October 2015 - Montana Tavern Association

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
MTA names
Top Worker
– Page 3
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This publication endorsed by
the Montana
Tavern
Association
MTA’s capital convention
Vol. 20, Number 11
A Tash Communications Publication
October 2015
Governor lauds
tavern owners
Paul F. Vang photo
STEVE AND BARB Morris received the
Durkee Award, the MTA’s highest honor,
during the organization’s 60th annual
convention last month in Helena.
By Paul F. Vang
Montana Tavern Times
Barb and Steve Morris, owners of
Jorgenson’s Inn & Suites, Restaurant and
Lounge in Helena, are this year’s winner of
the Durkee Award, the Montana Tavern
Association’s highest honor.
The award is named in memory of Bob
Durkee, MTA’s former lobbyist, and Marie
Durkee, MTA’s longtime executive director.
For Barb and Steve Morris, the award
recognizes their 25 years of business operation excellence, as well as their leadership
and service to the Montana Tavern
Association.
Their story goes back a lot further,
however. Barb is the niece of the late Don
Larson, a previous owner of Jorgenson’s, a
past president of the Montana Tavern
Association, and the second winner, in
1999, of the Durkee Award.
Steve and Barb Morris honored
See MORRIS Page 6
Johnson is new president
Jim Johnson
By Paul Tash
Montana Tavern Times
The Montana Tavern Association elected
a new president during its Business Session
Sept. 17 that concluded the 60th annual MTA
Convention and Trade Show.
The organization chose Jim Johnson, proprietor of the Bull and Bear Saloon in Red
Lodge, as its next president. He replaces
Mike Hope, of Bozeman, who finished his
two-year term.
See PRESIDENT Page 7
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By Paul Tash
Montana Tavern Times
An address by Gov. Steve Bullock highlighted the General Session of the 60th annual
Montana Tavern Association Convention and
Trade Show Sept. 16 in Helena.
The MTA also acknowledged out-going
President Mike Hope of Bozeman for a “fantastic
job” in his two-year term.
Welcoming MTA members to Helena was
Helena Mayor Jim Smith, who called the MTA
more than an organization.
“It’s an institution in our state,” Smith said.
Gov. Bullock praised the tavern owners and
their important roles in their communities and
state.
Taverns are more than just bars, he added.
“They are … community centers.”
The governor acknowledged the MTA’s effort
in the 2015 Legislature, as it worked to improve
the state’s liquor-retail industry, including an
attempt with the state’s microbrewers to develop
a brewer licensing system.
“I recognize that the MTA tried to find a
compromise in the last legislature,” Bullock said.
Even though the licensing legislation didn’t
pass, he said, the MTA has “laid the groundwork
for the next legislature.”
He also mentioned the positive economic
impact taverns have on the state economy – $872
million in economic
activity, over $103 million in taxes paid, and
over 11,000 in job creation, according to the
American Beverage
Licensees.
“You are certainly
doing your part,” he
said. “We have to make
sure we’re doing our
part.”
The state can do
that, Bullock added,
through Mainstreet
Montana, a program
that works to eliminate
obstacles and provide
opportunities for growing Mainstreet businesses.
Paul F. Vang photo
GOV. STEVE BULLOCK
See TAVERNS Page 8
Montana Tavern Times – 2
October 2015
MTA names Patera as top employee
October 2015
By Paul F. Vang
Montana Tavern Times
Ashley Patera, of the Rocking
R Bar in Bozeman, is this year’s
winner of the Worker of the Year
Award, an annual award sponsored
by Montana Tavern Times, in
honor of Tavern Times’ late editor,
Gary A. Langley.
Paul Tash, the editor and publisher of Tavern Times, presented
the award at the MTA Convention
banquet. Ralph Ferraro of
Bozeman nominated Patera, who
started as a bartender and worked
her way into the management team
at the Rocking R Bar.
“She works hard through her
entire shift and is always willing to
go the extra mile,” Ferraro wrote
in his nomination letter. “I have
also gotten to know Ashley very
well on a personal level in the last
10 or so years. Ashley is a very
sincere person who cares about her
family, friends, school, and work.”
Ferraro wrote that Patera “cares
deeply about every aspect of her
life and it shines in her.… I have
watched her grow, and I am proud
to call her an employee and a
friend.”
In an interview with the Tavern
Times after the awards presenta-
Montana Tavern Times – 3
TAVERN TIMES editor and publisher Paul Tash
presents the MTA Worker of the Year award to
tion, Patera said she first started
work at Ferraro’s, an Italian restaurant, at age 18. Over the years she
has worked at three of Ferraro’s
businesses and at the Rocking R
the last six years.
In the process she has worked
her way through Montana State
Paul F. Vang photo
Ashley Patera, of the Rocking R Bar in
Bozeman, during the convention banquet.
University and recently completed
her bachelor’s degree in psychology and human development.
She said that while she’s officially a manager at the Rocking R,
the job often means doing whatever owners Ferraro and Mike Hope
need to get done, such as getting
involved with the Gallatin County
Tavern Association and the
Downtown Bozeman Association.
Now that she’s finished her
university education, Patera has
lots of new career options, though
for now she satisfied where she’s at.
“I love my job.”
Montana Tavern Times – 4
Tavern
Times
October 2015
Opinion/Editorial
Feedback on convention appreciated
President Jim Johnson, 1st Vice President
By Chris Caldwell
Dax Cetraro, 2nd Vice President Mike
MTA Administrator
Kenneally, Secretary/Treasurer Kristen
First off, I would like to thank the TriCetraro and Sergeant-At-Arms Tanya
County Licensed Beverage Association for
all their hard work in hosting this year’s con- Harper. I look forward to working with them.
Our MTA membership is strong and convention.
tinues
to grow stronger, but we need YOU,
Also, thanks to this year’s convention
sponsors – Amusement Services,
Black Eagle Brewery, Fleetwood
Gaming, Grand Vision Gaming,
IGT, Miller Coors, MCMOA,
MBWDA, Town Pump and
Young’s Market.
I would welcome and appreciate any comments or concerns, whether positive or negative, about this year’s convention or future conventions. We
would also appreciate your feedback on the seminars, as well as
any ideas for future seminars.
Give me a call or shoot me an
email regarding your experience
Chris Caldwell
at our event.
The MTA is constantly strivif you’re not currently a member. If you are
ing to provide you a good experience in
one of the few who have not yet renewed,
attending our Convention and Trade Show.
please do so today. If you haven’t been a
We hope you had a good time and gained
member, please consider joining.
some knowledge of our organization.
Call me and we’ll talk about the many
Congratulations to our new Executive
membership benefits you should be enjoyBoard officers elected at convention:
Y
ing. We have recently added some new
benefits for our members to take advantage
of.
This year’s “On The House*Pitality”
brochures and Footballmania tickets have
been distributed to many establishments
across the state and are available for sale.
Get yours now! You can purchase tickets through October
31st. Prizes are awarded weekly! Give us a call for more information on this promotion.
Thank you to the MTA’s corporate sponsors – Hub
International, Cascade County
Tavern Association, IGT, Collins
Games of Montana, Amusement
Services, Gallatin County
Licensed Beverage Association,
Statewide Liquor, Tri-County
Licensed Beverage Association
and Young’s Market.
For information on corporate
sponsorship, visit our website,
montanatavernassociation.com,
or call or email me.
As always, if you have any questions or
need any information, call me at (406) 4425040, email me at [email protected] or,
if you are an MTA member, leave me a
message on our Hot Line and I’ll call you.
ou can purchase tickets
through October
31st. Prizes are
awarded weekly!
Fantasy sports betting: Gambling or skill?
By Neil Peterson
GIA Executive Director
Watching sports on television these days means being
deluged with advertisements for
daily fantasy sports leagues.
Every commercial break, it
seems, has an advertisement
for either FanDuel or
DraftKings.
The ads tout that for a small
investment you can win thousands to hundreds of thousands of dollars playing daily
fantasy leagues. It doesn’t take
a rocket scientist to figure out
that daily fantasy leagues are a
big buck business. Some say
the industry is worth billions of
dollars each year.
