THE QUARTERLY Pour Winter 2019 formerly the publican PM40026059

» Holiday Pop Ups » Compensation Packages » Cannabis-Infused Beverages » ID Checking 604-271-1412 250-868-8890 Lower Mainland Okanagan

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10 Cannabis-Infused Beverages up front New products will be available for sale soon. How will you compete?

PLAN YOUR HOLIDAY POP UP 16 Creston Liquor Store This store features rustic-chic Maybe this is the year you wood panelling and stairs leading do more than hang some up to an open balcony space. sad tinsel garlands. 6 18 Best Practices for ID Checking Best practices for ensuring your staff is 100% compliant.

22 Creating an Attractive Compensation Package Show you care about your employees and get an advantage in a crowded labour market.

DEPARTMENTS

4 ABLE BC Industry Update 5 BC Liquor Industry Trends 13 Product Showcase 14 LDB Update 15 Beer Notes: The Future of Big Beer 20 Names in the News 21 Wine Report: Canned Wine 25 Spirit Spotlight: Distilleries in BC 27 What’s Coming? 30 BC Hospitality Foundation Update 30 LCRB Report

EXTRAS

9 A Day in the Life of a Doorman 28 Mead: A New Category » ABLE BC Industry Update by Jeff Guignard

For those who are picking up our newest issue deliver these services. Despite this change, of The Quarterly Pour (formerly The Publican) at go2HR will continue its leadership of key our annual BC Liquor Conference—welcome! programs on behalf of our industry, including This is our fourth year hosting BC’s premier SuperHost and FOODSAFE. They will also Quarterly Publication for the Alliance of Beverage Licensees annual gathering of liquor industry professionals, remain the industry Health & Safety Association and we’ve worked hard to ensure it’s the best and Certifying Partner in partnership with 2nd floor 948 Howe Street, Vancouver, BC V6Z 1N9 one yet. In addition to our popular education WorkSafeBC. T 604-688-5560 F 604-688-8560 Toll free 1-800-663-4883 seminars and keynotes on government On behalf of ABLE BC’s directors, staff, [email protected] www.ablebc.ca @ABLEBC regulations, liquor liability changes, progress and members, I wish to offer our collective on our BTAP report, and emerging industry appreciation and thanks to the team at 2018-2019 Board of Directors & ABLE BC Staff trends, we’re also introducing a few new go2HR for their years of dedicated service President Al McCreary elements. For the first time ever, BC Liquor to our industry and their exemplary work Past President Poma Dhaliwal Vice President Al Deacon Stores are attending to specifically address the administering SIR. Treasurer Trevor Kaatz customer service concerns of their hospitality Cannabis customers, as well as to offer insights into Spokesperson Damian Kettlewell, New Policy Directive: Directors Brady Beruschi, Michael Brown, future improvements to their business. We Cannabis Promotion in Patrick Greenfield, Damian also launched three in-depth, pre-conference Licensed Establishments Kettlewell, Dave McQuinn, workshops to provide focused professional In September, the LCRB issued a new policy Gerald Proctor, Stephen Roughley, Randy Wilson, Barry Zwueste development to members from industry experts. regarding cannabis promotion in liquor- Director-At-Large Lorne Folick We’re already working on the 2020 conference, licensed establishments and at events held Executive Director Jeff Guignard so we look forward to hearing your feedback under a special event permit (Policy Directive Director of Membership & from this year’s event, so we can make our 5th No: 19-11). Although the intent of the policy is Communications Danielle Leroux annual BC Liquor Conference our best event yet. specific, it caused considerable confusion in both the liquor and cannabis industries as the The Quarterly Pour Editorial Committee: Megan Carson, Dean Gaudry, Trevor Kaatz, Paul Rickett, Leah Stark, Important Changes about initial wording of the policy seemed to imply Aly Sunderji Serving it Right that any promotion of cannabis in licensed As you may know, after a successful 30-year spaces—including conference venues, hotels, Designed, Produced & Published by: EMC Publications public/private partnership with go2HR, the special events, etc.—was strictly prohibited. 19073 63 Avenue, Surrey BC V3S 8G7 Province of BC decided to proceed with a new We immediately worked with the LCRB to gain Ph: 604-574-4577 1-800-667-0955 model and new provider for BC’s provincially clarity on their intent and to assist in circulating [email protected] www.emcmarketing.com mandated responsible beverage training a policy clarification. Publisher Joyce Hayne programs. As of September 30, Serving It Right To be clear, the purpose of the policy directive Designer Krysta Furioso (SIR) and Special Event Server (SES) training was simply to “prevent the promotion of non- Copy Editor Marina Lecian ABLE BC Editor Jeff Guignard are now available at responsibleservicebc. medical cannabis to minors, and to ensure gov.bc.ca. alignment with federal rules.” Nothing in the Copyright EMC Publications The LCRB has assured us this transition policy directive prohibits licensees (as well as PUBLICATIONS MAIL AGREEMENT NO. 40026059 will not result in any SIR service disruptions conference venues, hotels, etc.) from hosting RETURN UNDELIVERABLE CANADIAN ADDRESSES to you or your business. You, your staff, and cannabis-related events in their licensed TO CIRCULATION DEPT EMC PUBLICATIONS all licensees will still have access to the same spaces. 19073 63 AVENUE quality of responsible beverage service training As the legalization of cannabis-infused SURREY BC V3S 8G7 email: [email protected] you’ve grown accustomed to over the past edibles and beverages arrives, we will continue several decades. to work closely with our partners at the LCRB We are in the process of building a relationship to advocate for a clear regulatory regime that with the new provider to ensure our industry supports business growth. We will also ensure continues to have a strong voice in SIR the Branch understands the perspective of The opinions & points of view expressed in curriculum development. licensed cannabis retailers and others who are published articles are not necessarily those of ABLE BC. Advertisers are not necessarily endorsed by ABLE BC. Unfortunately, this change will impact go2HR all working diligently to comply with this new significantly. As you may know, go2HR used the regulatory framework. surplus from SIR to fund implementation of the As always, if you have any other questions BC Tourism HR Strategy. Without these financial or concerns, please contact ABLE BC at 604- resources, go2HR is re-evaluating its ability to 688-5560 or [email protected].

4 The Quarterly Pour BC LIQUOR INDUSTRY trends Wholesale Sales in Litres with % change over 2018 April - June 2019

Beer - Domestic BC Commercial 40,090,496 -9.7% Beer - BC Micro Brew 8,773,834 +7.1% Beer - BC Regional 12,739,578 +9.4% Beer - Import 10,973,924 -4.3% Cider - Domestic & Import 5,560,570 -6.8% Coolers 14,067,122 +29.1% Gin 512,164 +9.1% Rum 836,254 -1.7% Tequila 309,177 +9.1% Vodka 2,334,296 +3.7% Whisky 1,751,107 +3.7% Wine - BC 10,189,171 -0.8% Wine - Canadian 172,492 +53.4% Wine - USA 1,749,425 +3.2% Wine Total 19,247,765 +2.6%

Hospitality Sales in Litres with % change over 2018 April - June 2019

Beer - Domestic BC Commercial 6,351,907 -13.6% Beer - BC Micro Brew 3,613,343 +8.8% Beer - BC Regional 2,891,011 +2.1% Beer - Import 2,259,661 -3.2% Cider - Domestic & Import 697,587 +2.7% Coolers 369,625 +26.3% Gin 3,112,114 +9.6% Rum 3,042,413 -1.7% Tequila 4,710,611 +13.1% Vodka 9,221,944 +3.8% Whisky 6,227,254 +0.8% Wine - BC 1,562,807 -1.4% Wine - Canadian 30,512 +26.8% Wine - USA 175,580 -6.9% Wine Total 2,600,391 -1.9% Source: BC Liquor Distribution Branch

Commercial and imported beers continue their decline as regional and micro beers grow. Consumers just can’t get enough of their craft beer! Coolers keep growing in popularity and the LDB reports this summer saw that trend continuing (read the LDB’s report). With the trend towards healthy eating and keto diets, more vodka-based RTDs keep entering the market and people are buying them. The growth in Canadian wine sales outside of BC was primarily in the white wine category, which more than doubled, and rosé sales going from 0 to 12,416 litres in one quarter. Sparkling wine and red wine also increased. Ontario wines are obviously putting a big push on sales in BC.

