Minnesota Municipal Beverage Association Newsletter
(March 16, 2013 - March 22, 2014)
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As I See It... 

Sunday Sales Pro    

Are you making yourself heard?

 

At legislative day, a counterpart walked into his Senator's office to discuss Sunday sales.  

 

The Senator who has always been a cordial partner looked him straight in the eye and said "You're losing this one."

 

What the Senator meant and communicated was that he is currently being bombarded with emails in support of Sunday sales.  

 

As you can see in this link, the MN Beer Activists (which is a very small but vocal group) is doing everything within their power to have Sunday sales enacted.  

 

These individuals are not knowledgeable of the impact Sunday sales could have on our cities, public safety or chemical dependency affects.

 

All they know, and the only reason they want Sunday sales, is so they don't run out of beer on Sunday.

 

Now if this small group of a dozen individuals are making this large of an impact, think of what we as municipal liquor store managers should be able to accomplish.  

 

In walking around the Capitol last week it was a common heard theme;  legislators are receiving several emails a day in support of Sunday sales but little communication from anyone in opposition.

 

You need to make yourself heard, and you need to do it now!  

 

Many of our legislators want to support us in saying NO to Sunday sales but we need to provide them the knowledge and ability to do so.  

 

How do you go about this?

 

Legislative day would have been the perfect opportunity, especially if meeting with a Senator or Representative is intimidating to you as our lobbyists and board members are there and available to help you through the system.

 

However, that is now behind us and we understand time constraints can be difficult. But it's not too late to contact your legislators and let them know you oppose Sunday sales.  

 

Many of them just want some information that will provide them comfort in saying NO.  

 

If you need documentation, there are studies and statements issued by the MN Department of Health, and statements from the Center for Disease Control posted on the MMBA Website.

 

There are so many more reasons to say NO to Sunday sales than there are to say YES.  

 

And it's so simple..... We just need to provide the reasons to say NO into the hands of the people who make these decisions.

 

Make yourself heard!

 

Brenda Visnovec

Lakeville Liquor 

Real World Economics: The Costs of Sunday Liquor Sales
Money 3
There often are situations where government action to solve one type of "market failure" creates another. That is the case with Minnesota laws that ban sales of packaged liquor on Sunday.

Enacted to prevent what economists would see as the "external costs" of weekend liquor consumption, these laws, along with others that limited the number of liquor sellers in any given market, increased the chances of "monopoly power."  

 

And the whole kerfluffle serves to demonstrate other common economic phenomena, including "economies of scale" and "rent seeking."

 

Start with the rationale for banning Sunday sales of alcoholic beverages.

 

When enacted, their advocates probably did not have economics in mind.

 

Many saw drinking as morally bad and thought banning it entirely would be good. After all, Andrew Volstead -- of the 1919 "Volstead Act" that established sweeping national Prohibition -- was a St. Olaf alum who practiced law in Granite Falls before his election as a Minnesota congressman.

 

In this campaign, the "drys" emphasized the broad costs to society from private consumption of alcohol. These included traffic and other accidents, family violence and costs of law enforcement.

 

Costs to society from private economic activities are what economists call "external costs." While advocates of laws to limit alcohol consumption didn't use the term, they did make an economic argument.

 

Limits on Sunday sales were within a broader cultural context that recognized Sunday as a day of worship and rest. Some states and municipalities prohibited most retail businesses from selling on Sunday, but cultural mores and social pressures probably were a larger factor.

 

Bans on Sunday sales by on-premises liquor sellers such as bars and cocktail lounges were very common. So a statewide ban on sales of packaged alcohol did not stand out.

 

However, all laws have unintended consequences, and one of the consequences of Sunday closings was to increase the profits of existing businesses.

 

Liquor retailing can be very competitive. It usually is a situation of what economists call "monopolistic competition" -- a market that is nearly as competitive as the ideal of "perfect competition," in which no buyer or seller is large enough to have any pricing power.  

 

In many cases, the only factor that kept liquor stores from being in perfect competition was the fact that the stores and the products they sold did have a brand identity. They were not "homogeneous" commodities, such as the #2 yellow corn, 87-octane unleaded gasoline or A-37 construction steel, which meet the criteria for perfect competition.

 

In both perfect and monopolistic competition, sellers would be better off if they sold less and thus forced up the market price. But since any individual seller is small, it is impossible to get all the others to help rig the market the way a handful of steel or auto companies might. However, if some external constraint affects all sellers, the group as a whole may be better off.

 

In the case of limitations on liquor store hours, the effect probably would be more on the cost side.  

 

If allowed to open only six days a week, stores would save one day's labor costs. But demand for liquor is inelastic, meaning that the quantity bought does not fall much as price increases.

 

So total sales would not suffer, but net profits could be higher. Any one store would be foolish to voluntarily shut while competitors stayed open, but if all were forced to shut, as a group they might be better off.  

 

Conversely, if the ban is lifted, any one store owner would be foolish to stay closed on Sunday when his competitors are open.

 

So liquor store owners are not mistaken in their opposition to changes in existing law.

 

They probably are correct that their sales won't increase much but their costs will. Profits will go down. Economists define their lobbying for a law that increases their profits as "rent seeking" -- the use of government to gain economic advantage compared with the outcome of a free market.

 

If the ban is lifted, consumers would benefit from greater flexibility when they shop. How valuable that is to society is hard to measure.  

 

If the increased satisfaction to consumers from ending the ban outweighs the decreased profits to stores, economic efficiency will be increased by ending the ban.

 

There is the question of whether Sunday sales will increase drinking and thus external costs. Given that on-premises alcohol establishments already are open, it is hard to see how total consumption would increase much.