The whole issue begs the
question, are daily fantasy
leagues games of skill or sports
gambling? Daily fantasy
leagues operate on the principle that they are games of skill
and therefore not subject to
gambling laws.
When someone wins with a
lineup of players, some recognized as stars and others that
C
urrently, playing daily fantasy leagues is illegal
in Montana.
Neil Peterson
aren’t so recognizable, is that
skill or luck? If it’s skill, how is it
different than someone picking
a team and the points on a
Monday night football game?
Of course, betting on
Monday night football in that
way amounts to illegal sports
betting, but I sometimes have a
tough time differentiating
between the two.
Many state and federal lawmakers have called for some
sort of regulation of this industry
and believe daily sports
leagues are gambling.
However, with all the money
at stake and major sports
leagues such as the NBA and
MLB jumping on board, there’s
no putting the toothpaste back
in the tube.
We have to remember that
for every big winner in daily fantasy leagues, a whole bunch of
other folks have lost money.
Currently, playing daily fantasy leagues is illegal in
Montana. They are defined as
gambling and therefore, unless
specifically allowed by Montana
law, are illegal.
We must deal with some
significant policy issues if
Montana is to join the other 46
states and allow its residents to
play daily fantasy leagues.
Montana has traditionally
opposed both internet gambling
and credit gambling. Allowing
daily fantasy leagues will make
an exception for both of these
prohibitions.
Do we want someone logging on from their home and
racking up credit-card debt
while playing daily fantasy
leagues?
One thing is for sure, this
issue is not going away in
Montana. I’m sure state legislators have been approached by
their constituents requesting
that the prohibition be lifted in
Montana.
Whatever we do, we have to
make sure it fits and makes
sense for Montana.
October 2015
Tavern
Times
Montana Tavern Times – 5
Opinion/Editorial
Debit-card use grows, ATM use falls
Eric Meyers
Montana Merchant Services
Americans are using debit
cards more, especially for
small-dollar purchases. They
also make fewer withdrawals
from ATMs than they did a
decade ago. These are two key
trends reported in the 2015
Debit Issuer Study from Pulse,
a network owned by Discover
Financial Services.
Meanwhile, the Federal
Reserve has published a "clarification" of how it determined
debit interchange caps when it
was directed to do so under the
Durbin Amendment to the 2010
Dodd-Frank Act.
The Fed has come under
fire for years for a ruling it
issued in 2011 that capped
debit card interchange as
directed by the Durbin
Amendment. The National
Association of Convenience
Stores successfully argued
before a U.S. district court that
the cap set by the Fed – 21
cents per transaction plus an
adjustment for fraud prevention
– was too low.
But the district court's decision was overturned by the U.S.
Court of Appeals for the District
of Columbia Circuit. The
appeals court, however,
instructed the Fed to explain
one aspect of the ruling, the
treatment of fraud protection
and prevention costs.
That explanation, published
recently in the Federal Register,
makes distinctions between
fraud tools used at the transaction and program levels.
10-year track record
Pulse is one of the oldest
debit card networks and was an
early champion of POS debit. It
commissions a yearly debit
issuer study. The latest, the
2015 Debit Issuer Study,
reveals that over the past 10
years, debit card usage has
grown 32 percent.
The past decade saw a
major shift in consumer preference to paying with debit cards,
which accelerated after the
2008-2009 recession.
"We believe there is still
opportunity for debit growth,
considering that consumer use
of debit for smaller purchases is
rising, and the average active
debit card is used about five
times per week."
T
he past decade
saw a major
shift in consumer
preference to paying
with debit cards.
Eric Meyers
Consumer use of debit has
been nothing short of remarkable. Debit has steadily gained
wallet share as consumers shift
their spending to this payment
type. The use of debit for smallticket purchases is particularly
noteworthy, where one-third of
all debit transactions are for
less than $10 – purchases that
historically would have been
made with cash or not at all.
Debit cards have been available for POS payments since
the 1980s but only began to
gain significant market share in
the 1990s, when Visa Inc. and
MasterCard Worldwide logos
began appearing on debit
cards, and the networks behind
those logos began clearing
debit card payments authorized
at the POS by cardholder signatures.
Debit card activity grew to
equal credit card payments in
the early 2000s, and about 10
years ago, yearly debit card tallies began to exceed those for
credit cards.
The credit crunch that
began in 2008 contributed to
some of this growth, as consumers postponed credit
spending. So did growing adoption of prepaid debit cards.
Now, the yearly total of PIN,
signature and prepaid debit
card spending is nearly double
the total for credit card payments; the average active debit
cardholder conducted 23.2
debit card transactions (POS
and ATM) in 2014, according to
the study.
Weighing Durbin
Ten years ago financial institutions were receiving a weighted average interchange of 41
cents on a consumer debit card
transaction.
The Durbin Amendment – or
more specifically, Federal
Reserve Regulation II, which
implemented the legislative
mandate – changed that by
capping debit card interchange
at 21 cents plus a markup for
fraud prevention. The cap, however, only applies to banks with
$10 billion or more in assets.
In 2014, debit card issuers
subject to the caps earned a
Write us
weighted average interchange
of 24 cents on each card transaction, while exempt institutions
earned 40 cents per transaction
in interchange, according to the
study.
The drop in per-transaction
earnings has been offset somewhat by growing usage, however. In 2008 (pre-Durbin) debit
card issuers earned an average
$81 in annual interchange per
active debit cardholder, according to Pulse's data.
According to the latest
study, exempt issuers generated an average of $112 per card
in debit interchange revenue in
2014; the average was $59 per
card for issuers subject to the
Durbin debit caps.
Montana Merchant
Services is the Montana
Tavern Association’s
endorsed provider of cardprocessing services, and
MTA members receive special
rates. The company can be
reached at its Bozeman office
at 702-883-6785.
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The word limit is 300.
Mail to Montana Tavern Times, 914 Holmes Ave., Butte
59701, or email the office at
[email protected]. The Times reserves the
right not to print letters it finds objectionable.
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Office phone: 406-782-3660 • Cell: 406-491-0100
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Phone 406-494-5736
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Montana Tavern Times - 6
Morris
October 2015
from Page 1
Barb’s father died when Barb
was just a little girl, and Don
Larson was a major part of her life
for many years. Jorgenson’s, which
was built when she was a year old,
has almost always been a part of
her life.
Barb worked at a bank across
the street from Jorgenson’s when
she was in high school.
“That was about the only time I
didn’t work in the industry,” she
said. “When I was old enough, I
went back and tended bar.”
Barb and Steve first got
acquainted “a little bit” while in
high school, he said.
Later, Barb’s mother moved to
Hamilton, and Barb went to work
for the Rocky Mountain
Laboratories in Hamilton.
Coincidentally, Steve got a job in
construction in Hamilton, and the
two renewed their high school
acquaintanceship. The relationship
then turned special.
“We got married in 1978 in
Hamilton,” Barb said. “It was on
Labor Day, because Jorgenson’s
was closed over the Labor Day
weekend.”
Steve later found a new construction job back in Helena, so
Steve and Barb moved back to
their hometown. Barb started a
new job as a bookkeeper at
Jorgenson’s.
Prior to this, Barb’s family had
sold Jorgenson’s to a new group of
owners. The person who operated
the restaurant and lounge wasn’t
doing well with the business, so in
1990 he sold the liquor license to
Steve and Barb.
The indomitable Marie Durkee
herself then enters the picture.
“I’d known Bob and Marie for
years,” Barb said.
BARB AND STEVE Morris pose with the plaque
they received from Harry Klock, right, as recipi-
ents of the Marie and Bob Durkee Award Sept.
16 in Helena. Klock won the award in 2013.
After the Morrises purchased
Jorgenson’s, Marie Durkee came in
and made it clear that the couple
was to get involved with the local
tavern association and the MTA,
That was about the extent of
the interview, and Steve was duly
appointed to the Council.
“That kind of showed the
power and influence Marie had.”
Barb said.
“Marie engineered my
appointment to the Montana
Gaming Advisory Council,” Steve
added. “She told then Atty. Gen.
Joe Mazurek to appoint me to the
Council.”
In an interview, Mazurek asked
Steve, “What makes you think
you’re qualified to be on the
Gaming Advisory Council?” Steve
replied, “Because Marie told you
to appoint me to the Council, and
she told me to accept.’”