The Quarterly Pour 5 PLAN YOUR Holiday POP UP Five Easy Steps to Create your Own Winter Wonderland

by Joanne Sasvari

Up on the fourth floor at the Rosewood Hotel Georgia, the elevator 1. Ho-Ho-Hospitality doors whoosh open. The aroma of cinnamon and cloves fills the air. Burl Grinches need not apply. Leave the bah humbug at home, slip on your Ives is having a holly jolly Christmas. And then you step straight into a goofy reindeer sweater, and get into the festive spirit—and encourage winter wonderland of gleaming decorations, sparkly lights, and happy your staff to do so as well. “You want staff dressed up and people who people merrily sipping festive cocktails. are engaged. That’s the most important part,” Gray says. “You want Welcome to the annual holiday popup at Reflections: The Garden them infused with all the Christmas jingle-jangle.” Terrace. “It’s purely a seasonal place and that’s magical,” says Robyn Gray, 2. Deck the Halls the head bartender at the Hotel Georgia. “It works so well to be open “Ambience is huge. You want Christmas trees and fake snow,” Gray all summer and then closed in fall, and the people who know, know it’s explains. You can’t have enough twinkling lights, shiny baubles, holiday open for Christmas.” wreaths, and all the merry symbols of the holiday season, including Santa It was Food and Beverage Director Anthony Pratt’s idea to turn and his elves, reindeer, snowpeople, and the like. (Religious imagery is a Reflections into a holiday pop-up a few bit more problematic; you want to be inclusive years ago. Gray loves the idea and is now and nostalgic, not generate controversy.) planning to introduce a 1920s-themed one in Think gingerbread Consider replacing the endless poker Prohibition, the sexy cocktail lounge located games on your TV sets with classic holiday on the hotel’s lower floor. movies. “At Reflections, because the room “Everyone loves Christmas,” Gray explains. and roast is contemporary, every year we have a new “There’s such a sense of community and, interpretation of Christmas classics,” Gray at Christmas, everyone loves a good hotel.” chestnuts, mulled says. “We do the 1950s and ’60s, so we play He remembers enjoying the holiday brunch movies where the pool is. We cover the glass at The Fairmont Hotel Vancouver with his with a screen and project movies on to it.” family, and wanted to bring the same kind of wine, and pine Holiday music, of course, is essential. But idea to the Georgia. “Remember how they be sure to mix it up; no matter how funny you had that great gingerbread house?” he asks branches. thought Grandma Got Run over by a Reindeer nostalgically. was the first time you heard it, by the 20th time, Maybe this is the year you do more than you will be heartily sick of it, and so will your hang some sad tinsel garlands and put Michael Bublé on repeat. After staff and guests. Spotify has terrific playlists; just hit play. all, the holidays can mean big profits as well as big fun. And don’t forget the most powerful of our senses, the sense of smell. If you want to turn your own establishment into a festive playground, Think gingerbread and roast chestnuts, mulled wine, and pine branches. here’s how to start. “At Reflections, I made hot apple cider and used it to aromatize the room,” Gray says. “It gives you the sensibility that this is Christmas.”

6 The Quarterly Pour 3. Festive Food In addition to your usual pub grub, think holiday specialities like shortbread cookies, cheese fondue, sweet stolen, and traditional turkey dinners. You can easily incorporate seasonal ingredients like pomegranates and cranberries, root vegetables and brussels sprouts, and serve the hearty roasts, savoury stews, and holiday sweets that are easy to make ahead for a crowd.

The Quarterly Pour 7 4. Spirits of the Season “The cocktail program has to be YOUR CHRISTMAS MIRACLE on point,” Gray notes. “You have to have a mulled wine, an eggnog, an Perhaps you don’t have the time, the Old Fashioned, winter warmers, hot money, or the energy to do all the work of drinks.” Holiday shooters are also a holiday pop up yourself. Well, don’t look fun because, he says, “everyone now, but Santa’s got a gift for you. wants to tie one on at Christmas.” In 2014, New York bartender Greg Cocktails aside, this is also the Boehm launched Miracle, a collaboration season for dark ales, bold red wines, with the bar-supply company Cocktail and after-dinner drinks like whisky, Kingdom. Through Miracle, he creates brandy, port, and liqueurs. easy to set up Christmas pop-up packages for bars—the decorations, the music, the 5. Warm Fuzzies glassware, even professionally developed Both literally and figuratively, you cocktail recipes like the Christmapolitan want to create a sense O’Hares’of warmth. owners Erinn &and Grant Snowball Bryan Old Fashioned. If you use your patio for a pop “It’s ideal if you’re a small bar and you up, make sure it’s enclosed with want to do a Christmas pop up,” says a wind-, snow- and rain-proof Robyn Gray, the head bartender at barrier, or at the very least, have Rosewood Hotel Georgia. Already, about heaters out there and offer cozy 100 bars across the US, England, Mexico, blankets and throws. If you have New Zealand, and Canada have hosted a fireplace or firepit, light it. Miracle pop ups. And consider some sort of And if you’re wondering if it’s worth the charitable endeavour. ‘Tis the extra effort, put your mind at ease. “It’s season of giving, so share your crazy the numbers people make, like a good fortune with those down on quarter of a million dollars. In some places, their luck. “The sense of giving as they make their entire year’s profits in one more than receiving, that’s what month,” Gray says. “Everyone wants to Christmas is all about,” Gray drink at Christmas.” says. “That’s what I love about Now isn’t that just the sort of present Christmas, is making people you’d like to see under the tree? happy.” For more info, visit miraclepopup.com.

8 The Quarterly Pour A Day in the Life of a Doorman Featuring Victor Ardanaz of the Roxy Cabaret by Laura Starr

I’m not sure you could paint a clearer picture of the life of a doorman than through a conversation with Victor Ardanaz, a 25-years-and-running employee of the Roxy Cabaret, one of Vancouver’s oldest bars on the infamous Granville Street. Starting in 1994, he worked through the ranks, and once he ascended to head doorman, he seized the opportunity to re-write the role of what was formerly coined “bouncer,” a term that Evan & Thomas he considers pejorative and laced with violent and aggressive connotations. To Ardanaz, diplomacy always gets you further than brawn, and so he told management he was going to take a different approach; from that day forward, all front line employees were to handle people with dignity, patience, and respect; essentially implementing the pillars of customer service into the role of a doorman. The premise of the change in style came from Ardanaz’s belief that if you are treated rude by the front-line workers, what is your experience going to be like inside? Therefore, patient demeanor and the capacity to remain calm under situations of stress or tension are qualities that he looks for when hiring, as well as incredibly strong communication skills. It was never a problem to get the other employees on board with this style of running the front line of a nightclub, because to Ardanaz, the Roxy operates like a second family to all who work there, starting from the top. Upper management is a dream to work for, and that attitude trickles down throughout the company. A happy employee is a dedicated employee, which is why the Roxy boasts such great retention rates; there are few places that can say their bartenders have worked there 20 years, or for employees like Ardanaz, an astonishing 25. Despite the diplomatic setup, however, doormen still deal with a lot of stress. These days, it is mostly intoxicated individuals who are acting irrational: some complain about the line; some are actively looking to start trouble; and many don’t remember any part of it. It takes a strong sense of self to not take it personally and to remember your role as maintaining the peace and safety of all of the other customers, inside and outside of the Roxy. But back in the day, this wasn’t always the case. Ardanaz recollects 15 or so years ago when gang activity was rampant, and doormen were often the recipients of their wrath. Shootings were common, a police presence was constantly required, and people were scared. Much of this changed through the proper utilization of BarWatch, a forum for bars and nightclubs to talk, collaborate, and drive positive change in the industry. Implementing ServeAll, the ID swiping system that allows bars to share information and communicate about disorderly customers, has alleviated the pressure as well, by making it more difficult for disagreeable or irresponsible customers to gain entry. To describe a day in the life, doormen do just what we see them do. What we don’t see though, is how much effort goes into setting these individuals up for success. Treat your employees well, give them the support they need, and you will find positive results, which, when you’re talking about doormen, means you will never hear about any incidents at all.

Doorman tip: NEVER take money at the door; if you do, that person owns you, and it will bite you in the butt.

