court of increasingly common in commercial host lawsuits Appeal, to assess liability for the plaintiff’s damages to encounter situations where two patrons drink to between Knox, Finnigan’s, and McLean. The Court excess in the same licensed establishment and then McLean v. Knox, 2013 ONCA 357 (C.A.) of Appeal concluded it was open to the jury to find leave together in the same vehicle. Tragedy often The facts in McLean are simple. The plaintiff Finnigan’s partly liable for any part of the plaintiff’s results and the injured passenger sues both the McLean and the defendant Knox were drinking own contributing negligence. driver and the commercial host for damages. In such together at Finnigan’s Road House. Both McLean The Court of Appeal commented that, “the degree cases, passengers are often found to have been, at and Knox were, “seriously intoxicated”, according of the commercial host’s responsibility for allowing least partially, the authors of their own misfortune, to the Court, when they and two others drove the driver to become impaired, as a matter of having over-imbibed with the other patron before away in Knox’s vehicle, with Knox at the wheel. logic, will normally be similar to the degree of the deciding to accept the ride. However, the question Tragically, Knox lost control of the vehicle, and commercial host’s responsibility for allowing the of who is at fault in such circumstances is becoming McLean sustained significant injuries. McLean passenger to become impaired.” increasingly complicated. In fact, recent court sued Knox and Finnigan’s, alleging that they were Rather than order a new trial, the Court in McLean decisions have increased commercial hosts’ liability both liable for his injuries. At trial, the jury was ordered the parties to decide the apportionment exposure by “transferring” back to the host some of asked to determine the amount of damages, and of liability amongst themselves. the intoxicated passenger’s fault arising from the to apportion liability between McLean, Knox, and choice to ride with a drunk driver. Finnigan’s. What the McLean case shows is that a plaintiff passenger may be able to “set off” and reduce some The Ontario Court of Appeal case of McLean v. The jury concluded that McLean was 15% liable for of his or her own fault where the commercial host Knox illustrates the point. This case reinforces the his injuries, Finnigan’s was 1% liable, and Knox was has “overserved” both driver and passenger. principle that the driver, passenger, and commercial 84% liable. Not surprisingly, the plaintiff appealed host may all share liability for the passenger’s this apportionment of liability, arguing that the The McLean case emphasizes how commercial injuries. In that case, the Court emphasized jury erred in apportioning only 1% liability against liquor providers increasingly face the prospect that determining who is at fault in this situation Finnigan’s. of civil liability as a result of the actions of their intoxicated patrons. In this context, it is essential that commercial liquor providers take care to monitor their patrons’ consumption. They can Next Issue protect themselves by creating and implementing the clear and effective policies and procedures for serving alcohol; having effective management Publican Summer 2016 supervision; constant training of employees and managers on policies and procedures and • What’s New in Pub Equipment? – Explore what’s new - from industry standards; and preserving evidence of draft beer systems to pizza ovens and panini makers. any incidents. • Managing WorkSafe Claims – Find out how you can effectively deal with claims for injured employees. Lorne Folick is a senior partner at Dolden Wallace Folick LLP and has a practice dedicated exclusively to insurance defence litigation. Lorne has a wide range • Retaining Good Staff – How can you inspire your team to stay of experience. He is particularly well-regarded in the field of liquor liability. with you for the long term? Lorne is a co-author of Liquor and Host Liability Law in Canada, published • Driving Topline Sales with Technology – Discover how you can by Canada Law Book. use technology to drive revenue and build success. Michael Bellomo is a litigation associate at Dolden Wallace Folick LLP. His practice is dedicated to insurance defence litigation with a strong focus on liquor liability matters. Call 1-800-667-0955 to book your ad by April 1 Go to www.dolden.com.