Steve has been reappointed by
four succeeding attorneys general
and is now the Council’s longestserving member.
Barb also credits another
Durkee honoree, Darrel Keck of
Shelby, as an important mentor in
their business and MTA careers.
Steve has served the Montana
Tavern Association in many ways
over the years.
“I’ve held every position
except treasurer,” he said, serving
as president from 2001 to 2003.
W
Paul F. Vang photo
e work,’ Steve said, simply. ‘It
consumes most of our time.’
Barb did serve as treasurer in
2013.
Steve has also worked closely
with American Beverage
Licensees, serving as the MTA’s
national director to the ABL for six
years, and also as vice president.
He currently serves on the executive board of ABL as an at-large
on-premise representative.
Over the years with business
partners, Steve and Barb acquired
ownership of the entire Jorgenson’s
hotel, bar and restaurant business.
They also have an interest in
another casino and a liquor store.
With all their business commitments, along with MTA and ABL
activities, Steve and Barb don’t
have much time left for recreation.
“We work,” Steve said, simply.
“It consumes most of our time.”
They do have a boat moored at
Hauser Lake, a boat big enough for
a sleeping cabin. “We try to get
out there on most Saturdays,” Barb
said. “We have a big group of
friends at the lake.”
Steve and Barb received the
Durkee Award at the MTA
Convention banquet, with Harry
Klock, the 2013 Durkee honoree,
presenting the award on behalf of
the MTA.
“I met Harry at the first MTA
convention I attended, which was
his second convention,” Steve said.
He laughs about a minor confrontation with Klock at that convention.
“We’ve been best of buddies
ever since,” he said.
Barb said receiving the award
“was so moving.”
“I didn’t think I’d tear up, but I
did,” she said. “It’s really special. I
had no idea that this was coming.”
“I know Marie is smiling,”
Steve added.
October 2015
Montana Tavern Times – 7
President
from Page 1
Other newly elected officers,
who will also serve two-year
terms, are Kristen Cetraro, secretary-treasurer; Dax Cetraro, first
vice president; Mike Kenneally,
second vice president; Tanya
Harper, sergeant-at-arms; and
Harry Klock, national director.
Johnson shared information on
a couple of successful programs
the Carbon County Tavern
Association has developed, including a 30-second television commercial that shows local tavern
owners do more than serve alcohol.
“We serve our communities,”
he said.
The Carbon County organization also sells a board with “free
drink tickets” that sold “like hot
cakes,” he said. Proceeds go to
local charities.
“Members of our tavern association really stepped up,” he said.
“We’ve been good community
partners.”
Klock, of Harlowton, also
announced he is running for a state
Senate seat. He formerly served
several terms in the state legislature until 2007, when term limits
kept him from running for eight
years. He now is eligible to run
again.
John Iverson, MTA lobbyist
and government affairs consultant,
urged other MTA members to run,
or to find “people supportive of the
hospitality industry” to run for
office.
After reports by the Public
Relations and Legislative and
Gambling committees (see related
stories on Pages 10 and 11),
Iverson addressed the session on a
few tavern-related issues.
Iverson said the MTA will need
to keep watch on the exploding
growth of new, high stakes fantasy
sports, such as FanDuel and
DraftKings. Playing fantasy sports
on the internet is currently illegal
in Montana, which categorizes fantasy sports as a gambling activity.
Internet gambling is prohibited in
Montana.
He said some people are “pretty fired up” about fantasy sports.
“Jurisdictions across the country are still trying to figure out
what to do about these high stakes,
multi-million dollar, daily games
that are now occurring.” he added.
On another subject, Iverson
said the MTA’s relationship with
the Montana Brewers Association
“has been going very well.” The
two groups and other industry partners continue to find common
ground, which the industry has
committed to work toward.
Iverson said he also plans to
JIM JOHNSON, newly elected president of the
Montana Tavern Association, holds a board with
also work with Montana Distillers
Guild and the Montana Liquor
Store Owners Association in large
industry meetings, working to
resolve issues before they boil over.
Providing the national director’s report, Klock told the session
that prior to the convention Helena
hosted a meeting of the American
Beverage Licensees board of directors. The ABL, based in
Washington, D.C., is the parent
organization of the MTA.
“They were very impressed
with Montana,” he said. “They
liked the way they were treated.”
John Bodnovich, executive
director of the ABL, addressed the
MTA’s Legislative and Gambling
Committee during the convention
(see related story on Page 13).
MTA administrator Chris
Caldwell thanked the Tri-County
Beverage Association, the host for
2015 convention in Helena.
“You guys did a great job,” she
said.
She also thanked the many
sponsors of the convention –
Amusement Services, Black Eagle
Brewery, Fleetwood Gaming,
Grand Vision Gaming, IGT, Miller
Coors, Montana Coin Machine
Operators Association, Montana
Beer and Wine Distributors
Association, Town Pump and
Young’s Market.
“We couldn’t do it without
you.”
Caldwell said the convention
attracted 270 registrants, and its
Trade Show featured a record 76
exhibitors.
“It keeps growing,” she said of
the Trade Show.
Membership also continues to
grow, she said, with increases in
regular members, Gold Star members, and associate members.
Caldwell also urged members
Paul Tash photo
free-drink chips that the Cascade County tavern
organization is selling to raise money for charity.
to keep selling tickets for the On
the House*Pitality promotion, the
organization’s main fundraiser,
until Oct. 31. Tavern owners sell
tickets to their customers to create
some extra traffic and interest in
their bar. Ticket buyers come back
each week to see if they won.
The On the House*Pitality
fundraiser entitles buyers of a $20
ticket to the 60 free drink tickets
from taverns across Montana. In
addition, the ticket automatically
enters the buyer in the “Football
Mania” sweepstakes, where players participate each of the 17 NFL
weekends.
Finally, the MTA nominated
the Yellowstone County Tavern
Association to host the 2017 convention in Billings. The 2016 convention will be held in Great Falls
and hosted by the Cascade County
Tavern Association.
Tavern Timetable
Oct. 6
Oct. 12
— UPCOMING EVENTS —
Carbon Co. TA dinner, Bull and Bear, Red Lodge
Butte-Silver Bow TA dinner, Star Lanes, Butte
— STANDING DATES —
2nd Tues. of month
1st & 3rd Wed. month
Second 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 – 8
October 2015
Taverns
from Page 1
Noting that Montana was
named “the most fiscally responsible state in the union” by JP
Morgan, Bullock said the state is in
good shape financially with a balanced budget and $300 million in
reserves.
Montana has just a 4 percent
unemployment rate (1.5 percent
below national rate) with more
people working than in any time
“in the history of the state,” he
said. In addition, Montana has the
sixth best tax climate in the nation.
And its entrepreneurial spirit
makes Montana the “best state in
the country” to do business.
Bullock then thanked MTA
members for their support.
“As an elected office holder,
our paths cross many times,” he
said, leading to strong relationships
and “incredible friends and supporters.”
“I count on your continued
support.”
Mike Kadas, the director of the
Montana Department of Revenue,
thanked the MTA for “your knowledge and your professionalism.”
He said the relationship
between industry and state remains
solid.
“We get to a solution (because)
we respect each other,” Kadas said.
Kadas said the taxes paid by
tavern and casino operators are “a
key, essential part of the funding of
the services in the state.”
And, he thanked tavern owners
for continuing to make a strong
effort to serve alcohol responsibly.
“You take that responsibility
seriously,” he said.
He reiterated the governor’s
remarks on Mainstreet Montana,
saying it’s a good tool “to make
government more efficient and
more cost effective.”
Kadas also reviewed the last
legislative session, saying, “We
accomplished a lot.”
“We appreciate the partner-
Paul F. Vang photos
MIKE HOPE, above left, is presented
a gift certificate by Bruce Enott, MTA
Chairman of the Board, for his work
as president of the MTA the last two
years. The presentation was made at
the start of the General Session of the
MTA Convention in Helena last
month. At right, Gambling Control
Administrator Rick Ask prepares to
speak at the session.
ship” with industry in developing
legislation, he added.
