Jan.04 Restocking

Jan.04 Restocking
12/10/03
11:58 AM
Page 1
2004 NEW YEAR’S RESOLUTION:
Stop bad purchasing
habits
By David T. Kratt
Y
ou made it through all those crazy company Christmas parties. Then made it through the granddaddy amateur night
of the year – New Year’s Eve. Now a well-deserved break is
in order as soon as year-end physical inventory is finished.
ning of the year is the perfect time to make
some changes.
First of all, a physical inventory represents
the stock on hand at a particular point in time.
It doesn’t show stock usage over a period of
time, which should be the basis for your stock
ordering decisions. Ordering liquor only when
liquor bottles are emptied isn’t a good basis,
either. For example, you had 2.1 bottles of some
liqueur in inventory. Someone must have
ordered a frappe or something over the holidays
because now you have only two bottles. Do you
replace the empty bottle? Stock usage numbers
would have showed that two bottles of this
Then comes the bad news.
The physical inventory shows how far off
the mark you really were with ordering stock for
the holidays. You already knew you ran out of
some key stock over the past week but you also
ordered enough of other stock to last through
next New Year’s Eve. You don’t even want to
know how much money is tied up in this yearend inventory.
You can’t help but think, "Who’s the amateur now?"
Whether you’re a self-anointed amateur of
the New Year or seasoned professional always
on the lookout for ways to improve, the begin-
liqueur should last at least three months.
Calculating stock usage for every brand of
liquor, beer and wine and even bar supplies
takes a lot of the guesswork out of ordering from
week to week and allows you to compare any
period in the current year to the same period
the year before. Use stock usage numbers to
establish and then adjust par values during the
year, which helps keep inventory dollar levels
lean and mean while minimizing stock outages.
Also compare usage to sales numbers to narrow
down cost-of-sales problem areas.
The accompanying example of an inventory worksheet should give you an idea on how to
INVENTORY WORKSHEET
1
2
PAR
INVENT
O/B
PURCHASES
Absolut
12
5
12
17
Ketel One
3
1.3
0
Stolichnaya
6
6.1
0
INVENTORY
ITEM
3
4
5
7
8
9
10
Work
Station #2
STORAGE
INVENT C/B
(5+6+7)
USAGE
(4-8)
ORDER
AMOUNT
1.5
2.3
4
7.8
9.2
6
1.3
0.9
0
0
0.9
0.4
0
6.1
0.9
0.8
3
4.7
1.4
3
TOTAL STOCK
Work
(2+3)
Station #1
6
VODKAS
Sample of an inventory worksheet to assist licensees with repurchasing needs.
Jan.04 Restocking
12/10/03
11:59 AM
Page 2
revamp your inventory worksheet. The formula
for calculating stock usage is as follows:
Inventory opening balance (INVENT O/B)
Plus purchases (PURCHASES)
Total stock available (TOTAL STOCK)
(Less) Inventory closing balance (INVENT C/B)
Total stock usage (USAGE)
Here are a few restocking tips to keep in
mind for the next busy holiday or special event:
• Stick to the basics
Inexperienced purchasers start with the
"A’s" on the inventory sheet and work down to
the "Z’s" and end up overstocking and overspending.
Experience tells you that there’s a cap on
what can be spent, even for an upcoming busy
holiday. And the dollars add up real quick. The
experienced purchaser first focuses on high-volume well- and call-liquor, beer and wine and
has an idea of how much they are spending
before moving on to the odds-and-ends stock. If
they do over order, it’s stock that will be used in
RESTOCKING
the near future. If there is an outage, it’s with
stock that’s not that big of a deal to run out of.
• When there is no substitute
Captain Morgan drinkers, for example,
want Captain Morgan and may not have a second choice when it comes to what they drink.
Ketel One Vodka drinkers, on the other hand,
probably may be happy with Absolut or
Stolichnaya if you do run out of Ketel One.
• Flavors of the month
New schnapps and new shot and drink
recipes prepared with new liquors are coming
out all the time. Fads come and fads go and you
might be stuck with this stock
if you overstock.
So restock lightly, if at all.
This also applies
when thinking about
ordering, for example,
extra Galliano and
Sloe Gin for the people
who seem to go out only once a year – New
Year’s Eve – and still think Harvey Wallbangers
and Sloe Gin Fizzes are popular.
• Cost of running out
What’s the worse that could happen with a
stock outage?
Scenario #1 – A customer orders a St. Pauli
Girl. Your bartender says, "We just ran out but
have plenty of Beck’s." The customer says,
"That’s fine."
Scenario #2 – A customer says, "You don’t
have any vodka?" Your bartender says, "No,
we’re all out." The customer says, "Not even
well vodka?" Your bartender says, "No, but we
have plenty of flavored vodka."
First scenario is not a problem. Second scenario is a big problem.
David T. Kratt writes "Behind the Bar" syndicated monthly column. Please send correspondence to P.O. Box 0638, Grand Haven,
Michigan
49417
or
e-mail
to
[email protected].
