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THE QUARTERLY

formerly the publican

Spring 2020

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604-271-1412 250-868-8890Lower Mainland Okanagan

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FEATURES

DEPARTMENTS

EXTRAS

Review the power of music to curate different atmospheres throughout the day.

MUSIC IS YOUR BACKBONE

6

10 Disrupter in a Can

Be ready! The ready-to-drink category will shake up your business.

16 ULLR Bar

Invermere’s Viking-themed bar is not your average small-town bar.

18 Finding a Place to Call Home

Look at how the hospitality industry is finding solutions to the staff housing shortage.

22 Benchmarking your Liquor Store

Compare your store’s performance to these industry benchmarks from ABLE BC members.

4 ABLE BC Industry Update

5 BC Liquor Industry Trends

13 Beer Notes: You Put What In My Beer?

13 Product Showcase

14 LDB Update: 2019 was a Record Breaking Year

20 BC Hospitality Foundation Update

20 Names in the News

25 A Day in the Life – GM of a Liquor Store Jeff Lucas – Team Builder of Cascadia Liquor in Courtenay, BC

27 What’s Coming?

28 Spirit Spotlight: The Expanding World of Non-Alcoholic Ingredients

21 LCRB Report: Helpful Tips for a Successful Inspection

30 Wine Report: The Great Wines of Eastern Europe

9 Canadian Cocktail Culture Comes of Age

4 The Quarterly Pour

» ABLE BC Industry Update

Obviously, there are those in our industry who say that the need for our industry to protect government revenue is somewhat insulting, especially given that the LDB’s net profit to government has increased almost 20% over the past six years—from $929.6 million in 2012/13 to $1.104 billion in 2018/19. For context, the rate of inflation over the period has only increased 2.07%. As I’m sure you can imagine, this conversation is ongoing and taking considerable time and effort to sort out.

But here’s the good news. Government has publicly accepted all of the panel’s recommendations and the Attorney General has personally assured panelists that he is anxious to forward solutions to Cabinet for expedited approval. Throughout our discussions with government in 2019 and early 2020, we have mapped out an approximate draft work plan to see several recommendations implemented in 2020. To date, five recommendations have been fully implemented, including changes to industry tasting events, improving access to market data, improving data sharing from the LDB to industry, and reassessing the current mandate of LDB to provide greater benefits for consumers and industry as a whole (instead of just maximizing government revenue).

I also think it’s important to acknowledge that government has assigned a senior staffer from the Attorney General’s office to assist with implementation, and has committed to a minimum of quarterly meetings with the Panel to keep us all on task. We also anticipate the Panel will have an ongoing advisory role beyond our report’s recommendations. Also, even though no announcements have been made, we are currently working collaboratively on several recommendations—such as changes to non-stocked wholesale distribution, hospitality pricing, and licensee sales.

Although work continues to be slower than either government or industry would like, I remain confident that we are moving closer to seeing several recommendations implemented in the coming months. I hope to have more information very soon.

In the meantime, please don’t hesitate to contact me directly if you have additional questions or concerns about our work to improve BC’s liquor laws on behalf of your business.

As members will recall, in early 2018 BC’s Attorney General David Eby commissioned a Business Technical Advisory Panel—comprised of ABLE BC and other prominent liquor industry associations—to offer expert advice on how to find long-term solutions to our industry’s shared challenges. If you’ve worked in the industry a while, you know this was the first time BC’s government ever asked our province’s liquor industry to work together and come up with its own consensus-based fixes. Then as now, we wholeheartedly commended government for taking this proactive professional approach to liquor policy reform.

Pane l is ts worked d i l igent ly in ear ly 2018 and de l ivered a comprehens ive report to government listing 24 specif ic recommendations designed to make BC’s liquor industry more efficient, profitable, and prosperous. Regrettably, progress on implementing our recommendations has been tediously slow, with only a handful of results achieved by the end of 2019. However, it’s looking increasingly likely that things will change in 2020.

Since I last saw many of you at our fourth annual BC Liquor Conference in October, senior representatives from government have been actively engaged with the Panel and clearly communicated their commitment to making significant progress as soon as possible. I am immensely pleased to note that our meetings have become more frequent and more productive, and government has shared—for the first time ever—confidential LDB financial information related to our policy requests. Gaining access to this information has proven integral to allowing the panel to help government fully analyze the potential impacts of our recommendations.

One of the issues government has been grappling with is offsetting the possible up-front costs to government of some policy changes, such as hospitality pricing and licensee-to-licensee sales. For example, government sells about $600 million annually to BC’s pubs, bars, nightclubs, and restaurants. Since they sell it at full retail price, there is a significant retail “profit” to government on these sales. Even though our industry has long advocated that LPs and FPs should be afforded a discounted “wholesale-plus” purchase price to reflect their volume purchases, from government’s perspective it might cost millions in LDB profit.

The opinions & points of view expressed in published articles are not necessarily those of ABLE BC. Advertisers are not necessarily endorsed by ABLE BC.

Quarterly Publication for the Alliance of Beverage Licensees

2nd floor 948 Howe Street, Vancouver, BC V6Z 1N9T 604-688-5560 F 604-688-8560Toll free 1-800-663-4883info@ablebc.ca www.ablebc.ca @ABLEBC

2019-2020 Board of Directors & ABLE BC Staff

President Al McCrearyPast President Poma DhaliwalVice President Al DeaconTreasurer Trevor KaatzDirectors Brady Beruschi , Michael Brown, Yvan Charette, Stephen Roughley, Barry ZwuesteDirector-At-Large Lorne Folick, Gerald ProctorExecutive Director Jeff GuignardDirector of Membership & Communications Danielle Leroux

The Quarterly Pour Editorial Committee: Megan Carson, Trevor Kaatz, Paul Rickett, Leah Stark, Dave Lindsay

Designed, Produced & Published by: EMC Publications19073 63 Avenue, Surrey BC V3S 8G7Ph: 604-574-4577 1-800-667-0955 info@emcmarketing.com www.emcmarketing.comPublisher Joyce HayneDesigner Krysta FuriosoABLE BC Editor Danielle Leroux Copyright EMC Publications

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by Jeff Guignard

The Quarterly Pour 5

BC LIQUOR INDUSTRY

Source: BC Liquor Distribution Branch

Big beer continued to lose market share to craft beer both on premise and in stores.Ciders declined more in the stores, but hospitality also experienced a decline in sales as coolers kept their strong gain throughout the summer. This RTD craze is continuing (read “Disrupter in a Can” in this issue) so prepare to stock lots of coolers this year.Tequila showed strong gains in the latter part of the summer as gin cooled down its growth. Canadian wine keeps growing at the expense of US wine, similar to last quarter, as Canadian wines from outside BC are having exceptionally strong sales.

Wholesale Sales in Litres with % change over 2018July - September 2019

Beer - Domestic BC Commercial 37,907,354 -14.5%Beer - BC Micro Brew 9,271,917 +3.1%Beer - BC Regional 12,835,421 +7.3% Beer - Import 11,299,643 -3.1% Cider - Domestic & Import 5,603,040 -9.6% Coolers 15,155,317 +24.2% Gin 527,189 +4.6% Rum 899,096 -0.7% Tequila 333,769 +12.2% Vodka 2,366,988 +0.9% Whisky 1,770,019 +5.2% Wine - BC 11,217,950 +3.1% Wine - Canadian 167,618 +26.9% Wine - USA 1,655,266 -5.6% Wine Total 20,137,235 +2.0% Hospitality Sales in Litres with % change over 2018July - September 2019

Beer - Domestic BC Commercial 5,957,391 -15.6% Beer - BC Micro Brew 3,722,815 +2.1% Beer - BC Regional 2,913,648 +1.3% Beer - Import 2,206,595 -7.9% Cider - Domestic & Import 687,063 -2.0% Coolers 440,716 +24.5% Gin 91,518 +5.5% Rum 96,126 -4.2%Tequila 105,502 +10.1% Vodka 281,434 +0.3% Whisky 135,107 -4.1% Wine - BC 1,657,481 +1.4% Wine - Canadian 33,151 +21.6% Wine - USA 167,403 -7.6% Wine Total 2,685,760 -0.8%

trends

6 The Quarterly Pour

your music. If you were to stop at Pumpjack on Davie Street, then the Moose off Granville Street, and then hit Pourhouse in Gastown, you will find very different vibes, each one intentional and well-suited to their intended demographic of customers. The Pourhouse has great diversity of music as well, in that they have brunch, lunch, and nighttime playlists, with sporadic live events hosted throughout the week. Brunch is punchy, lunch is chill, and nighttime is always vibe-y, without any top-40 tracks making the cut.