Kadas said the department will
continue to “simplify and streamline processes” for licensing and
other regulations. He encouraged
tavern owners to use the state’s
Taxpayer Access Portal (TAP) to
file applications and other forms.
The director also announced
that a handful of new liquor licenses will be available in lotteries in
the “next few months,” due to population changes. Those include one
in Liberty County, one in Helena,
and two in the Bozeman-Belgrade
market.
“Stay tuned,” he said.
Also addressing the General
Session of the convention was
Rick Ask, administrator for the
Department of Justice’s Gambling
Control Division (GCD).
Working with the industry has
been “wonderful,” Ask said.
He also thanked his staff for
their work on developing the ability for gaming operators to file
more and more forms and applications online.
Electronically filing has significantly reduced the “mountain of
paper work” his division had to
deal with formerly, he said.
“It is a big deal,” he said of the
online capabilities. “It’s a more
efficient way to run businesses.”
Operators, he said, can now
“deal with us almost entirely electronically.”
Ask then reviewed gamingrelated results of the 2015
Legislature, including the
allowance of “temporary operating
authority” for gaming operators.
The GCD, he said, works
closely with the industry and the
Gaming Advisory Council “to
come up with better solutions for
the industry” through legislation.
After receiving a heartfelt
thanks and a gift certificate from
Bruce Enott, the MTA’s chairman
of the board, outgoing President
Hope thanked the organization and
urged it stay flexible.
“We can’t be afraid of change,”
he said, but at the same time,
“stand up for our principles.”
“We have to adapt and our
partners in the industry have to
adapt, as well,” he said. “Let’s
keep moving this industry forward
and this organization forward.”
GIA taking part in industry talks
October 2015
By Paul Tash
Montana Tavern Times
The Gaming Industry
Association of Montana’s Board of
Directors briefly discussed a variety of issues during a short meeting Sept. 16 in Helena.
GIA Executive Director Neil
Peterson told board members that
the Alcohol Coalition met earlier in
the summer to continue efforts to
solve some industry-related issues,
including the possibility of licensing brewers and distillers. Peterson
represents the GIA on the coalition.
Also on behalf of the GIA,
Peterson attended the Economic
Affairs Interim Committee, which
urged industry groups to resolve
any differences.
“Folks are committed to working together,” Peterson said.
Peterson said the agenda for
the Gaming Advisory Council’s
late-September meeting included
discussion on several industryrelated issues, including an effort
by the Gaming Control Division to
better define a key employee or
manager. The matter is important
to gaming operators because a key
employee or manager has to undergo more stringent reporting
requirements, including a background check and finger-printing.
Peterson said the GCD’s
Montana Tavern Times – 9
Paul Tash photo
BRAD GRIFFIN, executive
director of the Montana
Restaurant Association, speaks
at the GIA meeting Sept. 16 in
Helena.
process to more clearly define key
employees could result in the elimination of the time-consuming
“manager agreement” requirement.
“That would be a good thing,”
he said.
Other topics scheduled to be
discussed by the Gaming Advisory
Council include streamlining the
licensing process for existing owners, fantasy sports on the internet,
sports pools, and the potential for
gambling on dinner cruises.
A GIA subcommittee formed to
discuss the potential for electronic
player tracking met Sept. 15,
Peterson said, but decided not to
pursue the issue any further.
“It was a good informational
meeting,” Peterson said.
Electronic player tracking gathers information on the playing
habits of gaming-machine players.
Proponents say tracking would
allow operators to identify their
best players and target promotions
more efficiently toward them.
Opponents say the electronic player tracking would create too many
questions, such as expense, ownership of the data, and competitive
imbalance between bars and casinos and small and large machine
routes.
The GIA board also heard a
presentation by the Montana
Restaurant Association (MRA) on
a high school restaurant-education
program and a program that raises
money for non-profits.
Brad Griffin, executive director
of the MRA, told association members about ProStart, a nationwide,
two-year program for high school
students that teaches them about
the restaurant business. From culinary techniques to management
skills, the industry-driven curriculum provides “real-world education
opportunities,” according to literature Griffin handed out.
After finishing the ProStart
curriculum, teams from participating schools compete in statewide
competition testing their culinary
and management skills, with the
winner eligible to for a national
competition. Thirteen Montana
high schools are participating in
ProStart, Griffin said, with another
six interested.
A fundraiser for the program
was slated for Sept. 30 in
Bozeman.
ProStart has been funded and
operated by the MRA in Montana
for about 10 years, Griffin said,
originally under the stewardship of
Chuck Schommer of Big Sky, who
“single-handily” started ProStart in
Montana. The new ProStart coordinator is Sara Boyer.
One of the ways the MRA
funds the ProStart, Griffin said, is
through Round It Up America.
Round It Up America is a nationwide program in which participating restaurants provide their
patrons with the opportunity to
“round up” to the nearest dollar on
their credit card receipt to give to
the program.
Proceeds are distributed quarterly to participating restaurants,
with 75 percent going to three nonprofit organizations of the restaurant’s choosing, 10 percent going
to the American Red Cross, 6 percent going to the ProStart program,
7 percent going to administrative
costs, and 2 percent going to cover
credit card interchange fees.
Social media the focus of PR panel
October 2015
Montana Tavern Times – 10
By Paul Tash
Montana Tavern Times
A positive and effective social
media presence continues to be a
focus of the Montana Tavern
Association.
“Our Facebook (presence) has
been growing,” said Bobby
Lincoln, chairman of the MTA’s
Public Relations Committee, which
met Sept. 15 in Helena during the
organization’s annual convention.
Lincoln told his committee that
features such as the drink of the
week are enhancing the Facebook
experience for tavern owners and
their customers.
“It’s good PR for the bar,” he
said, but more importantly it helps
build the MTA’s follower base.
The group agreed to get some
photos of the convention and trade
show up immediately as well.
Photos “showing people really into
it is the key,” Lincoln said.
While the committee continues
to work on content for the
Facebook effort, it already is looking beyond Facebook into other
social media avenues. In fact, one
of several seminars scheduled for
the convention focused on “using
social media to promote your business,” said John Iverson, MTA’s
MTA LOBBYIST John Iverson, holding paper,
discusses an issue during the MTA’s Public
Relations Committee meeting last month in
government affairs consultant and
lobbyist.
In other action, the PR
Committee endorsed a plan to partner with the Montana Brewers
Association in a “buy local” campaign for Montana-made beer. The
Paul Tash photo
Helena during the convention. Listening are
committee members Cal McOmber, left, Tanya
Harper and John Hayes.
campaign would feature stickers
and other marketing materials
encouraging patrons to ask for and
purchase locally brewed beer.
“The consumer’s demanding
it,” MTA President Mike Hope said
of local craft beer.
The campaign, he added, is
also an opportunity to continue
building a good relationship with
the brewers. Plans call for the campaign to be launched later this
year. This partnership will further
solidify the growing presence of
Montana craft beer in Montana
taverns.
The committee is also working
on a new video focusing on
Montana gaming. The video will
discuss the history of gaming in
Montana, its strong economic benefits, and its efficient government
regulation.
The video will be the third produced by the Montana Tavern
Association in the last two years,
which are available on the MTA
website, www.montanatavernassociation.com. One finished video
features the history, accomplishments, and member benefits of the
MTA, and other highlights the
value and benefits of Montana’s
population-based quota system.
The videos, Iverson said, “are
extremely valuable” in the continuing effort to educate lawmakers
and the public on vital tavern
issues.
Wrapping up the meeting,
Hope thanked “everybody on this
committee” for their work on
developing several public relations
projects during Hope’s two-year
term, which ended at the convention.
Those projects included the
three videos, a printed membership
guide, a redesigned website and
new Facebook page.
“We’ve made a lot of
progress,” Hope said. “Thanks to
you all.”
October 2015
Montana Tavern Times – 11
Legislative panel backs industry talks
By Paul Tash
Montana Tavern Times
The Montana Tavern
Association’s Legislative and
Gambling Committee endorsed the
MTA’s participation in the
Economic Affairs Interim
Committee at its recent meeting
Sept. 15 during the MTA convention in Helena.