26 The Publican Names in the News by Debbie Minke

ABLE BC New Members Events ABLE BC welcomes the following new associate The Vancouver International Wine Festival will members: AMA Grant Ventures Ltd, Campari mark its 38th edition of pairing wine, food and the Canada, Corby Spirits and Wine Ltd, Millennium performing arts from February 20 to 28, with Italy Logo Gloves, Minhas Brewery, Mondia Alliance as the theme country. The festival will showcase 156 Canada, The Bacchus Group, The Wine List, Tiger wineries from 14 countries (including 60 wineries Claw Supplies Inc., Trialto Wine Group, and XFour from Italy) pouring 1,450+ wines at 55 events Vodka Company - A Division of VonAlbrecht & for a projected 25,000 attendees. The festival is Associates. produced by the Vancouver International Wine Festival Society, which has three mandates: provide ABLE BC also welcomes the following new licensee an informative, educational and entertaining wine members: Admiral Pub, Bimini Liquor Store, Friendly experience for public and trade; be a premier Mike’s Pub and Liquor Store, Old City Station Pub, marketing opportunity for the wine industry and Old Town Cold Beer & Liquor Store, Vancouver Island festival partners; and raise funds for the Bard on Liquor, and Village Pub. the Beach Theatre Society. Since its inception in 1979, the festival has raised $8.5 million for the Awards performing arts. Congratulations to Lauren Mote, co-proprietor, Bittered Sling Bitters, and manager, UVA Wine Acquisitions & Cocktail Bar, who has won the title of 2015 Labatt Breweries of Canada is adding ready-to- Canadian Bartender of the Year in Canada’s biggest drink, spirits-based beverages and ciders to its bartending competition, Diageo World Class portfolio. The range of brands, owned by the Mark Canada. Mote is the first woman to win the title. Anthony Group of Companies, include Palm Bay, This year, the Okanagan Valley was named one Mike’s Hard Lemonade, and Okanagan Cider as well of the 10 best wine destinations of 2015 by Wine as the BC-based Turning Point Brewery, which brews Enthusiast magazine, ranked #1 wine region in the Stanley Park family of brands. Labatt has also the world by The Huffington Post and dubbed the acquired craft-brewer Mill Street Brewery, investing second best wine region to visit by USA Today. $10 million to expand Mill Street’s production and Acclaimed UK wine writer Steven Spurrier, in the fall packaging operations. edition of The Somm Journal, proclaimed, "For me, wine is the three Ps: the place, the people and the product. BC ticks all three boxes with exuberance, Anniversaries elegance, and conviction." Congratulations to Authentic Wine & Spirits BC's wine regions are already making a mark on Merchants Western Canada, which celebrated its 2016 lists, making Travel + Leisure's “Best Places to 10th anniversary on January 3. Travel in 2016” and being featured in a recent USA EMC Publications, publisher of The Publican and Today article “Canada's wine country: Where to taste other trade magazines, is celebrating its 25th and tour in every region”. anniversary in February.

2015 Canadian Whisky Awards Canadian Whisky of the Year Lot No. 40 Sipping Whisky of the Year Canadian Club 100% Rye Award of Excellence - Best New Whisky Gooderham & Worts Award of Excellence - Innovation Wiser’s Hopped Whisky Award of Excellence - Canadian Whisky Profile Crown Royal Northern Harvest Rye Award of Excellence - Line Extension Canadian Rockies 21 Award of Excellence - Artisanal Distillery of the Year Still Waters

The Publican 27 STAYING AHEAD OF THE GAME REGULAR EQUIPMENT MAINTENANCE IS KEY

by Kathy Eccles

Photo Courtesy of Monkey Tree Pub 28 The Publican While it may not be the glamorous side of the business, developing a regular bar maintenance program is as vital as pouring cold, clean beer and serving excellent pub fare. Customers might not see what goes on behind the scenes to keep the refrigerators humming and the glasses rinsed to sparkling perfection, but they’ll quickly notice any lapses. Ridding draft beer lines of musty-tasting yeast deposits is just one of the priority chores on the to-do list at any bar, pub or lounge. If an overused blender or Bellini machine breaks down, it’s not that difficult or costly to replace. However, the expensive bank of stainless steel appliances found behind most bars requires regular service and maintenance to ensure longevity. With that in mind, here’s how several of BC’s liquor-serving establishments are ensuring that a wide range of bar equipment is kept in peak Keep all maintenance records, equipment manuals, working order. and a booklet of supplier contacts in one drawer

Keep Maintenance Contacts Close at Hand behind the bar. When the toy crane breaks down at the Wheatsheaf and a main bar terminal for lotteries. Glitches with also contains the pub’s own detailed procedures Pub in Nanaimo, Owner Jim Hutt knows just who the BCLC machines are a quick fix. “One call, and and a call-out list of trusted local repair people, to call to make sure the machine kicks back into they send a tech out from the area,” says Hutt. The including plumbers, electricians and the “furnace operation retrieving plush prizes for his customers. digital jukebox is serviced remotely by a person who guy.” He stresses, “They’re very punctual people.” His employees do too, because he keeps all his lives two hours away in Campbell River. maintenance records, equipment manuals, and a The Wheatsheaf Pub also has a positive relationship booklet of supplier contacts in one drawer behind The pub’s 10 draft beer lines are cleaned and with local health inspectors. “I’ve known them a the bar. “That way, staff doesn’t have to find a key,” maintained by an outside supplier with instructions long time. They’re very proactive. It’s important he explains. “Everyone has access.” to replace a line if there is even a hint of a to have a good relationship and it’s good that we problem. When it comes to major jobs, such as the all work together. We’re very attentive and rectify Owned by the Hutt family since 1978, the refrigeration units on the roof, Hutt explains, “We problems as soon as possible.” Wheatsheaf Pub has been licensed to sell alcohol keep all the filters clean on a regular basis. We don’t since 1885, as far back as when horses where have a schedule; we know when to do it.” hitched to the posts outside. A lot has changed New Equipment Gets Team Attention since then. Jim and Brian Hutt today oversee Hutt formalizes much of the pub’s maintenance The 46-seat lounge at the Billy Barker Casino Hotel maintenance of the modern 102-seat bar, which program in writing. “I have a book with all my in Quesnel was newly renovated a year ago. General - along with the brightly lit toy crane - features a policies and procedures, which runs off the Liquor Manager Brad Kotzer advises, “We’ve got new digital jukebox, self-service terminal for pull tabs, Control board guidelines.” He adds that the book

The Publican 29 to an iodine-based sanitizer and rinsing agent. A full-time maintenance person on staff provides further back-up for equipment in the bar.

