Happy New Year - Arizona Licensed Beverage Association

Founded 1936
ARIZONA LICENSED BEVERAGE ASSOCIATION, INC.
ALBA
Merry
Christmas
AND
Happy
New Year
FROM
ALBA
Edition 4– 2012
The ALBA Reporter is published four times annually by the
Arizona Licensed Beverage Association, a non-profit Arizona
corporation, 77 E. Columbus Ave., Suite 102, Phoenix, Arizona
85012. Telephone: (602) 285-1092 – Fax: (602) 285-1258
Copyright 2012.
Circulation: Bulk mailed to ALBA members, associate members,
other Arizona licensees and to key business, political, law
enforcement and education leaders in Arizona and elsewhere.
Style: Slightly modified Associated Press Stylebook.
Letters to the Editor: Always welcomed. Maximum 200 words.
Subject to editing for length and clarity. Send by regular mail to
ALBA office or e-mail to [email protected]
Managing Editor…………………...Andrew A. Limber
Graphics/Layout…………………...Joseph Belfiore
Advertising Director……………....Fred Mallaire
Proofing/Production Assistants……April Sutter/Deborah Belfiore
Printing…………………………….Brickprint
Circulation………………………....American Bindery
Contributing writers: Drew Alexander, Alan Everett,
Don Isaacson, Andy Limber, Fred Mallaire, Deanne Poulos
and Bill Weigele.
Scan this QR barcode with
your smart phone to visit
the ALBA website
77 E. COLUMBUS AVE. #102 PHOENIX, AZ 85012
1-800-453-5232 602-285-1092 FAX 602-285-1258
ALBA e-mail address: [email protected]
President Bill Weigele: [email protected]
Business Mgr. April Sutter: [email protected]
Managing Editor: [email protected]
Advertising Director: [email protected]
Graphics/Ad Production: [email protected]
Advertising Specifications: Display ads not limited to liquor
industry or related. ALBA reserves the right to reject any
advertisement deemed inappropriate or inconsistent with the
standards of this publication.
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Visit ALBA’s website: www.albainc.org
ALBA
Email: [email protected]
website: www.albainc.org
OFFICERS
President
Bill Weigele
Phoenix 602-309-7202
Vice President
Robin Cantrell
Branding Iron
Steakhouse & Lounge
Safford 928-651-2411
Vice President
David Delos
Tony’s Cocktail Lounge
Glendale 602-938-1956
Secretary
Brad Henrich
Shady’s
Scottsdale
Treasurer
Fred Mallaire
Phoenix 602-526-7870
DIRECTORS
Anthony Bartoli
Bunkhouse Lounge
Phoenix
Andy Ingram
Four Peaks Brewing Co.
Tempe
Janie Riddle
Valle Luna
Glendale
Steven Barclay
Beer & Wine Distributors
Phoenix
Mark DeSimone
Hidden House
Phoenix
Wendy Jack
Wendy Jack’s
Lounge & Rest.
Avondale
Jim Shaffer
Johnny’s Other Place
Yuma
ALBA-Business Manager
Chris Espinoza
Valle Luna
Phoenix
Betty Grotewold
Phoenix
Jerry Grotewold
Phoenix
George Hollingsworth
Lions Den
Pinetop
Rich Huie
Salt Cellar Restaurant
Scottsdale
2 ALBA Reporter
Barbara Jensen-Zgonc
Phoenix
Bob Smith
Empty Pockets
Holbrook
Allen McCarthy
Duke’s Sports Bar
Scottsdale
Dave Werner
The Dirty Drummer
Phoenix
Dave Michelson
The Palace
Prescott
Frankie Zanzucchi
Pantera
Phoenix
Deanne Poulos
Phoenix
Non-Voting Directors
Bill Riddle
Valle Luna
Glendale
Tracy Uffelman
Alliance Beverage
Phoenix
April Sutter
77 E. Columbus Ave. #102
Phoenix, AZ 85012
602-285-1092 or
800-453-5232
IN MEMORIAM
Past President
Paul Klett
1911-2007
Past Directors
Phil Bay
1935-2005
Steve Johnson
ALBA-Admin. Assistant
Deborah Belfiore
77 E. Columbus Ave. #102
Phoenix, AZ 85012
602-285-1092 or
800-453-5232
Tony Marino
1936-2004
James Poulos
1959-2009
Louis Poulos
1929-2011
Bill Weigele,
ALBA President
The President’s Message
What’s an ALBA Membership Worth?
So you’ve paid in your tax deductable $225 annual membership dues to the Arizona Licensed Beverage Association. If
you look at that payment as an investment, you rightfully
might ask what return you can expect on your money.