John Iverson, MTA’s government affairs consultant and lobbyist, told the committee that the
Montana Legislature “has really
pushed the industry to come up
with an answer” to some sticky
issues, including the potential
licensing of brewers and distillers.
“We’ve been incredibly flexible,” Iverson said. “We have been
working closely with our industry
partners and will continue to work
with them.”
The committee also reiterated
the organization’s opposition to
“advanced electronic player tracking,” which is the ability to electronically track the playing habits
of gaming-machine players. The
Tier 1 electronic reporting system
for gaming machines, launched in
Montana last year, has the ability
to provide electronic player tracking.
Electronic player tracking, proponents say, would allow operators
to identify their best players and
target promotions more efficiently
toward them.
Opponents, however, say player tracking has pitfalls.
“You have to be careful on how
you do this,” said Tom Heisler, a
tavern owner in Great Falls.
He said any ability to exchange
credits from one location to anoth-
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er is an issue that could hurt “the
little guy.”
Another issue is privacy of an
operator’s list of players, said Kent
Frampton of Kalispell.
“Who owns the list?” he asked.
If the list gets to a competitor,
they could “cherry pick some of
your best customers,” he said.
In other business, John Hayes
told the committee that the
horseracing simulcast machines
that began operating in over 30
rural locations across the state
within the last year are no longer
running.
“They’re done,” he said.
“SocialGaming has pulled out.”
The quick demise of the
machines was attributed to poor
support and lack of play.
Manufactured by
SocialGaming, the machines were
licensed and approved by the
Montana Board of Horse Racing,
with four percent of the machines’
gross going to the Board.
The machines, which could
only be sited in rural locations,
simulcast live horse and dog racing. The locations did not receive
any money for hosting the
machines.
Montana Tavern Times – 12
October 2015
Bars play
vital role as
social hubs
Great Falls Tribune
Local taverns play a critical
role in many small towns across
Montana, providing not just beer
and whiskey or food and snacks,
but a place for folks to gather.
And they’ve increasingly
become community gathering spots
for everything from informal chats
to formal hearings as small-town
post offices close and school districts consolidate, officials say.
There appear to be no records
ranking Montana bars by age,
although the Thrillist, a website
that lists the oldest bar in each
state, credits the Bale of Hay
Saloon in Virginia City, which it
says was established in 1863, as
being Montana’s oldest. But the
historic bar has not operated continuously. A Montana Office of
Tourism release said the Bale of Hay
sat empty from 1908 until 1945.
Neither the private Montana
Tavern Association nor the
Montana Historical Society has
compiled a list of the state’s oldest
bars, though a historical society
researcher noted such bars couldn’t
have been legally serving alcohol
continuously from the late 1800s
or early 1900s to today, since alcohol was banned during Prohibition
in Montana from late 1918 to
1933. But they might have operated as cafes or similar businesses
during that span.
Harry Klock, who has owned
Stockman’s Bar in Harlowton for
25 years and served as president of
both the Montana Tavern
Association and its national counterpart, the American Beverage
Licensees, said he’s never seen a
list ranking Montana’s bars by age.
He thinks his own Stockman’s bar
opened in the mid-1930s.
But Klock believes bars can be
part of the fabric that keeps a town
together.
“A bar is often the meeting
place in a small town, where folks
gather after sporting events to discuss what really happened and why
their local team won or lost,” he
said with a chuckle.
Even so, he said, “a lot of
small town taverns are just hanging
on, mostly because of revenue
from gambling machines.”
“It’s pretty tough to make it in
small towns on just beer and
whiskey sales alone,” he said.
“Without legalized gaming, maybe
half of the bars Montana now has
would be closed.”
ABL leader details national issues
October 2015
Montana Tavern Times – 13
By Paul Tash
Montana Tavern Times
John Bodnovich isn’t shy about
telling people how important the
Montana Tavern Association is to
its parent organization, the
American Beverage Licensees
(ABL).
He should know. Bodnovich is
executive director of the national
group and, for the second time in
three years, attended the MTA’s
state convention. As a matter of
fact, this year ABL held its board
of directors meeting in Helena,
prior to the annual convention held
last month in Helena.
“What a fun few days we’ve
had,” Bodnovich told the MTA’s
Legislative and Gambling
Committee to start a presentation
to the group Sept. 15 during the
MTA convention.
“We’re proud that the MTA is a
member.”
Bodnovich told the committee
that the United States has “the
most diverse and innovative beverage alcohol marketplace in the
world.”
The alcohol retail industry matters, he said, because its impacts
are enormous, both nationally and
in Montana.
The U.S. beverage licensees
sell “an astonishing” 68 billion 12ounze servings of beer per year
and employ more than 1.4 million
full-time and part-time workers.
Even so, they understand that with
that license to sell alcohol comes a
responsibility to serve safely.
“If you lose your license, you
lose your business,” he said.
In Montana direct retail sales
of alcohol create nearly 8,000 jobs,
he said, while generating several
thousand more ancillary jobs. The
Montana industry is responsible for
as much as $872 million in economic activity and for nearly $330
million in wages, he said, and pays
Paul Tash photo
JOHN BODNOVICH, executive director of the American
Beverage Licensees, makes a point during his presentation.
over $103 million in taxes.
Bodnovich said the industry is
working to “frame the debate” over
the national retail alcohol environment. For example, questions to be
addressed include:
• Who should be able to sell
alcohol? Over 21? Over 18?
Corporations? Producers?
Wholesalers?
• What kind of alcohol should
be sold? Powdered? FMBs?
• When should alcohol be
sold? Sundays? 24 hours a day?
• Where should alcohol be
sold? Gas? Grocery? Pharmacy?
Barbershops? Food trucks?
• How should alcohol be
sold? Online? In what containers?
At what price? At what temperature?
• How should these questions
be addressed? In legislatures? In
court? At the ballot box? Locally?
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current stakeholders? What are
public attitudes toward alcohol sale
“convenience?”
Bodnovich said the industry
needs to seek a balance between
the normalization of beverage alcohol and the regulation of it.
The three-tier system exists for
a reason, he added, calling the system “the best in the world.”
Sensible market regulation
where alcohol is celebrated and
respected, “and not demonized,” he
said, “is not antithetical to growth,
social responsibility and consumer
satisfaction.”
“You guys still play the most
vital role in ensuring that alcohol is
served safely,” he told the tavern
owners.
The health of the industry
depends on successful collaborations with regulators, law enforcement, community groups and charitable organizations, he said. And
he urged industry representatives
to take advantage of the positive
alliances built with those groups.
“Give those folks a call when
needed in the legislature,” he said.
“Don’t be afraid to make that ask.”
Bodnovich then reviewed several national issues that have
potential industry impact.
Estate Tax Repeal – House has
passed the Death Tax Repeal Act;
Senate has yet to vote on it.
Save American Workers Act –
House has passed the Act, which
restores the definition of “fulltime” to 40 hours from 30 hours;
similar legislation introduced in the
Senate.
Congressional Hospitality
Caucus – Caucus created in June to
“promote the American hospitality
industry.”
Music licensing reform – ABL
joined the Music Innovation
Consumers coalition in July and is
working on how fees are set, the
definition of occupied space, and
repertoire transparency.
Alcohol-related transportation
policy – The transportation bill is
used to shape alcohol-related traffic policy, such as ignition interlocks for repeat DUI offenders.
The ABL opposes drunk driving
“without condition;” targeted
enforcement for high-BAC and
repeat offenders; long-term solutions, assessment and treatment;
and adjudicatory discretion for
judges and DUI courts.
.05 BAC initiative – New York
is the only state to encounter a legislative proposal in 2015 to reduce
BAC levels from .08 for DUIs. No
federal legislation has been introduced to make the change, and
none is expected.
Bodnovich said the ABL is
opposed to potential federal excise
tax increases on alcohol, favors the
recent swipe fee reform that is
under pressure, and favors the proposed S-Corp tax structure, which
“protects small business interests.”
The movement to legalize marijuana has huge implications to the
alcohol retail industry, Bodnovich
said.
“It’s happening,” he said. “To
see where we’re at now is astonishing.”
Full legalization could provide
both pitfalls and opportunities, he
said, noting that “demand is
already outstripping supply” in
states that have legalized cannabis.