The Quarterly Pour 9 Cannabis-Infused Beverages

by Danielle Leroux

Cannabis edibles, topicals, and concentrates will be legalized later this stores until December 16 and it will be a limited selection at best. month in Canada. Cannabis-infused beverages have emerged as a major There are several reasons for the slow rollout. Federal licence trend within Legalization 2.0 with beverage manufacturers jumping at the holders must provide 60 days’ notice to Health Canada informing chance to partner with licensed producers and tap into this new market. them of new products coming to market. Provincial and territorial For instance, HEXO Corp and Molson Coors formed joint venture regulators (the sole distributors in every province except Truss and will offer everything from cannabis-infused water to a Saskatchewan and Manitoba) need time to issue product calls and ‘beer-like’ product and hot beverages. Alcoholic beverage behemoth source new products. Retailers also need time to purchase and Constellation Brands invested $5 billion obtain the products for sale. for a 38% stake in Canopy Growth and plan to launch a line of cannabis- Legalization 2.0 could 3 Million New Consumers and infused drinks and other products. Tilray $2.7 Billion Market partnered with Budweiser producer bring in as many as 3 Based on a 2019 survey, EY Canada Anheuser-Busch InBev to research and Lift & Co. predict Legalization THC and CBD drinks in Canada, each 2.0 could bring in as many as 3 company investing $50 million in the million new consumers. million new consumers. This new venture. audience is not interested in or comfortable with traditional consumption methods and is drawn New Products Hit Shelves in December to more discreet and accessible ways to consume cannabis. The amended regulations regarding the production and sale of Legalization 2.0 cannabis products come into force on October 17, Deloitte Canada estimates the Canadian market for edibles and 2019, but retailers and consumers won’t see products online or in alternative cannabis products will be worth $2.7 billion annually. Extract-

10 The Quarterly Pour based products and edibles account for $1.6 billion of that number and Challenges the Canadian Market will Face cannabis-infused beverages represent $529 million. Beyond the obstacles noted above, Canadian producers, manufacturers, and retailers will face a number of challenges. Under current regulations, Cannabis Beverages Experience Slow Growth in the US you cannot consume a cannabis beverage in a bar or restaurant; instead In the US, concentrates and edibles are seeing continual growth and the product must be purchased online or in-person from a licensed market share gain. According to BDS Analytics, beverages make up a store and consumed at home. Yet this is clearly not what consumers small, but growing, portion of sales: approximately 6% of sales to date want or what the market needs to thrive. According to Deloitte’s 2019 with a growth rate of 15% year-over-year. report, “Both current (53%) and likely (47%) consumers see edibles as In 2018, the YTD tracked edible sales in Arizona, California, Colorado, a product to be consumed socially among a small group of friends.” and Oregon combined was $612 million. BDS Analytics predicts total US Campbell echoes those sentiments: “In all cultures around the world, edibles sales will reach $3.4 billion in 2022 and beverages will account adult beverages are used as social ritual and as a means to have fun for $374 million. and come together as a community,” she says. “Legalization 2.0 brings Despite these promising trends, the US market has not been without a whole revolution of new products and new social rituals around them.” its challenges. Companies are unable to distribute nationally or effectively Campbell is optimistic regulations may change in the future to allow the scale because of federal regulations. consumption of cannabis beverages on-premise. Lisa Campbell, CEO of Lifford Cannabis Solutions and Co-Chair When it comes to selling beverages, retailers will have to consider of Cannabis Beverage Producers Alliance, highlights other lessons refrigeration, storage, and allocating space to maintain profitability. Canada can learn from the US: “California has faced massive problems Establishing brand loyalty will also be difficult given marketing with dosage variability in its beverages,” she says. “Retailers have learned regulations. For example, Health Canada regulations prohibit a beverage the hard way–with THC leaching into can linings–that packaging can alcohol company from displaying its logo or brand element on a cannabis impact dosage. There have been many product recalls.” Campbell notes beverage and labels cannot reference alcohol in any way. that lab testing for cannabis food and beverages is also in its infancy making it difficult to get consistent results.

The Quarterly Pour 11 Adult beverages are used as social ritual and as a means to have fun and come together as a community.

Customer education and the role of the budtender will be very the past year, low-dose THC product sales and CBD beverage sales important to establish relationships with customers and to develop have also increased in the US by close to 70% and 75% respectively. brand loyalty. Beverage companies will need to be innovative, clearly BDS predicts continued massive growth for hemp or CBD beverages articulate what is unique about their product, and continually gather (+134%) and products specifically labelled as CBD (+1000%). consumer data. The types of cannabis beverages we may see in Canada include: Retailers must also consider how Legalization 2.0 will impact their drops, mixes, and elixirs, water, carbonated beverages, iced tea, customer demographics. Millennial or younger consumers are generally lemonade, and fruit drinks, and tea is expected to be the most popular. more experienced cannabis consumers who already consume cannabis Deloitte’s studies show 35% of likely cannabis consumers see products. It is likely that novice or cannabis-curious consumers, often cannabis-infused beverages as an alternative to alcohol. Campbell female and older, will be drawn to edibles and alternative products, agrees that mocktails are on the rise. “We have already seen the rise especially baked goods, confectionery, and tea. of low ABV drinks or mocktails in the hospitality sector,” she says. “Cannabis drinks are an extension of that and cannabis cocktails are Beverage Trends a future trend.” What products can Canadians actually expect to see as the beverage Consumers will also look for product quality, safety, and potency when market develops? choosing a cannabis beverage. In the US, cannabis-infused carbonated and non-carbonated drinks Will these predictions for a multi-billion dollar industry come true? are most popular; however, BDS Analytics reports substantial growth Industry must watch, wait, and adapt as products roll out and regulations in shots (+127%) and powdered mixes (+61%) categories in 2019. Over shake out.

12 The Quarterly Pour PRODUCT SHOWCASE

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EMC Publications 250-837-2756 604-737-0018 604-737-0018 604-574-4577 www.mt-begbie.com dhs-wine.com dhs-wine.com The Quarterly Pour 13 » LDB UPDATE by Todd Cooper

Record Setting Summer Centre are looking forward to adopting our 2. Each situation is different, so have a for Liquor Sales new warehouse management system once we look at the WCC Return Guidelines (in our Like many of our customers, the Liquor get through the busy holiday season. Order Handbook) and gather the supporting Distribution Branch is just catching its breath Our Wholesale Customer Centre (WCC) documentation required for the return claim after our busiest summer on record. Customer continues to refine and improve processes you want to submit. It’s a good idea to keep case demand was up nearly 10%, led by with the goal of improving customer service. your documentation for up to one month after healthy growth in the refreshment beverage Customer feedback regarding Excel-based delivery. That way you have the Bill of Lading category—in fact, refreshment beverages invoices has been positive as we are hearing and other paperwork at hand until you’re fully made up close to 40% of volume shipped this format makes it easier for you and your confident there are no discrepancies. out of the Delta Distribution Centre (DDC) in employees to load directly into POS and 3. If a problem is identified days or weeks the larger warehouse’s first full summer of inventory systems, saving you time in terms after delivery—product is expired or defective, operation. of data entry. damaged or missing—then take a photo and By September 5th of this year, five months WCC is now working to raise awareness send it in along with your claim. into our fiscal year, our teams picked, packed about how you can streamline the returns 4. Every field in the Return Authorization and shipped 10 million cases of product. The process. To paraphrase Jerry Maguire - help Form must be completed (in the Excel format) increase in orders speaks to the great service us help you: and returned with supporting documentation. you—our customers—are providing to your 1. The most important thing to remember is If a slip, bill, or invoice is missing, it means our patrons and customers. Service fill rates at to review your shipment with the delivery driver. teams have to reach out to you and have you our Delta and Kamloops distribution centres Complete the count of pallets and boxes and track it down. The more accurate we do this improved to 94% from 83% last year, ensuring have all parties sign off on any discrepancies the first time, the better for us all. the product you needed was available to order. and/or damage on the Bill of Lading. It’s a We look forward to seeing many of you at We have been making gains since good idea to review the Shipment Verification our Open House at Delta Distribution Centre on transferring customers from Vancouver Process in the WCC Order Handbook with October 20, and at the BC Liquor Conference. to Delta, and enjoyed touring many of our anyone who receives shipments in your store customers and BC Liquor Conference or establishment, especially with incoming Todd Cooper is Executive Director of Liquor delegates through the DDC on October 20. and new employees, so they take the time to Wholesale Operations for the BC Liquor I know the teams at Kamloops Distribution complete this valuable step. Distribution Branch

