Minnesota Municipal Beverage Association Newsletter
(January 5, 2013 - January 11, 2014)
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for the
As I See It... 

   

At my store we have been doing cyclical inventories for at least 5 or 6 years.  

 

Over those years we have really been able to control our inventory losses and variances.

 

This is a very good thing.

 

But....it can also become an issue. I met with our auditors on January 2nd at 8am. There were two of them. One to count all the cash in the store and one to do an inventory spot check.  

 

First off, the one doing the inventory gave me a list of items he planned to check and asked me for the counts before he began. That was the first red flag.  

 

I asked him to count the items first and then we would compare what he had verses what my computer said we should have. That made me think to myself....If I give him the numbers ahead of time; that is all he will look for. He may not even count it at all.

 

So he went on to count the items. When he was finished we compared inventory counts and I noticed the items he chose were the same as last year. I asked him why? And he said because they are "best sellers".  

 

That was the second red flag. I told him because we did the same items two years in a row, I know what I need to focus on next year. I was told they trust me and we have always done a really great job with inventory controls.

 

Which leads me to the third red flag. We keep a variance report book for the year and in the past they have always looked it over to see if there is anything that stands out. This year they did not even ask to look at it.

 

So what I am trying to tell you is even if you have had the same auditors for years and you have always had good reports from them, you are paying for their services and you should get a quality audit.  

 

I expect them to come in and look over everything. Spot check different items so it is a surprise -- that keeps us all honest. Review the past year and discuss any issues with cash or inventories. They may have some good suggestions.  

 

I don't expect we will make a change in our auditing firm, but I expect we will inventory different items than we did this year!   

 

I hope everyone has a great 2014!

 

Lara Smetana

Voyageur Bottle Shop (Pine City) 

3-Tier System: Conclusions from a Rare-Addicted-Beer-Hunter

 

By  Tom Aguero, Queen City Drinks

 

(Queen City Drinks is a community-based blog where whoever wants to has a place to rabble-rouse on anything concerning beer, spirits, wine, etc.)  

 

In the end of 2012 I decided to set a goal for 2013 of digging into the 3 tier system and reporting back on what I learned. I came into this endeavor with a set of preconceived notions about the 3 tier system that are drastically different then what I feel now.  

 

Throughout the series of posts I've tried to be as objective as possible and present the views of the people I interviewed. What follows are my thoughts on all those interviews and the 3 tier system as a whole.

 

http://queencitydrinks.com/beer/3-tier-system-conclusions/

 

When I started this process I thought the 3 tier system was broken and was a way for the big beer giants to hold down craft beer. I felt like it was a hold over from prohibition aimed solely at trying to stop a resurgence in organized crime related to the production, distribution, and sale of alcohol.  

 

All I knew about the 3 tier system at the time was that there were producers, distributors, and retailers who were somewhat separated from each other and limited in how much of the other levels they could own a percentage of.  

 

All of which is to say I knew very little and had bad preconceived notions.

 

As soon as I began investigating the Introduction and History I realized the majority of what I knew was wrong.  

 

Moving onto the Breweries reinforced some of these new thoughts as well as introduced some new and different doubts about the system. Talking to Distributors really shined some light on things and began to drastically change what I thought I knew. Finally the Retailers gave me a vastly different perspective on what they deal with and how annoying people like me, the rare-addicted-beer-hunter, can be.

 

After a year of investigation I now feel that the 3 tier system is not broken. It's not the best it could be but it is pretty damn good.  

 

The biggest problem it has is the variations in states, but I think that's also one of the best things it has going for it. The big beer brands have done a fair dose of damage to the separation of tiers in some states while other states have remained more resilient. I am sure that if this was 1 national system then it would've most surely been corrupted by the major brands.

 

I feel that the 3 tier system is actually one of the bigger consumer and small business protection laws that I'm aware of. Without the separation of manufacturers, producers, and retailers we would have almost no choice and small brewers would either not exist or would not be available outside their own doors.  

 

I can say this for certain thanks to the situation in the UK. They did not have anything like the 3 tier system and the major breweries owned their own distribution companies and owned the vast majority of pubs and had exclusivity agreements with stores. This resulted in bars and stores only have beers from 1 brewery and preventing the bar/store from carrying any other breweries products.  

 

This is exactly what the 3 tier system prohibits.  

 

That set the UK craft beer movement back by many years and they have only recently begun to catch up with what's happening in America. Though I suspect some of the situation in the UK could be due to a more traditional mindset (not counting BrewDog).

 

As I've said I think the system is pretty solid, however, I do feel that there are some improvements that could be made:

 

Semi-standardization across states - If more states had similar laws, like ABV caps for example, it'd make it easier for small breweries to know what they were getting into before going into that state.

 

Reinforced separation of the tiers - This recently came up in Ohio as [a major brewer] owns a sizable chunk of a distributor up near Canton.  