First of all, as one of some 10,000 on-sale or off-sale
liquor retailers in the state, your individual voice in legislative
and other matters directly impacting your business is quite
small. But amplify your voice many times over through
ALBA’s powerful presence in the Legislature, community
city halls and with scores of individual political office holders, and your interests and concerns will be heard loud
and clear.
On your own, you most likely cannot afford the many
thousands of dollars it takes to hire a lobbyist. Collectively,
though, a portion of your modest ALBA membership dues
pays the fees and expenses involved in having a lobbyist go
to work for you—and ours is the best. Don Isaacson of the
Isaacson and Moore law firm has been widely recognized as
the top lobbyist in the state. His experience, insight and
knowledge of our industry and the legislative process are
second to none.
Can you spare the time to be at the state Legislature from
January to June tracking the bills that can affect the way you
do business? Do you have the expertise to evaluate the contents and consequences of existing and proposed new legislation that could benefit or harm your establishment and your
livelihood? Do you have a consistent open line of communication with the Department of Liquor Licenses and Control
(DLLC) as well as other governmental agencies that have regulatory authority over your licensed premises?
It’s highly probable that you, as a liquor licensee, would
answer no to all the above questions. But Don Isaacson, his
partner Norman Moore, and the officers and employees of
ALBA are the people who can say yes to such questions
because you have hired them to work on your behalf.
So what’s all this legislative effort and people contact
worth?
Arizona’s microbrewery industry and many retailers
recently benefited from the new “growler” law that ALBA
had a strong hand in seeing through the Legislature. During
the early stages, we learned that a very large off-sale group
pushed for a bill that would expand growlers to them, with no
provision for other types of on/off sale licensees. ALBA convinced the DLLC and others that this expansion should only
be allowed if it included the other segment of the industry that
also had off-sale privileges. As a result, it is now legal for
Series 3, 6, 7, 9, 10, and with stacking licenses with other
establishments, will be able to expand their sales also. For
example, a Series 12 can stack a Series 7 and be able to
sell growlers.
The state’s craft beer makers have been able to increase
their maximum legal production capacity twice in the last few
years due to ALBA working with the brewers and the wholesale community to convince the Legislature that it was necessary for the growth of microbreweries.
Incidentally, license stacking is also a result of ALBA
lobbying efforts. This was part of the omnibus bill three years
ago that also preserved the value of quota licenses.
Can you put a price tag on such gains?
The expansion of bottle service came about through an
ALBA and DLLC meeting with the Scottsdale entertainment
group, and then including it in the omnibus bill that passed
in 2011.
ALBA was able to assist the state’s community colleges,
such as Yavapai College, to hold liquor licenses.
ALBA has taken the lead in the fight to keep cities from
discriminating against the hospitality industry by imposing
unfair fees. We continue to resist attempts of municipalities
to obtain blanket local control of state licensed liquor
establishments.
In troubled times, ALBA is the helping hand members can
rely on. One example this past summer was the devastating
Whiskey Row fire in Prescott. Among the three impacted
businesses was the historic Bird Cage Saloon, owned by longtime association members John and Deborah Stamm. Within
48 hours, an ALBA team was in Prescott to assist the Stamms.
With such distribution industry partners as Alliance Beverage,
Hensley Beverage Company and Fred Nackard Wholesale
Beverage Company, and many others, ALBA helped in
raising $86,000 for the stricken establishments.
ALBA is now the managing organization of the Arizona
Business Council for Alcohol Education (ABC), dedicated to
professional Title 4 liquor law training. ABC is the oldest
such entity in the state and offers ALBA members certain
quantity discounts to make it easier to train their employees in
liquor law.
Then there’s the quarterly publication you are now reading, the ALBA Reporter that brings you industry news and
keeps you in touch with your fellow members. Not to mention
such other benefits as BMI music licensing discounts, savings
on insurance products that may be purchased at discounted
rates, savings on legal services from attorneys experienced in
liquor matters, along with a host of other advantages not
available to non-members.
Now, put the whole package together. If nothing else, what
is your membership worth in the only Arizona trade association that protects liquor retailers’ livelihood by fighting
against unfair legislation?
Isn’t it worth at least $225 a year?
You decide. v
ALBA Reporter 3
New Liquor Application Deadlines: A Better Way?
By guest columnist James Hays, Esq.
Let’s suppose you are thinking of opening a restaurant, and
you consider a liquor license to be critical to its success. One
of the questions you will have is: How long after application
until I receive my liquor license?
Like most business people, you can probably accommodate any reasonable time period, but you would like some certainty. On that front, there’s good news and bad news.