14 The Quarterly Pour BEERNOTES by Dave Smith A Look at the Future of Big Beer Ken Beattie is Executive Director of the BC Craft Brewers Guild. Molson Coors Brewing Company opened their newest and most He says that “At this time in the evolution of the craft beer industry, modern brewery (of a global network of 29 beer factories), in Chilliwack macro breweries have moved on from a strategy of buying up the most in September. Maria Henriquez, Corporate Affairs Specialist at Molson successful local craft breweries to increase market share. They seem Coors says that the plant “is now phasing in the ability to produce beer, more interested in developing their own core brand extensions while flavoured beverages and cider, and it will be able to meet other emerging diversifying into other segments such as ready-to-drink [RTD] and the consumer tastes.” upcoming cannabis-infused market.” The demand for large-scale commercial beer has been decreasing Referring back to Henrique’s comment about “flavoured beverages” as the category’s perception amongst current and future drinkers is and “emerging consumer tastes”, think about RTD and refreshment changing, and as a result so are the strategies by which big breweries beverages like selzers, THC brews, and whatever else it will take to be are mapping out their futures. relevant to the post-Millennial, industry-disrupting Generation Z. A comparison between BC Liquor Distribution Branch Liquor These breweries have endured catastrophic change before. After Market Review reports for Q1 2015 and Q1 2019 reveals a staggering emerging from the nuclear winter of Prohibition and enduring the 30% decline in sales (by volume at retail only) for “Commercial Beer”, materials shortages of World War II, Canadian brewing in 1945 consisted mostly Canadian divisions of international conglomerates such as of about 60 regional or local breweries. By 1962, national consolidation Molson Coors. Meanwhile, the “Micro Brew Beer” line, representing resulted in a Big Three with combined empires controlling 95% of the local BC independents, recorded an impressive 123% gain. beer market. When it comes to acquisitions, what we see today doesn’t You’re probably not shocked by this, since craft beer has been one compare to that, and the current market decline is just another wave in of the hottest subcategories in BC liquor over the past decade, and a big-picture cycle of growth and recession. things have been trending this way for about 30 years. With public tastes No doubt there will still be some consolidation in BC’s brewery scene. swinging away from their main products, there’s a perception that the With 200 breweries crowding the pool and more diving in each year, big breweries will need to absorb smaller, trendier breweries for survival. it’s inevitable. Vancouver Island Brewing, for example, sold to Ontario Consolidation would seem to make sense. The BC craft sector now craftie Muskoka Brewing in 2016. This is a clue when it comes to the enjoys close to a 30% market share. Our province has both the strongest future of BC brewery mergers: rather than established Big Beer doing and longest relationship with microbrewed beer, having introduced it to all the buying, it may just as likely be fellow craft cousins like Phillips Canada back in the early 1980s. One of those pioneering independents, Brewing & Malting Co. or Central City Brewing & Distilling that roll Granville Island Brewing (GIB), joined the Molson fold in 2009. Primary out the welcome mat—if not to actual physical breweries, then to their key production of GIB brews will now be transferred to the Chilliwack plant—a people or intellectual property. Vancouver-based “contract brewer” Craft giant facility with the capacity to produce more beer than all the craft Collective Beerworks, for example, now counts formerly independent sold in BC annually. Doan’s Craft Brewing and Postmark Brewing in its brand portfolio. In fact, the big breweries have created entire business divisions for However, most small operators want to stay just that: small. They got this purpose. For instance, Molson Coors operates Six Pints Specialty into brewing from a craftsmanship point of view, and their goal is simply to Beer Company, which looks after GIB, Ontario’s Creemore Springs create something sustainable with a quality reputation in the community. and two former Quebec micros. Henriquez explains, “Six Pints acts Their best chance to stay intact is to stay under the radar, avoiding the independently with its unique expertise to brew and market craft and temptation to grow with demand and over-leverage themselves. As with specialty beers.” She notes, that “We are always on the lookout for any other business, operations that expand into the “middle ground” opportunities.” have a riskier long-term outlook. Be that as it may, Six Pints hasn’t been gobbling up breweries the way Today, Granville Island Brewing is alive and well within Molson Coors, one might assume and macro-micro consolidation in Canada is still very and Sleeman is going strong as part of the Sapporo Brewing empire. rare. Here in BC, Okanagan Spring and Shaftebury Brewing were Generations from now, if BC beer brands like Phillips and Russell still absorbed by Sleeman in the 1990s. Stanley Park Brewing is part of exist, it might be as part of such a conglomeration. Or, like Sapporo and the Labatt Brewing Company fold. In the US, their parent Anheuser- Heineken, they could be the name at the top of their own heap. Don’t Busch InBev (AB) created The High End division, later rebranded forget that all the international players in what we call Big Beer were Brewers Collective, which owns thirteen formerly independent brands. once local microbreweries too. Almost all of them were acquired more than two years ago, and despite one 2019 exception, AB has indicated that they have no current plans Dave Smith is Editor of What’s Brewing, the Journal of BC’s Craft Beer to add more. Movement (www.whatsbrewing.ca).

The Quarterly Pour 15 Local Products a Lure at Creston Liquor The community’s biggest liquor store is both beautiful and bursting with a huge Store selection of products by Joanne Sasvari

Jim and Fotini Karountzos along with Denis and Theodora Lilas know that was located in the family hotel, which is a local landmark that dates back their community. And lately, what he knows is that people are thirsty for to 1936. The store took more than two years to build, and is still evolving as a the wine, beer, and spirits made by their neighbours. destination not just to buy beer, but to build community. By summer 2020, the Over the past four decades, the Karountzos have been the owners upper floor will become a tasting room and event space where sommeliers or co-owners of several businesses in the Kootenays border town of and other drinks experts will share their love of wine, beer, and spirits. Creston, including the popular Dionysos Restaurant and the Creston And increasingly, that means local products. “We support the local Hotel & Suites. Jim even ran for city council at one time. wineries and distilleries a lot,” Lilas says. “Almost every Friday, we have However, now his energy is focused on his big, new Creston Liquor a tasting on the main floor so our customers can try something new.” Store, which opened in August 2018. It was constructed on the site of a Creston is a town of only 5,306 people located just 10 km. north of the former auto service garage—he chose to make the most of the unique, US border in the province’s southeastern corner. It is also a sprawling farm high-ceilinged space and renovate rather than build from the ground community, with a unique microclimate that allows a growing number of up—and the store features a polished concrete floor, rustic-chic wood wineries like Baillie-Grohman, Skimmerhorn, Wynnwood, and the tiny panelling, stairs leading up to an open balcony space, and contemporary new Red Bird to produce excellent cool-climate wines, especially Pinot metal shelving neatly packed with products. Noir. “There are so many great local wineries here,” Lilas notes. “It’s beautiful,” says store manager Denis Lilas. “It looks like a building Although Creston is famed for its huge commercial Columbia in Venice. We have five balconies with huge murals and pictures inside Brewery (which produces Kokanee beer), a growing number of craft and outside. It’s on two levels with the liquor store on the main level and breweries, especially in Nelson and Fernie, have made the Kootenays a room for a future wine tasting room above.” popular destination on the BC Ale Trail. There’s even a handful of artisan What is now Creston’s biggest liquor store replaced a much smaller LRS distilleries making vodka, gin, and schnapps.

16 The Quarterly Pour We have five balconies with huge murals and pictures inside and outside.

“We will be carrying as many local and regional products as we can,” Karountzos promised when the store opened in 2018. “Spirits from Kimberley, Trail, the Creston Valley—we want them all. The same goes for wine and beer.” However, that doesn’t mean Creston Liquor Store doesn’t carry international products. Far from it. “We carry wines from all over the world. Our biggest section is definitely wine,” Lilas explains. “Jim Karountzos is Greek, and although we don’t carry a lot of Greek wine at the moment, we’ll be getting more.” The retail space is well-organized and easily accessible, with lots of space to move around and browse for products. Big walk-in coolers “I think our service is number one,” Lilas boasts. “When customers keep the beer well-chilled. Wine is easy to find, as are the neatly displayed walk into the store, it’s comfortable and easy to access. I’m so proud spirits, especially with help from the well-trained staff. Several of them have of our service. If you see the ratings on Google, we’re at 4.7 right now, expertise in wine and spirits, including Lilas. “I’m pretty good with scotch, and every second comment speaks about our service.” since I love it, but I don’t know as much about wine,” he says with a laugh. As added incentives, Karountzos has initiated a rewards program and Customers have been impressed with the store, leaving comments has promised to keep prices the same—or close to—the ones in the like: “Service is awesome and fast. Love the new Creston Liquor Store,” government stores, while also carrying the kinds of unique spec items or “Lots in stock, clean store, staff is very friendly and ready to help. The that are impossible to find there. “And we have an advantage, because store has a nice style. A great addition to Creston.” we can carry more products by small, local producers,” he notes.

