Minnesota Municipal Beverage Association Newsletter
(January 30, 2011 - February 5, 2011)
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As I See It....
  

 

Recently there have been several news reports concerning a legislative proposal to allow Sunday off-sale.  Many of the reports focus on a "We don't want to work on Sunday / It is our only day off" message.

Sunday Sales is not about working hours.  It is about spreading six days of sales over seven days of expenses.   Alcohol is not a destination purchase.  People don't get up and say "let's go alcohol shopping."  It is an impulse purchase that in the vast majority of locations doesn't pay the day's bills.  All of the Minnesota cars buying in Wisconsin on Sunday are coming from multiple locations to one store.

 

In addition, Sunday Sales has the potential to lead to the elimination of 3.2 beer and ultimately Wine in Grocery. 

  

Here is an article from Colorado...

 

Surrounded by a cadre of gas station managers and owners, primarily representing 7-Elevens and Loaf 'N Jugs, Parker stood in front of 66,000 dramatically stacked signed petitions during a press conference in the Old Supreme Court Chambers hearing room at the state Capitol on Tuesday. The petitions, collected at 7-Eleven and Loaf 'N Jug stores statewide, ask the Legislature to allow gas stations and grocery stores to sell full-strength beer.

Until last year (2008), Colorado law prohibited liquor stores, which sell full-strength beer, from remaining open on Sundays. That had given an opening to convenience store owners, who are able to sell only lower strength 3.2 beer, permitting them a monopoly on liquor sales one day each week.

However, as soon as the Legislature passed a partial repeal of the state's Blue Laws in 2008 allowing liquor stores to stay open and sell full-strength beer on Sundays, Parker says convenience stores such as his lost 75 to 80 percent of their Sunday beer sales. The storeowners say beer sales make up 6 percent of their total revenue.

Parker said now that 3.2 beer is obsolete, "The loss of sales has hurt us, and today we are only asking for the ability to compete."

Parker could be in luck. If state Sen. Jennifer Viega, D-Denver, and Rep. Buffie McFadyen, D-Pueblo West, are successful, a bill they are moving through the Legislature this year would allow the sale of full-strength beer at convenience stores.

"I certainly recognize that, with the passage of Sunday sales (last year), there has been a detrimental impact on you, on your sales and to the grocery stores who are now selling an obsolete product," Viega said to the room of storeowners. "Consumers want easy access (to products), and this allows for that."

Not everyone is behind the change. Owners of liquor stores and craft breweries said allowing convenience and grocery stores to sell full-strength beer is paramount to putting another nail in their industry's coffin. Although liquor store and brewery owners say the simple convenience of not having to make a special trip to a liquor store to buy full-strength beer seven days a week is of concern, they also expressed the fear that grocery stores will undercut the price of their liquor products as part of a rewards program for frequent shoppers.

Currently, King Soopers and Safeway discount gasoline to reward customers who reach a spending threshold.

"This legislation is not about convenience and fair competition, it's about jobs, jobs, jobs," said Jeanne McEvoy, executive director for the Colorado Licensed Beverage Association.

McEvoy said similar legislation in other states has had a devastating effect on liquor store owners, and she said South Dakota offers an example of how such a policy can destroy businesses and reduce employment opportunities statewide.  

In South Dakota, 48 liquor stores were in business before similar legislation was passed. Within 10 years of the legislation's passage, only three remained. She estimates that 700 liquor stores in Colorado would close within three years should the proposed law pass.

"If the state of Colorado has a problem with Sunday sales, then fix Sunday sales," McEvoy said. "But robbing Peter to pay Paul is never good policy."

However, the bill, which was introduced this week, may not have such a dire consequences for owners of Colorado's liquor stores, supporters said.

Five states, including Colorado, still sell 3.2 percent beer while 36 states allow beer and wine sales in grocery stores, McFayden said, adding that those 36 states have found ways to make it work.

Please contact me if you have questions on this or any other matter.

 

Paul Kaspszak

MMBA Executive Director 

MMBA / Pabst Arbor Day Tree Distribution Promotes Community Value
 Arbor Day

 

Based on the success of the annual MMBA Food Drive, in an effort to help members Promote the Community Value of their Municipal Liquor Operation, MMBA, in partnership with Pabst is coordinating an Arbor Day tree distribution effort benefiting your local community.

 

Arbor Day is a nationally-celebrated observance that encourages tree planting and care. Founded by J. Sterling Morton in 1872, it's celebrated on the last Friday in April (April 29, 2011).

 

Here are the details:

 

·  Each participating facility will be provided with 100 tree saplings to be distributed to customers in any manner you see fit during the last week of April.  (If you have more than one facility in your community, each will be provided with 100 trees).  Customer purchase is not required to receive a tree, but is an option.

 

·   Each participating MMBA member will be entered into a random drawing for a $500 contribution toward a beatification project in your city.  Six $500 contributions will be made.