However, challenges are
numerous, he said. Regulating
marijuana like alcohol “is an easy
analogy,” he said, but “complicated
in reality” when considering public
safety, product safety, banking
options, economics of supply
chain, and enforcement.
So far, Bodnovich said, no
state has allowed comingling of
retail alcohol and recreational marijuana sales.
He added that three potential
ways exist to write a marijuana
ballot initiative with regard to alcohol:
Marijuana cannot be sold by
alcohol licensees;
Marijuana can be sold by alcohol licensees;
Marijuana can only be sold by
alcohol licensees.
The federal government hasn’t
indicated any preference to legalize
marijuana on a national scale, but
the 2016 elections could change
that, he said.
“We’ll see what happens in
2016,” he said.
Montana Tavern Times – 14
October 2015
Liquor Biz
A-B acquisition of SABMiller is big news
By Paul Vang
Montana Tavern Times
The world’s second-largest
brewing company, SABMiller, and
its U.S. joint venture with Molson
Coors became big news in the beverage world and the financial
world this past month.
The first part of the story came
out on Sept. 15 as I was getting
ready to hit the road for the MTA
Trade Show in Helena. National
Public Radio’s Marketplace program reported that MillerCoors
was going to be closing a large
brewery in Eden, N.C., with an
estimated 500 workers expected to
be laid off.
At the MTA convention later
that morning I had a chat with
Greg Seiger, the MillerCoors representative for Montana, and he
said that he got the news of the
plant closing the day before. He
cautioned that the plant closing
was planned for September 2016, a
year off, and that if sales
improved, the closing might not
even happen. He also mentioned
that MillerCoors also acquired a
craft brewery in San Diego.
The Winston-Salem Journal
reported that the planned closing is
partly due to a distribution overlap
between the Eden NC plant and a
similar facility in Shenandoah,
VA., just 200 miles away.
Decreasing consumer demand was
another factor. Since MillerCoors’
creation seven years ago, total production has declined by nearly 10
million barrels, about the equivalent of a single plant’s production.
The Wall Street Journal confirmed that MillerCoors LLC
acquired its first craft brewery,
Saint Archer Brewing Company of
San Diego, following the example
of Anheuser-Busch InBev, which
has purchased a handful of craft
breweries. Saint Archer expects to
sell an estimated 35,000 barrels of
beer this year. While MillerCoors
didn’t disclose any financial
details, several other acquisitions
averaged around a million dollars
per thousand barrels of production,
so the deal was likely worth
around $35 million.
While the plant closing and
craft brewery acquisition were
major stories, the really big news
would happen the next day, when
the Financial Times reported that,
after a long anticipation, AnheuserBusch InBev made its move to
acquire SABMiller, in what would
be a $250 billion deal.
In the FT report, SABMiller
confirmed that the merger proposal
had been received, but that the
board of SABMiller wasn’t ready
to comment further.
In following days, the financial
press came out with a lot of analysis of the proposed deal.
Beer company shares went up
around the world according to
Financial Times. Molson Coors
shares went up 14 percent
overnight. Dutch brewer Heineken
and Danish brewer Carlsberg also
shot up, on speculation that the
proposed big merger would force
smaller brewers to consolidate. The
report also said that an Exane BNP
Paribas analyst suggested that
SABMiller might make a move to
acquire France’s Castel group as a
“Poison pill” as a defense against
A-B InBev.
The Wall Street Journal reported that an A-B InBev/SABMiller
merger would trigger a whole
wave of spin-offs and divestitures
around the world. A-B InBev has
corporate alliances with PepsiCo
Inc, while SABMiller owns a number of Coca Cola bottling operations and there was no likelihood
that Coke and Pepsi would live
happily under one corporate roof.
The Journal speculates that in
the U.S., A-B InBev would have to
sell SABMiller’s 58 percent stake
in MillerCoors to avoid antitrust
problems.
Earlier in September there was
speculation that Diageo, brewer of
Guinness, but better known for its
spirits portfolio, might make a
move for SABMiller. After the
news of the A-B InBev move came
out, Nomura analysts suggested
that SABMiller might approach
Diageo about a merger deal, in
preference to the A-B InBev proposal.
Speculation on the A-B/Miller
merger echoed in the halls of
Congress. The Hill reports that
such a merger might find resistance in Congress.
Sen. Bernie Sanders (I-VT),
said, “It concerns me very much,
and it should be a concern to the
American people who believe in a
competitive economy that you do
not have.”
Sen. Sanders is a leading candidate in the Democratic presidential race.
Sen. Ron Wyden (D-OR), also
a home brewer, said, “”I’m certainly concerned this merger could
increase the price of beer for
American consumers. Antitrust
regulators need to take a long look
at his proposed merger.”
An expected major player in
the whole process may be Altria,
the giant tobacco company that
makes Marlboro cigarettes. Altria
previously owned the Miller
Brewing Company and then sold it
to South Africa Breweries to form
SABMiller, though it still kept a
minority interest in the merged
company – the largest minority
stockholder. The Times (London)
reported that Altria has signed up
Credit Suisse and Perella Weinberg
as financial advisors, which the
Times took as a sign that it is interested in selling its 27 percent ownership in SABMiller.
SABMiller’s second largest
shareholder is the Santo Domingo
family of Columbia, which owns
14 percent of SABMiller and is
said to favor a merger.
On the other hand, the Times
reported that SABMiller would try
to resist the minority stockholders
and to fight off a merger with A-B
InBev.
Meanwhile, while all this is
happening, CNBC reported that AB InBev also bought out a
California craft brewer, Golden
Road Brewing, the largest craft
brewer in Los Angeles. Golden
Road, which produces 45,000 barrels per year, is the fifth craft
brewer that the brewing giant has
acquired.
So, as of the end of September,
this is where we are. A-B InBev
has finally made a move to take
over SABMiller, something that
has been anticipated for several
years. Now comes the inside game
of stockholders and deals, likely
spinoffs, plus antitrust regulators.
We’ll be watching to see what happens, though it’s clear that when
the dust settles, the world beer
market will be changed.
Stay tuned.
Idaho and Trader Joe’s
Meanwhile, closer to home, an
interesting situation is developing
in Idaho.
Trader Joe’s, the Californiabased company that operates over
400 grocery and specialty markets
in 38 states, opened a store in
Boise, Idaho in 2014.
Trader Joe’s is famed as a seller of Charles Shaw wines, often
known as “Two Buck Chuck,” as
for years, the wine sold for $2 per
bottle. Trade Joe’s insists that
Charles Shaw wines are exclusive
to Trader Joe’s.
On the other hand, according to
the Idaho Statesman, Idaho law
specifies that no distributor shall
restrict the sale of wine to one
retailer.
Two retailers attempted to
place orders for Charles Shaw
wine only to be refused by the distributor as this was an exclusively
Trader Joe’s brand.
The Idaho State Police has
jurisdiction over enforcement of
alcohol laws. At the time the story
came out, the Idaho State Police
hadn’t gotten directly involved
though a spokesperson did say that
if a distributor carries a wine product it has to be available to other
retailers.
Diageo recovering
Barron’s reports that after several years of subpar growth, sales
of Diageo’s portfolio of premium
spirits is growing at a better rate.
For investors, this means that company shares could rise 25 percent
over the next 12 months.
According to the report,
Diageo’s net income for the current
fiscal year are expected to be up 8
percent compared to previous estimates.
Drunk man gets paved
Finally, if we needed an example to prove the dangers of overdrinking, consider the 45-year old
man in India who tried to walk
home after a big night at a village
fair.
He stumbled into a pot hole
(evidently a big one—probably
similar to some in my neighborhood last spring) and passed out.
The next day, construction workers
filled in the hole with hot tar and
used a heavy roller to compact the
roadway.
The man’s death would have
gone unnoticed except that local
residents discovered an arm sticking out from the tar.
Two construction workers have
been arrested and charged with
negligence. The man’s family will
be given a settlement of 50,000
Rupees, about $761 in U.S. dollars,
as compensation.
October 2015
MTA crowns
golf, poker
champions
Montana Tavern Times
The Montana Tavern
Association’s golf tournament that
ushers in the organization’s annual
convention crowned new champions Sept. 14.