The good news is that the law does contain some fixed timelines, and they are in place to ensure the prompt processing of
your license application. The bad news is that these timelines
are somewhat flexible and subject to being extended due to
events beyond your control.
The best way to see what could go wrong with your application is to begin with how things will look if everything goes
right. As soon as you file your application with the state, the
clock starts ticking. The application is required to be approved
or disapproved by the Department of Liquor Licenses and
Control (DLLC) within 105 days. Within this timeframe, the
city or local governing body has 60 days to post the application at the property, do its own background check, have a
meeting, and make a recommendation to the Department.
If the recommendation is for approval, or no recommendation on your application is made, then the city’s input will
not force a hearing on your application. But you’re not out of
the woods yet.
What the law calls an aggrieved party, that is, anyone
residing at, owning or leasing property within a one-mile
radius of your location, has the latter of 15 days after the city’s
vote or 60 days after the application was filed to lodge a
protest with the Department. While the deadline is almost
always 15 days after the city’s vote, it is possible that the
deadline would be 60 days after application.
For example, the application is filed on January 2 and the
city votes on February 2. The aggrieved party will not have
just until February 17 (Feb. 2 + 15), but will have until March
3 (Jan. 2 + 60) to file their protest. Assuming that no such
aggrieved party appears, and the Department does not file a
protest, your application at least has the potential of being
approved within the 105-day deadline, in which case the
issuance of your license will follow shortly.
If the city, a qualifying neighbor, or the DLLC should file
a protest, then a hearing before the Liquor Board must be set
up on your application. The hearing notice must be mailed at
least 35 days before the hearing. The Board meets just once a
month. The problem with meeting the 105-day deadline under
these circumstances should be apparent. If the city takes close
to 60-days to issue its recommendations, and the protestor or
the Department files a protest after the city’s vote, it is likely
impossible for the hearing to be held with 105 days.
At this point, you might be asking, why don’t we set the
hearing at the time the application is filed? This could save us
4 ALBA Reporter
two months of delay and, if the hearing is not needed, the
hearing can easily be cancelled. Oddly enough, the law actually requires this, although, for various reasons the hearing is
never set at the time of the application. Why this is so will
have to be a topic for another day.
At the moment, it is sufficient to know that if almost anything goes wrong with your application, a hearing will be
required, and the application will almost certainly not be
processed within 105 days. This has little legal consequence,
however, because the law permits the Department to extend
the 105-day deadline by another 105-day period if the director finds the extension to be in the “public interest.”
So, is there a better way?
Yes, of course. Anything made by man can be improved,
and Arizona state liquor law is certainly man and woman
made. In fact, so many people have tinkered with the law over
the years, it’s a wonder it works at all. Until necessary clarifications can be adopted, however, the best we can do is to
carefully study the new application deadlines and plan
accordingly. v
Editor’s Note: James Hays was an attorney in the Civil
Division of the Law Department of the city of Phoenix for
over 24 years. He handled many cases on behalf of the city
before the Arizona State Liquor Board. Mr. Hays is currently
in private practice in Tempe.
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Veteran attorney-lobbyist Don Isaacson and his firm, Isaacson &
Moore, P. C., are important to ALBA’s ongoing mission of protecting
Arizona Liquor licensees against unfair legislation. Don’s unique
insight and experience always makes his commentaries on issues
especially pertinent to our association’s members.
City vs. State Liquor Regulation Still an Issue
By Don Isaacson, Isaacson & Moore, P. C.
I recently had the opportunity to participate in a panel
at the National Conference of State Liquor Administrators
(NCSLA). This is the professional association of the
liquor administrators from the liquor departments in our
50 states. They are, quite literally, the public policy leaders of the liquor industry.
The panel in which I participated included Arizona
attorneys Nick Guttilla, James Hays, and J. D. Smith, the
senior liquor administrator from the state of Washington.
The key point of the panel was the discussion of the proper division of authority between the state and municipalities in the licensing and regulation of liquor businesses.
By the full-room attendance at the meeting, it is clear that
this subject is a major topic of liquor discussions around
the country.
What is the proper role of the state? What role do
municipalities have in liquor licensing? As you know,
before Prohibition cities in Arizona had a strong role in
liquor licensing. After Prohibition, the U. S. Constitution
amendment gave full authority of liquor regulation to the
states. Arizona adopted a private liquor business model,
and one of the constant issues of discussion since that time
was the proper role of cities vis-à-vis the state.