 

There are laws in place to stop them from being to shitty to other breweries but still, I'm not OK with any brewery, be it a billion barrels or one barrel, owning any part of a distributor or store.

 

Those are relatively small gripes to have in such a massive system. It really does work really well.  

 

There is no doubt in my mind that without the 3 tier system, or with a nationalized 3 tier system, or a weaker system, the craft beer movement would not exist.  

 

Our beer choices would be limited to the most easily mass produced and cost effective beers. 

Alexandria Position Opening
Jobs

The City of Alexandria is seeking applications for the position of Liquor Store Manager.

 

This position is responsible to organize, develop, plan, coordinate and supervise the day-to-day operations of two municipal liquor stores that generate $4 - 4.5 million annual volume in off-sale operations.

 

Minimum requirements include: Bachelor's degree in business administration, marketing, merchandise retailing or related field and four years experience as a liquor store manager - (Eight or more years of experience in managing or assisting in the management of a high volume retail operation with involvement in budget preparation, purchasing, record-keeping, marketing and supervision of staff can be substituted for the degree), including four years supervisory experience.

 

Salary range is $55,484 - $75,072 per year DOQ, plus benefits.  

 

An application, detailed position announcement and complete job description may be obtained at Alexandria City Hall, 704 Broadway, Alexandria, MN, (320) 763-6678 or online at www.ci.alexandria.mn.us under the City Jobs link. City of Alexandria application required.

 

Résumés may be included, but will not be accepted in lieu of a completed application.  

 

Applications will be accepted until the position is filled. The first review of applications will take place the week of February 10

 

Alexandria is an AA/EEO employer.

 

To Apply:

 

City of Alexandria

Attention: Karin Tank

704 Broadway Alexandria, MN 56308

Ph: 320/759-3647

Fax: 320/763-3511

Email: ktank@rea-alp.com 

2014 Promotional Calendar & Planning Guide

By Nightclub.com

Creating a marketing and promotional plan allows you to put into action the vision you have created for your bar, nightclub or restaurant.

It aims to give you a practical plan that is easy to implement over the course of the year. This plan will provide focus and direction while also encouraging you to monitor your results in order to improve.

In order to keep that register ringing, now is the perfect time to compile and start implementing this crucial plan that will aid in the success of your business. And not to fret, we've assembled our 2014 Promotional Planning Guide, including a calendar of events and holidays and some expert advice on getting started.

 

With this guide and calendar in hand, along with continuous updates on Nightclub.com, you'll be armed with ideas to attract crowds every day of the year! The more you plan, the easier and more successful your promotions will become.

 

Here we have provided some key elements for creating your marketing and promotions plan to help you get started.

 

Click Here to Get Started 

When we are foolish, we want to conquer the world.

When we are wise, we want to conquer ourselves. 
Future Dates to Remember!!
 2014 MMBA Boot Camp

 

February 17 - 19

Breezy Point Resort

 

Click Here for More Information 

 

2014 MMBA / MLBA Legislative Day

 

March 10

Kelly Inn, St. Paul  

 

2014 MMBA Annual Conference

 

May 17 - 20

Arrowwood Resort 

Ask A Director

Gary Buysse
Rogers
763-428-0163

Cathy Pletta
Kasson
507-634-7618
  
Vicki Segerstrom
Milaca
320-983-6255
  
Candice Woods
Hutchinson 
320-587-2762
  
Nancy Drumsta
Delano
763-972-0578

Lara Smetana
Pine City
320-629-2020

Michael Friesen
Hawley
218-483-4747

Lisa Kamrowski
Nevis 
218-652-3135

Steve Grausam
Edina
952-903-5732

Toni Buchite
50 Lakes
218-763-2035

Brenda Visnovec
Lakeville 
952-985-4901
 
Bridgitte Konrad
North Branch
651-674-8113
  
Shelly Dillon
Callaway
218-375-4691
  
Karissa Kurth
Buffalo Lake
320-833-2321
 
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925

 
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New Robbinsdale Pavilion
The City of Robbinsdale will use $100,000 in municipal liquor revenue to help fund the building of a new park pavilion.

Unlike wealthier cities with larger tax bases, Robbinsdale doesn't have a large industrial park and relies significantly on local property taxes to support basic city services.

Because the city can't afford the estimated $400,000 project, it hopes to use donations and other outside revenue for the building, a simple open-air pavilion with views of the lake that could host the band and be rented out for weddings or other events.

 

The Psychology Instructor...
The psychology instructor had just finished a lecture on mental health and was giving an oral test.
 
Speaking specifically about manic depression, she asked, "How would you diagnose a patient who walks back and forth screaming at the top of his lungs one minute, then sits in a chair weeping uncontrollably the next?"
      
 A young man in the rear raised his hand and answered, "A Minnesota sports fan." 
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