A playlist is not just a one-stop solution to your music needs. If you want to use music to elevate your atmosphere, you must take the time to curate your lists (work tip: share this responsibility with your bar staff!) and own your style, while still being conscious of the room. Music, when in the form of a playlist, should stimulate your customer’s experience, not

dominate it. A lively room will draw people in, but music that is too loud will kill conversation, and often drive people out. Flexibility is key! Do not just turn that playlist on and walk away. Music in your establishment demands more than a flick of a

finger, but your invested time will pay off with satisfied customers, and a properly fortified brand experience.

Breathe Life into your Room with Live MusicEveryone loves live music. It is a great way to elevate mood and atmosphere, and can draw in customers. Once again, intention is everything.

The live music venues that have the most renowned reputations are the ones that are serious about supporting musicians. If you want to use live music, you need to set up your musicians for success, and this does include paying them appropriately. It is considered tasteless to lure new musicians into your establishment for no pay, selling it as an opportunity for exposure; that energy will drip into your customer experience.

How are you using music in your establishment? From bars to pubs to nightclubs and everything in between, there are an infinite number of ways for music to play out in different rooms, and the power of music to be able to curate different atmospheres is not to be underestimated. Even when the role of music is a soft whisper of background noise, it plays an integral role in the customer experience. Consider music in a room to be like the bassist in a band: it sets the tone and keeps the beat going. Now, how do you use that beat to your advantage?

Intention is key. What is your brand? What is your style? What are you trying to achieve? Using music as a business tool to drive sales or increase profits is a superficial and shortsighted appreciation for what music can really help you accomplish. Yes, music has the capacity to enhance atmosphere, which leads to happier customers, more drinks purchased, and a lively staff who are engaged and focused–all things that drive sales and profits; however, this atmosphere ultimately grows from a place of intention and authenticity. Start with knowing your room and your identity, and then learn how to use music to enhance it.

Playlists: Not Just a Quick Push of a ButtonPlaylists are a go-to for restaurants, bars, and pubs alike. From brunch to late nights, you can fashion your own collection of tunes and switch the mood with the flick of a finger. That said, it is often overlooked how much time and effort maintaining proper playlists can be. Not having enough songs will result in a repeat of tunes, which can be irritating to both staff and customers; not having different styles will mean you can’t switch a playlist when the mood in the room changes, or when you want to alter the mood in a room.

There is no one-size-fits-all answer to the music you choose. You must know your brand and work to properly represent that through

by L a u r a S ta r r

Music is your Backbone

You must take the time to curate your lists.

How Music Crafts Atmosphere

Photos courtesy of Donnelly Group

The Quarterly Pour 7

The Revel Room, for example, has a fantastic reputation for live music. It has a focus on blues, soul, and jazz, thanks to owner and musician Dennis Brock, who works diligently to curate the right bands and give them a respectful venue to rock out in.

Mangos Bar Latino, however, takes a different angle of live music by focusing on DJs that draw in a dance crowd. Every Saturday night features

8 The Quarterly Pour

DJ Cachete, who plays a selection of Salsa, Merengue, Bachata, Reggaeton, and Vallenato, and entices a highly energetic and vibrant base of Latin dancers.

Several bars do a great job of drawing in dancers. Pat’s Pub (East Vancouver) and Triple Play Pub (Chilliwack), regularly host blues-y bands that draw in a huge swing dance crowd. The energy in the room is electric, with lindy-hoppers and bouncing couples taking over the dance floor.

Clough Club in Gastown is known more for their cozy, dark vibes, and delicious cocktails than their music scene, but, on occasion they host some late-night bands and musicians that give diversity to their atmosphere. You can really feel the energy change in the room when the live bands start up.

More casual pubs and bars can also offer dialed back music experiences, such as open-mics or jam nights. Café Deux Soleils hosts a well-attended open mic and properly make the music front and center, so the musicians don’t ever feel like “wallpaper music.”

Intention is EverythingWhen it comes down to it, there is no formula for how to use music to enhance your atmosphere. Since there are so many types of venues and interpretations of what a great atmosphere looks like, you must really dig down and know what you want to evoke in people. Live your brand, be authentic with what you put forward, and never underestimate how powerful music as a tool can be.

O’Hares’ owners Erinn & Grant Bryan

The energy in the room is electric, with lindy-hoppers and bouncing couples taking over the dance floor.

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The influence of Canada’s cocktail culture on the world stage has been slowly and unapologetically growing in the last decade. With the epicenters of the country, like Vancouver and Toronto, having a vibrant scene for close to 20 years, culture really doesn’t tip a point until it saturates the outer areas— the off-the-beaten tracks and small townships. From Victoria to Saskatchewan to Halifax, cocktail culture and the people that help create and build it have become prolific on the world stage—and people are starting to notice.

Canada’s explosion onto the world stage happened in the early 2010s when Vancouver garnered the attention of international powerhouse festival, Tales of the Cocktail, becoming one of the first cities for their annual Tales on Tour. This wasn’t the spark that started it all, but more a validation for what Canadian bartenders had been hard at work achieving in the late 2000s. It also showed the world that Canada was a force to be reckoned with. Compound Tales on Tour with the 2010 Winter Olympics and you have Canada and the West Coast poised to expand exponentially over the next ten years.

The Winter Olympics brought in amazing travelling bartenders like Grant Sceney from Australia. In 2011 and 2012, Tales on Tour built the community, laying the foundation for the expansion of the Canadian Professional Bartender Association and attracting attention from international cocktail competitions such as World Class, Bombay Sapphire Most Imaginative Bartender, and Bacardi Legacy. These competitions then inspired a new generation of bartenders to expand their creative minds and compete on the world stage showing that Canada had some phenomenal talent from coast to coast.

In 2012, we saw David Wolowidnyk become Bombay Sapphire’s first “Most Imaginative Bartender” and that achievement has led him to man the bar behind some the city’s best bars. World Class from Diageo has been an amazing springboard for the British Columbian market with the likes of Lauren Mote (who is now the Global Cocktailian for Diageo), Grant Sceney, Chris Enns, Jeffrey Savage, and Kaitlyn Stewart, who in 2017 took out the entire competition and became World Class Bartender of the Year. Bacardi Legacy has also helped bring attention to the province with Mike Shum in 2015, and has grown into a titan of a competition.

Cocktail competitions have been an international platform for bartenders to springboard off. The increase in awards—whether local, national or international—has helped build and nurture a competitive attitude that not only supports and rewards the bartenders but also the owners and managers that support them. Becoming world class is not an overnight exercise. It takes hard work, dedication, and sacrifice from everyone involved in the industry. Over the last decade, that attitude has taken Canada from the “country above the US” to a worthy opponent on the international stage.

comes of ageCanadian Cocktail Culture

by Shawn Soole

10 The Quarterly Pour

A Massive MarketWhat used to be known as coolers, but are now called canned cocktails, hard seltzers, RTDs or refreshment beverages, are products that are low in alcohol (usually around five% alcohol by volume), and are not wine, beer, spirits, or liqueurs.

And they are dramatically changing the way we buy, sell, serve, and consume alcohol.

“It’s massive for us,” says Darryl Lamb, brand manager at Legacy Liquor Store and co-host of The RTD Show on Sportsnet.ca. Lamb is such a fan of the category he’s been nicknamed “The RTD Guy.” Three years ago, he installed a $40,000 fridge to accommodate what he expected would be a huge growth in RTD. Since then, he’s gone from three “doors” for RTD to 17. Sales have broken $1.2 million, up $325,000 year over year. Eight of his top 25 skus are

RTDs, including the store’s current best seller, Gushing Grape from Aquilini Group’s Jaw Drop.

Meanwhile, G&W, which also produces Tempo Gin Smash, Highball

Brace yourself: Sometime this spring, White Claw is coming to the Canadian market.

In 2019, the hard seltzer from Mark Anthony Group swept over the US in a tsunami of low-calorie, gluten-free fruit flavour. According to a CNN report, sales were expected to surpass US $1.5 billion by year end, comprising some 60% of the country’s booming US $2-billion-plus refreshment beverage market.

Canada has been slower to catch on, although BC is an early adopter of the ready-to-drink (RTD) category. In this province, sales of RTDs are up 25% over 2018, with brands like Nude, Jaw Drop, and Muddlers taking up more shelf space each year.

So if you’ve been thinking RTD is just kid stuff, think again.

“We’re barely scratching the surface of what the trend is going to be,” says Adam McDonnell, managing director of Goodridge & Williams Distilling, which makes the market juggernaut Nütrl Vodka Soda. “We don’t see any signs that this trend is slowing down. It’s just growing.”

Disrupter in a Can

It,

s not just cannibalizing beer, it

,s growing in its own

category.

How the Ready-to-drink Category will Shake Up your Business

by J o a n n e S a s va r i

The Quarterly Pour 11

vodka sodas and thinking, ‘Why has no one put a vodka soda in a can?’ ” McDonnell recalls. “Maybe because we’re a little older, we’re making it to our taste, not something that a 19-year-old would like to drink.”

The Wellness OptionThe biggest attraction for many consumers, though, is the idea that these drinks complement a healthy lifestyle. They’re even marketed as a workout recovery tool, the health-conscious choice after hiking, biking, or yoga.