In past years, cities at various times have sought the
right to veto renewals of licenses if the establishment has
had a history of violations. Because the liquor industry
and most legislators could never accept a city veto of a
state license, other accommodations were made to the
cities, including: designation of one of the members of the
liquor board as a representative of a neighborhood group;
a provision that if the city votes by a margin of two-thirds
or greater to recommend against the issuance of a license
that the state liquor board, in turn, must vote by a margin
of two-thirds or greater to sustain the issuance of the
license; the establishment of three separate surcharges on
annual license renewals for licensees to provide two
sources of funding for enforcement and one source of
funding for restaurant audits (to make sure restaurant
licensees are, in fact, restaurants).
On the other hand, restrictions on cities, city abuses on
fees and overreach on liquor regulations have led to the
following: a clear prohibition on Arizona cities from limiting in any way the rights granted to a liquor licensee by
the state license; a limitation on the collection of hospitality taxes, unless such taxes are designated to promote
tourism; a limitation on the annual renewal fees for
licensees by tying the increase to no more than the
increase applied to all other business licenses.
Recently, a further limit was placed on city renewal
fees on liquor licenses where there are no renewal fees
established for other businesses. As the Legislature prescribed, in that case, no further increases can be imposed
upon the liquor licensees unless and until fees are imposed
on other licensees to the same extent.
At the NCSLA meeting, the municipalities/state panel
agreed on one thing, and that is that there needs to be equilibrium between cities and the state on licensing and
regulation matters. First, the license should always be a
state license. However, the city should always have some
input, and should have the ability to enforce liquor laws,
which have criminal penalties.
In view of the need for equilibrium, there is one more
area in Arizona, which will require legislation in the
future. That area is the subject matter of license application fees imposed by cities and the ability of the city to
duplicate and overlap the role of the Department of Liquor
Licenses and Control on background investigations.
Currently, the DLLC thoroughly reviews the background
of the applicants and takes positions accordingly with
respect to licensee qualifications.
Some cities, but not all, duplicate this effort and then
turn around and assess liquor license applicants outrageous fees ostensibly based upon the city’s costs incurred
to conduct background investigations. In many cases, the
city fees are far in excess of comparable fees charged by
the state of Arizona.
In ALBA’s view, the city’s ability to duplicate state
licensing effort and a city’s unrestricted ability to charge
whatever it wants for initial licensing fees must be
stopped.
Otherwise, the ability of small restaurants or bars to
start a new business will be a thing of the past. v
ALBA Reporter 5
6 ALBA Reporter
By Fred Mallaire, Chairman,
Government Relations
Committee
Licensees Need to Know Laws
Governing Their Business
You’ve put your heart and soul, cash and sweat into
your bar, tavern, pub or restaurant. Your liquor license is
at the core of your establishment, and that document that
allows you to serve alcoholic beverages has attached to
it specific legal obligations. Not being knowledgeable in
the laws, rules and regulations that apply to your license
could cause you a great deal of grief if there is an infraction, and might even cost you your hard-earned
enterprise.
It’s also helpful to understand how this law and rule
making comes into being.
All Arizona liquor licensees are required to operate
their respective businesses under both Arizona Revised
Statutes (ARS) Title 4 relating to alcoholic beverages
and the rules of Arizona Administrative Code (AAC),
Title 19, Chapter 1, Arizona Department of Liquor
Licenses and Control (DLLC).
Liquor laws are a product of the Arizona Legislature
and by statute the DLLC is required to make rules of
practice setting forth the nature and requirements of all
formal procedures available to the public. To the
licensee, they should be considered equally important in
their business operations.
Title 4 consists of all laws governing the producing,
distribution, selling and consumption of alcoholic beverages in Arizona. Any Arizona citizen or organization that
believes they have a good idea for a new law, or revising
an existing one pertaining to beverage alcohol, may
solicit a member of the Legislature to introduce a bill to
enact that idea into law.
Bills are assigned to House or Senate committees
where they may be included in the committee’s agenda.
All committee hearings are open to the public where
input for or against the bill is received. If either the
House or Senate passes a bill, it must go through the
other legislative body. If passed by both the House and
Senate, it goes to the governor, who has three options: 1)
Sign the bill within five days (10 days if the Legislature
is adjourned) and the bill becomes law. 2) Refrain from
signing the bill, in which case the bill becomes law after
the five or 10-day waiting period. 3) Veto the bill.
If a veto takes place while the Legislature is in session, the bill is returned to the Legislature where a twothirds vote of each house is required to override the veto.
If the Legislature has already adjourned, the bill is dead.
AAC Title 19, Chapter 1, consists of all the rules
made to assist the DLLC in assuring that all licensees
adhere to the laws and operate their respective businesses responsibly. The majority of the rules are written to
help the Department in the enforcement of liquor laws.