Winning with an other-worldly
score of 53 was the four-person
scramble team of Thom Propp,
Fritz Scheider, Scott Heessel and
Kelly Gilligan.
Gilligan, who won three
straight State Ams in the mid-90s,
helped the squad a little, Propp
conceded.
Second place went to the team
of Peter Babin, Bob Miller, Paula
Wildman, and Mark Fisher.
The tournament was held at the
Fox Ridge Golf Course just east of
Helena, and players were able to
take advantage of 12-inch cups.
The 19th Hole Party after play
featured an assortment of “heavy
hors d’oeuvres.”
The event was again sponsored
by MillerCoors.
Ryan Willmore of Missoula
won the annual Roger Frampton
Freeze-Out Poker Tournament, an
MTA fundraiser and annual highlight of the MTA convention.
Taking home second place was
Max Pigman of Helena, while
Mike Ferrago of Helena hung on
for third place.
The two-day tournament was
held at Millers Crossing. By the
end of the first round on Monday,
Sept. 14, the number of players
was cut to a final 10. The finals
were Tuesday, Sept. 15.
Players joined the tournament
for a $100 entry fee, though those
facing elimination were allowed to
re-buy for another stack.
The poker tournament is officially called the Roger Frampton
Memorial Texas Hold-Em
Tournament. Roger Frampton, of
the Flathead area Best Bet Group,
was an avid poker player and winner of the 2006 poker tournament.
Montana Tavern Times – 15
THOM PROPP, far left in black
shirt, has no problem showing
Peter Babin who won the golf
tournament. Joining Propp on
the winning team were Fritz
Scheider, Scott Heessel and
Kelly Gilligan. Ryan Willmore,
watching a deal intently at left,
won the 2015 MTA poker tournament. Max Pigman, right,
took second.
MTA Insurance Products!
Paul Tash photos
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Work Comp • Property • Liability • Liquor Liability • Health Ins
Trade show has enticing variety
Montana Tavern Times – 16
By Paul F. Vang
Montana Tavern Times
The Trade Show, an integral
part of the Montana Tavern
Association’s annual convention,
again offered an array of services
and products, with tastes and samples, to convention-goers. The
Trade Show more than filled the
Colonial Inn’s Convention Center
Sept. 15, and anybody who didn’t
learn something new probably
wasn’t trying.
First of all, the Trade Show
demonstrated that craft distilling,
just a trend a few years ago, is now
a flourishing part of Montana’s
business scene.
I started the day with a chat
with Jennifer Hensley, the government affairs representative for the
Montana Distillers Guild. She said
Montana’s first legal distillery of
modern times came online in 2009.
Now, 23 distillers are either in
operation or in the final stages of
the permitting process.
As an indication that the craft
distilling business is maturing, she
introduced me to Tyrell Hibbard,
who just recently acquired Triple
Divide Spirits of Helena. Triple
Divide is actually the first Montana
distillery to go through a formal
change of ownership. Triple Divide
is currently producing a gin, vodka
and a spiced rum.
A new exhibitor is Bozeman
Spirits, a distillery based in downtown Bozeman that started in
2012. On hand was Mary Pat
Harris, who co-owns the business
with her husband, Jim Harris.
Their products include Cold Spring
Vodka, Ruby River Gin and a
whiskey blend, 1889 Whiskey,
commemorating Montana’s statehood.
Back for a third time at the
Trade Show was Willie Blazer,
owner of Willie’s Distillery of
Ennis. Blazer said his business was
completing another successful
tourist season in Ennis and he was
looking forward visiting with bar
owners and getting them acquainted with his products.
A new exhibitor was Mark
Hlebichuk of Montana Distillery of
Kalispell. Montana Distillery produces an extensive line of glutenfree vodkas that come in a variety
of flavors, including huckleberry,
coffee, pepper, cucumber and
bacon.
Bacon, you ask? I had to sample it and frankly a bacon-flavored
spirit seemed a bit weird, but
Hlebichuk says it’s perfect for mixing up a Bloody Mary or a Bloody
Caesar.
October 2015
Another Flathead area distillery
on hand was Glacier Distilling
Company of West Glacier. Their
representative, Molly Thorvilson,
said they’ve been in production for
five years, but until now they’ve
been busy just keeping up with
tourist traffic. The distillery is now
ready to get into statewide distribution. One of its featured products is
Fireweed Whiskey, a bourbon/cherry blend.
Some craft distilleries
from outside of Montana
included High West Distilling
of Park City, Utah. Adam
Opalek, its Western States
sales representative, or
“Whiskey Missionary” as he’s
described on his business
card, was showing off its feaNEW EXHIBITOR Mark
Hlebichuk of Montana
Distillery in Kalispell
shows off a bottle of
bacon-flavored vodka.
Below right is Mike
Roberts of Tell-AGraphics from
Vancouver, WA. He
figures he’s been an
exhibitor at 39 MTA
trade shows.
tured product, American
Prairie Bourbon. Ten
percent of the bourbon
sales are given to the
American Prairie Reserve, a
Bozeman-based non-profit organization. Incidentally, High West’s
distillery is part of a saloon and
restaurant complex and they claim
to be the world’s only ski-in gastro-distillery. I’ll take their word
for it.
Craig Smith of Smith
Marketing was on hand to represent, among others, 4 Spirit
Distilling of Adair Village, Oregon.
Craig says that 10 percent of
Montana sales will be donated to
Montana veteran’s organizations.
Continuing on the spirits
theme, Ryan McDonald of Western
Spirits was showing off the line of
spirits produced by Bird Dog
Whiskey. One of their latest flavors is Chocolate Flavored
Whiskey. Naturally, the label features a chocolate Labrador retriever. Alix, a chocolate Lab was my
hunting partner for a dozen years,
a few dogs back, and she was a
sweetie. So is Bird Dog’s chocolate whiskey.
Edrington, the spirits company
that includes Macallan and Famous
Grouse Scotch whiskies, had a
number of their products on hand;
including some premium aged
Macallans, featuring The Macallan
Rare Cask, a premium single malt
that sells for around $350 a bottle.
Oh my, it was good.
Okay, the Trade Show featured
more than tasting fancy spirits.
Rich Higgins is a writer and
the author of No Bar Too Far – a
Barhopping Guide for the
Adventurous. It’s a guide to all the
with Seiger about some of the current happenings at MillerCoors,
which we’ll cover in some detail in
this month’s Liquor Biz column.
Garrett Heywood of Meritage
Technologies was showing off his
company’s latest POS systems.
Heywood said Meritage has been a
long-time producer of POS products tailored for restaurants, but the
company is now moving
into POS systems tailored
for the bar market.
Montana craft brewers
had a big presence at the
Trade Show.
Among new craft brewers is Black Eagle Brewery
of Black Eagle, with their
brewer, Kelly Gilligan, on
hand to provide samples.
Black Eagle Brewery
launched in January 2015,
and is making its presence
known in north central
Montana. Black Eagle is a
project of the Heisler family
of Great Falls, so the venture is backed with a lot of
expertise in the business.
Another new start-up is
Katabatic Brewing Company
of Livingston, which was
Paul F. Vang photos
celebrating its one-year
bars in Montana. He’s
anniversary at the Trade Show. The
currently working on a
brewery gets its name from katanew edition of the book.
batic winds, the downslope mounHiggins also has a guide
tain winds for which the Paradise
to Idaho bars, and is currently
Valley and Livingston are so well
working on a guide for Wyoming.
known.
Higgins said he was enjoying the
The Montana Brewers
opportunity to meet many of the
Association, a trade association of
owners of Montana bars.
craft brewers, had a booth manned
I also had a chance for a good
by Matt Leon, MBA’s executive
chat with John Bodnovich, execudirector, along with a number of
tive director of American Beverage locally owned and operated brewLicensees, of which MTA is a
eries, including Neptune of
member. Bodnovich came out to
Livingston, and Philipsburg
Montana to attend an ABL board
Brewing of Philipsburg. Additional
meeting and the MTA convention,
brewers joined them throughout
though he enjoyed the opportunity
the day. Montana’s larger brewers,
to wander around the Trade Show
including Big Sky and Kettlehouse
and enjoy a Montana-made beer.
of Missoula, were also exhibiting.