 

Retailers also are correct that ending the ban might be less harmful to big stores than small ones. There are economies of scale in labor use in retail, and it often is easier for a business with a dozen employees to schedule fewer of them for a slow day than a small store. Workers are "lumpy inputs."

 

You can have one person working, or two or three, but not 1.5 or 2.33 workers. So matching workers to sales levels can be relatively easier for a large store.

 

Note that the trade-offs here are no different than when small retail lumberyards open Monday to Saturday faced competition from big-box building supply stores open long hours seven days a week.

 

Ditto for myriad other retail categories. Consumers had more choice, but profit margins were squeezed, and small family-run businesses were squeezed tighter than big outlets.

 

Some European countries, especially Germany, long had tight bans on all Sunday retail sales and even on late hours. The argument was that workers deserved regular time with families but that, in the absence of statutory bans, competitive pressures would force all stores to be open many hours all days of the week.

 

Some people, including myself, think that this argument has merit. Republican Sen. Rand Paul and other libertarians would disagree, arguing that a market free of statutory restrictions wouldn't compel people to work or to take a day off, that business owners would have that choice.  

 

While I think this represents an unrealistic view of the market pressures placed on businesses, the tide of popular thought is in that direction right now.

City of Rogers Position Opening
Jobs

The City of Rogers, MN is accepting applications for the position of Accounting Clerk I AP/Payroll. 

Major areas of responsibility for this confidential position include functions associated with bi-weekly payroll, perform all accounts payable functions in creating claim lists for inclusion in two monthly Council packets, assists in the utility billing receipting process, and utilizes strong customer service skills for both internal and external constituents. 

Qualifications include a two year accounting or finance related degree, proficiency in Microsoft Word and Excel, knowledge of accounting and payroll software. 

Previous municipal experience in payroll and accounts payable desired.

Full position description and employment application can only be obtained online at www.cityofrogers.org .

Competitive benefit package.  Wage range: $38,375 to $46,800.
 
Application and resume must be postmarked by April 4, 2014 and mailed to the City of Rogers, Attn:  Stacy, 22350 South Diamond Lake Road, Rogers, MN 55374 or emailed to cityhall@cityofrogers.org with "accounting clerk" in the subject line. 

EOE
Stacy Position Opening
Jobs

The City of Stacy is seeking to hire an individual for a permanent full-time Off-Sale Assistant Manager position.  

 

This position performs work that is primarily direct customer-support and administrative in nature, and is physically demanding.  

 

It is generally responsible for the work-direction of retail clerks, cashiering, stocking, merchandising, and a variety of other duties pertaining to retail off-sale liquor store operations.  

 

The minimum qualifications of the position are: High school graduation or equivalent with at least one year of retail liquor store or equivalent merchandising experience involving contact with the public, or an equivalent combination; valid driver's license; proficiency with standard office equipment and computerized cashiering systems.  

 

Any combination of education and experience that provides equivalent knowledge, skills, and abilities will be considered.  

 

Supervisory experience is desirable.  

 

Must be a minimum of 18 years of age.  

 

Application form and information regarding this position, including requirements, can be obtained at Stacy City Hall located at 30955 Forest Blvd, or by contacting 651-462-4486, or by visiting our website at  

www.stacymn.org

 

Please submit your application and resume no later than 5:00pm April 2nd, 2014.  

 

EOE  

Riddle Me This...


Q. Where do you find a turtle with no legs?


A. Where ever you left it!

 

A leader without a title is better than a title without the ability to lead
Future Dates to Remember

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

 
Click Here For Newsletter Archives 
Sunday Sales: Convenience at What Cost?
The MMBA website now contains comprehensive information on Sunday Sales. 

It is a reference for members, legislators, media, city councils and the general public.

Click Here for the Website

 

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Beverage Alcohol Training

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763-428-0164

Protect Your Customers & Staff from Norovirus
By Lars Johnson, the Food Safety Guy

Norovirus (the "stomach flu") seems to hit us hard every year in Minnesota.

 Cruise ship news of outbreaks is far away, but when we hear about our own schools closing, nursing home deaths, catered events going afoul, and even coffee shops being impacted we are reminded that even here no food/beverage business is exempt from an outbreak.

When a major, home-grown brand like Caribou Coffee hits the headlines we all perk up and pay attention.

In case you missed the news, here is a link to a quick summary of the event:


Click Here

The issue is now completely resolved and business is back in full swing.

So what happened and what can the rest of us learn from this?
 
Remember that Norovirus is highly infectious and survives long enough on surfaces that it can be easily picked up and ingested by an unwitting person even two weeks after it was left there.

What kind of surfaces are we talking about?


The handle of a coffee cream pitcher

the handle of a bathroom doorknob

A credit / debit card

A table top

A hand rail

A dirty plate or tray from a customer

A common bowl of nuts or candies

A passed communion plate

A hand shake

How is it passed on?

It's called the fecal-oral route of infection.

  In short, someone's fecal got into someone else's oral.

As few as 18 viruses could be quite enough to make someone sick.

That means that if you were to be sick and miss even the smallest portion of your hand during hand washing, it could be enough to cause someone else to become ill.


Here are some tips to remember and utilize:

Healthy persons touching items

Washed hands, then gloved if necessary

Clean, sanitized work surfaces

Clean, sanitized utensils (including hands)

Clean storage receptacles (boxes, bags, pans, plates, trays etc.)

Safe delivery tactics
Trinchero 
Contact Trinchero Family Estates 
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Contact Ste. Michelle Wine Estates


Contact Oven Baked Eats
NABCA
Contact the National Alcohol Beverage Control Association
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Contact Minnesota Independent Ice Manufacturers Association

MillerCoors

Contact MillerCoors

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Contact Beam Global

AB Logo

Contact Anheuser-Busch