Apr 2014
Transcription
Apr 2014
Tavern Times Visit these Hospitality/Gaming Industry Web sites: Montana Gaming Group: http://www.montanagaminggroup.com Montana Gaming Research & Education Fund: http://www.gamblingmontana.org Montana Conference reminder – Page 4 E-mail: pault@tashcommunications.com Main Office: 406-782-3660 “Dedicated to Serving the Montana Tavern and Gaming Industries” This publication endorsed by the Montana Tavern Association GIFTS On the road again Gaming group Vol. 19, Number 5 A Tash Communications Publication GIA hosts Road Show in May By Paul Tash Montana Tavern Times The Gaming Industry Association of Montana will sponsor its third annual Spring Road Show in five Montana cities in May. The Road Show continues to grow in popularity with gaming operators across the state. The Show is the perfect opportunity to compare gaming machines side-by-side, talk to machine representatives, and actually play the hottest and newest games available. The Spring Road Show features eight game-machine manufacturers. Participating manufacturers are Epic Software, Fleetwood Gaming, Grand Vision Gaming, IGT, MTD Gaming, Game Tech (Spielo), Summit Gaming and U1. “If you have video gambling as a significant revenue source in your business, it is a must that you attend one of the shows,” said Neil Peterson, April 2014 gives back to community Paul Tash photo BRUCE WILSON of Grand Vision Gaming, right, explains one of the company’s games to Lenny Readicker, of Lenny’s Casino in Butte, at last year’s GIA Road Show. executive director of the Gaming Industry Association (see his column on Page 5). The show is scheduled for: • May 6 in Kalispell at the Hilton Garden Inn, 10-3; • May 7 in Helena at Jorgenson’s, 10-3; • May 8 in Great Falls at the Holiday Inn, 10-3; • And May 9 in Billings May 9 at the Holiday Inn Grand, 103. The last stop for the GIA Road Show will be in Missoula on May 20 at the Broadway Inn and Convention Center from noon to 3, prior to the start of the GIA’s Annual Meeting. Despite their competition, machine representatives agree that the operators are the real winners because more manufacturers also mean more choices of machines and games for operators and players. By Paul Tash Montana Tavern Times Continuing a tradition of giving, the Gaming Industry Friends To Society (GIFTS) charity program donated $23,380 to 47 local entities and individuals in 2013. GIFTS is comprised of 58 taverns and casinos mostly serviced by Rocky Mountain Gaming in southwest Montana, primarily in the Bozeman/ Belgrade area but including Gallatin, Madison and Jefferson counties. Each participating gaming business contributes a portion of its gaming earnings to a fund that is then disbursed to charitable programs, often targeting youth and needy individuals in the region. The program is now in its 17th year, said Rocky Mountain Gaming’s Sid Langehough. “We would like to thank the bar owners and casino operators on the Rocky Mountain Gaming route, along with the Town Pump Foundation, for their continued generous support,” he said. The largest single amount, IGT set to release new E20 game suite By Paul Tash Montana Tavern Times Riding the wave of a successful Montana debut of the new E20 Upright machine and 14 popular game themes, global gaming entertainment provider IGT is primed to release another game suite for the E20 in the state to respond to growing player demand. The new game set features two new line games and three new keno games. IGT’s E20 established itself “as the line-game box” with Montana players following its debut in May 2012, said Kevin Lintner, IGT’s account manager for the state. He said about 1,000 E20 machines, featuring the enhanced AVP (Advanced Video Platform), are Change service requested: 914 Holmes Ave., Butte, MT 59701 PRSRT STD U.S. POSTAGE P A I D Permit No. 120 Bozeman, MT 59718 See CHARITY Page 8 these games perform now playing in across the country, and Montana. across the world in some Lintner said five cases.” new games – two line games and three After Montana playkeno games – are ers worked through a scheduled to roll out learning curve for video later this month for line games, introduced in the E20, pending January 2012, the games final state approval. now have enthusiastic “IGT was able to fans lining up to play, Kevin Lintner pull from its vast Lintner said. global library of line games and “IGT does a great job of pick the best-of-the-best and proadapting its core library of game vide them to Montana players,” he See IGT Page 3 said. “It’s a luxury to see how Montana Tavern Times – 2 April 2014 April 2014 Montana Tavern Times – 3 IGT from Page 1 content to the Montana market,” said Jim Coleman, IGT product manager. The new games, he added, are a “well-rounded set, and won’t have just one game that carries the box.” “The set in its entirety will appeal to players,” Coleman said. The new line games include Shadow of the Panther, an edgy game that offers IGT’s playerproven Super Stacks featuring a large variety of stacking symbols that drive high levels of anticipation and player excitement. “Super Stacks and Shadow of the Panther have been very successful for us over the last few years,” Lintner said. Another historically wellperforming game title that will be newly available in Montana is the sweetlythemed Candy Bars, Lintner said. “This is a game that has performed really well for IGT,” Lintner said. “It’s a graphically fun game that offers players three levels of awards. The first level is a smaller jackpot with a high frequency. The second level offers a bigger prize that hits often, but not as frequently as the first, and the third jackpot is nearly $800 and creates major excitement for the players who win it.” “Candy Bars allows players to clearly see what they can win. It’s a unique way to award these multilevel prizes that are advertised in the top LCD display of the machine.” Shadow of the Panther and Candy Bars will join the other three line games in the E20 that continue to perform well – Siberian Storm, Three Kings, and Da Vinci Diamonds. “Our data shows that 60 to 70 percent of play is happening on our line games,” Lintner said. “The remaining percent of play is