The Quarterly Pour 17 Best Practices for ID Checking Work Towards 100% Compliancy by Rebecca Hardin

Liquor retailers and publicans face more challenges every day while running if at any time the customers cannot provide ID that shows they are over their businesses. Focusing on driving sales and saving money to ensure the age of 19. If staff fail to take the proper steps to check ID and ensure profits are intact are key; however, team members should never let the no minors are served, the consequences can be severe. regulatory requirements of their establishment be forgotten. The mindset All licensees train their staff about the importance of checking seems to be that once the licence is issued, owners and their employees customer ID when they’re hired. In addition to this, your team has taken can turn their focus to driving sales and the mandatory Serving it Right training managing expenses. This is simply not the to further substantiate the importance of case, and it is imperative that the “get it and Take a few minutes these guidelines. So, what more is there forget it” approach not be taken when it to do, you ask? You need to build on comes to checking ID and following LCRB this knowledge your team has received. and Serving it Right requirements. each shift and It’s as simple as offering further support Let’s face it, the moment anyone and education on an ongoing basis to mentions rules and regulations, eyes glaze quiz staff on all solidify your team’s knowledge and the over and the speaker often gets tuned out. ownership’s expectations for ensuring The trick is to set up and implement a series no minors are served. of best practices that ensure the essential the components a What are acceptable forms of ID? action of checking customer’s ID is at the Who gets ID’d? What simple items can forefront of each and every team member’s primary ID must have. your store or pub produce to make every mind, each and every day, so it becomes transaction have a 100% success rate for a habit and second nature to request and no service to minors? If you implement assess. LCRB’s policy requires that anyone who appears under the age and follow-through on these best practices, you will position your of 25 years must have 2 pieces of ID checked. The sale must be declined business and team for regulatory success.

18 The Quarterly Pour ID Details This forces the team member to read it and Acceptable ID comes in many forms. Print select “OK” during the transaction in order to off the Identification Requirements page from proceed and finalize the sale. This works well your Licence Terms & Conditions Handbook for high volume stores that get caught up and (found on the LCRB’s website) and keep it focused on moving people through a line-up, posted in your staff bathroom, kitchen area, rather than being mindful of their obligation and notice board. Take a few minutes each to check ID. shift and quiz staff on all the components a primary ID must have. Your team will have read Severe Consequences the details so many times, it should become Implement best practices and communicate instinctual for them to list ALL the following: to your team the consequences if your store • Photo doesn’t follow regulations. The sanctions can • Full legal name be severe. If a licensee serves a minor or allows • Signature a minor to purchase alcohol, the fine can range • Government-issued between $3,000 – 7,000, along with a 3- to • Includes date of birth 7-day suspension for the first contravention. • Has a unique identifier number The LCRB has the right to review the infraction • Original document and can escalate penalties if the contraventions If your staff are given ID that is missing one are reoccurring or a threat to public safety. of the above mandatory items, they cannot Fires go up to $15,000, with 11- to 15-day accept it and must ask for an alternate. suspensions for subsequent contraventions, Some establishments will opt to purchase if they take places within the 24 months copies of the ID Checking Guide that is preceding the first contravention. All disciplinary available for sale from ABLE BC (www.ablebc. actions are public and the licensee is required ca). Keep copies at each POS lane in your to post a sign in-store for the duration of the store and behind the bar so your team can suspension period. use this tool on the spot. This is especially Licensees need to ensure practical steps are useful for stores that encounter a lot of tourists in place at store level to allow staff to build on and may not be familiar with some forms of the knowledge received when obtaining their ID they offer. Serving it Right. The best practice is to have the requirements posted in a highly visible Point-of-sale System area for everyone to read. Openly discuss, on Some liquor store that are looking for a fail- an ongoing basis, the requirements and store safe at the time of a customer’s transaction expectations; then continually follow-through are relying on their POS system. Specifically, with personal conversations every day to give more and more retailers have requested that your staff the best chance at remaining 100% their POS provider add a question button to compliant. their system that pops up during the sales process. When a team member is ringing Rebecca Hardin is the owner of RH Hospitality through a sale, just prior to taking payment, Solutions Inc and provides liquor and cannabis a pop-up window asks your team member license consulting in BC, Alberta and the USA. “Have you remembered to check for ID?”. Learn more at www.rebeccahardin.ca

The Quarterly Pour 19 » names in the news by Marina Lecian

ABLE BC welcomes the following new members and associate members: Awards Black’s Pub, Whistler 2019 WineAlign National Wine Awards of Canada Clarke & Co., Victoria The WineAlign National Wine Awards of Canada is the country’s largest Game On Sports Bar and Grill, Merritt competition of Canadian wine. Of the Top 25 Wineries in Canada, 19 Loop Insights, Vancouver came from BC. Naramata Pub, Naramata Mission Hill Family Estate claimed the title of Canada’s Winery of the Silver Star Ski Resort, Silver Star Mountain Year and took home 18 medals, including two platinums, six golds, Tugs Tap House, Penticton seven silvers and three bronze. Never in this competition has a winning winery won so many medals. Congratulations Moon Curser Vineyards in Osoyoos claimed the Best Performing Small Congratulations to Jeff Savage of Botanist Bar at The Fairmont Pacific Winery (10,000 cases or less). Rim in Vancouver for his second place finish at the Diageo World Class Bartender of the Year Finals.

1. Mission Hill Family Estate 2 Platinum, 6 Gold, 7 Silver, 3 Bronze 2. Moon Curser Vineyards 1 Platinum, 6 Gold, 2 Silver, 2 Bronze 4. Desert Hills Estate Winery 1 Platinum, 2 Gold, 2 Silver, 1 Bronze 5. Nk’Mip Cellars 1 Platinum, 2 Gold, 3 Silver, 5 Bronze 7. Cedar Creek Estate Winery 4 Gold, 2 Silver, 5 Bronze 8. Arrowleaf Cellars 4 Gold, 2 Silver, 4 Bronze 9. Blasted Church Vineyards 1 Platinum, 2 Gold, 1 Silver, 5 Bronze 10. Corcelettes Estate Winery 4 Gold, 4 Bronze 12. Road 13 1 Platinum, 1 Gold, 4 Silver, 9 Bronze 13. Painted Rock Estate Winery 3 Gold, 4 Silver, 4 Bronze 15. Quails’ Gate Estate Winery 1 Platinum, 1 Gold, 3 Silver, 3 Bronze 16. SpearHead Winery 3 Gold, 3 Silver,4 Bronze 17. Howling Bluff Estate Wines 1 Platinum, 1 Gold, 2 Silver, 1 Bronze 18. The Hatch Wines 1 Platinum, 5 Silver, 1 Bronze 20. Noble Ridge 1 Platinum, 1 Gold, 1 Silver, 1 Bronze 22. Hester Creek Estate Winery 1 Platinum, 4 Silver, 2 Bronze 23. Monte Creek Ranch 2 Gold, 5 Silver, 1 Bronze 24. Meyer Family Vineyards 1 Platinum, 3 Silver, 2 Bronze 25. Tightrope Winery 2 Gold, 2 Silver, 8 Bronze

For a complete list of winners go to www.winealign.com/awards/2019/07/31/2019-nwac-results

20 The Quarterly Pour Winereport by Tim Ellison Canned Wine. A New Frontier Napa Valley Cabernet Sauvignon? Of course. Will that be bottle, draught, or can? Alternative containers are causing a stir. More and more producers are getting on board with this trend and offering their wines in a lot of different containers–now including cans. Why the change? It’s based on simple economics as well as environmental reasons for the producers, distributors, and retailers. It also provides convenience for the customer. There is some resistance, however. It reminds me of the furor when the Stelvin Closure was introduced. When vignerons and producers switched to the screw cap in place of the cork, there was outrage. The screw cap had been associated with inexpensive, low quality, high- volume, commercial wines made for drinking at college frat parties, in a park, or under a bridge. It took a lot of convincing to change consumer perception and educate them on the benefits of Stelvin. With some of the world’s most prestigious wines now packed so they will never be threatened by cork taint, consumers know that their wine will always be in good condition (and easier to get to!). When canned wines were first introduced, they were generic with no vintage, region of origin, or varietal indications, so consumers suspected the quality was low. Now producers are putting vintage dated, single vineyard, varietally specific wines in cans and that means operators can serve these products with the confidence that their customers will perceive value for money. It’s time for consumers to get used to containers made from things other than glass stoppered with a cork. Producers have the initial hurdle of either purchasing a specialized where the evolution of a wine is stunted. You can have reductive qualities canning line or arranging for a mobile canning service. Once this is as well, so wine from a can needs a little exposure to air to open it up. looked after, the benefits start to mount up. Shipping a bottle from the Another issue is the flavour profile created when drinking directly from winery to the end user accounts for up to 40% of the 1.28 kg carbon a can. Producers almost uniformly recommend consumers decant the footprint of a typical bottle of wine (even more with the heavier so- wine from the can into a glass before consumption. called trophy bottles that can weigh up to almost 1000 grams alone, Another challenge is price. A can will hold between 200ml and 375ml. whereas a typical can weighs 14.5 grams), so businesses are better That’s up to half a bottle of wine in a single can, so buying a full 12-can able to present a greener facing to consumers by utilizing alternative case is like getting three magnums. The problem is the pack size is so packaging. Cans require less energy to produce, ship, and recycle. tight, it doesn’t appear to be that much product. Customers have to be This is something everyone can brag about. Cans also pack more reminded that a single can holds half a bottle of wine. Hence a price tag efficiently into boxes, requiring less cardboard and space, and reduce that can approach $20.00 per can is still a good value. the need for large warehouse space. Producers are also able to get Consumers will warm to wine in cans as they have to Stelvin and bag- more products in a container, which makes the wine more attractive to in-box. Younger consumers don’t have as much history with bottles, distributors as it lowers the shipping cost of getting the wine from the and have been weened on alco-pops and bag-in-box. They have no winery to their warehouse. pretense about what kind of containers are employed and will happily Distributors also appreciate the ease of storage and transport and accept any increase in convenience. Plus, the green aspect will be the additional purchasing options for their retailers. The sales team appealing to the younger generations. If you are going camping, hiking, now have another SKU of a recognizable product that has probably or kayaking–any activity where volume and weight are a consideration– already created awareness and demand in the market in other forms cans make a lot of sense. of packaging. Let’s be clear. At the end of the day, if it’s in the short term, wine doesn’t Cans provide benefits to retails as well. Cans are much lighter for staff really care what its stored in. If the wine has been created for near-term to move resulting in increased productivity due to ease of movement and consumption (I’m talking within a year or two of releases) then chances are less dangerous in regards to injury due to lifting strains or broken are very good that your wine could be in any number of containers: glass. Cans also take up less room in the storeroom and cooler. They plastic, tetra box, aluminum foil lined contains, and, yes, even cans. chill faster than bottles as well, which eases stress during busy periods when pre-chilled stock starts to run low. Tim Ellison is a Certified Sommelier & Chef de Cuisine that has dedicated Are there downsides? Of course. If you are considering ageing a wine, approaching half a century to a career in the demanding hospitality a can is not necessarily the best choice of packaging. The lack of air industry and is a proud member of the prestigious Vancouver Club team. exchange due to a complete seal results in an anaerobic environment Tim can be reached at [email protected]