“People are really looking for better things to drink,” says McDonnell. “They are really conscious about how much sugar they are ingesting.”

Nütrl, for instance, contains no sugar, no carbs, no gluten, no artificial ingredients, and hardly any alcohol or calories. Compare that to traditional coolers like Palm Bay, which can contain as much as 33 grams of sugar — about three tablespoons — per can.

“The keto diet people are really embracing it. People who are susceptible to diabetes are embracing it because of that no sugar,” McDonnell says. “We’re seeing evolving taste from the consumer. People who are watching calories and carbs, here’s an option for them.”

But Lamb doubts that wellness alone is the reason for the explosion in growth. “I would say, originally, sure,” he says. “The keto concept is what started it, but then other people tried it and thought, ‘This is just delicious.’ ”

Premium QualityLight, refreshing vodka sodas have been the big success story over the last couple of years, but they’re already making space for more complex and fuller-flavoured beverages. “I think premium spirit in a well-made canned cocktail is where the market is going to go,” Lamb explains.

Canadian Whisky Soda, and Bitterhouse Spritz, has seen triple-digit growth every year for the past three years, and anticipates many more canned cocktails coming to the Canadian market. “I believe every major competitor is going to have a product like this,” McDonnell says. “The industry, particularly the vodka soda category, is really young in its development here in Canada.”

Of course, RTD’s success means that something else has had to suffer. Generally that has meant what Lamb calls the “spiral destruction of beer.” “In Australia, RTD destroys beer. They’ve got tons of crazy cool brands. And in Japan, it’s 70/30 over beer,” Lamb notes. “But it’s not just cannibalizing beer, it’s growing in its own category. If you’re not on board with that, your liquor store is going to suffer.”

Sophisticated Tastes So who is drinking these, and why? Just about everyone is enjoying RTDs it seems, and for a variety of reasons.

Young consumers like RTDs because they’re effortless and affordable. They cost significantly less than a craft cocktail in a bar, and are much less hassle than making cocktails at home. As Lamb points out, Millennials would rather pay extra for Skip the Dishes to deliver food than make it themselves. “That mentality wasn’t going to stay in food,” he says drily.

Millennials also tend to drink less alcohol than Boomers and Gen Xers, and prefer drinks that look cool (for the Instagram, of course), taste good, and have a low ABV that complements a sober-curious lifestyle. RTD beverages fit neatly into all those categories.

However, older consumers like them, too. In fact, that’s who G&W had in mind when they developed Nütrl. “It started with us liking our

12 The Quarterly Pour

As far back as 2013, the Chicago-based celebrity bartender Charles Joly started Crafthouse Cocktails so consumers could enjoy craft cocktails at home. This year, Jameson Ginger & Lime arrived in the BC market. Now Tanqueray’s bottled G&Ts and three varieties of canned Pimm’s Cup are heading this way. More spirit brands are following suit — and so are brewers like Big Rock, which recently partnered with Iconic Brewing to produce RTD products like Cabana Coast Moscow Mules, and Red Truck Beer that is also introducing RTDs this year.

The Grocer website out of the UK reports that 50 new RTD products entered that market in 2019 alone. We can expect much the same to happen here.

An RTD for Every OccasionRTDs are a no-brainer in a retail outlet or at a backyard BBQ, but they also make a lot of sense for bars, restaurants, and just about everywhere alcohol is served.

They allow smaller licensed venues to offer cocktails without investing in a full backbar and the staffing that goes with it. For larger venues like nightclubs, RTDs can be a huge money saver in terms of glassware, waste, and inventory control. At concerts and sports arenas, they can keep long lineups moving quickly. At catered events, they’re a lot less pricy than hiring a bartender.

And, Lamb says, “Canned cocktails have also allowed the return of the controlled hard bar at corporate events.” A three-martini lunch is out these days, but a five% ABV vodka soda “is a really good option for spirit and cocktail drinkers.”

RTDs are affordable and convenient. They are associated with authenticity, wellness, and fun. They are already popular among younger consumers, and growing among older ones. Now that it seems everyone from breweries to premium spirits brands, nightclubs and sports arenas is getting into the market, shouldn’t you?

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Gigglewater, a term used in the 1920s for alcoholic beverage.

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PRODUCT SHOWCASE

The Quarterly Pour 13

have become more and more interested. “If you take the time to give them the full story, the full experience, then they want to try it.”

Other historic styles Van Netten has brewed include: Dutch Koyt, Brunswick Mum, Merry Windsor Purl, and Mannheimer Braunbier. Brunswick Mum is an old German style that predates the Bavarian Purity Act of 1516 that banned any ingredients other than barley, water and hops. Its ingredient list runs 15 items long (see sidebar), resulting in a beer that tastes floral, fruity, herbal, and earthy all at once. Howl will launch two new historic beers at Lift Off!, the opening night of Victoria Beer Week: Fungus and Flowers Spring Gruit; and Gotlandsdricka, a Swedish style dating back to the Viking era.

For the beer made with squid ink, though, you need to visit Bad Dog Brewing in Sooke. Owner and brewer John Lyle says the idea originated during a vacation in Spain where squid ink is used in a variety of foods: “We were hanging out, eating black paella, and my brother asked, ‘Do you ever think you could put squid ink in beer?’”

Lyle had been thinking about brewing a stout and liked the briny flavour in Tofino Brewing’s Kelp Stout (another unusual ingredient) so he decided to give it a try. He brewed a test batch and gave cans away to regulars with a card asking them to write down their thoughts. The only negative responses he got came from people who were vegetarians or allergic to shellfish. That beer, Octodog Apocalypse, is now an annual winter seasonal release.

Bad Dog’s next beer will also feature an unusual ingredient: orange peel: “We decided to make a beer called Peel Out because our dog always peels out around cars coming and going.“

You Put What In My Beer?What do quince, quinoa, and squid ink have in common? Other than sharing the letter Q, they’ve all been used as an ingredient in beer. Yes, you read that correctly: there is a beer brewed with squid ink, and not only that, people love it!

A Vancouver-based beer lover I know has compiled a list of 235 (and counting) different ingredients in beers he has tasted, “some more memorable than others.” It includes every fruit imaginable, numerous herbs, spices and roots, and more obvious choices like coffee and chocolate. Of course, pumpkin beers are popular every autumn, and Category 12 Brewing makes a cucumber beer that I love in the summer, but could you believe beers have also been made with butternut squash, tomato, celery, asparagus, and carrot? How about peanut butter, pine nuts, vegemite, or wasabi?

Going back a thousand years to the days before hops became a standard ingredient in beer, brewers used a mix of herbs, spices, and roots called “gruit” to both flavour and help preserve the beer from spoiling. Some of the ingredients would not be allowed today because of either toxic or mind-altering qualities. Once the preservative potency of hops was discovered, gruits largely disappeared, but a few intrepid craft breweries have experimented with making them, including BC brewers like Salt Spring Island Ales and Torchlight Brewing in Nelson.

At Howl Brewing, which opened in 2018 just north of the Victoria International Airport, gruits and other historic styles of beer are a special focus. Howl is a labour of love for owner/brewer Dan Van Netten who got into home brewing while bartending at Spinnakers Brewpub, which he still does on a part-time basis. Along with the usual beer styles (IPA, saison, pale ale, lager, etc.), Van Netten also loves to explore historic beer styles that have largely disappeared.

His recipe for Merry Windsor Purl, an English style from the 1600-1700s, includes wormwood, juniper, ginger, horseradish, and gentian, among other things. The result is a very bitter, medicinal brew, which makes sense, according to Van Netten. Back then most people were dealing with intestinal ailments on an ongoing basis because of the poor quality of drinking water. He says Purl was popular among labourers who would “drink this wormwood ale first thing in the morning. It was more of a tonic to start the day, not for recreation.”

“I think people thought we were kind of crazy at first,” Van Netten admits, adding that his customers

by Joe WiebeBEERNOTES

Howl Brewing Beer IngredientsBrunswick MumBarley WheatOatsBeansFir branchesCardamom ThymeMyrica galeJuniper berries Chrysanthemum flowersElder flowers BetonyBlessed thistle

Marjoram Bayberries Purl AleBarleyWormwood Juniper GingerGalangalBlack pepper Orange zestHorseradish GentianCalamus root

14 The Quarterly Pour

by Todd Cooper» LDB UPDATE

2019 was a Record Breaking YearThe BC Liquor Distribution Branch (LDB) is coming off a busy holiday season and a record breaking year, and is already planning on how we can improve services for our customers and provide them with greater visibility of our business.

Having a fully operational liquor distribution centre in Delta made a significant difference in year-over-year performance. With more non-stock products and increased volume on hand, our in-stock rate averaged around 98% through the busy holiday season, and our customers enjoyed the immense benefits. Between Delta and the Kamloops Distribution Centre (KDC), we picked and shipped over 100,000 cases and 15,000 bottles on several days in December, and 120,000 cases and 17,000 bottles respectively on our single busiest day that month.