keno.” The opposite ratio is true for other gaming manufacturers, he said, further showing IGT’s linegame market strength. “Our product is competitively strong in Montana.” “IGT isn’t focusing on just line games, however,” Coleman added, “The company is consistently raising the bar for keno, as well. This is just one of the many innovative product lines which are proving to be extremely successful.” Three new keno games coming to the IGT E20 cabinet are Keno Explosion, Bonus Spot Keno and Cleopatra Keno. Keno Explosion is a form of extra-draw keno, with random NEW IGT games expected out this month include the line game “Shadow of the Panther” and the keno game “Keno Explosion.” bombs placed on the screen. If the bombs are triggered, up to three extra draws per explosion (a total of nine) are awarded. Bonus Spot Keno plays off of the idea of Power Keno, with the exception that power hits aren’t necessarily limited to the last hit – the player chooses which spot is the power spot. Cleopatra Keno is a four-card keno game that allows players to win free games on each of the four cards being played. In addition to hosting popular games, “the E20 machine offers solid, under the hood reliability,” Lintner said. “It’s an easy machine for an operator to run,” Lintner said, adding that IGT has incorporated feedback on issues related to the serviceability and dependability of the game cabinet, creating a machine that is a solid choice for the Montana market. “IGT has other plans for the Montana market as well, including the introduction of the Universal Slant premium cabinet,” Coleman said. IGT maintains a strong presence in Montana. Lintner is based in Helena, and the company still runs its service operations out of Missoula. In addition, a group of 17 engineers in Bozeman continues to develop games focusing specifically on the “bar and tavern markets” in Montana, Louisiana, Illinois and South Dakota. The Company’s investment in the state is also evident in IGT’s effort to meet the specific needs of Montana game players. Art courtesy of IGT “IGT has worked very hard to make sure the AVP platform meets the needs of the Montana market,” Lintner said, adding that IGT’s new game releases and cabinet introductions “provides continued value for years to come.” To follow up on that effort, IGT is offering advantageous pricing for customers. “We’ve put together a price point that keeps smaller operators in mind,” Lintner said. “We want our product to be attainable and upgradeable – a premium product at an affordable price.” IGT is also introducing a program to help operators market the games themselves, such as making marketing materials available 24/7 to operators directly on IGT.com. The E20 and its new games will be available at the multi-city Road Show in May, sponsored by the Gaming Industry Association of Montana. Montana Tavern Times – 4 Tavern Times April 2014 Opinion/Editorial Plan now to attend MTA convention P By Chris Caldwell MTA Administrator Spring is finally here. We wish someone would let Mother Nature know. Enough snow already! This month, informational flyers for the 2014 MTA Convention and Trade Show will be sent to potential vendors. If you are a vendor interested in participating in our Trade Show and don’t receive a flyer, call me at (406) 442-5040. I’ll see that you receive the information. Chris Caldwell New vendors join our show each year. The Trade Show is a We put together a large Trade Show great time place to introduce product or with a variety of vendors who offer goods service to tavern owners as a group. and services of interest to those of you in The MTA Convention and Trade Show the industry. Check it out, you just might this year will be Sept. 8-11 at the GranTree need something! Inn in Bozeman. Plan now to join us. You Government officials and industry reguare welcome to attend, and you don’t have lators attend our convention. These officials to be an MTA member. provide valuable information and will respond to issues of concern to our industry. You won’t want to miss this opportunity to keep up to date on issues that affect the way you do business. And, of course, a number of social events are planned, as well. You’ll be glad you came. At the end of this month membership applications will be sent to those of you who are not currently MTA members. Please take the time to read our information about the Trade Association that represents you, member or not, and consider becoming an MTA member. We need you and you need us to protect your right to operate your alcoholic beverages business. If you have any questions or need any information, call me at (406) 442-5040, email me at mtttavern@gmail.com or leave a message on our membership hot line. lease join us for the MTA’s 59th Annual Convention and Trade Show Sept. 8-11 in Bozeman. Bar, casino managers carry responsibilities By Dave Jeseritz Investigations Bureau Chief Gambling Control Division This month’s article is addressed to all bar and casino managers working across this great state. First, I would like to say “congratulations!” in becoming a manager, as you have obviously been identified as an employee who is responsible, effective, trustworthy, and committed to the success of your employer’s business. Your managerial title comes with certain responsibilities, but do you know that your position must comply with notice and approval requirements of the Liquor Control and Gambling Control Divisions? Do you know whether a “Management Agreement” has been submitted and approved by the Divisions? Do you know what happens if you’re not in compliance? I urge you to carefully read the remaining article and then share it with the licensee as well, as this discussion is aimed to help you answer these questions. First, let me focus on the requirement of the Liquor Division’s Administrative rule 42.12.132 regarding management agreements. 1. Licensees who are allowed to sell alcoholic bever- ages are authorized to employ you as a manager, so that good news! 2. As a manager, you are the licensee's agent, and if delegated, you can oversee the alcoholic beverages business conducted in the licensee's Dave Jeseritz licensed premises. 