 

·    One 7 foot banner, one 2 foot by 3 foot sign and one case card will be created and provided by Pabst.  Additional signage and point of sale can be obtained by contacting your Pabst Distributor.  Materials will arrive by April 15.

 

·   Here are some successful ideas to promote the event:

 

ü      Stapling a flyer to carry-out bags
 ü      Reference or total focus in advertising mediums
ü      Pabst off-sale display or on-sale promotion tied to the activity
ü      Local newspaper story 
                             

If you would like to participate in this event, contact the MMBA Office by March 1 at:

 

Phone: 763-572-0222 or 866-938-3925

Fax: 763-572-8163

Email: kaspszak@visi.com

 

Thanks for your participation!!!!!


Why the Three-Tier System is Important 
 Three Tier

The three-tier system is a core value of Minnesota alcohol regulation.

 

Each year (especially this year) there are legislative proposals that will have a negative impact this system of alcohol distribution.  While these proposals may seem tame by themselves, over time they provide the basis for additional changes that create increasing impact.

 

Here is a summary of the three-tier system:

 

The three-tier system mandates separation of the alcoholic beverage industry into three tiers: a supplier tier, a wholesaler tier, and a retailer tier.

 

The segmentation of the industry into three tiers serves multiple purposes ....

 

Without the three-tier system, the natural tendency historically has been for the supplier tier to integrate vertically. With vertical integration, a supplier takes control of the manufacture, distribution, and retailing of alcoholic beverages, from top to bottom. The result is that individual retail establishments become tied to a particular supplier. When so tied, the retailer takes its orders from the supplier who controls it, including naturally the supplier's mandate to maximize sales.

 

A further consequence is a suppression of competition as the retailer favors the particular brands of the supplier to which the retailer is tied--to the exclusion of other suppliers' brands.

 

With vertical integration, there are also practical implications for the power of regulators. A vertically integrated enterprise--comprising manufacture, distribution, and retailing--is inevitably a powerful entity managed and controlled from afar by non-residents.

 

The three-tier system was implemented to counteract all these tendencies. Under the three-tier system, the industry is divided into three tiers, each with its own service focus. No one tier controls another.

 

Further, individual firms do not grow so powerful in practice that they can out-muscle regulators. In addition, because of the very nature of their operations, firms in the wholesaling tier and the retailing tier have a local presence, which makes them more amenable to regulation and naturally keeps them accountable.

 

 Further, by separating the tiers, competition, a diversity of products, and availability of products are enhanced as the economic incentives are removed that encourage wholesalers and retailers to favor the products of a particular supplier (to which wholesaler or retailer might be tied) to the exclusion of products from other suppliers.

Future Dates to Remember!!
MMBA Boot Camp

February 21-23, 2011
Breezy Point Resort

Click Here for Details
 
MMBA Scholarship Deadline
 
May 1, 2011
 

 MMBA Annual
Conference

May 22-24, 2011
Arrowwood Resort

Ask A Director

Gary Buysse
Rogers
763-428-0163

Bob Leslie
 Pelican Rapids
218-863-6670

Brian Hachey
Stacy
651-462-2727

Nancy Drumsta
Delano
763-972-0578

Lara Smetana
Pine City
320-629-2020

Michael Friesen
Hawley
218-483-4747

Tom Agnes
Brooklyn Center
763-381-2349

Steve Grausam
Edina
952-903-5732

Toni Buchite
50 Lakes
218-763-2035

Michelle Olson
Sebeka
218-837-9745
E-Mail Me

Bridgitte Konrad
North Branch
651-674-8113

Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925

 
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Wine 101
Wine2
Worthington Position Opening
Jobs

The City of Worthington is accepting applications for the position of a full-time Liquor Store Retail Clerk. 

 

Employee must be able to perform a wide variety of tasks associated with Liquor Store operations including but not limited to: assisting customers, restocking shelves and coolers, unloading beverage trucks and maintaining store appearance.  Employee will be required to check customer i.d.'s on a regular basis. 

 

Previous retail experience required; must have and maintain a valid State of Minnesota driver's license.  Position requires working nights, weekends and holidays, and  requires excellent teamwork and a "can do" attitude.

 

Starting pay is $14.42 per hour, plus benefit package.


Applicants must submit a letter of application, a resume, and a completed City of Worthington Application for Employment form available from the City Clerk/Human Resources Assistant, 303 Ninth Street, or on our web site www.ci.worthington.mn.us) to:

 

 City Clerk/Human Resources Assistant

    City of Worthington

 PO Box 279

   Worthington, MN

56187-0279


Application deadline is 5:00 p.m., February 23, 2011.

Two Guys are in a Bar
Two Guys

Two guys are in a bar...

 

Guy #1:

 

My wife drives me to drink.

 

Guy #2:

 

You're lucky. I have to walk

 

Just becasue you can't see it, doesn't mean it's not happening