Teams at our primary liquor warehouses expect to pick and ship over 20 million cases of liquor this fiscal year, an increase of 6% over our previous record-setting pace last year, and close to double what we shipped in 2010. The bottom line is that our Delta facility is delivering better service to the industry and our customers, as we promised it would.

The relocation of our liquor distribution warehouse from Vancouver to the larger facility in Delta was not without challenges; during the move we addressed numerous issues including system downtime, invoicing delays, and excessive floor credits. The transition of customers was completed in May.

Calls to our Wholesale Customer Centre (WCC) tell the same story. Call volume dropped 61% this past November from the same period in 2018, when the transition to Delta was paused to ensure continuity of service over the holiday season. From April – December 2019 you contacted our WCC on 22,967 occasions, a decrease of 26% in call volume from 2018.

The WCC extended its hours during

the recent holiday period to better serve our customers, and we’d appreciate any feedback you could provide about whether this extension was helpful, or if your needs and issues were addressed during the regular work day. We’ve heard from you that the new Excel-based invoices have saved you time in terms of data entry, and that the format makes it easier for you and your employees to load directly into POS and inventory systems.

Our focus in early 2020 will be on KDC, which will soon be operating on the same warehouse management system as the Delta facility (DDC). Given the transition will take place over one day — in contrast to the staged approach undertaken when we moved customers from Vancouver to the DDC — a number of steps are being taken to prepare for and ensure success.

The transition is scheduled over one of the slowest times of the year to minimize the risk of disrupting customers. KDC teams also had the benefit of the DDC group’s learnings, and several leaders had spent time learning the new systems in Delta so they could train their colleagues at home. Unlike their Delta counterparts, the KDC teams didn’t have to adapt to a new building layout or new equipment. KDC carries 1,000 of the most popular products, compared to 6,000 at DDC. Non-stock wholesale and bottle picks are completed in Delta, then sent to KDC to be consolidated with the larger product order and shipped out to customers.

Retail customers in the Fraser Valley and Vancouver Island that had been serviced by KDC since 2015 — when the Vancouver warehouse’s space constraints forced us to limit the number of customers served from that site — migrated back to Delta once operations there stabilized.

We now turn our attention to the Deloitte review of our distribution practices and its examination of how Non-Stocked Wholesale Product moves between our warehouses operated by the LDB and third parties. Many of our stakeholders are anxious to see further action on these reviews, and on the recommendations handed down in the 2018 Business Technical Advisory Panel report. The LDB and our regulatory partner, the Liquor and Cannabis Regulation Branch, are committed to cooperating with our customers and our industry partners to grow and contribute to the province’s economy.

Todd Cooper, Executive Director, Wholesale Operations, Liquor Distribution Branch

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16 The Quarterly Pour

Not your Average Small-town Bar

Local Products a Lure at

Richard Matthews figures plenty of people would like to drink their beer out of a bullhorn cup served by a guy in a Viking helmet.

“It’s a bit crazy, but that’s the whole concept with our drinks, our food, and our events. I’d rather go full throttle,” says the co-owner of the Viking-themed Ullr Bar in Invermere. “Let’s do something big. Let’s do something huge. Let’s do something that’s not typical in a small town.”

Before they opened Ullr Bar in May 2018, Matthews and his business partner Josh Wall were told by plenty of people that a small town like Invermere (pop. 3,391) would never support the kind of elevated bar experience they had in mind. But, he says, “Our feeling was that a lot of people in our community would love good cocktails and fun events.”

Turns out, they were right. “The feedback has been awesome, and it’s awesome to be part of

Invermere,” Matthews says. “When people show up with their families, they say, ‘Hey, let’s go to that Viking bar and get our pictures taken with the helmet.’ ”

Both Matthews and Wall are long-time industry pros who’d previously worked at Panorama Ski Resort. Then, about seven years ago, the duo began getting restless. Matthews was building a reputation for creating

events like his all-licensed roller disco night—“If I was going to do an event, it was going to be eccentric and fun,” he says—and wanted to bring the same approach to a bar that served his community.

What locals wanted, he determined, was a place for friends and family to gather and have fun. The Viking theme just seemed like a good idea; so was naming it for the Norse god Ullr, whose name literally means “glory.”

“In ski culture, they praise Ullr, the god of snow,” Matthews says. “At the end of harvest time, they’d have a huge feast to praise Ullr with friends and family. They’ll burn a pair of skis to get a great fall of snow.”

He adds, “The most important thing for us as a bar is to make sure friends and family and community and village are safe. And secondly, as the owner of a Viking bar, I get the opportunity to buy Viking helmets and horn cups and such.”

They leased a 4,000-sq. ft. former nightclub space, of which 1,000 sq. ft. now comprise the ale house and restaurant, which are open five days a week. The rest, which is open only two days a week, includes a game room, dance area, and space for special events such as comedy nights, drag shows, and live music, “more interesting stuff that keeps things fun.”

by Joanne Sasvari

Ullr Bar

The Quarterly Pour 17

Fun as they are, though, the events are not the main draw at Ullr. “People come here for the quality of the food and the drinks,” Matthews explains.

The menu, which changes four times a year, is largely seasonal, local when possible, and scratch-made, with an international sensibility and a hearty approach that’s perfect for an outdoorsy, family-friendly venue. Think of spicy Korean fried chicken, savoury beer-braised beef stew, or fresh pasta made in-house. There’s a rotating selection of BC beers and ciders on tap, and a well-edited selection of BC wines by the glass.

A little surprisingly, though, their biggest revenue generator is neither their beer nor their food. According to Matthews, 65 to 75% of their sales are in high-end cocktails like the Chai Bourbon Iced Tea or gin-based Elder Fizz. “The guys have put a ton of time and effort into the bar list,” he says. That list features traditional cocktails, crafted with fresh-pressed juices and house-made bitters and syrups.

Invermere,

s Viking -themed bar is all about community - and the occasional bullhorn drinking cup

Then there are the “Cups of Legend.” Guests can purchase these bullhorn mugs that stay at the bar for use by that person alone. And, Matthews notes, “If you work here for a year, you get a custom leather helmet made and it will always be here at the bar, too.” It’s a gesture to show staff that the owners will always care for them.

After all, caring—for staff, guests and community—is what Ullr Bar is all about. Many of the events the bar hosts are for local non-profits, such as Columbia Pride, the valley’s celebration of its LGBTQ community, which featured drag queens and a fashion show with clothing supplied by a local thrift store.

“More than anything, it’s fun,” Matthews says. “It’s not just buying a drink or having some food, it’s really an experience. And people come out for it. That’s what I love about Invermere.”

18 The Quarterly Pour

Whether it’s pouring drinks and skiing at a mountain resort or being a part of the Vancouver pub scene, many adults in their 20s and 30s are keen to work in BC’s bar industry. Potential employees are willing to journey across the country and over the oceans to work here, at least until they are faced with finding an affordable place to live.

With the rental cost of a one-bedroom apartment in Vancouver averaging between $1,900 and $3,000 depending on its location, a worker earning minimum wage would need to spend a minimum of 80% of their income on housing. This is a far cry from the recommended 30%, even with the addition of tips and the future minimum wage increases. When the purchasing benchmark for a detached home is $1.6 million in Vancouver, dreams of owning a property often become just that.

While Vancouver and the resort areas may be the most expensive locations to live in, the issue of affordable housing and employee retention has evolved into a province-wide epidemic. There simply isn’t enough affordable housing for people in the province.

by Ta n i a M o f fat

Finding a Place to Call Home

SilverStar Mountain Resort leases condos for its employees on the mountain

A Look at Staff Housing Issues

Challenging TimesIn an industry that typically attracts a young workforce, finding staff is becoming more and more difficult for pub and liquor store owners. The combination of an inflated cost of living, a shrinking workforce, increased job competition, and high industry turnover creates a significant problem

for employers.The housing and transportation needs

of employees now must be taken into consideration along with their skills and qualifications for the job. It breaks down to common sense; if someone can’t afford to live near where they are working or if they face too long of a commute, they will not take the job.

Resort Towns Whistler’s vacancy rate is less than half a

per cent making it near impossible for seasonal workers to find a place to live, never mind any affordable options. A similar lack of housing is true in almost all the resort areas, presenting a unique challenge for employers.Alison Crick, human resource director at SilverStar Mountain Resort

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located in the heart of the Okanagan Valley, shares her frustration. “We are extremely proactive in trying to find housing for our employees. In resort towns there really aren’t any options other than to find housing for your staff. If you can’t find them housing, you won’t have staff, and you can’t operate without them.”

Despite owning two housing complexes, each capable of housing 165 staff, finding all the necessary housing the resort requires can get pretty tricky. “Our staff housing is essentially hostel living, and while some enjoy it, others prefer more private housing options,” she adds.