3. Now, here comes legal verbiage … "the manager or the person designated to represent the manager must possess a past and present status as a business person and citizen who demonstrates the likelihood of operating the licensed establishment on behalf of the licensee in compliance with all applicable laws of the state and local governments.” What does that all mean? It means that you have a lot of responsibilities, both to your employer, their business, to the Liquor Control Division and, if the employer has a gambling license, to the Gambling Control Division as well. That’s A s a manager, you are the licensee's agent, and if delegated, you can oversee the alcoholic beverages business .... where your extra pay is truly earned. 4. I am using bold print here to share some important information that both you and the licensee need to know and follow in a timely manner: Within 30 days of employing you as the manager, the licensee must file with the department a signed original of the written management agreement, a personal history statement, and a complete set of fingerprints that clearly discloses the following information: a. the manager's name, address, telephone number, mailing address ( if different from street address), and one of the following: i. Social Security number for individuals; or ii. federal employer identification number for a business; b. the amount of compensation to be paid to the manager; and c. the specific duties and responsibilities delegated to the manager by the licensee. 5. The management agreement must comply with the following standards: a. The licensee must retain the possessory interest in the premises through ownership, lease, rent, or other agreement with the owner of the premises; and b. While the agreement may delegate duties to the manager, the licensee must retain ultimate control, liability, responsibility, and accountability for the retail alcoholic beverage operation. 6. The management agreement may not assign or limit any of the rights or responsibili- See MANAGERS, Page 7 April 2014 Tavern Times Montana Tavern Times – 5 Opinion/Editorial eStop allows one-stop, online licensing By Denise Brunett Liquor Licensing Bureau Liquor Control Division The one-stop licensing program has a new name – eStop Business License Service. The launch of eStop comes with new online capabilities, allowing businesses to apply and renew for up to seven state licenses all at once with one payment. Licenses offered on eStop include Food Purveyor, Tobacco Retail and Wholesale, OffPremises Beer and Wine, Nursery, Petroleum Dealer (Meters), Weighing Device (Scales and Underground Storage Tank). This method of licensing is especially convenient for grocery and convenience stores with gas pumps. They can get their food, tobacco, beer and wine, weighing and petroleumrelated licenses all at once. To gaining initial access to eStop Licensing, go to ePass Montana at SVC.MT.GOV/DOR/ESTOPPORTAL/DEFAULT.ASPX or to the Department of Revenue website at revenue.mt.gov. Follow the directions to create or access your ePass Montana account. The Montana O ff-premises locations must meet certain requirements to qualify for a license .... Denise Brunette Department of Revenue manages eStop. Call the department toll-free at (866) 859-2254 (in Helena, 444-6900) or email DORESTOP@MT.GOV if you have any questions about using eStop. Another exciting development at the Department of Revenue involves recent legislative changes that allow for four types of off-premises licenses: Convenience/Grocery Stores, Pharmacy, Stand-Alone and Sacramental Wine. These licenses are not governed by quota limitations. The StandAlone license requires an establishment to earn at least 95 percent of their annual gross income from the sale of beer, table wine or from both beer and table wine. These types of establishments are usually specialty beer and wine stores. The Sacramental Wine license is for off-premises consumption and allows the business to be located in or outside Montana. The licensee can sell and deliver at retail wine with up to 24 percent of alcohol by volume to rabbis, priests, pastors, ministers or other officials of churches or other established religious organizations exclusively for use as sacra- mental wine or for other religious purposes. The Department reminds applicants and licensees, specifically those considering alterations, to review Administrative Rules of Montana, 42.12.122 and 42.12.137, which address suitability of premises. An off-premises licensee may not allow anyone who purchases beer or wine from his or her establishment to consume it anywhere on the property owned or leased by the licensee. That includes property that is part of, adjacent to or used in connection with the licensed offpremises business as shown on the floor plan that the licensee submitted to the Department of Revenue for approval. This includes patios, decks, parking lots, sports or play areas, and so on. Off-premises locations must meet certain requirements to qualify for a license, including: • They must sell beer and/or wine for off-premises consumption in their original packages only. • They must operate in a space that is physically separatSee eSTOP Page 8 GIA Road Show, convention to highlight busy May By Neil Peterson GIA Executive Director May will be gambling month for the Gaming Industry Association (GIA). Kicking off the month will be the third annual GIA Road Show, which has proven to be a big event for folks involved in the gaming industry in Montana. The GIA Road Show is open to the public and anyone can attend. Again this year, all eight video gaming machine manufacturers who produce games for Neil Peterson Montana will be in attendance: Grand Vision Gaming, Summit Road Show will be in Missoula on May 20 Gaming, U1 Gaming, Fleetwood Gaming, at the Broadway Inn and Convention Center Game Tech (Spielo), MTD Gaming, Epic prior to the start of the GIA’s Annual Software, and IGT. Meeting. The Road Show starts in Kalispell on The GIA Road Show provides a oneMay 6 at the Hilton Garden Inn, moves to stop shopping experience showcasing the Helena on May 7 at Jorgenson’s, then to latest video gaming hardware and software Great Falls May 8 at