Rules are often needed to clarify how a law might affect
a particular type of license and make any needed change
applicable to that license.
All rules from any government agency must go
through the Governor’s Regulatory Review Council
(GRRC). It is composed of seven members, chaired by
the General Council (an attorney) for the Department of
Administration. The governor appoints the remaining six
members. The purpose of the GRRC is to review the
rules to ensure they are necessary and to avoid duplication and any possible impact on the public. The council
assesses whether a rule is clear, understandable, legal,
and consistent with legislative intent and within the
Liquor Department’s statutory authority. If a rule does
not meet these criteria, it is returned to the agency for
further consideration.
Prior to approval, the agency must file the proposed
rules with the secretary of state’s office and be published
for a period of three weeks. The agency will take public
comment for 30 days after publication, followed by an
oral proceeding. The agency will then place the rules in
final form and resubmit then to the GRRC to place on
their agenda. Once that is done, the GRRC will take
comments for 60 days and its staff will conduct an independent review of the proposed rules. After approval by
the GRRC, there is a 60-day waiting period before the
rules go into effect.
So now you know about the lawmaking process. On
the other hand, maybe it’s best to follow the classic
advice of Germany’s 19th century chancellor, Otto von
Bismark: “There are two things you don’t want to see
being made—sausage and legislation.” v
Editor’s Note: The Arizona Laws and Regulations
Relating to Alcoholic Beverages (Title 4) booklet is published by the Arizona Business Council for Alcohol
Education (ABC) and may be purchased for $12 at the
ALBA-ABC office, 77 E. Columbus Avenue, Suite 102, in
Phoenix. For further information, call (602) 285-1396 or
1-800-453-7597.
ALBA Reporter 7
ALBA Photo Ops... at the Fall Member Mixer
Story and Photos by Andy Limber
George Frasher was the gracious host for ALBA’s fall member get-together in
October at Frasher’s Steakhouse in Scottsdale. Everybody enjoyed an evening
of tasty appetizers, excellent wine and spirits, and the good company of
fellow licensees. v
Megan Huler (left) and Cassie
Marmas of Alliance Beverage
Distributing Co. happily hosted
the refreshment station at the
evening event.
From Le Girls Cabaret, ALBA welcomed new
members Cory Anderson (left), Blair Driggs
and Josh Thornton.
Beautifully representing Duke’s Sports Bar in
Scottsdale were (left) Angie Gadelkarim, Marcia
Gomez and Paula Davis.
Lois Richards
(left) and
Catherine Berts
operate a longtime
Valley favorite, the
Tally Ho cocktail
lounge.
8 ALBA Reporter
Attorneys Steven Barclay and
Peter Schelstraete share a
humorous moment.
From the famed Dirty Drummer were (left) Dave
Werner, Edie Leyva and Mareah Curtis.
Jacquie Bordonaro
was one of the
Frasher’s servers
who helped make
the mixer such a
pleasant experience.
EvERyThING yOu NEEd TO
KNOw AbOuT LIquOR LAw
Since it was established in 1985, the non-profit Arizona Business Council
for Alcohol Education has been the leader in state liquor law training. ABC
has maintained an unblemished reputation for professionalism and has
trained over 350,000 retail licensees and their managers and servers, as well
as wholesaler executives and sales personnel. In addition, ABC has been the
premier provider of liquor law instruction for major sports venues, private
clubs and government entities. With a Variety of classes and schedules
available in every corner of the state, ABC has a program that will meet the
requirements of employees and employers every month of the year.
ABC Certificate Programs
• On-Sale and Off-Sale Basic
• On-Sale and Off-Sale Management
• In-House and Customized Seminars
• TIPS Certification
• Concessions Program
• Wholesaler Information Program
ABC Current Publications
• The new edition of A. R. S. Title 4
• The “ABC Guide to Arizona Liquor Laws” is also available.
For everyone in the liquor industry this publication has
a wealth of information put in simple terms.
• “Identification Register” – $5.00
• “Driver’s License Guide” – All 50 States - $15.00
• Approved forms of ID poster – $3.00 and other signs – $0.75
• Laminating available for any of these signs $1.00 additional.
These publications are priced: for the Title 4 – $12.00 each,
for the ABC Guide – $10.00 each or $20.00 when purchased as a set.
To order by mail add $3.50 S&H or call the ABC office at
602-285-1396 or 1-800-453-7597.
For a color brochure explaining all of our services and a free statewide
Quarterly Training Schedule, or to register for a regular, special or
in-house training seminar, call toll-free 1-800-453-7597 or 602-285-1396,
Mon. - Fri., 9a.m. - 3p.m.