SilverStar Mountain Resort leases condos for its employees on the mountain and in the nearest town, Vernon. “Local companies and owners are more likely to rent to the resort than to seasonal employees. Therefore, we act as a landlord for them.”

However, renting in bedroom communities where rents are sometimes less poses other problems for staff such as long commutes, need of a vehicle, unfurnished rental units, and rental shortages. To assist their staff located in Vernon, a 20 – minute drive from the resort, SilverStar provides them with a shuttle service to and from work.

“It’s difficult finding and keeping staff; they can afford to be picky. Some seasonal employees apply at several resorts and then accept the job with the best accommodations and perks. We think we have hired all of our staff; then, two days before they are to start, we find out they are working somewhere else. This happens frequently; if you aren’t providing suitable housing, another resort will,” shares Crick.

Limited housing in the town means the resort also contacts homeowners to lease their properties if they aren’t using them. “The biggest change we’ve noticed in the last few years is the increase in Airbnb short-term housing rentals. Some of these properties were previously available to us as long-term rentals for seasonal staff. We still get a few home rentals, but not as many as we did in the past,” Crick says of the trend to switch to more lucrative short-term rentals.

“The majority of our employees require housing and the cost of f inding these accommodations has become very high. We have looked into building another housing complex. There is a lot of extra expense, but we can’t function without doing it, so we do the best we can for our staff,” adds Crick.

Other resort towns like Fernie offer year-round RVing, heated yurts and tiny home rentals, to help business owners with accommodating seasonal workers.

SolutionsIt took decades to get into this crisis, and it is sure to take an equal amount of time to get out of it. In the meantime, local governments are cracking down on Airbnb rentals that break zoning bylaws and are fining property owners who are operating without a business licence.

Housing needs have spurred innovative ideas from local developers and municipalities alike, including the University of British Columbia’s small but affordable 140-square foot nano suite rentals. Other alternatives include building co-op housing, co-housing, and tiny home communities.

Businesses are rising to the challenge and helping where they can. Employer-subsidized housing isn’t something service industry employees generally benefit from; however, that ideology may change before the crisis is over.

20 The Quarterly Pour

» names in the news

Awards2019 BC Beer AwardsCongratulations to all of the 2019 BC Beer Award winners!

ABLE BC welcomes the following new members and associate members: Mid Island Co-op, DuncanMid Island Co-op, Departure BayLoop Insights, VancouverOllie Order Inc., VancouverQuini, VancouverRusty’s Sports Bar and Lounge, KelownaSundial Growers, AirdrieThe Cambie Bar & Grill, VancouverThis Is Blueprint, VancouverBranding Iron PubShananigan’s SocialSam Steele InnC.H. Robinson

Best in Show: Pixel Pils, Fuggles & Warlock CraftworksBrewery of the Year: Kwantlen Polytechnic UniversityLegend Awards: John Rowling & Gerry Hieter Nancy More Gerry Erith CBC People’s Choice: Azedo Tropical Sour, BrewhallInnovator of the Year: Twin Sails BrewingBrewers Challenge: Cherry Operis, Four Winds BrewingRookie of the Year: Île Sauvage Brewing Company

Complete list of winners: www.bcbeerawards.com/winners-2019-1

by Marina Lecian

2020 Canadian Whisky AwardsCorby Spirit and Wine Limited received six major awards including Whisky of the Year for Pike Creek 21 Year Old Oloroso Cask Finish at the 10th annual Canadian Whisky Awards in Victoria. Complete list of winners: https://canadianwhisky.org/blog/pike-creek-21-year-old-oloroso-cask-is-canadas-best-whisky

» BC HOSPITALITY FOUNDATION

Fun & Fundraising in the Works for BC Hospitality CharityThe BC Hospitality Foundation (BCHF) was founded on the idea that when the chips are down, we in the hospitality sector should pull together to help our own. Over the past 13 years we’ve provided over one million dollars of financial assistance to hospitality workers facing crisis due to serious health conditions. Our registered charity receives absolutely zero funding from government sources—everything we’ve accomplished is the result of generous support from workers and business owners in BC’s hospitality industry.

We hope you’ll step up and help us continue our work by supporting us in whichever way suits you best. Workers throughout the province can contribute by starting a Payroll Deduction Program, which enables a company’s employees to automatically donate as little as $1 per paycheque, and to receive a tax receipt at year’s end. (Please email us at info@bchospitalityfoundation.com for an easy-to-use start-up package.)

If you live in the Lower Mainland or on Vancouver Island, we hope you’ll also join us at one of our fundraising events. They are legendary for offering guests a good time, because we are, after all, specialists in first-class hospitality. We’d love to see you at DISH (Drink. Indulge. Savour. Help.) on April 29th at Vancouver Convention Centre East. Guests at the event will enjoy culinary bites paired with fabulously diverse wine samples from over 20 New Zealand wineries. Tickets are on sale now at BCHospitalityFoundation.com.

As you think ahead to the summer, please also plan to join us for a day on the greens at our Vancouver and Victoria Golf Tournaments. Stay tuned for details!

All the fundraisers we host—as well as third-party events that donate proceeds to the BCHF—help us help hospitality workers in need and award scholarships to students enrolled in hospitality-related educational programs. Thanks to everyone who has supported us in the past, and we look forward to a successful year of fun and fundraising ahead!

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» names in the news » LCRB Report

Helpful Tips for a Successful InspectionThe Liquor and Cannabis Regulation Branch (LCRB) understands that you strive to comply with all the terms and conditions of your licence. To help you better prepare for future liquor inspections, LCRB liquor inspectors offer the following best practices: • Have your liquor licence posted in a prominent location in the service area.• Ensure that social responsibility materials provided to you by the LCRB are posted in a location visible to your customers. These materials promote moderation and making healthy choices with respect to drinking alcohol. • Have your liquor register organized and make it available for inspection. Keep invoices and receipts separate and apart from other purchase receipts, and keep them in chronological order.• Have a complete record of all employee names, their Serving it Right certificate numbers and expiry dates available for inspection.• Ensure that your floor plan is readily available and has been stamped by the LCRB.In 2019, there were 16,374 inspections with 761 contraventions identified and 92 proceeding to enforcement action. Here are the top five contraventions and tips on how to avoid them:1. Selling, serving or supplying liquor to a minor – When in doubt about age, closely examine two pieces of identification in a well-lit area. A primary ID (issued by a government agency with patron’s name, birthdate, and picture) and a secondary ID (includes the holder’s name and either the holder’s signature or picture) are required. If you have any doubts about an ID, you have the right to refuse service. 2. Allowing an intoxicated person to enter or remain in a service area – You are responsible for ensuring that patrons do not enter your establishment intoxicated or become intoxicated in your establishment.

by Mary Sue Maloughney

The mandatory Serving It Right program provides methods for recognizing the signs of intoxication and respectfully dealing with intoxicated patrons. 3. Overcrowding – It is your responsibility to control how many people are in your establishment. You must be able to count them and be aware of the number of people entering and leaving. You are also responsible for knowing the capacity limits for your establishment to ensure everyone’s safety. 4. Failing to post a licence – Ensure your latest valid liquor licence is posted in a prominent location within the service area of your establishment. It must be readily available for review by liquor inspectors and police.5. Purchasing liquor from a source other than the Liquor Distribution Branch or a designated outlet – You must not buy liquor from an unauthorized source or purchase liquor that is not recorded against your licence number. You must also ensure that you do not keep any unlawful or personal liquor in your establishment.

Contravention notices are issued in order to document where inspectors are finding compliance issues. Once a contravention notice is issued, inspectors decide what the best resolution would be.

Remember, the issuing of a contravention notice does not automatically result in a fine or suspension. If the contravention continues to be a recurring problem or a threat to public safety, the inspector may recommend enforcement action.

You can find most up-to-date terms and conditions of your licence on our website: www.gov.bc.ca/liquorregulationandlicensing.

If you have any further questions, please contact us. We are always happy to help.

Mary Sue Maloughney is General Manager, LCRB

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statistical analysis so they should be considered as broad indicators of how other private liquor stores operate in BC when comparing to your own results.

Due to space constraints, this article summarizes many of the findings. For more detailed results and commentary by store size, location and chain vs. independent see the full article at www./ablebc.ca/able-bc-annual-lrs-benchmark-survey/

LRS DemographicsFollowing are the revenue boundaries for the store demographics used in our analysis. These are extrapolated from data sourced from LDB for ABLE BC and are the same as we used in 2018.

Large stores – Sales > $4.8MMedium stores – Sales between $2M and $4.8MSmall stores – Sales < $2M

On behalf of ABLE BC, we thank those who took the time to respond to the 2nd Annual LRS Benchmark survey. In the Winter 2018 edition of The Publican, we published an article “Benchmarking Your LRS”, which included the results of the first annual ABLE BC LRS Benchmark survey. This year’s survey was conducted via SurveyMonkey between November and December 2019.