The Quarterly Pour 21 Creating an Attractive Compensation Package Offer Benefits, Tipping, and More

by Kevin Woolliams

The human resources concept of total compensation is that all Paid Time Off compensation—not just wages—should be included in the calculation There are elements of wages that show up on a pay stub that are about of what employees make. Following this concept, total compensation caring. For example, changing your policy to allow for paid bereavement includes wages, benefits, retirement plans, vacation and paid leave days, days is not complicated or expensive but is very appreciated when and work-life benefits (aka perks). The entire employment package should employees suffer the loss of a loved one. Other examples of paid be designed to attract, retain, reward, and time off could be enhanced vacation motivate your employees’ commitment and allowances or having an extra statutory performance. The concept applies across Having additional holiday on your business calendar. Think any industry, but in hospitality, you also about what would be most impactful for have to factor in how tips contribute to your your employees before you implement compensation package. compensation a change, as once you have made the In the current economic conditions, most change, it is hard to go backwards. managers and owners are acutely aware of elements for your wages. Minimum wages are a topic across Incentives & Bonuses Canada with significant changes both up Another category of wage-like (BC) and down (Alberta) in recent years. employees can set compensation is related to performance. High demand positions continue to garner Bonuses and commissions are often premium rates reflecting the difficulty of you apart in a very included in this area, but so are items like recruiting and retaining skilled employees. the payment of a staff referral or retention Having additional compensation crowded labour bonus. Challenge yourself to be creative elements for your employees can set you in this area. What are the things that drive apart in a very crowded labour market. your business and how can you connect You will note that many of the other market. your employees to those items? compensation elements have a theme of caring for employees.

22 The Quarterly Pour Health & Dental Benefits Traditional benefits like life insurance and dental and paramedical coverage can be an attraction for some employees. Cost can be an issue, but having a modest plan that appeals to a range of employees does not have to be overly expensive. If considering this option, ask your employees what coverage is important to them. Not all employees really want or need benefits due to spousal or school coverage, so limited benefits may be a preferred option for the majority of employees. If you have health care benefits, do not be shy about them—let your employees know that you are spending money on their behalf and that you care about their health and wellbeing.

Retirement Plans Retirement plans can run the gamut from modest to gold-plated. In general, hospitality employers have been cautious about retirement plans, so this may be an opportunity to separate your business from the pack. Most retirement plans have a specific cost to the employer—say $0.50 per hour—so explaining how much you are paying on behalf of your employees is clear and obvious. Make sure that your employees know how much and why you are contributing; there is nothing wrong with an employer stating that you care about your employees today and into the future. Without sharing information about costs and “why” with your employees, your costs associated with a retirement plan will not be fully leveraged.

Perks Perks can be divided into two broad categories, the first being more formal things like gym memberships, assistance with courses (either inside or outside the industry), shoe or knife allowances in the kitchen, and more. Less formal examples include industry tastings, swag from suppliers, and even flexible scheduling.

The Quarterly Pour 23 Tip Sharing as well as getting feedback on possible changes from your employees Tipping and gratuities as part of total compensation is almost exclusively is crucial in considering any change. Similar to other non-wage benefits, associated with hospitality. Even if tips do not show up on a pay stub, you must be prepared to explain to your employees why you want to they still form part of your employee’s compensation. Therefore, you make changes and ideally—much like other non-wage benefits—do it should give the same consideration to your tip structure as you give to in a positive way that shows you care about your employees. wages, benefits, or paid time off. As your business continues to grow, we always recommend that Consider some of the following when you you keep a watchful eye on your total analyze your approach to tipping: compensation package—both what • Does your business have a tip pool? When was the last it includes and how much it costs. As If no, why not? compensation is almost always the highest • When was the last time your tip pool was time your tip pool controllable cost in hospitality, you have reviewed by management or employees? ample financial motivation to understand • What has changed in your business or the it and expect the best return on your marketplace since the approach to tipping was reviewed by spend. That spend can be turned into a was reviewed? competitive advantage if you have the right In short, if you know what your management or elements in place to attract, retain, reward, competitors are paying in basic wages, and motivate the best employees. but you do not know their approach to tipping, you are probably missing some employees? crucial competitor data. Kevin Woolliams is the Managing Director Reviewing (and potentially changing) your operation’s approach to of HR West Consulting Ltd (hrwest.ca). HR West provides human tips should be done with care. There are legislative requirements you resource services across Western Canada with a strong emphasis on need to follow (some of which have changed in the past year), but just the hospitality industry. as importantly, your employees will definitely be paying attention. Taking the time to do research on what is happening in the marketplace

24 The Quarterly Pour SPIRIT SPOTLIGHT Distilling in BC by Joanne Sasvari

Stocking Local Products Should be an Easy Sell for Pubs and Private Retailers A couple of years ago, the makers of the multiple-award-winning Ampersand Gin on Vancouver Island got hold of a bunch of green walnuts. They steeped them in pure spirit, flavoured them with cinnamon, allspice, lemon zest, and honey, and let the mixture sit in barrels for 80 days until it was wonderfully rich and sweet and dark and spicy. The Your Spirits Guide result was Nocino!, an Italian-style liqueur that just took home double Want to know more about craft spirits in BC gold at the Sip Northwest Best of the Northwest Spirits Awards. and across Canada? Then pick up a copy of Nocino! is just one of the many exciting spirits, amaros, vermouths, the new book Canadian Spirits: The Essential and liqueurs being created by BC’s artisanal and craft distilleries—all Cross-country Guide to Distilleries, Their Spirits products that should have pride of place on your store shelves and and Where to Imbibe Them (Nimbus Publishing, back bars. $29.95). In it, writers Stephen Beaumont and For one thing, selling local products is an easy way for private retailers Christine Sismondo follow the growth of craft to set themselves apart from the government-run BC Liquor Stores, distilling across the country, and cover more than which carry few BC craft or artisanal spirits. For another, almost every 160 producers ranging from the massive Hiram- region in the province has an artisanal distillery, or will soon, from Walker in Windsor, Ontario, to Vancouver’s tiny Monashee Spirits in Revelstoke to Pacific Rim Distilling in Ucluelet to Odd Society Spirits. Sons of Vancouver in North Vancouver. Each captures the distinctive flavours of that region, and each has its own unique story to tell, making them great talking points for servers and salespeople alike. As a product category, craft and artisanal spirits are still relatively new to the market. (In this province, “craft” is defined as being made only with BC-grown produce; artisan spirits have more leeway, and can, for for a limited-edition liqueur; Pacific Rim Distilling scatters Nootka rose instance, comprise neutral grain spirits flavoured with local botanicals.) petals into the botanical blend for its gin. It was only 15 years ago that a former forester named Frank Deiter Others bring serious bartending skill to the still and make products launched Okanagan Spirits with the idea of using excess orchard fruit that are expressly designed for cocktails: Resurrection Spirits, for to distill eaux de vie as farmers do in his native Germany. His Canados, instance, with their smooth rye-based spirits, or Sons of Vancouver, a take on the French apple brandy called calvados, and Taboo absinthe with their sweetly elegant No. 82 Amaretto and sizzling Chili Vodka, became instant classics. which is a great addition to a Bloody Caesar. (So is the Renegade Since then, Deiter has gone international as a consultant, while the horseradish-infused vodka from Roots and Wings Distillery in Langley.) local distilling scene has simply exploded. At last count, BC has 67 Many distilleries also offer cocktail recipes using their spirits; some, like distilleries that could be considered craft or artisanal, with another 10 Victoria Distillers and Surrey’s Central City Brewers & Distillers, even set to open soon. That is more than the rest of the country combined. produce their own cocktail bitters. These distilleries produce hundreds of different tipples, everything One of the best ways to sample all that is exciting and new in the from neutral vodka to bold barrel-aged whiskies to sweet, creamy, spicy world of local artisan spirits is to attend the annual BC Distilled festival and fruity liqueurs. in April (bcdistilled.ca). You can also follow the winners of the annual Some distillers make inventive use of local ingredients. For instance, Canadian Artisan Spirit Competition (artisandistillers.ca), where B.C. Sheringham Distillery on Vancouver Island uses angel wing kelp in its tends to dominate. (In 2019, Monashee Spirits’ Ethos Gin was named Seaside Gin, which recently won Best Contemporary Gin at the 2019 CASC Spirit of the Year; in 2018, it was Sheringham’s Akvavit.) World Gin Awards. Pemberton Distillery ferments the famous local Most of all, when it comes to spirits, going local means, quite simply, potatoes for its vodka; Odd Society Spirits forages for elderflowers going delicious.