the Holiday Inn, and available in Montana. If you have video wraps up the week in Billings May 9 at the Holiday Inn Grand. The last stop for the GIA gambling as a significant revenue source in I your business, it is a must that you attend one of the shows. The GIA holds its Annual Meeting in Missoula at the Broadway Inn and Convention Center May 20-21. The event kicks off Tuesday afternoon, May 20, with the preliminary rounds of the Freeze Out Poker Tourney. The poker tourney takes a break during the GIA Reception and Trade Show from 6-9 p.m., and then the poker tourney finals wrap up the night. On Wednesday, May 21, the GIA will hold its board meeting, with everything wrapping up early in the afternoon. I encourage all members of the GIA to mark these dates on your calendar and plan on attending. Remember, the two main advantages to your GIA membership are information and networking. If you don’t attend, you can’t take advantage of these two key components. I look forward to seeing you all sometime in May. encourage all members of the GIA to mark these dates on your calendar and plan on attending. Montana Tavern Times – 6 April 2014 April 2014 Tavern Times Managers from Page 4 ties of ownership. Basically, as managers, you are not permitted to have the following assignments given to you: a. Control of business hours, types of alcoholic beverage products sold, selling price, level of inventory maintained, and overall business atmosphere; b. Exclusive authority over business accounts and operation funds; c. Authority to remodel or otherwise make changes in the business operation requiring non-routine actions; d. Ultimate decision-making authority regarding the hiring, firing, advancement or promotion, or any other change of status of other employees; e. Liability for business expenses and losses, either directly or through an indemnification agreement with the licensee. The licensee may require the manager to do the ministerial act of paying the expenses, but this must be accomplished by using the licensee's funds; or f. Ownership of the inventory or the right to use or dispose of it at will. 7. The licensee must maintain an active participation in the business operation sufficient to ensure the proper and lawful conduct of the business, and execute all reports required by governmental agencies that attest to the licensee's ownership and certify compliance with applicable statutes and regulations. The licensee may work in the establishment at any time; 8. The agreement may not be assignable by the manager to a successor manager without the written consent of the licensee; 9. The agreement may not place any restrictions on the licensee's right to transfer, mortgage, hypothecate, or alienate the license, or change the location of the operation; 10. The agreement must be terminable upon the licensee transferring the license, selling the business, or otherwise ceasing business operations at the licensee's option; 11. The agreement must provide for compensation. a. Compensation must be stated as either as a fixed amount, a percentage of gross Montana Tavern Times – 7 Opinion/Editorial sales, or a combination of fixed amount and percentage of gross sales (note: this is different for combined liquor/gambling establishments, as Gambling Control Division’s administrative rules do not allow for a percentage of gross sales to be included in the agreement); and b. The compensation of the manager must be commensurate with the duties performed, cannot consist of net profits from the business, and cannot be less than the federal wage and hourly standards for an individual. 12. The management agreement must establish a principal agent, employer-employee, or other type of agency relationship, making the manager responsible to the licensee for the performance of assigned duties, while the licensee is responsible or the proper performance of the manager. 13. Failure of the licensee to terminate operations under a void management agreement constitutes a violation of Montana law and departmental rules. Next, I’ll address the Gambling Control Division’s rules for managers. 1. A "Manager" in a gambling establishment means a person employed or authorized by the licensee to supervise personnel or business functions of the licensed operation. Every person who is authorized to supervise personnel or the business functions of a licensed operation must operate under a written “management agreement.” 2. A "management agreement" means a contract between the licensee and manager(s). As under the Liquor Control Division’s rule, the agreement may not transfer an ownership interest in the licensed operation or limit or relieve the licensee of record from the responsibilities of ownership. However, the rule notes that bonuses or bonus-type payments based on job performance are not considered ownership interests if they are provided in conjunction with a reasonable salary base and do not assign or transfer an ownership interest. Getting bonuses? Great! Just make sure your management agreement clearly spells out when and how you are to receive them. 3. As required under the Liquor Division’s rule, Gambling Control Division’s administrative rules 23.16.502 and 23.16.508 require that any employment of a manager or management company, or any change in management employees or company (i.e., the hiring or firing or changing the status of a manager) must be reported to the Gambling Control Division within 30 days of the date of change. Thus, whenever a licensee hires a manager or management company, the employee(s) must submit their completed personal history statement and two complete sets of fingerprints, and the licensee must submit a copy of the management agreement, to the Division within 30 days of the date of hire. This is accomplished using the Division’s Form 30, entitled “Business Statement.” If you are among two or more managers, you must know that all managers must comply with these conditions. Montana’s gambling policy requires “a uniform regulatory climate that assures players, owners, tourists, citizens, and others that the gambling industry in this state is …not influ- Write us enced by corrupt persons ….” Mont. Code Ann. § 