We took special care to ensure anonymity of the respondents and individual results came directly to the author and no one else. The 2018 and 2019 surveys are reasonably congruent in their results despite differences in the demographics of the responders. 2019’s respondents include Large stores and, for the first time stores identifying themselves as part of a chain. Like 2018, we can only breakout Metro Vancouver (MV) area vs. the Rest of Province (ROP) from a geographical perspective due to the mix of responses from different parts of the province.

As in the 2018 survey, the number of responses do not allow rigorous

by Pa u l R i c k e t t

Benchmarking your Liquor Store

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Benchmark 1: EBITDA %Earnings Before Interest, Taxation and Depreciation (EBITDA) is an important statistic for any business. It is a measure of operational profitability. Looking at EBITDA in percentage terms allows you to consider just how efficient different businesses are in generating return to shareholders regardless of size and location.

2019’s average EBITDA was 12%, which was consistent with 2018’s results.

Band EBITDA % % of Responses

A Loss 0%B 0-5% EBITDA 17%C 5-10% EBITDA 17%D 10-13% EBITDA 41%E >13% EBITDA (High Performers) 25%

LRS EBITDA% compares favourably with other retail sectors.There were no significant differences in results by size, chain,

independent, or geography.High Performers (Band E) occurred in all size segments and in both

Metro and ROP geographies. All High Performers were independently owned and not part of a chain.

The main difference between a High Performer and the rest appears to be in the level of overhead costs not measured by any of our benchmarks.

Product Specialization is a common denominator shared by all High Performers in both 2018 and 2019. They each had at least one product category (wine, beer, spirits, refreshment, other) in their product mix that was much higher than the average, so specializing in a category is potentially a route to higher efficiency and a competitive advantage. In 2019, there were a few other stores that had an outstanding product category, but they did not beat the High Performers in that category.

Product sales specialization in the High Performers could be the result of deliberate strategy, unique demographics or a combination of both.

For comparison, LDB reports their BCLS stores generated 9.6% net profit before allocation of corporate overhead year for their year ending March 31, 2019. Alcanna Inc., which is a public company operating 213 liquor stores in BC and Alberta, reported an EBITDA% of 7.6% on total liquor operations in their most recent financial statements for 9 months ending November 30, 2019.

Benchmark 2: Product Sales MixThe table below shows the typical product mix for stores.

Product Category Total Normal Large Medium Small Average Range +/- Average Average Average

Beer 34% 9.4% 29% 38% 32%Refreshment 11% 5.9% 10% 11% 13%Spirits 21% 7.9% 29% 20% 14%Wine 27% 12.2% 28% 24% 32%Other* 7% 5% 4% 7% 11%*Other includes tobacco and non-alcohol sales

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There is a correlation that spirit sales increase with store size in both square footage and sales.

Product mix by location and store type also shows variances in refreshment and spirit sales.

Location Type Metro Product Category Vancouver ROP Chain IndependentBeer 34% 35% 33% 35%Refreshment 9% 13% 9% 12%Spirits 27% 16% 27% 19%Wine 27% 27% 26% 27%Other 3% 9% 5% 7%

Benchmark 3: Sales ChangeMedium-sized stores saw the highest sales change at 12%, followed by large stores at 6% and small at 4%. Independent and stores outside Metro Vancouver performed better than chains and Metro stores. However, 46% of respondents reported sales increases of less than the median 4% increase. By comparison, BCLS sales only rose by 0.1%.

Benchmark 4: Operational MetricsThe table shows the average from all respondents, except where noted. For detailed results by store size, location and chain vs. independent see the full article at www.ablebc.ca/able-bc-annual-lrs-benchmark-survey/

Basket Size $27.46 Range $25.71 - $32.23. LDB reported 36.57

Gross Profit Margin 28% No significant difference between size of store or location

Sales per sq.ft. $1,415 BCLS reported $1,417

Staffing Cost 6.8% Range was +/-1.8% as % of Sales

Sales/Full-time $604,000 Median for all responsesEquivalent p.a was $619,000

Hourly Wage High $22.00 38% pay the current Low $13.85 minimum wage

Rent as % Sales 3.6% Highest rent was 6%

Marketing Expense 0.9% Chains show higher rates of expense

Wastage Median 50% of responders had c. 0.5% wastage rates of <0.1%

Looking Forward to 2020The survey had two forward-looking questions about challenges for the year and the impact of cannabis legalization.

The table below aggregates responses as a percent of total responses for 2020 business challenges.

No Problem

Somewhat Challenging

Very Challenging

The highest concern was for EBITDA, which will be impacted by rising minimum wage rates.

CannabisThe legalization of cannabis did not have a material impact on sales for 92% of respondents, however, retailers are concerned about the impact of cannabis edibles and beverages.

ConclusionAll the above is a lot to take in when comparing against one’s own numbers. First and foremost this might be an indicator of the market as a whole, and it’s alright to be different. For most LRSs outside of Metro Vancouver the biggest constraining factor might be the available market in their catchment area. Stores in Metro Vancouver have up to six times the population per store to support their business compared to an LRS located in a small town and double the population to store ratio of Greater Victoria.To use these benchmarks effectively:Step 1 – Measure your store against peers in size, format, and geography. Step 2 – If you are significantly underperforming in a benchmark, spend some time thinking about why that is. Every store has finite space so, short of moving, you can only work within these confines. Sales per sq. ft. is an important, and near universal, metric to look at. Increasing sales may be a strategy of changing product mix, spending a little more on marketing or staff incentives and training. Increasing GPM may need some changes in product mix or better purchasing (e.g. buy ins on LTO). Increasing EBITDA may be a combination of increased sales, tweaks to GPM, and finding some cost savings. Step 3 – Set a plan, measure frequently, and adjust as you find out what is working and what is not.Step 4 – Participate in the 2020 survey. The more responses we receive the better we can segment by geography and store size and type.

Benchmarks are interlinked, so if you aim to adjust one benchmark then you may have to accept changes in others. For example, to increase sales per sq. ft. you may have to hire more staff, which will impact other benchmarks, at least in the near term. You have to judge the cost/benefit return before taking action.

Paul Rickett is principal of VARKeting! - a company specializing in turning liquor industry data analytics into effective business strategies. He also runs a median-sized LRS in the Lower Mainland. Paul can be reached at pdrickett@hotmail.com.

Staff Retention

33%

58%

9%

Sales

8%

54%

38%

Hiring New Staff

17%

58%

15%

GPM

8%

46%

46%

ProductSupply

23%

31%

46%

Staff Training

50%

38%

12%

EBITDA

8%

69%

23%

Grocery Competition

31%

38%

31%

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It is very easy to have preconceptions about what a job is like, particularly when we see it played out in a certain way time and time again, with no one challenging the status quo. However, every now and then, someone comes along with the tenacity to break the mold, and Jeff Lucas, GM of Cascadia Liquor in Courtenay, BC on Vancouver Island, has done just that.

Jeff stepped into this role eight years ago (opening the store) after more than a decade in corporate liquor sales with Labatt. Facing a massive learning curve, he dove in with the intention of doing it to the best of his ability, using his training in sales and his understanding of customer needs to shape an experience that is engaging and knowledgeable, with a finessed sense of service.

Customer service though, as Jeff knew, begins with your staff! So what exactly does that look like?

Firstly, Jeff eschews the title of general manager, labeling himself Team Builder, and he works diligently to craft an empowering environment that challenges, educates, and nurtures his staff. The store is customer-centric, and therefore he focuses a lot of his time coaching his staff on ‘customer interaction’, so they are capable and confident in answering questions and guiding customers to the right product. Further to that, Jeff (as well as Cascadia Liquor) strongly supports education, putting many of his staff through WSET 1, with a large number having completed WSET 2, while others pursue routes such as the Certified Cicerone, or Prud’homme. To Jeff, education and growth are integral to keeping your staff engaged — if you are not growing, you are going backwards.

Jeff also puts his time in on the floor as a support role to the staff, fine-tuning their skills, engaging them with new products, and always making sure they know how much they are appreciated. Compliments and gratitude go a long way in fostering a staff who are loyal and hard working. Jeff also takes care to respect his staff’s autonomy outside of work, being incredibly considerate when organizing the schedule and allowing for much flexibility in availability or time off.

It is his authenticity in wanting his staff to be happy that really sets the tone though. Jeff doesn’t hone in on sales numbers. When you care about your staff, and you empower, encourage, and nurture them, the numbers will come. And at Cascadia they certainly do. They have won awards for their customer service, and they are the busiest liquor store on the island.

As much as Jeff cares about his staff, he also cares about the products he sells, and is extremely passionate about ensuring the shelves are stocked with well-crafted and interesting beers, liquor, and wine. He ensures his staff are included in all tastings with sales reps, which cultivates a sense of connection to the store and the products. And of course, he supports local. Vancouver Island is booming with craft products – in particular the wine scene is booming!