The Quarterly Pour 25 » ABLE BC Membership Report by Danielle Leroux

Thank you to all ABLE BC members who keynote speakers, educational seminars, operating under a traditional insurance joined us at the fourth annual sold out BC curated vendor marketplace, networking structure, renewal negotiations in the current Liquor Conference on October 20 and opportunities, and the BC Hospitality market would likely render a 50% to 100% 21 in Vancouver. We always welcome the Industry Awards Gala. Nominations for the increase. However, due to the self-insurance opportunity to connect with our members BC Hospitality Industry Awards will open in program model, Western Financial Group is face-to-face, learn more about your unique December at www.bchospitalitysummit.com. able to restructure the program to offer: business challenges, and catch up in person! • Significantly lower increase; We hope you enjoyed the conference and left Combat Rising Insurance Rates: • Higher degree of self-insurance; with practical tools and tips you can implement Hospitality Insurance Program • Enhanced future stability of pricing and in your business. Stay tuned for details on BC Since 2004, Western Financial Group’s reduced impact of future market changes; and Liquor Conference 2020. Hospitality Insurance Program (HIP) has • Ability to financially reward members in provided ABLE BC members and hospitality low-claiming years. Save the Date: establishments across Canada with access To learn more about HIP or sign-up, contact 2020 Post-Holiday Reception to a unique and creative program structure: Danielle at 604-688-5560 or [email protected]. Join us at our next industry event: ABLE BC’s protected self-insurance. annual post-holiday industry reception on Benefits of protected self-insurance: Join ABLE BC Today Monday, January 20, 2020 from 4:00 - 6:00 • Members have the ability to influence the ABLE BC members get access to the HIP and pm in Vancouver. stability of the insurance program and its other member benefits. Your membership also The reception is an opportunity for you to associated costs; supports the advocacy work ABLE BC does speak directly with our Board of Directors, • Large portion of premiums are allocated to on behalf of the private liquor industry. connect with other liquor retailers and a member-owned fund; If you are not yet a member, we hope publicans, and celebrate making it through • Fund allows program to circumvent you will consider joining ABLE BC today. another holiday season! Details and RSVP: traditional insurance costs and provide for Sign up online at ABLEBC.ca or contact [email protected]. returns-of-premium when surpluses are built Danielle Leroux (Director of Membership as a result of low-claiming years; and and Communications) at 604-688-5560 or Join us at BC Hospitality Summit 2020 • Limits the impact of outside market factors [email protected]. Mark your calendars: the BC Hospitality on insurance premiums. Our annual membership fee for liquor Summit returns April 6 and 7, 2020 to the Over the past year, there have been drastic primaries, private liquor stores, and cannabis Delta Hotels by Marriott Grand Okanagan changes in the insurance market; in particular, retail stores is $705. Our annual membership Resort. Hosted in partnership with the BC with respect to beverage-focused hospitality. fee for associate members, including industry Hotel Association, Summit is the annual Many businesses that do not participate in the suppliers, service providers, manufacturers, forum for BC’s top hospitality industry HIP are now struggling to acquire insurance or and agents is $440. Use our membership professionals. are receiving increases to premiums. benefits and you can more than cover the cost The two-day conference features leading It is important to note that if the HIP was of your annual fee! Learn more at ABLEBC.ca.

26 The Quarterly Pour » WHAT’S COMING? by Marina Lecian

Wine Pascual Toso Alta Chardonnay is golden yellow with a greenish tint Veuve d’Amour Brut Blanc de Blancs is pale yellow in colour, with and presents aromas of pineapple and white flower. In the mouth it is medium-sized bubbles and a fine bouquet of stone fruits and apple. fresh with flavours of citrus and green apple, and the finish is long and The palate is medium in body with primary fruits and refreshing acidity. fruity. Releasing in November. 6x750ml $33.99 whsl +94306 Released in September. 6x750ml $11.60 whsl +167285 Cono Sur Bicicleta Malbec has a deep violet colour with aromas Calcu Malbec Reserva Especial 2014 is dark plum in colour with of ripe red fruits, chocolate, tobacco, and mocha. It is well balanced, aromas of cherry, dark berries, peppery spices, and oak. The palate fresh, and juicy with soft tannins. Released in October. 12x750ml $8.62 has bold blackberry and cassis notes with hints of oak. Released in whsl +219077 September. 12x750ml $17.05 whsl +132087 Masahiro Gin This Japanese craft gin is the first to come out of Okinawa. Mission Hill Reserve Sparkling Brut 2018 This blend of Chardonnay The botanicals include roselle hibiscus flowers, guava leaves, Balinese and Pinot Noir grapes is fresh with notes of crisp apple, white peach, long pepper, and goya—the green Okinawan bitter melon. It is bursting and Anjou pear all highlighted by vibrant acidity and citrus on the finish. with floral flavours, tropical fruit, and notes from the bitter melon. Released in September. 12x750ml $19.49 whsl +228398 Releasing in November. 700ml $62.34 whsl +53986 Mission Hill Reserve Rosé 2018 is a blend of Merlot, Shiraz, and Point Noir. Fresh with undertones of minerality it is crisp with aromas of Spirits watermelon, raspberry, and wild strawberry. Released in September. Halewood Whitley Neill Lemongrass & Ginger Gin has a distinctive 12x750ml $17.16 whsl +698191 fragrant, citrusy taste. It is handcrafted with rich flavour. Releasing in Louis Bernard Condrieu Grande Reserve is 100% Viognier. It has a November. 6x750ml $35.58 whsl +154275 harmonious bouquet of wild flowers, violets, and white fruit. Releasing Baileys Espresso Crème has a bold dark roast coffee aroma with in November. 6x750ml TBC $55.20 whsl +133846 the taste of fresh ground espresso beans on top of Irish Cream and Cedar Creek Sauvignon Blanc 2018 This 100% Sauvignon Blanc has chocolate with smooth classic Baileys finish. Releasing in November. flavours of gooseberry and white grapefruit with subtle texture provided 12x750ml $21.95 whsl +85749 by neutral oak and concrete fermentation. Released in September. 12x750ml $15.08 whsl +127905

The Quarterly Pour 27 MeadA NEW CATEGORY by Laura Starr, photos courtesy of Laura Starr

Mead is a magical kind of drink, literally being the fermented nectar of A quick chat with Dana LeComte of Tugwell Creek Honey Farm honeybees. It is steeped in ancient, religious history as well as Norse and Meadery, in Sooke, gave some insight. In BC, in order to have mythology, and is argued to be the oldest form of alcohol on earth. a meadery licence, you must own the bees; this is not the case in There are violent stories of Vikings drinking mead from the skulls of the US, which makes for a much better business model, at least their enemies, and there are erotic tales of its use as an aphrodisiac; in terms of having the capacity to get in front of the consumer and it is after all, the official drink of the first month of marriage, hence the spend money on marketing. term, “honeymoon.” Tugwell Creek has been making mead for over 25 years, and although More importantly though, for the British Columbian market specifically, they still consider themselves tiny, only making 12,000-15,000 litres a mead is a new category. That’s right. It is its own type of alcohol, just year, they are now one of many meaderies in the BC market, which like cider and sake. is a huge jump from being the only ones making mead when they In America, mead is exploding with Oregon boasting mead bars, started. Although it might seem slow, the increase in business has and product consumption consistently and fervently rising. So why been consistent year over year, so slow and steady it is. Mead is now does it always seem to be just out of reach to the BC consumer?