Vendor Agreements Ensure Smooth Operations At the 119-seat Monkey Tree Pub in Victoria, General Manager Peter Lembke notes, “We have some equipment that has been in use a good amount of time.” Since warranties have expired, the pub relies on vendors to extend the lifecycle of the equipment, paying them a monthly fee to ensure all bar equipment runs efficiently. Lembke explains, “Our equipment is maintained meticulously. We enter into agreements with vendors to come in and take care of the actual working mechanisms, cooling temperatures and maintenance to meet all health safety standards.” To ensure proper care of the pub’s 21 draft lines, Lembke says, “A company comes in bi-weekly and Hutt formalizes much of the pub's maintenance is in charge of making sure the beer is flowing program in writing. properly and tasting great.” He adds that the company also maintains the beer gas, ensuring that the correct mixture and pressure is in line. equipment in our lounge, restaurant, and kitchen. Other tasks are handled on a systematic schedule. Opening and closing cleaning procedures are We used the same supplier, and when we had a Lizotte states, “The glass washer is flushed out posted at the bar in written and laminated form. few issues, utilized the warranties. By handling all each week. The filters and drain guards that A formal protocol for troubleshooting is well- the equipment with one supplier, he took care of collect ice and straws are cleaned out.” The pop established. Lembke explains, “We have a call-out us.” For that reason Kotzer recommends going with supplier comes in regularly to check the soda list. If the manager or owner is not on site, staff one trusted, reputable supplier rather than buying guns. Ice machines are serviced semi-annually, calls us and we’ll diagnose the problem. We’ll new equipment piecemeal from various dealers. while health inspections twice a year ensure that then call an appropriate repair individual. We have the temperature in the glass washer is hot enough The hotel takes a team approach to maintaining their numbers on paper and programmed into and the right chemicals are being used. the new equipment. Food and Beverage Manager our phones.” He adds that most suppliers offer Garry Lizotte explains that he, Kotzer, and a Soaps and various chemicals are provided and after-hours contact numbers so there is a quick senior lounge manager developed the hotel’s overseen by a supplier, who sends maintenance response. “The program runs very smoothly,” he bar maintenance plan. “The Closing Duty Sheet reports to the hotel. Recently, there was a bleach confirms. is posted and staff follows the list,” he describes. flavour in the glasses that wasn’t being rinsed off. When it comes to bar equipment maintenance, it’s The hotel worked with the supplier and switched important to stay ahead of the game.