23-5110(1)(a). Management employees, due to their positions of trust, access, and control, must meet the same suitability requirements for gambling licensure as does the licensee. Management employees must therefore submit fingerprints and personal history statements so that the Division may conduct a background investigation to determine the employee’s suitability. After reading this, you either feel good about your managerial job because you have all your ducks in a row, or you have become nervous wondering who is going to be knocking on your door soon. Don’t panic. If there are issues to be fixed, we want you to come to us before an investigator discovers it during an inspection. We ultimately want you and the licensee to be in compliance without undue hardship, so please contact us after speaking with your employer first, or if there are additional questions you can contact the Liquor Control Division at 866859-2254 or the Gambling Control Division at 406-4441971. The Montana Tavern Times welcomes letters to the editor. Letters must include the writer’s name and address. The word limit is 300. Mail to Montana Tavern Times, 914 Holmes Ave., Butte 59701, or email the office at pault@tashcom munications.com. The Times reserves the right not to print letters it finds objectionable. A Tash Communications Publication Tavern Times Business and News Office: 914 Holmes Ave., Butte, MT 59701 • TEL: 406-782-3660 • FAX: 406-494-1324 • E-MAIL: pault@tashcommunications.com Paul Tash, Editor/Publisher • pault@tashcommunications.com Office phone: 406-782-3660 • Cell: 406-491-0100 Paul Vang, Contributing Writer • pfvang@bresnan.net Phone 406-494-5736 Ad Production • production@tashcommunications.com Reprints of articles and back issues are available at a cost of $10. If you wish to begin receiving the Montana Tavern Times, send your name, mailing address, telephone number and $29 to the address above. Postmaster: Please send address change requests to 914 Holmes Ave., Butte, MT 59701 All rights reserved by publisher This publication has been endorsed by the Montana Tavern Association Montana Tavern Times – 8 eStop from Page 5 ed by permanent walls from any business not directly related to that off-premises business. This includes a separate, on-premises alcohol beverage business. • The must store all beer and wine inventory on-site in an area identified on the floor plan. On average, it takes the department 45 to 60 days to process an application for a liquor license. We require an application to be processed within 45 days, but we may pause the days counted in the process time if we need to request additional information from the applicant. It’s important, then, for applicants to sub- mit a complete application and to respond as soon as possible to requests for documents or explanations. If you qualify for and are requesting Temporary Operating Authority (TOA), be aware that the Department will grant the TOA only after we receive verification that the seller is in good state tax standing and the application includes the minimum required documents. We are excited to provide the new eStop online capabilities and offer the Stand-Alone and Sacramental Wine offpremises license types. We strive to make the licensing process easier and more efficient for Montana so licensees can focus on operating and growing their businesses. Charity from Page 1 $2,000, went to the Heritage Christian School to help rebuild its gym. In addition, Duane Walker received $1,991 for medical assistance. Groups and individuals receiving $1,000 were Zoe Turpin for medical assistance, Kelsi Slingsby for medical assistance, Family Promise Cardboard Box fundraiser, Belgrade Public Library, Patty Ellison for medical assistance, Thrive Cap Program, and the Gallatin Co. Food Bank. The complete list of contributors for 2013 GIFTS is below. 19th Hole Grille Banana Bay Black Bear Bar & Grill Bozeman Bowl Broken Arrow Bar Buffalo Bar & Casino Bullwinkle's West Colonel Black's Cannery Lounge Cat's Paw Shopping your insurance? ly e v i s u l c x d E e s r e n d o M TA e h t y 96 b 9 1 since April 2014 CALL ONE OF THESE MTA-RECOMMENDED AGENTS TODAY! – Rod Gabriel, 532-3884 – Rod Crawford, 532-3881 – Mark Kuhr, 756-4137 Work Comp • Property • Liability • Liquor Liability • Health Ins Choppers Big Sky City Center Steakhouse Club 30 Crystal Bar Eagle's Club #326 Filling Station Firehouse/Lucky Palms Friendly Tavern The Game Grizzly Lounge Gusher Pizza Haufbrau Hideaway Lounge Hub Bar Jackpot Casino - Belgrade Jackpot Casino East Jackpot Casino West Korner Klub Legion Club-Bozeman Lucky Lil's - Belgrade #1 Lucky Lil's - Belgrade #2 Lucky Lil's - Bozeman #1 Lucky Lil's - Bozeman #2 Lucky Lil's - Four Corners Lucky Lil's - Three Forks Lucky Lil's - Whitehall Magic Diamond - Belgrade Magic Diamond - Bozeman Magic Diamond - Livingston M.R. Hummers Milkie's Pizza Mint Bar-Whitehall Mixer's Molly Brown Old Chicago Old Faithful Bar/Stacey's Plaza Bar Pony Bar Pourhouse Rocky Mountain Gaming Scoop Bar Sir Scott's Oasis Spectator's Sports Bar Teasers Wild West Pizza Zebra Club April 2014 Starbucks putting ‘bar’ in barista nationwide The Atlantic Starbucks just announced that it will be shifting from selling alcohol in a few select stores to unleashing it across the United States. “We’ve tested it long enough in enough markets – this is a program that works,” Chief Financial Officer Troy Alstead told Bloomberg. As well as beer and wine (though not hard liquor), the chain will also offer a line of fancier snacks, including baconwrapped dates, truffle macaroniand-cheese, and flatbreads. It’s just the next stage in Starbucks’ goal of getting customers to swing by not only in the morning, but at all times of the day. When the chain shelled out $100 million for bakery La Boulange in 2012, Chief Executive Officer Howard Schultz explained to investors that “what La Boulange is providing us well beyond the morning pastries and the lunch is a significant platform to go after need states and day parts well into the future.” Alcohol, which Starbucks intends to sell in the evenings, will draw customers with yet another need state into yet another day part. “Anything that you see happening