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:
[email protected]
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 [email protected] 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
[email protected] 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: [email protected]
Paul Tash, Editor/Publisher • [email protected]
Office phone: 406-782-3660 • Cell: 406-491-0100
Paul Vang, Contributing Writer • [email protected]
Phone 406-494-5736
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Reprints of articles and back issues are available at a cost of $10.
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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
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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: [email protected]
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."
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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
[email protected].
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 [email protected]
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
[email protected]
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
[email protected]
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 [email protected]. 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 [email protected],
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