WHY TO RESTOCK AND HOW TO SELL
THESE FINE BRANDS!
MAISON SURRENNE COGNAC
FROM CRAFT DISTILLERS
• XO-level on your shelf at $35
• Ancienne Distillerie is superb single-vintage 10-year-old petite champagne.
• Brilliant and complex, beautifully made.
• From the rich cellars of Cognac's largest remaining
family-owned house.
HANGAR ONE VODKA
• Double Gold for XO cognacs at SF Spirits competition.
FROM CRAFT DISTILLERS
• BEST BUY selection by Wine Enthusiast and Beverage Retailer.
• Vodka of the year from 3 magazines – Spirit
Journal,Wine & Spirits, Food & Wine.
• BEST VALUE selection from Beverage Analyst.
• www.surrenne.com
• Infused with real fruit for spectacular fresh flavor.
• Unbelievable smoothness: no sense of alcohol.
• Made with exotic and expensive ingredients,
plus vodka from viognier wine in the Straight.
• Distilled in a one-time military structure on the
former Alameda Naval Air Station.
ST GEORGE MALT WHISKEY
FROM CRAFT DISTILLERS
• European hand methods by Jorg Rupf, world's
foremost distiller of fruit eau-de-vie.
• Distilled by hand on an Alsatian pot still in California
by Jorg Rupf, distiller of Hangar One.
• www.hangarOne.com
• Barley malt toasting on hardwoods: no peat flavor.
• Sophisticated aging in French, American, and port oak.
• Pure, very clean, rich and fruity with great depth,
complexity, and balance.
Contact: Ansley Coale at Craft Distillers
800.782.8145
www.craftdistillers.com
• Excellent value - $45 on the shelf.
• "Complex, clean, and elegant," New York Times
• www.stgeorgespirits.com
THIS SECTION IS A PAID ADVERTISEMENT
Jan.04 Restocking
12/10/03
11:59 AM
Page 3
DANZKA VODKA
ENVY
• Superior vodka imported from Denmark.
• Luxury Fused Liqueur.
• Unique metal bottle is perfect for the freezer!
• Imported from France, Envy blends together fine
cognac and French vodka with natural exotic fruit
juices of passion fruit and guava.
• Available in Original, Citrus, and Grapefruit.
• Grapefruit was awarded a Double Gold for Best
Flavored Vodka at the 2003 San Francisco
World Spirits Competition.
• Available nationwide in February 2004.
• This beautiful blue elixir tastes sensational on its
own or mixed with champagne, cognac or vodka.
• The sleek frosted bottle and stylish NV logo recently won a gold medal at the 2003 International
Packaging Awards in New York.
• For creative recipes and event photos, visit
www.i-envy.com
www.danzka.com
Contact your local
Future Brands representative
for information & ordering.
THE MACALLAN
1841 REPLICA
925.314.0564
[email protected]
SCORPION MEZCAL
• The Macallan Single Malt scotch is known as
the world's most precious whisky.
• Offers an aged range for all occasions, as well
as a new 1841 Replica.
• All matured exclusivley in oak sherry casks
from Spain.
• Double distilled premium quality 100% Agave Mezcal
Spirit available in 4 varieties: Silver, Reposado, Anejo 1
year and Anejo 3 year (all except Silver are aged in Oak).
• Artisan made in a single barrel bottling process in
Oaxaca Mexico.
• Each 750ml bottle is 80 proof, numbered with a real
scorpion placed in the bottle by the master distiller.
• The Macallan 1841 Replica was crafted from a
careful selection of The Macallan Casks chosen
to faithly replicate the style of whisky from
1841 and packaged in a style of that era.
• Awarded Spirit of the Year,Best Mezcal,by Food and
Wine Magazine (Dec. 2003). It drinks very smooth
and is “a nicely balanced spirit with no sting at all!”
Contact: Caspar MaCrae
212.399.4200
[email protected]
914.921.6988
www.Mezcals.com
[email protected]
ZYR RUSSIAN VODKA
JÄGERMEISTER
• Awarded a 96-100 in April's Wine Enthusiast and 5
stars in Paul Pacult's Spirit Journal.
• Jägermeister is the country’s most popular shot!
• "A sipping vodka best drunk neat or on the rocks,"
Time Magazine March 2003.
• "ZYR is pure Russian, and pure pleasure whether
chilled or on ice," Robb Report August 2003.
• Crafted from a blend of wheat and rye, grown in
the rich black soil of Russia’s heartland.
• Made with 56 herbs and spices.
• The 70 proof herbal liqueur is best enjoyed
straight from the freezer.
• Imported from Germany.
• Available in NY, NJ, FL, PA and soon California.
212.645.1070
www.zyrvodka.com
[email protected]
914.637.7300
www.jager.com
[email protected]
THIS SECTION IS A PAID ADVERTISEMENT