here is driven by the question: what is the customer looking for?” Starbucks spokesperson Alisha Damodaran said. “When we think about new product offerings in the stores, we always think about what makes customers come through our doors.” The offer-more-things strategy seems to be working. Starbucks now makes almost 50 percent more transactions per hour than it did only five years ago. Alcohol is currently being sold in 26 locations across the United States, but it will spread to about 40 by the end of the year, and to over 1,000 stores nationwide “eventually,” Damodaran said. She says the company intends “to remain predominantly a coffee store,” but it’s catering to many more needs than caffeine these days. MILODRAGOVICH, DALE, STEINBRENNER Attorneys P.C. Liquor License Transfers, Gaming Applications, Real Estate, Business Sales, and Estate Planning GERALD W. STEINBRENNER (406) 728-1455 Fax (406) 549-7077 E-Mail: fishlaw@bigskylawyers.com www.bigskylawyers.com P.O. Box 4947 620 High Park Way Missoula MT 59806-4947 Tavern Timetable Montana Tavern Times – 9 April 23 May 2 May 13 May 20-21 Sept. 15-18 — UPCOMING EVENTS — Central Montana TA dinner, Eagles, Lewistown Gaming Advisory Council, GCD office, Helena Yellowstone Tavern Assoc. dinner, Billings Hotel GIA Convention, Missoula, Broadway Inn MTA Convention, GranTree, Bozeman — STANDING DATES — 2nd Tues. of month 1st & 3rd Wed. month Third Tue. of month Quarterly (call) 1st Thurs. of month 2nd Wed. of month 2nd Wed. of month 2nd Tues. of month 1st Tues. of quarter 3rd Thurs. of month Last Tues. of month 2nd Thurs of month 2nd Thur. of month 2nd Wed. of month Last Wed. of month 1st Mon. of month 2nd Tues. of month 1st Tues. of month Carbon/Stillwater TA 237-9844 Cascade Co. TA 453-9567 Central Montana TA 868-4693 Flathead Co. TA 270-8069 Hi-Line TA 265-9551 Lake Co. TA 883-2553 Lincoln Co. TA 293-4493 Miles City TA 234-3164 Missoula Co. TA 728-0030 Park County TA 222-0665 Ravalli Co. TA 821-1853 Richland Co. TA 433-4354 Sheridan-Richland-Daniels 474-2358 Silver Bow TA 494-6062 Southwest Montana TA 835-2150 Toole Co. TA 434-2442 Tri-County LBA 475-9560 Yellowstone TA 656-3991 Montana Tavern Times – 10 April 2014 April 2014 Montana Tavern Times – 11 Montana Tavern Times – 12 April 2014 Liquor Biz Czech president wants to protect Budvar By Paul F. Vang Montana Tavern Times Milos Zeman, president of the Czech Republic made it clear: Keep Budejovicky Budvar brewery a nationally owned enterprise. In a St. Louis Business Journal report, drawing on a previous report from the Prague Daily Monitor, Zeman said that Budvar is the only national company in the Czech Republic and it was made a national company in “order to prevent privatization by American concern Anheuser-Busch.” President Zeman doesn’t mince words in saying that he thinks Anheuser-Busch, the U.S. division of A-B InBev, would lower the quality of Budvar, telling Americans, “You do not drink beer, even though you think so. You drink dirty brown water, which you call beer.” California drought While there has been a lot of coverage about the drought in California, even while long-overdue winter rains finally came along, news came that makes it clear how serious the drought situ- ation actually is: there may not be enough water to make beer. In a report from Climate Progress, an Internet site that monitors climate change news, California craft brewer Lagunitas Brewing Company announced that the drought is threatening the Russian River, where they get water for beer. Lagunitas could possibly draw on groundwater to supplement diminishing river water, though not without complications. Area groundwater sources have a lot of mineral content, such as nitrates, iron and manganese. Jeremy Marshall, Lagunitas’ head brewer said, “It would be like brewing with Alka-Seltzer.” Climate change is causing other concerns in the brewing world. The report goes on to cite storms, droughts, heat waves and other extreme weather events that reduced barley and hops crops in Australia, England, New Zealand and Czech Republic. A spokesman for New Belgium Brewery, the company that makes Fat Tire Ale and other brews, noted, “We make something, and it’s a deeply agricultural product. So, we are tied to the seasons, the productivity of the land, and, of course, water.” The report concludes that climate change also threatens other agricultural products such as maple syrup, chili peppers, chocolate and apple pie. In a related story in Decanter, California wine producers anticipate a poor wine grape crop in 2014. In New Zealand, however, where fall harvest is just starting, growers are expecting bumper crops. Whiskey sales In recent months we’ve reported on surges in whiskey popularity and growing sales, and, of course the sale of American distiller Beam Inc. to Suntory of Japan. A feature article in Esquire magazine also reports on the popularity of whiskey, and the shifting of tastes. “Ten years ago,” the article says, “everybody drank vodka, and Scotch was something you kept around for when your dad visited. Irish whiskey was otherwise known as Jameson, and it sat gathering dust in the back of the liquor cabinet, waiting for moments of personal crisis. Bourbon was basically a punch line.” Now, whiskey sales are booming, and much of the sales growth is in the expensive stuff, “juice that was put in a barrel years and years ago, while the whiskey category was still in a downturn.” Sales of single malt Scotch whisky have doubled in the past ten years; super-premium bourbon sales have tripled. Distillers in Scotland and the Unites States are ramping up production, though “You can’t just whistle up 12-year old Scotch,” as one distiller puts it. The concluding advice of the article is that if you’re attached to, for example, 18-year-old single malt, you’d better stock up. “It isn’t going to get cheaper or easier to find in the next five years. Unlike wine, whiskey stops aging once bottled – so buy as much as you can afford today, and keep some stashed away for a rainy day.” Schlafly name dispute Phyllis Schlafly has had a long career as a conservative commentator, and possibly best known for efforts in the 1970s, to defeat the Equal Rights