30 The Publican What's New? by Debbie Minke

Spirits Wines

Depth Charge is an espresso and cacao bean craft liqueur that combines Pocas LBV2009 Porto is a late bottled vintage that will age nicely. It has locally-roasted organic coffee and rich, dark espresso with organic cacao hints of heather on the nose, and on the palate it offers juicy cherry and nibs and a touch of raw BC honey. Savour coffee and espresso on the cocoa notes on soft tannins. The good structure extends on balsamic nose and front palette transitioning to bursts of cacao and a smooth notes, spicy and pungent. 750ml $27.49 Whsl +537316 semi-sweet finish. It makes a great espresso Martini when shaken over Augey Bordeaux Red is crafted in the most famous appellation in France ice with a dash of orange juice and served with a large twist of orange. with 75% Merlot and 25% Cabernet Sauvignon. Aromas of dark plum and 375ml $26.08 Whsl +695742 spice unfold with a hint of mint. The palate has black currant, ripe fruit Yaletown Distilling Cranberry Vodka is 100% BC grain farm-to-bottle, notes with oak hints and soft, velvety texture. Great value. 750ml $11.01 using a four-time distillation process with whole, fresh BC cranberries, Whsl +775437 Augey Bordeaux White 750ml $11.01 Whsl +660126 sweet orange peel and lemon peel. This results in artisan vodka with Faucon Cuvee Prestige 2011 is a ruby red blend of organic Syrah and subtle, fruity, dry cranberry flavour and aroma. 375ml $23.95 Whsl Cabernet Sauvignon. Enjoy a complex nose showing earthy, fruity notes +594770 or 750ml $38.95 Whsl +45583 accented by a fusion of spices. Hints of vanilla add to a lingering, long Noteworthy Gin - New Western Dry is a handcrafted, small batch gin finish. 750ml $18.29 Whsl +085795 made from 100% BC barley and infused with 8 botanicals. It’s refreshing The Entertainer Red Blend 2012 pays homage to Winemaker Wolfgang and beautifully balanced with citrus, lavender, juniper and light spice Blass. This blend of Australian Grenache and Shiraz is a medium-bodied notes, complemented with fresh vanilla bean sweetness. 750ml $36.85 wine with flavours of luscious cherries, plums, raspberries and spice. Enjoy Whsl 529859 velvety tannins and a fresh, soft finish. 750ml $13.09 Whsl +676403 W.L. Weller Special Reserve Straight Bourbon Whiskey features an Aviary 2013 Chardonnay is a fresh, balanced wine with nice acidity from exceptionally smooth taste, substituting wheat for rye grain. Its softer Napa Valley. It has fresh aromas of tropical fruit, pear, honeysuckle and flavour notes make this bourbon great for sipping or making cocktails. vanilla, followed by tropical fruit, apple and toast on the palate. 750ml 750 ml $29.22 Whsl +662841 $27.99 Whsl +825737 Russian Standard Gold Vodka is very lightly flavoured with extracts Antolini’s Corvina Veronese 2011 is a unique wine made from 100% of Siberian ginseng, known as “golden root'” in Russian. These hints of Corvina grapes grown in the Veneto region of Italy. On the nose it has ginseng and spice notes give the vodka a distinctly rich and exceptionally youthful aromas of red fruits, roses, herbs, and vanilla. It’s dry and full- smooth taste. Double Gold - San Francisco World Spirit Awards 2015 bodied with moderately high tannins through mid-palate and a long 750ml $32.88 Whsl +609164 finish. 750ml $20.99 Whsl +424465 Brennivin Aquavit is dubbed the Original Icelandic Spirit, crafted with Sulva’s Kabatepe Kirmizi 2013 is crafted in Turkey using Cabernet caraway seeds, cumin, angelica and other native botanicals. This aquavit Sauvignon, Syrah, Cabernet Franc, Merlot, and Karansakuz, an indigenous (unsweetened schnapps) shows a deliciously sweet taste and soft finish grape variety of Gallipoli. It’s deep garnet in colour and packed with that’s best enjoyed ice cold and neat or in cocktails. 750ml $21.83 Whsl intense fruity aromas, a nicely balanced red. 750ml $17.48 Whsl +689042 +769877 Casa de Santar Vinho Tinto 2013 is produced by an estate in the Dão, Dooley’s White Chocolate Cream Liquor is a unique blend of finest Portugal wine region held by the same family for 15 generations. There's Dutch cream, white chocolate and wild berries, with only half the fat of black raspberry and cherry on the nose with supporting notes of leather other cream liqueurs. The first taste opens with melting white chocolate and damp earth. The palate is medium-bodied with dark berry flavours followed by a hint of forest wild berries. 700ml $25.99 +566034 and balanced acidity. 750ml $16.00 Whsl +52068 Blasted Brew combines Legend Distilling’s Handmade Vodka and locally Veedha Douro Tinto DOC 2012 is from the Douru region of Portugal. roasted organic coffee in a unique liqueur. Enjoy hints of dark chocolate Enjoy the bouquet of fresh fruit, notably raspberrries, with hints of spice, and vanilla mingling with the smooth flavour of cold brewed coffee. chocolate, and almond. The mouthfeel is intense with strong acidity and 375ml $20.47 Whsl +593707 rich fruit flavours, melting into a persistent finish. “Veedha” means “life” in Portuguese. 750ml $11.20 Whsl +319053 HB Blanc Languedoc AOP 2014 is a signature Languedoc blend of Beer & RTDs Grenache Blanc, Vermentino, and Roussanne grapes. It opens with fresh floral and citrus aromas on the nose. Enjoy crisp minerality, balanced fruit Steamworks Oatmeal Stout is ready for BC. A generous portion of rolled flavours and a clean finish on the palate. 750ml $12.99 Whsl +852889 oats and black roasted barley give this beer a warm roasted nose and a distinct dryness. 650ml $4.50 Whsl +792952 Casa Santos Lima Bonavita Tinto 2013 is crafted in the Lisboa region of Portugal from Touriga Franca, Tinta Roriz, Castelao, and Syrah grapes. It is Chum Churum Peach is a newly-released flavoured soju. Considered a soft and rich wine, with good structure and fruit notes of black currant, Korea's most popular alcoholic beverage, soju is made with alkaline water cherries, and plums, combined with hints of chocolate in a smooth and and sweet potato. This peach-flavoured version is light and refreshing. long finish. Great value. 750ml $8.98 Whsl +566604 14% alc/vol 360ml $6.66 Whsl +699397