28 The Quarterly Pour becoming a hit with people who enjoy craft beer, as young consumers Jarl’s Remedy are thirsty for new, local products. • 1 Glenmorangie 10-yr • 2 Tugwell Solstice Metheglin Rich Massey of Massey Wines and Spirits, which distributes • .5 lemon juice • Splash of Ledaig Tugwell, uses mead as a way of luring in curious folks at craft beer or • .25 honey syrup • Ginger sugar rim cider markets. In a sea of producers, it can be difficult to stand out, • Fresh ginger • Candied ginger garnish and mead seems to get everyone’s attention. What really keeps them coming back though, is how delicious and versatile mead is. It can be Build in a shaker, shake and fine strain over ice into a double Old made in all sorts of ways: sweet, dry, fortified, or sparkling. It can be Fashioned glass. aged in oak or enhanced with the addition of spices and botanicals. There are hundreds of ways to make mead, and they are all worth trying. This is a riff on a classic penicillin cocktail. Max Henney, a bartender at Vancouver’s Chambar Restaurant, is an avid fan of mead, and has always been confounded by the lack of Jarl was a clan chieftain in Viking times. Since spiced and fortified wines/ understanding of this ancient spirit. He notes that there is a niche market meads were drunk for thousands of years as a sort of cure-all, this drink, for it, and describes a festival in Norway called Midgardsblot, that is which includes spiced mead and two different single-malt scotches, based around Vikings, mead, and metal and dark folk music (niche is an seems a perfect fit for Jarl. understatement!). Henney encourages more conversation around mead, especially given there is so much honey in BC, and the few producers Hod’s Folly of mead are making such high-quality product. • .75 Tra-kal • 2 Tugwell Harvest Melomel LeComte notes that sales have really taken a turn in the restaurant • Egg white • 2 medium-sized mint leaves industry, with an intensified focus on local products, and bartenders • .5 lemon juice • .75 homemade blackberry liqueur wanting to try out new things. If it’s a good fit in restaurants, then why • .5 mixed berry compote • Dehydrated raspberry crumble garnish not pubs? Mead stays fresh for a long time in an opened bottle, it is versatile in style, and can work with a variety of food pairings. It is worth Build in a shaker, shake and fine strain into a coupe. Serve straight up. the effort to get cozy with the new (and ancient) product. Support local, surprise your customers, and enjoy some mead. Named for the Norse legend in which Loki tricks the blind god, Hod, into killing Thor’s son, Baldur, with an arrow made from a branch of mistletoe. Recipes courtesy of Max Henney, Chambar Restaurant.

Advertisers ABLE BC 27 One Foot Crow Craft Distillery 14 BC Hospitality Foundation 28 Pace Realty 24 BWI Business World 9 RBC 29 Barnet POS 8 RH Solutions (Hospitality) 29 Boaler Inc. IFC Royal LePage Sterling Realty 20 David Herman & Son 13 Sysco Vanc/Vic/Kelowna 7 HR West 28 Time Access Systems Inc 24 Jones Distilling Ltd 11 Vancouver International LWA Tax 29 Wine Festival 19 Lumette BC Western Financial Group MJB Lawyers 26 Insurance Solutions 23 Mt Begbie Brewing Co 13 WorkSafeBC IBC

The Quarterly Pour 29 » BC HOSPITALITY FOUNDATION

We’re delighted to announce that the BCHF with this new venture. The Class of 2014 about our province’s potential to produce will again receive proceeds from a special IPA beer will be sold in 4-packs and kegs. world-class wines. He was the driving force collaborative BC craft beer. The “Class of 2014 Licensees and retailers can order it through behind institutions like the British Columbia IPA” project is spearheaded by Port Moody’s the Yellow Dog Brewing Co. order desk at Wine Institute (BCWI), the Vintners Quality family-owned Yellow Dog Brewing, and will [email protected] Alliance (VQA) Canada, and BC’s first estate celebrate the 5-year milestone of a number As an aside, the new beer is just one of several winery, Sumac Ridge. In addition to his of local breweries that opened in 2014. The exciting developments on BC’s beer scene: The professional accomplishments, Harry was also ale will use 3 BC hops, donated by the BC Maple Ridge Ale Trail launched in September. renowned for his willingness to help others, Hop Growers Association, and BC grain The BC Ale Trail provides a great way to get to and he worked tirelessly to promote every donated by Gambrinus Malting in Armstrong. know our local breweries. Vancouver’s North cause he believed in—including the BCHF. His Contributing breweries include: Shore Craft Beer Week took place October guidance and work contributed significantly • Bad Tattoo Brewing (Penticton) 4-11 and the BC Craft Brewers Conference to making us the organization we are today, • Barkerville Brewing Co. (Quesnel) happens October 17 & 18. and we will miss him deeply. The BCHF was • Black Kettle Brewing Company In other fundraising news, we’d like to chosen to receive donations from those who (North Vancouver) thank everyone who made our annual golf wished to honour Harry, in lieu of flowers; we • Bomber Brewing (Vancouver) tournaments a success. They took place have created a Harry McWatters Legacy Fund, • Category 12 Brewing (Saanichton) July 8th at Coquitlam’s Westwood Plateau and continue to accept contributions through • Dageraad Brewing (Burnaby) Golf & Country Club and August 27th at our website. Click on the Donate Now link on • Main St. Brewing Co. (Vancouver) Westin Bear Mountain Golf Resort, Victoria. www.bchospitalityfoundation.com/the-harry- • Moody Ales (Port Moody) Combined these golf events netted the BCHF mcwatters-legacy-fund/. • Sherwood Mountain Brewing (Terrace) just over $55,000. Thank you to all golfers, We’d also like to thank BCHF Founder • Steel & Oak Brewing Co. (New Westminster) event sponsors, silent auction donors, and Richard Carras, who recently stepped down • Strange Fellows Brewing (Vancouver) volunteers. A great time was had by all! from his role as Past Chair of our board of • Tree Brewing Beer Institute (Kelowna) On a sad note, however, we recently said directors. Over the past 13 years, Richard has Last year’s beer raised over $10,000 for our goodbye to one of the BCHF’s Founders, given generously of his time and energy, and organization, and we’re very grateful that BC’s Harry McWatters. A legend in the BC we are grateful for the difference he made. brewers are again showing their generosity wine industry, Harry believed passionately Thank you, Richard!

» LCRB Report by Mary Sue Maloughney

Business Technical Advisory Panel stakeholders to gather your thoughts as we Liquor Licensing Modernization Project In 2017, Mark Hicken was appointed as analyze each recommendation for its potential With the non-medical cannabis retail industry the Minister of Attorney General’s Liquor trade, fiscal, labour, health, public safety, and established and more stores opening, our Policy Advisor and was asked to chair social impacts. I want to thank ABLE BC Branch is once again focusing on improving the Business Technical Advisory Panel members who have taken part in meetings. processes for liquor licensees. For licensees’ (BTAP). The panel, made up of industry We will continue to meet with you throughout convenience, our Branch is in the early stages representatives, presented government with this process. of moving the licensing process online, a report that included 24 recommendations The Attorney General has committed that including renewals, applications, and reporting for policy reform to improve efficiency and LCRB and the LDB will provide members changes. outcomes for businesses and government. of the panel with regular updates on the This extensive project will include stake- Many of you have expressed interest in the status of the recommendations as well holder engagement as we develop online progress of government’s review of the panel’s as engage them on government’s policy applications and renewals. recommendations. The policy work was considerations and decisions in response I hope to provide all our licensees with significantly delayed as we implemented BC’s to the recommendations. To facilitate this, updates on this exciting project in the coming cannabis legislation. However, the Branch quarterly meetings will be held. The first year. and the LDB have been actively engaged meeting took place in early September and doing necessary policy work that will enable the second is planned for early December. Mary Sue Maloughney is General Manager, government to make informed decisions. The LCRB will be sending updates to you LCRB. Government has been meeting with industry as soon as decisions are made.

30 The Quarterly Pour