Amendment. Tom Schlafly is Phyllis Schlafly’s nephew and a founder of a St. Louis craft brewing company. Fox News reports that Tom Schlafly wants an exclusive right to use the Schlafly name to sell craft beer. Phyllis Schlafly, who has made a career of disliking government, is asking for government protection, asking the Patent and Trademark Office to deny her nephew’s request, for fear that an implied association with beer would sully her 60-year political career. Hockey beer prices Hockey fans in Boise, Idaho, often drink beer when they go to see their home team, the Idaho Steelheads, play hockey at CenturyLink Arena. At the beer counter, the sign says the price for a “small” beer is $4, while a “large” beer costs $7. The plastic cups and their prices have been the same for at least several years. In early March, however, Gwen Gibbs and her boyfriend, Heath Forsey, created a You Tube video showing a patron holding a large cup of beer and pouring it into an empty small cup. While the large cup is taller than the small cup, both cups appear to hold the same amount of beer. Idaho Steelhead officials were embarrassed about the video, and ordered new cups that hold 24 ounces instead of the previous 20 ounce cups that somehow hold the same amount of beer as the “small” 16 ounce cup. Another development, as reported by Fox News, is that several days after the You Tube video came out, four fans filed suit in District Court asking for $10,000 damages for losses incurred while attending sporting events at the arena for the last five years and frequently shelling out $7 for the so-called large beer. Eric Trapp, president of the Idaho Steelheads and CenturyLink Arena, wrote on the team’s Facebook page that the company had ordered 16-ounce and 20ounce cups and never intended to mislead customers. April 2014 Montana Tavern Times – 13 Montana Tavern Times – 14 April 2014 April 2014 Montana Tavern Times – 15 Montana Tavern Times – 16 April 2014 April 2014 Montana Tavern Times – 17 Tennessee whiskey battle getting spirited Wall Street Journal If it isn't fermented in Tennessee from mash of at least 51 percent corn, aged in new charred oak barrels, filtered through maple charcoal and bottled at a minimum of 80 proof, it isn't Tennessee whiskey. So says a year-old law that resembles almost to the letter the process used to make Jack Daniel's, the world's best-known Tennessee whiskey. Now state lawmakers are considering dialing back some of those requirements that they say make it too difficult for craft distilleries to market their spirits as Tennessee whiskey, a distinctive and popular draw in the booming American liquor business. But the people behind Jack Daniel's see the hand of a bigger competitor at work — Diageo PLC, the British conglomerate that owns George Dickel, another Tennessee whiskey made about 15 miles up the road. "It's really more to weaken a title on a label that we've worked very hard for," said Jeff Arnett, the master distiller at the Jack Daniel's distillery in Lynchburg, Tenn. "As a state, I don't think Tennessee should be bashful about being pro- tective of Tennessee whiskey over say bourbon or scotch or any of the other products that we compete with." Republican state Rep. Bill Sanderson emphasized that his bill wouldn't do away with last year's law enacted largely on the behest of Jack Daniel's corporate parent, Louisville, Ky.,-based BrownForman Corp. The principal change would be to allow Tennessee whiskey makers to reuse barrels, which he said would present considerable savings over new ones that can cost $600 each. "There are a lot of ways to make high-quality whiskey, even if it's not necessarily the way Jack Daniel's does it," Sanderson said. "What gives them the right to call theirs Tennessee whiskey, and not others?" Sanderson acknowledged that he introduced the measure at Diageo's urging, but said it would also help micro distilleries opening across the state. Diageo picked up on the same theme. "This isn't about Diageo, as all of our Tennessee whiskey is made with new oak," said Diageo executive vice president Guy L. Smith IV. "This is about Brown-Forman trying to stifle competition and the entrepreneurial spirit of micro distillers. "We are not sure what they are afraid of, as we feel new innovative products from a new breed of distillers is healthy for the entire industry," he said. Jack Daniel's last year sold 11.5 million cases of it Black Label last year, a 5 percent increase from 2012. Dickel, the second-largest Tennessee whiskey producer, sold 130,000 cases in 2013. The standards and special branding of Tennessee whiskey are an outgrowth of the special designation granted long ago to bourbon. A half-century ago, Congress declared bourbon a distinctive product of the United States. By law, bourbon must be made of a grain mix of at least 51 percent corn, distilled at less than 160 proof, have no additives except water to reduce the proof and be aged in new, charred white oak barrels. Spirits that don't follow those guidelines can't be sold as bourbon. One example is BrownForman's own Early Times, which is marketed as a "Kentucky whisky" because it is made in reused barrels. Billy Kaufman, the president Short Mountain Distillery in Woodbury, Tenn., said it is more difficult to distinguish spirits not meeting the Tennessee standard. "If I made whiskey in Tennessee in a used barrel, what it would be called then?" he said. "Whiskey, made in Tennessee?" David McMahan, a lobbyist representing Dickel and Popcorn Sutton Distilling, said the law passed last year would require all Tennessee whiskies to taste like Jack Daniel's. "It's not unlike if the beer guys 25 years ago had said all American beer has to be made like Budweiser," McMahan said. Whiskey is clear when it goes into the barrel. It's during the aging process that the whiskey acquires color and flavors. Jack Daniel's Arnett said other distillers reusing barrels might resort to using artificial colorings and flavorings that wouldn't match the quality of the whiskey stored in new barrels. "We've been making whiskey a long time, and we know that would not uphold the quality that people expect from Tennessee whiskey." Buying or