The Publican 31 losses are hidden by traditional pour cost analysis. Therefore, most operators think that their pour cost is just fine, only because they don’t know about these losses and don’t realize that they have been satisfied with a pour cost that should be two, three or four points lower! The losses are hidden because most operators are happy if their pour cost is stable and as good as, or better than, it’s been in recent months. One of our newer clients was sure that they were running very efficiently because their pour cost was 19% in September, which is in the lower range of their recent history (see the charts). The bar owner was convinced that such a “low” pour cost meant that he couldn’t possibly have significant amounts of theft and overpouring. The owner’s position was that as long as their pour cost was in the 19% to 21% range, he was happy. This may seem logical, but it was dangerous because the bar owner’s complacency was preventing him from seeing what was really going on in his bar. Audits have found that 99 out of 100 bars are missing about a quarter of their alcohol because of overpouring and lost sales that have previously gone undetected. This is discovered by weighing every open bottle or keg and counting all the full containers to find out exactly how much alcohol has WHAT IS A GOOD been used from every brand - down to 1/30th of an ounce. That usage is then compared to the number of drinks that were rung up into the cash register POUR COST? or POS system. That way an owner can find out exactly what has been overpoured or stolen. Then you can calculate an ideal pour cost, which shows ELIMINATE OVERPOURING what the pour cost really should be each month. The differential can result from bartenders overpouring TO INCREASE PROFITS and not ringing up drink sales.

by Ian Foster How Much Money Are You Missing? How much money could you be throwing away? What is a good pour cost? The fact is that there that hotel should have been running an 11% pour What are those three percentage points worth? In is no such thing as an industry standard “good” cost; which might sound impossible. However, the one case, it was $5,000 in profit every month. But pour cost for every bar or pub. You often hear hotel is in Hawaii and almost half their sales are that, too, varies from bar to bar depending on the or read that if your pour cost is around 20%, you poolside Mai Tais with a 37¢ cost and an $8 selling reason for the losses. are in good shape. That is simply nonsense - and price (which results in a 5% ideal pour cost on that dangerous at that! drink) - so an 11% pour cost makes sense. If a bartender pours a $3.50 pint of beer, collects the money for it, but doesn’t ring it up, you are out the Whether or not your pour cost is good or bad Here’s the thing: you can’t really compare the full $3.50. Such retail losses typically make up about depends on your pricing and what drinks your pour cost in one establishment to that of another a third of the problem. customers order. And both factors vary greatly from because every bar has different pricing and a one bar to another. The question is: What is the right different sales mix. If you throw out a pint of foamy beer, then you are pour cost target for your particular establishment only out about $1. Losses at cost typically make up in this particular month? An upscale restaurant less than a quarter of the problem. Is Your Pour Cost Too High? selling lots of expensive wines is always going to Overpouring is by far the biggest problem for most have higher pour costs than a bar that sells little What about the pour cost in your bar? Is it too high? establishments. Eliminating overpouring usually has wine but lots of shots. That’s because wine carries Yes it is. Almost certainly. a surprisingly large effect on profits. At first glance, higher pour costs than most liquor. On the opposite That is because virtually every bar has enormous one would think that overpouring results in a loss at end of the spectrum, I’ve seen a hotel with a 15% losses from overpouring and theft. But those cost. If your bartender pours an extra ½-ounce of a pour cost despite enormous (hidden) losses. In fact, 32 The Publican premium spirit, you would think that you lost out on Why Your Pour Cost Bounces Around Every Month the 50¢ cost of that extra ½-ounce. And sometimes that is true. More often, though, overpouring ends Sometimes pour costs bounce around because don’t have exactly the same guests ordering up being a loss at retail. of counting errors or data entry errors made exactly the same drinks every day. Your sales I recently ordered a Hendricks gin on the rocks. The on the month-end inventory. Sometimes pour mix will always change: every day, week, bartender charged me $7 and I gave him $10. But cost inconstancies are caused by rising alcohol month and season. And because every drink instead of pouring me 1½ ounces, he completely costs or drink prices. you sell has a different ideal pour cost, the filled the rocks glass. It was closer to a triple than a The most common reason that pour costs result is an ever-changing pour cost each double. As a result, I never ordered another drink. bounce around all the time is simply that you month. To illustrate, here are some ideal pour Whereas I likely would have bought three drinks costs for one pub: for $21, I only spent $7 on one drink. The bar owner lost out on the other $14. Ironically, the “generous” Drink Ideal PC bartender also lost out because he only received Vodka/tonic 10% a $3 tip on one drink instead of $9 on three drinks Margarita 14% over the course of the evening. Domestic beer pint 20%