Jim Riska is western sales
In addition, other exhibitors
manager for the Ernest F. Mariani
showed off various foods, cookers,
Company, which represents a wide
and gaming equipment. Several
variety of beverage dispensing
regulatory agencies also had
equipment from a lot of manufacbooths.
turers. Riska teamed up with Greg
While I intentionally like to
Seiger of MillerCoors to show off
seek out first-time exhibitors to see
a dispenser that poured an ice-cold
what’s new to Montana, or just
glass of Blue Moon White IPA.
coming onto the market, I’d like to
The keg was at room temperature,
close this article with a shout-out
but after running through the disto Mike Roberts of Tell-Apenser, the beer was well chilled.
Graphics of Vancouver, WA.
Seiger had a big tub of
Roberts has been a longtime marMillerCoors brews on hand for
keter of custom-designed embroisampling, including Leinenkugel
dered products such as hats and
Harvest Patch Shandy, a pumpkinshirts. He figures this was his 39th
flavored beer, and one of Leinie’s
MTA Trade Show, which probably
fall seasonals. I had a long chat
should earn him a longevity prize.
MTA seminars provide an education
October 2015
By Paul F. Vang
Montana Tavern Times
Last year’s MTA Convention
was the first in many years to
include seminars on various topics,
and this year’s convention continued this educational program. This
year several seminars ran concurrently, so people had to pick and
choose. Following is a summary of
seminars I attended.
Social media marketing
This seminar was led by Chris
Fjeri of PRIME Marketing of
Bozeman.
Using social media as a marketing tool, Fjeri said, allows businesses to target promotions directly
to specific markets that they can
narrowly define using such demographics as location, age, sex, etc.
While many players exist in the
social media game – including
Twitter, Instagram, and a new one,
Tang – the most popular is still
Facebook, Fjeri said. Facebook is a
medium that is relatively userfriendly, he added, and offers various ways to expand a business’
exposure at a modest cost.
Fjeri noted some pitfalls in
internet marketing, including not
updating and maintaining websites
Montana Tavern Times – 17
and Facebook pages. Fjeri said it’s
discouraging to review a website
he’s developed a couple years later
and find that nothing has been
touched and everything is out of
date.
The seminar concluded some
tips on social media marketing,
including:
• Never post while drunk.
• Never post in anger.
• Don’t make negative posts
about other businesses.
• Keep your page up-to-date.
• Keep things light and keep
them fun.
Brewery practices
This seminar was a panel discussion featuring several Montana
brewers, who reviewed some of
the ins and outs of brewing beer
along with holding an all beverage
or a beer and wine license.
One conclusion of the panel is
that it’s easier for existing bars to
open a brewery than for breweries
to open a bar. Panelists said strict
regulations detail how a bar and
brewery can co-exist, covering
such issues as signage, walls, and
separation of facilities.
About 54 breweries currently
operate in Montana, and that num-
ber is increasing. Some of the
newer breweries are expansions of
taverns, the panelists said.
The average cost to start a
microbrewery is about $500,000,
factoring in around 3,000 square
feet of space for brewing and
retailing, plus ample parking and
good foot traffic to the business.
Also, if a restaurant or bar is struggling, don’t build a brewery hoping
it will rescue the core business, the
panelists agreed.
“Brewing is a passion,” one
brewer emphasized. “It takes a lot
of work and lots of money. The
cost of goods is volatile, and the
market for hops is high.”
In other words, don’t start
brewing beer, thinking it’s an easy
way to make a living.
While lots of pitfalls exist in
creating a brewery, craft beer now
represents about seven percent of
Montana’s beer market, and Tim
O’Leary of Kettlehouse predicts
this segment could grow to 30 percent.
“The reality is that millennials
(people coming of age this century) are driving the alcohol scene.
They want lots of variety and
choices,” said Tom Heisler, owner
of the Tip Top Tavern in Black
Eagle and one of the developers of
the fledgling Black Eagle Brewery.
Montana Tavern Times – 18
October 2015
MTT • Buy • Sell •Trade
BUSINESSES FOR SALE
LEWISTOWN
Ready to retire. Restaurant, bar, and
casino. Annual sales in excess of
$1,000,000 through September 2015.
Includes 8,000 sf building, all beverage license, equipment, and inventory.
Total turn key. Will consider owner
financing. $795k. 406 868-8476.
BUSINESSES FOR SALE
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.
ML#250420 - Historic Bar
528 E Pike Avenue - Columbus
NEW PRICE! $480,000
ML#251331 - New listing
3008 Highway 78 - Absarokee
$690,000
SILVER COIN SPORTS
BAR & CASINO
Price reduced by $200,000!
Make me an offer!
Western Montana establishment
has best location in town.
Long-standing, excellent business. Land, building, FF&E,
18 owned gaming machines.
Full-beverage liquor & gaming
license. Current appraisal land
& building. Call for details.
$1,296,000 $1,096,000. Lyle
Dunham, agent. 406-425-0180.
BUSINESSES FOR SALE
The Patterson Team:
Stephanie Patterson, 321-0759,
and Dan Patterson, 321-4182
CHECKERBOARD INN
Martinsdale, Montana
This resort is a complete, yeararound business with full liquor
license, purveyor's license, gaming license, fuel license w/pumps,
trailer court, RV park, & cabins.
Majestic area for hunting, fishing,
hiking. $597,000. Fred Scott,
broker, 406 656 5636.
1-406-782-3660
[email protected]
LICENSES FOR SALE
All beverage floatable liquor license.
Will sell with bar, with gaming or separately. 406-323-2347.
All-beverage liquor license for sale in
W. Yellowstone. Call 406-640-1063.
THE HISTORIC
LONG BRANCH SALOON!
This offering consists of land,
building, bar, casino, restaurant
and fixtures, furnishings and
equipment (list on file with listing
agent), all-beverage license/off
premise license, pack/retail liquor
license, and gaming license. Great
location in the heart of the Ennis,
MT business district with Main
St/Highway frontage. There is a
current gaming contract. Price
includes all liquor and gaming
licenses, which are subject to the
buyer's approval by the state.
Make an offer! Currently listed at
$629,000. For more information
call Bill Mercer at Re/Max 406581-5574.
THE OLD SALOON AND
LIVERY STABLE STEAK HOUSE
(Price Reduction)
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
$400,000. Possible owner financing.
Call Dave Everett, 406-600-0647.
Profitable casino, restaurant, lounge
in central Montana. Includes real
estate, liquor license, and equipment.
Owner motivated. 406-539-0146.
ML#251417 - new listing
341 N 9th Street - Columbus
$735,000
Just $4.50 per line
Midway Bar and Casino
in Lewistown
Family owned business for over 50
years. Full liquor license with a great
restaurant tenant the past 8 years.
Real estate included. $375,000.
Contact John at 406-350-1952 or
[email protected]
EQUIPMENT WANTED
Full-size shuffleboard wanted. Call
406-859-2170.
City of Missoula beer and wine
license with gaming privileges. Call
Dan Fillinger, broker – Arrowhead
Development Co., 406-431-3463.
Billings all-beverage license with
gaming. Owner financing w/low
down and favorable terms. Will consider concession agreement. 406-6564053. [email protected]
Rare find ... Beer & Wine License
with gaming (no restrictions) for sale
in the Belgrade/Bozeman area. 406640-2287.
HELP WANTED
Route Operator in Great Falls area is
looking to hire a motivated, energetic
sales person with at least 3 years of
sales experience in the gambling
industry. Will be working with existing location & trying to acquire new
locations. Competitive salary with
great earning potential. Full health
benefits with 401k program.
Company vehicle for business use.
SEND RESUME TO: P.O. Box 3605
Great Falls, MT, 59403
EQUIPMENT FOR SALE
Full set of used keno equipment.
$500. Contact Duane 406-563-9921
or 406-560-0770.
Two Megaplex gaming machines,
$1,250 each. One Royal Touch
$2,500. Call Nancy, 406-546-8559.
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October 2015
Montana Tavern Times – 19
Montana Tavern Times – 20
October 2015