So yes, Jeff does what a GM does. He does the ordering and receiving, and he watches labour costs and writes the schedule, and yes, he diligently and dogmatically counts inventory, which is no small task in such a large store (and one that Jeff insists is worth allocating many staff hours to each month). But when you walk into Jeff’s store in Courtenay, and you see the staff smiling while they dust the shelves, and confidently answering your questions, while taking pride in their work and value, THAT is where Jeff’s day-to-day hard work and expertise as Team Builder really shines through.

Jeff Lucas A Day in the Life: GM OF A LIQUOR STORE

Team Builder of Cascadia Liquor in Courtenay, BCby Laura Starr

26 The Quarterly Pour

» ABLE BC Membership Report by Danielle Leroux

• May 11: Prince George• May 12-13: Smithers • May 13: Kitimat• May 14: Prince Rupert • June 1: Osoyoos• June 2: Nelson• June 3: Cranbrook• June 4: Fernie• June 5: Invermere and Golden• June 8: Revelstoke• June 9: Vernon• June 10: Kamloops• June 11: Kelowna• June 12: Penticton

For any questions or concerns or to RSVP for a meeting, please contact Danielle: danielle@ablebc.ca or 604-688-5560.

BC Hospitality Summit Returns this AprilABLE BC and the BC Hotel Association are pleased to host the fif th annual BC Hospitality Summit: April 6 and 7 at the Delta Hotels by Marriott Grand Okanagan Resort. Early bird registration is open now: BCHospitalitySummit.com.

Summit is BC’s largest annual gathering of hospitality businesses. With a focus on

Happy New Year from the ABLE BC team! We hope 2020 is off to a good start for you and look forward to connecting with you online and in-person this year.

We kicked off the year with two member events: our annual post-holiday Industry Reception on January 20 in Vancouver and a webinar with Loop Insights on data insights for liquor retailers on January 28.

Join ABLE BC at a Member Meeting in Your Community Like prior years, our Executive Director Jeff will be hitting the road in 2020 to host member meetings across the province. All are welcome! Save the date for our upcoming liquor industry meetings. Full details will be sent out by email closer to the meeting date or found on our website:

• February 12: Maple Ridge• March 4: Abbotsford • April 6-7: BC Hospitality Summit in Kelowna• April 24: Victoria• April 27: Tofino• April 28: Nanaimo• April 29: Campbell River• April 30: Port Hardy• May 1: Courtenay-Comox

hotels, food and beverage operations, and liquor retail, the goal of Summit 2020 is to help build profitable strategic partnerships among hospitality businesses.

We are thrilled to have an outstanding line-up of speakers including keynotes by Owner of Tool Shed Brewing Company, Graham Sherman and ‘Retail Prophet’ Doug Stevens. The full program can be found on the conference website.

Join ABLE BC TodayIf you are not yet a member, we hope you will consider joining ABLE BC today. ABLE BC members get exclusive member benefit programs and discounts, and support the advocacy work we do on your behalf.

Sign-up for your membership online at ABLEBC.ca or contact Danielle Leroux (Director of Membership and Communications): 604-688-5560 or danielle@ablebc.ca.

Our annual membership fee for liquor primaries, private liquor stores, and cannabis retail stores is $705. Our annual membership for associate members, including industry suppliers, service providers, manufacturers, and agents is $440.

By using our member benefits, you can more than cover the cost of your annual fee. Learn more about ABLEBC.ca.

The Quarterly Pour 27

by Marina Lecian» WHAT’S COMING?

BeerSeas The Day Pineapple Hefeweizen is a wonderfully subtle German style Hefeweizen with muted notes of clove and banana and balanced with the perfect amount of pineapple. Releasing March 1, 355ml x 8 $11.06 whsl +101439Truk Truk Low-Calorie Summer Ale is the quintessential cooler beer at 4.0% and only 92 calories. This immensely refreshing beer packs a huge tropical punch with mango and passionfruit. Releasing March 1, 355ml x 8 $11.06 whsl +101434Island Cerveza is a crisp, smooth lager inspired by the classic Cuban Cerveza. Made with sugar cane, its finish is subtle with white rum notes. Releasing in April, 4x473ml cans $8.90 whsl +111776 Also available in 30L keg $107.76 whsl +111840Watermelon Lager This crisp, clean lager is refreshing with a slightly sweet watermelon fruitiness followed by a smooth finish. Releasing in April, 4x473ml cans $8.90 whsl +111779 Also available in 30L keg $107.76 whsl SKU TBA

RTDREMIX is a flavoured vodka soda that blends two natural flavours in a duet that’s pure harmony for your taste buds. Using natural flavours, REMIX is only 100 gluten-free calories, with less than 1 gram of sugar per can and 5% ABV. Flavours include Mango Passionfruit, Lemon Lime, Blood Orange Tangerine, and Raspberry Lemon. Releasing March 1, 355ml x 8 $11.69 whsl SKU TBAHalewood Whitley Neill Raspberry Gin is balanced with a delicate, fruity taste and a lasting citrus raspberry flavour. Notes of juniper, coriander, and liquorice flavours give way to a vibrant taste of raspberries. Released in January, 750ml $35.58 whsl +233902 Halewood Whitley Neill Rhubarb & Ginger Gin Inspired by English country gardens, the essence of rhubarb adds a tart, crisp edge to the smooth English Gin base. Ginger extracts warm the palate for a full-bodied finish. Released in January, 750ml $35.58 whsl +180693Chum Churum Calamansi These flavoured sojus have a fresh, clean taste and flavour. Released in January, 360ml $6.15 whslAvailable in seven flavours: Apple +787689, Citron +509869, Peach +699397, Strawberry +135622, Blueberry +212608, Grape +212908, Yogurt +198484

Wine Louis Bernard Cuvee Rose This fresh, well-balanced wine offers floral notes on the nose with grenadine and red cherry. It has a lively mouthfeel, both fresh and ample with a rich, spicy finish. Released in January, 750ml $15.82 whsl +105641Farnese Gran Sasso Sangiovese is medium-bodied and purple red in colour. It has an intense aroma with scents of black cherry, blackberry, plum, and sweet wood notes. Released in January, 750ml $12.49 whsl +616714

SpiritsWatershed Irish Single Malt The nose opens with strong vanilla and sweet fruit notes followed by hints of grain. Black pepper rises on the pallet, overtaken by vanilla fudge and a trace of raisins. The finish is smooth, warm, and comforting. Released in February, 700ml $69.99 whsl +212665Knockmealdowns 10-Year-Old Irish Single Malt is one of the new Tipperary Distillery ‘Mountain Range’, a series of older whiskies celebrating the land in County Tipperary. It opens with fresh oak on the nose, developing into hot caramel sauce with notes of chocolate and vanilla. The pallet is light and smooth and becomes savoury and peppery. It has a lingering, oaky finish with a touch of ginger spice. Released in February, 700ml $87.99 whsl +212660KAI Vodka 40% is produced in northern Vietnam using Yellow Blossom rice making this vodka naturally gluten free. Triple distilled in a pot still and twice distilled in a column still, it has a bright, complex nose with hints of sweet spice, vanilla, and tropical aromas. It is smooth and delicate with a unique character. Released in February, 750ml $34.70 whsl +155537 KAI Vodka Lemongrass 35% has a subtle, delicate sweetness derived from exotic Yellow Blossom rice. It is crisp and light with an exotic bouquet of lemon and herb, and hints of lemongrass on the nose. Released in February, 750ml $33.65 whsl +155529

28 The Quarterly Pour

by Shawn Soole

The Expanding World of Non-Alcoholic Ingredients

popularity of Spice 94 spurred the release of the herbal Garden 108 using peas picked from the family farm, the creation of the non-alcoholic bottled cocktail, NOgroni® for the World’s 50 Best Bar Awards, and the recent launch of the citrus blend, Grove 42. With the huge success of this new market segment, many companies began creating their own variations and not all are trying to replicate the flavours of gin. There is a non-alcoholic whisky from Spain and a rum from the UK as well.

The market for non-alcoholic distillates is growing fast. Seedlip was originally minority invested in 2016 by Diageo’s accelerator program, Distill Ventures to build on the business and expand internationally; in 2019, Diageo became a majority shareholder of the company for an undisclosed amount. One of the largest spirit companies in the world has backed the very first non-alcoholic distillate, killing two birds with one stone; investing in a burgeoning market along with bolstering their Corporate Social Responsibility (CSR). As the market changes, with dry months and healthy drinking and eating continuing to be a driving force behind decision-making for a brand-new demographic, companies are building on their CSR and becoming inventive to cater to them.

Locally, Sheringham Distillery, the distillery behind Seaside Gin, winner of “World’s Best Contemporary Gin” at the 2019 World Gin Awards in London, UK launched Lumette! in late 2019. The very first non-alcoholic distillate in the country, “Lumette! Bright Light Alt-Gin was envisioned when I wanted to enjoy a cocktail on my own, or with friends, but not always desired the alcohol,” explains Sheringham’s founder Alayne MacIsaac in the company’s official announcement. “I love cocktails and with Lumette!, you get the complex flavors and aromas you expect from an aromatic spirit, just without the alcohol.” Dubbed as an “alt-gin”, Lumette! utilizes seven botanicals: juniper, orange, grand fir, cucumber, grapefruit, rose, and mint and is distilled onsite by the award-winning team.