How Can You Reduce Your Pour Cost? Domestic beer bottle 23% You could raise your prices - although that has Grey Goose 28% the obvious downside of driving away guests. You House Cabernet 30% could encourage your guests to order cheaper Vodka/Red Bull 30% drinks. That would reduce your pour costs alright, 36% but lower your profit because you actually make Grey Goose martini more money on Grey Goose than on well vodka Duckhorn Cab 45% despite the higher pour cost on Grey Goose. In fact, you want your guests to order drinks with higher In the summer, this bar sells more vodka/tonics sell more happy hour drinks this month. pour costs because you put money in the bank, and more margaritas – drinks with low pour In fact, there are endless factors involved, not percentages. costs. In the winter, they sell slightly fewer of from weather, to drink trends, to holidays, The best way to reduce your pour cost is to focus on those drinks and more martinis and red wine. to sporting events. Since you cannot control eliminating the overpouring and lost sales that plague As a result, their ideal pour cost is a little lower what your guests order, you cannot predict virtually every bar and pub in the world. in the summer and a little higher in the winter. what your pour cost should be every month. Similarly, your pour cost will go up if you It is going to bounce around simply based on Ian Foster is Vice President, National Accounts with Sculpture Hospitality. He your sales mix. can be reached at [email protected].

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The Publican 33 ABLE BC Benefits

ABLE BC's New Online Purchasing Portal Access buyABLE today liquor policies, and to exchange ideas about how we can work together to affect positive change in our To learn more about buyABLE and how your BC’s Alliance of Beverage Licensees is pleased to industry. We continue our member meetings this business will benefit from using this platform introduce our new online purchasing portal buyABLE spring, with events scheduled for Burnaby, Victoria, please contact: Danielle Leroux (Manager of (buy.ablebc.ca), a dynamic web-based platform that and Kelowna. gives our members a competitive advantage through Membership & Communications) at 604-688-5560 or collective buying power. [email protected]. Our meetings and industry events are open to all liquor licensees and industry members. We hope to see you at our next one. For upcoming event dates, What does buyABLE do for agents? Complimentary Online Price Guide please visit our website at www.ABLEBC.ca or contact • Generate significant incremental sales. An offer ABLE BC strives to provide our members with the best 1-800-663-4883. placed on buyABLE is seen by 350+ LRSs and any resources and tools required to operate and grow a orders committed to are guaranteed. Buyers cannot successful business. In September, we were excited back out or delay when the product arrives. to launch our new Liquor Guide. ABLE BC has worked Join ABLE BC Today It is perhaps the most tumultuous liquor policy • Test product and price pitches at no risk and no cost. with our Associate Member Barnet Group to develop environment in recent memory. As the voice of BC’s buyABLE validates demand prior to you assuming any this online pricing guide and offer it exclusively to private liquor industry, the Alliance of Beverage cost. You set the threshold of cases needed to produce ABLE BC members free of charge. Licensees (ABLE BC) remains committed to what the product, the price, and time frame in which it is Members can use the Liquor Guide to review LDB matters most: advocating for your interests and likely to be delivered. monthly price changes, compare current retail pricing protecting your investments. Help build a thriving to wholesale pricing, and track wholesale markup and prosperous liquor industry in BC. Join the What does buyABLE do for licensees? and retail margins. For more information, please contact Danielle Leroux (Manager of Membership Alliance of Beverage Licensees today. • Access to exclusive offers, unique products, and and Communications) at 1-800-663-4883 or danielle@ ABLE BC offers two types of membership: join as a better pricing. buyABLE offers ABLE BC Members an ablebc.ca. Liquor Licensee for as low as $55 per month or as opportunity that only they can get. Offers are channel an Associate Member (Preferred Industry Supplier) exclusive and not made available to government liquor stores. Join Us at an Upcoming Member Meeting for $28 per month. For more information, please contact Danielle Leroux (Manager of Membership • Increased profit margins. Our goal is at least 30% ABLE BC meets regularly with members across the and Communications) at 1-800-663-4883 or profit at suggested retail price. province to discuss recent and pending changes to [email protected].

34 The Publican Upcoming Events

March 5 April 25-26 FEBRUARY Cowichan Valley Whiskey Festival California Wine Fair Cowichan Valley Vancouver February 8 cvwhiskeyfest.ca www.artsclub.com/events/california- Family Day wine-fair March 8 February 18 IVSA New Product Salon* April 28 - May 8 Parksville Untapped Beer Festival Victoria Spring Okanagan Wine Festival Parksville www.ivsa.ca Various locations www.parksvilleuncorked.com www.thewinefestivals.com March 22 February 18-21 IVSA New Product Salon* April 28 Uncorked Wine & Food Festival Vancouver Best of Varietal Awards & Reception Parksville www.ivsa.ca Penticton www.parksvilleuncorked.com www.thewinefestivals.com March 25 February 20-28 Good Friday April 29-30 Vancouver International Wine Festival WestJet Wine Tastings Vancouver March 28 Kelowna www.vanwinefest.ca Easter Sunday www.thewinefestivals.com

MARCH APRIL April 8-9 March 4-12 Okanagan Fest-of-Ale Victoria Beer Week Penticton Victoria www.fest-of-ale.bc.ca www.victoriabeerweek.com