Scan this QR code
REGISTER ON LINE AT
with your smart
www.BCAE.com
phone to visit the
ABC website
The ABC office is located at:
77 E. Columbus Avenue, Suite 102; Phoenix, AZ 85012
e-mail: [email protected] • web site: www.BCAE.com
It’s Full Speed Ahead for Four Peaks
Brewery Expansion
Story and Photos by Andy Limber
“Damn the torpedoes, full speed ahead,” is in the lexicon barrels in Arizona, we will. If we go regional, it will just be in
of famous quotes, this one attributed to Admiral David the surrounding four states (California, Nevada, Colorado and
Farragut during the American Civil War. For the owners of New Mexico.) We really believe in regional local beer, fresh
Four Peaks Brewery, including Jim Scussel and co-owner and beer. Our plan is to stay on the West Coast. If we ever did want
brewer Andy Ingram, they could very well paraphrase to go the national route, we would definitely want to build an
Farragut by saying, damn the negative economic news, Four East Coast brewery, but that’s in many years to come. Right
Peaks is going full speed ahead.
now we’re having fun in what we’re doing day by day.”
In the mid-1990s, Scussel, Ingram and partners recognized
Scussel is pleased with the recently enacted growler law.
the potential of locally brewed craft beers served in a rustic “Once we educate the retailers—the Bevmos and the Total
atmosphere with above average food. That vision became a Wines of the world—on properly cleaning and filling
reality in December 1996 with the opening of their first Four growlers, I think it’s great for more access to market, and
Peaks Brewery and restaurant in Tempe. They picked the ideal that’s what we’re all about.”
Acknowledging that ALBA was instrumental in the lobbysite—the former Pacific Creamery built on Eighth Street in
1890, back when neighboring Arizona State University was ing effort that resulted in the passage of the new law, Scussel
known as Tempe Normal School and the state was still a said, “ALBA has been a life saver for our business. When we
first started out, there was a ten thousand barrel limit. With
territory.
There’s more looking forward than looking back at Four ALBA and its people, we got it changed to forty thousand
Peaks, with the principals completing the brewing phase in (barrels). They’ve also worked hard for a lot of other good
what’s being called laws that we really like.”
Since first opening 16 years ago, Four Peaks Brewery has
“annex,” situ“We’re going to go as deep the
ated in an attrac- become a Valley of the Sun favorite with locals and snowbirds
as we can in Arizona.”
tive industrial park alike in Tempe and the Scottsdale location on North Hayden
at 2401 S. Wilson Road south of Frank Lloyd Wright Boulevard. Among scores
in Tempe. “It’s a 60,000 square foot building that was former- of customer rave reviews, the one who wrote, “Great food,
ly a Burger King warehouse and commissary,” said Andy incredible beer, and great times,” best captures the Four
Ingram, “and we’re going to use it to brew our production Peaks experience. v
beers.”
The new custom-built three million dollar facility will
operate under a separate liquor license, allowing it to produce
40,000 gallons a year of their flagship ale, Kilt Lifter, along
with such seasonal favorites as Pumpkin Porter. The tasting
room opened to the public in mid-November.
“This isn’t a sexy structure like our historical Eighth Street
building constructed in 1890,” said Ingram. “But we’re going
to have some fun with it. We’re going to have a tasting room,
but we’re not going to have any signs up. It will be kind of a
hidden place where you just have to know where it is, like a
‘Hernando’s Hideaway.’ After a while, people will find us.”
The fully air-conditioned new Four Peaks Brewery location has a large parking area and will eventually have a
kitchen serving gourmet sandwiches, according to Ingram,
who expects to have big lunch crowds from the many closeby surrounding industries. In time, a happy hour and early
dinners will become a part of the annex. But the retail side
here is secondary to the primary focus of wholesale beer distribution and packaging.
Four Peaks has come a long way in a relatively short time. Four Peaks owners Jim Scussel (left) and Andy Ingram
So what’s ahead? “We’re going to go as deep as we can in check schematics for their new 60,000 square foot brewery
Arizona,” said Jim Scussel. “If we can sell eighty thousand “annex” in Tempe.
10 ALBA Reporter
What Every Retailer Should Know
By Andy Ingram, Co-Owner/Brewer, Four Peaks
Brewing Company
The Proper Cleaning and
Filling of a Growler
The third and newest Four Peaks Brewery is in a modern
industrial park area of Tempe and began brewing its
popular craft beers there in mid-November 2012
The fermentation and “brewhouse” vessels at the new
Four Peaks wholesale and retail operation in Tempe. The
brewhouse is where the beer is actually made by milling,
mashing and straining the malt. The resulting liquid,
called “wort,” is then boiled and cooled before going to
the fermenters where the yeast converts the sugars in the
wort into ethanol and CO2.