selling your business? I can help! • Specializing in putting buyers and sellers together for merger and acquisition of businesses • Past beer and wine wholesaler in Montana and Arizona • 22 years experience in alcohol-related businesses • Seeking listings in Tavern, Restaurant and Gaming Industry “I’m looking forward to meeting many of my old-time friends and getting to know new acquaintances. If I’m given the opportunity to work for you, I don’t believe you will find anyone who will work harder than I will.” 404 N. 31st Street, Suite 205 P.O. Box 7225 Billings, MT 59103-7225 Cell: 406 425-0180 E-mail: lyle@lbstratus.com • Karoake 7 nights a week 9 p.m. to 2 a.m. • Large Variety Poker & Keno Machines Queen of Hearts • Packaged Liquor To-Go Card Club • Great Drink Prices Best Live Poker Action in Town in the Queen of Hearts Card Room. crystalloungebillings.com 101 North 28th Street • Billings, Montana • 406-259-0010 Montana Tavern Times – 18 April 2014 MTT • Buy • Sell •Trade BUSINESSES FOR SALE Montana agency liquor store for sale. Serious inquiries only. From more information call 406-949-4442. THE OLD SALOON AND LIVERY STABLE STEAK HOUSE Historical Bar/Restaurant with Liquor/Gaming license, Real Estate and FF&E located 20 miles from the North entrance to Yellowstone Park. sits on 1.2 acres. Price reduced to $650,000. Possible owner financing. Call Dave Everett, 406-600-0647. State liquor store in Polson, including state contract, inventory, property and building. Call 406-260-8724. WHITEHALL, MT Convenience store close to Lewis and Clark Caverns. One liquor license and one liquor license with gaming. 35-space RV parking with amenities. Please inquire at 406-287-3274 or mtnview@tssmt.net. The world famous East Side Bar & Grill and Cowboy Casino in Belt, MT, is offered for private sale to the right, qualified buyer. Proven drop, revenues and profits. Call Matt, 406-781-9474. Serious inquiries only. BUSINESSES FOR SALE Great business for sale in Livingston, Montana Bar/Liquor Store combination, includes kitchen! One of the top liquor-selling businesses in the state! Sale includes liquor license, real estate and equipment! Great income producing property ... Call PEDE at (406) 570-1541 or pdavis52@gmail.com Downtown Kalispell Casino with a 10% Annual Return Well established casino in the heart of Kalispell’s high traffic area with an exclusive “Players Club” clientele list. Montana State Beer and Wine License (w/state approval), 20 owned gaming machines, full commercial kitchen, 3,245 SF building, newly paved parking on half acre lot, plus all the furniture, fixtures and equipment. Room for expansion/growth for a higher return on your investment by adding a poker room and an operating kitchen/restaurant and bar. Call Tom at 5 Star Realty, 406-862-1000. RECENTLY REMODELED HISTORIC PROPERTY IN BEAUTIFUL WISE RIVER Historic hotel, restaurant, 7 cabin and 13 RV spot resort. The Wise River Club – a long-established fishing, hunting, and snowmobiling destination in Montana – is for sale by owner. I am passing the realtor costs on to you in savings. Liquor license transferable statewide (one of the few left in Montana), gaming license and year-round clientel. 701-640-9033 or 406-832-3258 BAR, RESTAURANT, CASINO IN GREAT FALLS 22,000 SF building, 2.6 paved acres, 2 complete bars, dance floor. Best view in Great Falls, at I-15 interchange adjacent to International airport. Additional 6 acres available. All beverage license available. Excellent, proven income. 3 million replacement cost. $800,000. 406-781-9111. BUSINESSES FOR SALE BEN’S ARENA BAR & CASINO Deer Lodge. Full liquor license with gaming. Great location. Selling due to health. $450,000. 406-846-1617. The Hideout Bar & Restaurant Great food, river views. All-beverage liquor license. Casino ready. $550K Bob Pauley, broker. 406-369-0210 FULL MOON SALOON HISTORICAL STEVENSVILLE Where everybody knows your name. Full liquor, gaming, catering, café and bingo licenses. A whole lot of fun! Price reduced! Call JoyceAnne Jodsaas, 406-239-5726. City of Billings Beer and Wine License with gaming. This license is ready to transfer! $350,000 Tremendous Location!!! Billings Bar, Lounge, Casino, Liquor Store. Includes All Beverage License, 1.6 acres Land, 3,745 sf building. Three income streams – excellent cash flow! $1,900,000 Chuck Platt 406-861-8000 chuck@chuck-platt.com RE/MAX of Billings Commercial Division LICENSES FOR SALE Full-beverage liquor license without gambling. 495K. Serious inquiries only. 406-661-1426. All beverage floatable liquor license. Will sell with bar, with gaming or separately. 406-323-2347. Great Falls full liquor license with gambling. Call 406-781-9072. Just $4.50 per line 1-406-782-3660 pault@tashcommunications.com LICENSES FOR SALE Kalispell All-Beverage Liquor License No. 07-901-2541-001 for sale. Call Mike Nissen, 406-752-4050. Beer and wine license for sale for use in the Great Falls area. $250,000. Marie Willson, Realtor, at 406-8688900 or email at marie@dahlquistrealtors.com. Dahlquist Realtors. Billings all beverage liquor license with gaming. $700,000. Seller may finance $500,000 over 20 years OAC. Call 406-672-4434. All beverage floating liquor license. $20,000 or best offer. Currently in Dillon. Call 406-925-2228. Missoula all-beverage liquor license. Call Sharon Rhodes, 406-542-8169. Leave a voice mail. All beverage floating liquor license available for immediate sale. Able to float to counties and towns where quotas have not been reached. There are towns near the Bakken where this license can be moved to. Please inquire at bigsky9969@gmail.com, 406-219-1141 or 406-600-2578. Missoula city all-beverage liquor license. Motivated seller. 406-370-0146. Whitefish Restaurant Beer/Wine License (Cabaret) #07-937-2561-401. $40,000. Contact Alan Elm, (406) 253-0724. EQUIPMENT TO BUY, SELL 24" Gasser casino chairs, black stacking chairs, black bar stools, buddy bars, square dining tables and pizza oven. Call Dan, 406-861-5608 Six gaming machines for sale: 4 classic Royal Touch, 2 Gamblers Edge. $1,500 OBO. 406-236-5406 April 2014 Montana Tavern Times – 19 Montana Tavern Times – 20 April 2014
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