The Publican 35 BC Hospitality Foundation Update by Renee Blackstone

The BC Hospitality is pleased to announce that of vacation days as well as her savings account, “You have to take these things one day at a time,” we have reached a significant milestone. This putting enormous stress on her family. While still Susan told the Foundation. “Negative thoughts are November, the BC Hospitality Foundation helped recovering from that illness, she received even not good for any disease, and I prayed nightly for its 100th beneficiary. more devastating news. In August 2015, she was any kind of help. The support of the BCHF is truly diagnosed with an aggressive triple-negative amazing. It feels like a great weight has been lifted As we recognize the inspiring story of our 100th breast cancer. In September she had the tumour off my shoulders.” beneficiary, Susan Selles, we encourage you to removed and underwent a partial mastectomy. share her story of hope and determination to She shares that each successive chemotherapy Chemotherapy treatment began in November. inspire others. In Susan’s honour, you can also treatment makes her increasingly tired, as the make a donation directly to the Foundation at Despite her ongoing treatments, Susan found it medication builds in her system, but for the sake www.bchospitalityfoundation.com. (We suggest hard to completely stop working, saying “work of herself and her two children, she refuses to $100 in celebration of our 100th beneficiary, keeps me sane and helps me stay occupied and give up. but any amount goes to help individuals in the positive.” Nevertheless, she continued to move “I’m appreciating living more now that I have hospitality community across BC coping with a further into financial deficit. cancer. You quickly realize that the only thing that financial crisis due to a health condition.) Then, a colleague who attended a recent matters in life is your family, and my children have Susan, an upbeat single mother of two busy Thompson Okanagan Tourism Association been so supportive and understanding. With all children, has been working for nearly 20 years conference reminded her about the BCHF. She the time off work and the cost of medication, what at the Penticton Lakeside Resort, rising through made an application right away and within less are you supposed to do? Cut back on food? Not various departments, and is currently their sales than a month received approval for desperately- pay your rent? The support of the Foundation is manager. Last year, she developed pancreatitis, needed financial support that will make up literally the answer to my prayers. When I received which led to a portal vein thrombosis and a her income shortfall, helping her to pay for the cheque, I was crying. So very thankful.” partial shutdown of her liver. Numerous doctor prescriptions not covered by her MSP and for The BCHF hopes to help more people this year and hospital visits completely exhausted her bank necessary time off work for treatments and than ever before. Spread the word. Who do you therapy. know that we can help?

36 The Publican PRICING DRINKS THE RIGHT WAY BE CONSISTENT WITH YOUR CONCEPT by Ian Foster

Pricing drinks is as much art as science. Calculating the profit contribution and pour cost is important, of course, but often not as important as comparing your pricing to your competitors and making sure that your pricing is consistent with your concept. For example, a neighbourhood pub can’t sell domestic draft beer for $1 more than the bar down the road - unless their concept somehow allows them to charge a premium (if they have live music, for example). Following are some pricing guidelines: First, you have to figure out who your competitors are. One key factor is their proximity to your establishment. If you own an Irish pub downtown, your competitor is not the Irish pub in the suburbs, because your guests are not going to drive 10 km to save 50¢ per drink. A second key factor is figuring out which establishments compete for the same guests as you do. Part of this is demographics: a wine-bar may target guests over the age of 30, while a nightclub will target women under the age of 30. Some types of establishments target guests looking for a nice setting for good conversation and well-made drinks while others are targeting university students who want a rowdy atmosphere and shots. Once you know who your primary competitors are, you need to make sure that your pricing is roughly the same as your competitor’s for well drinks and domestic beer. This is because these drinks are the ones chosen by your price-sensitive charged $8 or $12 - in fact, I don’t even notice. Of course if I get charged $16, I guests who often compare prices from one bar to another. In university, we often know I’m getting ripped off and you’ll lose a customer. chose where to go based on drink prices - and when we arrived my friends would The best example is the guest who drinks a Grey Goose and soda. By definition, ask the bartender for the price of a vodka/tonic and the price of a domestic beer vodka is a colourless, odourless, neutral spirit, and I know there are plenty of before deciding what to drink that night. people who swear they like one vodka better than another, and that may be true However, you do not need to match your competitor’s pricing on call and when consumed straight up in a martini. However, any distinctions are completely premium drinks. In fact, on premium brands, you can easily charge an extra buck lost when vodka is mixed with soda, orange juice, Kahlua or cream. Those guests or two without losing any sales - and that extra buck or two is pure profit. I’m who order premium brands in mixed drinks are (subconsciously) declaring that not in university anymore and like to drink Hendricks or Glenlivet. And, frankly, they choose to pay more simply for the status of paying more. I don’t pay any attention to the price of my drink. I know that Glenlivet will cost Ian Foster is Vice President, National Accounts with Sculpture Hospitality. He can me about $10, give or take a couple of dollars. So if I really don’t care if I get be reached at [email protected].