There’s been much ado lately about the new
“growler” law; the one that allows patrons to have
large glass bottles filled with draft beer at certain
Arizona licensed establishments to take home and enjoy.
I’ll not get into the details of the who and what of this new
law, but I would like to touch on something that perhaps many
of you have not thought about: how do you properly fill a
growler?
First, consider cleanliness. From a supplier’s standpoint
(mine) it is of the utmost importance to have my beer served in
a clean, odor-free growler. Nothing could be worse than to have
someone introduce my beer to a new customer in a dirty glass.
It’s like starting a baseball game with two strikes. So—and this
is the hard part—if a customer brings in a growler that has not
been rinsed or cleaned for what seems like months, politely
refuse to fill it and ask them to return when it’s clean, or, offer
to sell them a new one. Try to explain that not only can a dirty
growler make good beer taste bad, it may be a health risk if the
growler is too dirty.
If the growler is not too bad, and you feel the sale is worth
the extra time for your bartender to clean it for the patron, then
go ahead. Be sure to use hot water with an effective detergent
along with a long bottle brush, which works great. Rinse the
growler thoroughly. Also, discard any old bottle caps and
replace them with new ones. Very old growler caps can rust.
Filling a growler can be a challenge. You don’t want to fill
a growler directly from the tap without some sort of filling tube.
Without the tube, the fill can take a great deal of time as well
as waste a lot of beer. Remember: foam is still beer, and beer is
money, so don’t send it down the drain.
There are two methods for filling with tubes.
The first way is to find some food-grade tubing that will fit
snugly into the inside of the tap opening, and long enough to
reach to the bottom of the growler. The smaller the inside diameter, the better. The restriction in the line size will prevent too
much foaming.
The second method is to acquire some tubing that can fit
over the tap nozzle. The trick here is to then reduce the line size
to something around 3-1/16” inside diameter by using a simple
barbed reducer. Brass works OK, but stainless is better for
cleaning.
Now, simply insert the tubing into the growler and fully
open the tap. When the beer gets to about two inches from the
top. Slowly remove the tubing while still filling. This will
replace the space from the tubing with beer, and make it easier
to top off the growler. Allow the growler to foam just a little
before quickly securing the cap. Rinse the outside of the bottle,
tape the cap, and you’re done! v
Editor’s Note: Our thanks to Andy Ingram for his expert
guidance regarding the cleaning and filling of growlers. He is
a member of the Board of Directors of the Arizona Licensed
Beverage Association.
ALBA Reporter 11
Director’s Overview
of FY 2012
(July 1, 2011 – June 30, 2012)
PHOENIX, NOVEMBER 28, 2012 — Liquor
industry revenue has significantly contributed
to Arizona’s economy since the state began
regulating liquor in 1933. Revenues collected
exclusively from liquor sales, fees and fines
reached 470.3 million dollars in FYRD 2012.
The chart below illustrates the sources of state
liquor revenue and how that revenue is
distributed.
Of course, the primary source of liquor revenue
comes from Arizona’s 11,754 liquor-licensed
businesses in the form of sales and luxury taxes.
State liquor revenue increased by almost 30 million
dollars this year, in spite of a 1.8 percent decrease
in the number of liquor licensed businesses. No,
liquor taxes didn’t increase. Arizonans purchased
more liquor – and,they purchased it from fewer
liquor-licensed outlets.
ARIZONA LUXURY TAX
COLLECTIONS IN FY 2012
Spirituous Liquors
$31,847,105
+ 8.2%
Malt Liquor (Beer)
$21,101,489
+ 5.4%
Alan Everett, Director
Follow the money
In FY 2012, Arizona collected an estimated 470.3
million dollars in revenues exclusively from liquor.
The chart below will help you to follow where liquor
revenues come from and how they’re distributed.
WHERE LIQUOR REVENUES COME FROM...
$68,379,171
$395,873,442
$6,059,310
Liquor License
Fees & Fines
Liquor Luxury
Tax
Bar &
Restaurant
Liquor Sales tax
WHERE THE MONEY GOES...
$259,784,569
$201,586,088
Vinous Liquors
$15,430,577
+ 4.0%
By the end of the fiscal year, the number of active
licenses in Arizona had decreased by 213. The
Department of Liquor issued 1,778 new licenses this
year, 20 fewer than FY 2011.