From a mixing standpoint behind the bar, all non-alcoholic distillates aren’t a simple substitute for the gins that they mimic. Without alcohol, these products need sugar to be added to gain texture and elevate the flavours of the botanicals; they work perfectly with tonics, but when mixed into cocktails, texture must be considered. The market is changing, the younger demographic is more health conscious than ever before, and the rise of dry months have opened up the opportunities for ingredients such as Seedlip and Lumette! to gain traction in bars, restaurants and liquor stores; the non-alcoholic distillate category shows no sign of slowing down.

Up until a few years ago, if you went to a bar or restaurant and asked for a non-alcoholic beverage or mocktail you were greeted with a sneer and most likely a drink that consisted of syrup, citrus, and soda. For many years, the notion of non-alcoholic drinks in bars was laughable at best; they weren’t seen as serious enough for the businesses to expend resources on the development for the menu, let alone training on pairing non-alcoholic flavours into something that is even relatively palatable. But just as gin, craft beer, and pét-nat wines became popular in their respective categories; there is a trend towards non-drinking and healthy eating. As a result, non-alcoholic drinks have evolved in the last five years.

Non-alcoholic distillates have been around for centuries—the most used behind the bar being orange flower and rose waters. They are extremely potent and heavily aromatized and are made very similarly to traditional alcoholic distillates. The process involves macerations, distillations through copper pot stills, blending and filtration; the same care that goes into your craft gin is now being focused onto your craft alcohol-free distillates. Seedlip has been at the forefront of the non-alcoholic distillate movement since launching in 2015, and the process takes up to six weeks to complete. Based on a recipe for non-alcoholic remedies from The Art of Distillation written in 1651, Seedlip has modernized the market utilizing ingredients from the family farm and local area.

They originally launched Spice 94 in Selfridges to huge response from the hospitality industry including high-end clients like The Fat Duck, The Clove Club, Dandelyan, The Savoy, and The Ritz. The immediate

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The Quarterly Pour 29

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ONTARIO OPENS UP RETAIL MARKET

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The Government of Ontario has announced its move towards an open market for private cannabis retail in Ontario starting January 2020. The government is removing the temporary cap on the number of private cannabis stores in the province and is eliminating pre-qualification requirements for prospective retailers. Read more...

Newfoundland and Labrador will not allow the introduction of cannabis vape products at this time, although the government has committed to review this decision in light of any relevant clinical evidence. This decision follows Quebec’s ban, which was also made to protect the health of Canadians until they find the cause of recently reported illnesses. Read more...

With over 360 stores in Alberta, that province now has the highest consumption of legally purchased cannabis per person in Western Canada. In the first 11 months of legalization, Albertans purchased $196 million worth of legal cannabis, according to recently released data from Statistics Canada.

Aurora Cannabis opened an 11,000 sq. ft. store in North America’s largest mall. Aurora combined a retail cannabis store and an immersive experiential space, encouraging visitors to explore unique products and participate in a rotating calendar of programming and events Read more...

30 The Quarterly Pour

after centuries of oppression, Georgians are now putting tourism on the front burner and are using their ancient wine expertise as a draw. Although there are 300+ indigenous grape varieties, only 38 are officially grown for vinification and the deep, brooding, rustic reds from the varietal Saperavi hold the most promise. Saperavi’s ability to produce satisfying wines with long aging potential (up to 50 years) make it one of the more important varieties. For whites, look for Rkatsiteli. This spicy and floral bright white, with potentially high alcohol, is often blended with Mtsvane, which contributes fruit flavours and aromatics.

Croatia - Croatia’s island of Brac is home to the Stina winery that produces satisfying reds from Plavic Mali. Although some examples can be at a higher price point, they still provide wonderful drinking pleasure and solid value for dollar. Look for more wineries to being introduced from this area. In Turkey, the region of Gallipoli (famous for its failed WW1 landing spearheaded by the British) is offering up compelling whites and reds from international varieties blended with small proportions of local grapes (Kinali Yapincak and Karasakiz respectively) from the likes of the Sulva Winery gaining ratings as high as 90 points from Wine Spectator. Other highly rated wines include Slovenia’s Giocato’s Sauvignon Blanc from the Primorska region, which was touted as a 90 point and #21 Top 100 effort by Wine Enthusiast as recently as 2017.

Hungary, Bulgaria & Romania - The famous noble rot affected dessert wines of Tokaji aren’t the only incarnation of Hungary’s Furmint grape. Now dry versions featuring solid minerality, complexity, and structure from the Mád village appellation are hitting our shores to positive acclaim. Bulgaria is exporting Thracian Valley reds from Mavrud/Rubin blends, Gamza (aka Kardarka of Bulls Blood fame), and rare Keratsuda based whites from the Kresna Canyon area, which are all gaining attention. In Romania, the Feteasca Alba ancient grape variety from Transylvania offers whites with flavours of citrus, lime-tree blossom, wildflowers, hay, and ripe stone fruit. These wines stand out because of their finesse and perfect balance.

Greece - And, finally, Greece has long been a producer of great wines only to have its reputation sullied by the likes of Retsina and mass produced, high yield commercial wines of little flavour or interest. Now regions like Nemea are reminding the world of the potential of the Agiorgitiko grape and the deep, compelling reds that are derived from it. Macedonia has great reds from Xinomavro and the whites comprised of Assyrtiko grapes offer a range of styles from fresh minerally dry versions to rich, nutty, and even intentionally oxidized sweet incarnations.

Be sure to keep an eye open for wines from these emerging regions at your next tasting or seek out importers with these wines as part of their portfolio. Maintain an open mind and appreciate the value proposition when considering adding these wines to your offerings. They might not be as well-known now as the storied first growths of western Europe but they don’t cost as much either.

Tim Ellison is a Certified Sommelier & Chef de Cuisine that has dedicated almost half a century to a career in the demanding hospitality industry. Tim is a proud member of the team at the prestigious Vancouver Club and can be reached at tim@vancouverclub.ca

The Great Wines of Eastern EuropeEurope. When it comes to wine, the term conjures up the names of classic wine regions like Burgundy and Bordeaux, Barolo, Mosel, Rioja, and the Douro. All justifiably famous and producing their own individual award-winning styles of wine. So much so, that when one thinks of the old world, these regions and their countries of origin eclipse most other European locations.

Vitis Vinifera will ripen between 30 – 50‘ latitude north or south most anywhere on the planet and pays more attention to geography than political boundaries. There are 44 counties in Europe and all possess some type of wine industry. You may hear whispers about the established and credible wine regions of southern and eastern Europe, but may only taste a wine or two as a curiosity. Up until recently, most wines from these regions were produced by government-controlled co-ops for domestic consumption (or export to the Soviet Bloc) and were not available for export. Even countries like Georgia or Greece that were part of the evolution and spread of winemaking are relatively poorly represented in the North American market.

My customers are always looking for similar qualities in wine regardless of price point. The wine has to taste good, provide value for dollar, be appropriate for the application, and have a story. The story could be things like high ratings, unique grape variety, unusual growing conditions, big personalities owning or making the wine, or ancient heritage. I call these ‘table-side talking points’.

We carry wine to sell it. When serving guests, you ask a few questions and then make one or two suggestions. Three is too many. You name the wines, use a couple of your key points, and then you close the sale by asking the customer to pick one. In my experience, it’s the quickest route to getting the service started. The great thing about wines from southern and eastern Europe is that they provide unique and compelling talking points that make the wines an easy sell, especially when combined with some of the great values available. Savvy operators are always on the lookout for the next great thing and I think it’s going to be a return to wine’s roots.

Traditional Wine Making - The other attribute to these older growing regions is they were never seduced by modern or scientific wine making. They still employ traditional methods like the use of subterranean amphorae and use more ‘natural’ winemaking techniques including skin contact orange wines that have been employed satisfactorily for millennia. And the use of local indigenous varieties, which are typically well suited to the terroir, give an additional point of distinction. People often want to try something new and varieties other than the predictable Chardonnay, Sauvignon Blanc, Pinot Noir and Cabernet Sauvignon can be refreshing.Countries to pay attention to include Georgia, Croatia, Turkey, Slovenia, Hungary, Romania, and Bulgaria. They employ traditional methods and varieties, but are open to opportunities for improvement and style their wine’s flavour profile and packaging to appeal to a wide market.

Georgia - It is widely accepted that Georgia is one of the world’s oldest wine regions with evidence of wine production going back as far as 8,000 years. This country straddles the border between Asia and eastern Europe. Having just gained independence in 1991

reportWine by Tim Ellison

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