The Publican 37 Spotlight on Flavoured Rum by Tom Firth

Flavouring spirits is not a new invention. Long, long ago, it was figured out that aging raw spirits in wood mellowed the harsher flavours and increased both the quality of the beverage and the price you could get for it. In addition to aging spirits, which is a time-intensive process and an expensive one, many spirits benefit from the addition of flavouring agents - whether it’s botanicals such as juniper or coriander in the case of gin, or using spices such as cloves or other flavourings like vanilla in certain rums. No one is quite certain when it happened or who was responsible for making the first spiced rum, but most likely it stemmed from the rum rations granted to sailors in the 1700s. While sailors have long had a reputation for hard drinking, the rum ration granted to the sailors of several navies could probably have used some improvement to their flavour. Prolonged aging was probably out of the question onboard the ships, so it was likely that sailors found some advantage in adding a little something extra to their grog - such as lemon or lime juice added to combat scurvy. While drinking onboard the ship There are over 100 different rums currently served neat or with a press of water, but rums for beyond their rations was frowned upon, sailors available in the BC market, and rum sales in retail use in cocktails of all styles and stripes. Spiced rums probably developed a taste for rum when on leave. dollars for the year ending March 31, 2015 totalled work very well in hot cocktails, but also with flavours It’s possible that sailors working on the spice routes $118,412,000. Spiced rums are most likely being such as coffee, chocolate, and anywhere a little had access to an assortment of exotic spices such as helped by a few prominent brands being marketed vanilla or cinnamon flavour would work. The various vanilla, cinnamon, orange peel, cloves, and more. effectively and reaching new consumers, while the flavoured rums seem destined for umbrella drinks Most spiced rums are made with basic, unaged flavoured brands face stiff competition from within or slushy cocktails while the flavour base should rums that are coloured and flavoured. However, the category. New entries to the category tend to probably be selected for the flavour profile the several brands are using some aged spirit in their have to compete on price or on quality, and this can consumer is looking for. Berry-flavoured rum might blends, as the mellower, rounder flavours of aged be an onerous prospect for a newcomer. work with strawberry or other complementary rum can provide better flavour integration with So what are consumers looking for in their flavoured flavours in the cocktail, while the classic coconut the seasonings. rum? Flexibility and mixability are going to be first rum might just be the perfect foundation for a piña Flavoured rums are a more recent development and foremost. These aren’t really rums made to be colada - and getting caught in the rain. - at least commercially available bottlings. They are most cost-effective to make with synthetic flavourings or a combination of natural and artificial flavours. While rum could be made with almost any Advertisers flavour, most producers focus on tropical flavour profiles. Various berry flavours, coconut, vanilla, ABLE BC 34 Independent Distillers IFC RHB Enterprises 13 or citrus dominate the offerings on liquor store BC Hospitality Foundation 37 Johnstone's Benefits 36 Royal LePage Sterling 18 shelves, and rather than being a good addition to BWI Business World 35 Lions Port Products 27 Samrok 16 a hot toddy, flavoured rums seem to be best for the Best Buy Canada 25 Matthews Campbell 19 SiriusXM Canada 23 ContainerWorld 5 McClelland Premium Imports 15 Sysco Vanc/Vic/Kelowna 4 daiquiri, Mai Tai, and Planters Punch assortment of David Herman & Son 7 MJB Law 29 The Wine List 7 refreshing cocktails. Most are made with unaged, Energy Wise 24 Mt Begbie Brewing 7 VI Banking 11 or lower-quality rums where any harsh characters Granville Island Brewing BC Northwest Stoves 17 Wayward Distillation House 30 Halo Metrics 9 RBC Royal Bank of Canada 37 Western Financial Group Ins Solns IBC can be masked by various flavouring components, Homelife Benchmark Titus Realty 36 Red Truck Beer 7, 10 Wine Cellar Depot 12 including sugar.

38 The Publican Your insurance program designed for your industry

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!GIB_ISAPublican_8.5x11.indd 1 2016-02-03 3:59 PM

WASSERMAN + PARTNERS ADVERTISING ART: LM AE: CT DSGN: - PROD: SC CMYK LASER % AD SIZE: 8.5" x 11" PRESS / STOCK: Magazine GIB-P63280.03 BLEED: 0.125" RES FINISHED: 300 PPI DESIGN : File: !GIB_ISAPublican_8.5x11 LIVE: 0.25" from trim ARTWORK SCALE: 1 : 1 Rev: Feb. 3, 2016 – 3:59 PM FINISHED: - RES ARTWORK: 300 PPI AE/PROD : ISA Publican Ad FORMAT: InDesign CC NOTE : 8.5 x 11 DELIVER: PDF-X1a TRAP AT OUTPUT STUDIO :