The great news is that 99 more businesses renewed
their license this year compared to the FY 2011. This
brings renewal totals for the year up to 11,582.
By the close of the fiscal year 2012, the Department
of Liquor deposited a total of $6.1
million into the General Fund.
12 ALBA Reporter
$994,745
Liquor
Regulation
$7,967,005
Other
State
Agencies
State
General
Fund
Municipalities
&
Counties
Sources: State of Arizona, Department of Liquor Licenses and Control
(DLLC), and Department of Revenue (DOR).
Research: Department of Liquor Licenses and Control, Sept., 2012
Information based on DOR preliminary FY2012 figures.
The Department conducted statewide liquor enforcement training attended by approximately 1,500
officers from other state, county and local law enforcement agencies.
ARIZONA LUXURY TAX
Spirituous Liquors
per gallon $ 3.00
Vinous Liquors more than 24%
alcohol (per gallon) $ 4.00
Vinous Liquors less than 24%
alcohol (per gallon) $ 0.84
Malt Liquor (Beer)
per gallon $ 0.16
per barrel (31 gallons) $ 4.96
Hundreds of law enforcement officers
and emergency personnel gathered to
show their support for a life-saving
campaign to keep motorists safe during
the holiday season. The Arizona
Holiday DUI Enforcement and
Designated Driver campaign launched
on November 27, 2012.
Holiday DUI Enforcement Task Force
Hundreds of law enforcement officers and emergency personnel
gathered to show their support in a life-saving campaign to keep
motorists safe during the holiday.
FY 2012 OFFICER ACTIVITY
Establishments Inspected
2,503
Citations Issued
3,475
Covert Underage Buyer (CUB) Operations
200
Covert Underage Buyer (CUB) Citations Issued
380
The Department of Liquor encourages retail
licensees to review Arizona liquor laws regarding
over-service with your staff. When you take the
necessary steps to ensure your staff’s knowledge
and skills for compliance, your staff can ensure
customer safety at your establishment.
Proposed liquor rules are now on file with the
Secretary of State and are available for your
review prior to the Oral Proceeding taking place
on Tuesday, December 18, 2012 at 10 a.m. at the
Department of Liquor offices. To review the
proposed rules, please use this link to visit the
homepage of Department of Liquor website:
www.azliquor.gov, or scan this QR scan code
with your mobile device.
Citizen’s Complaints Received
526
Fake ID/Title 4 Training Events
42
I wish for all ALBA members, their family, staff and
customers a safe and prosperous holiday season.
ALBA Reporter 13
Meet Your Members
Story and Captioned Photos by Andy Limber
Stage Stop Vineyards Grounded in the Old West
There’s a kind of Arizona time machine in the northern part
of the state in Yavapai County, just a hundred miles or so from
Phoenix.
Not long after leaving the concrete and steel hi-rise giants of
the metropolis, the topography rapidly changes to tall cacti and
vistas of towering, undisturbed mountain ranges. You soon
begin to feel transported to an earlier time. Keep driving north
and you will be within the center of a triangle anchored by
Camp Verde, Sedona and Jerome, and it’s here where you truly
feel transported back to the 1880s.
You’re in the rolling hillsides of Page Springs, where, to
your surprise, you come upon the natural ponds that were
turned into a desert fish hatchery in 1932 and still operated by
the Arizona Game and Fish Department. Setting foot on the historic Dancing Apache Ranch, what catches your eye is a classic
American red barn, an old schoolhouse, and what remains of a
blacksmith shop that doubled as a stagecoach rest stop for
hearty but weary frontier travelers.
The ranch was purchased in 2002 by the pioneering Petznick
family to be used as a family and business retreat. It soon began
evident that the climate and soil conditions of the area were
ideal for winemaking, so they began converting some of the
acreage into a vineyard for a new label—Stage Stop Wines.
“We started planting different varietals, with the first block
being a Shiraz in 2006,” said Melinda Petznick. “In 2008 we
harvested it and had some success. Now we’ve planted a
Cabernet, a Mourvedre and a few others, but right now our main
wine is a Shiraz.”
While Melinda and her husband, Earl Petznick, Jr., are
enthusiastic about their winemaking enterprise and grow the
grapes at their ranch, they are not vintners. This ancient art and
science is provided to the Petznicks by acclaimed winemaker
Eric Glomski, the founder and director of winemaking at neighboring Page Spring Cellars in Cornville. Glomski and his staff
also manage the land and oversee the progress of the Stage Stop
grapes and their harvesting.
“Of all the grapes that are produced, Eric is the one who runs
the farming side of it,” said Melinda. “My husband and I are
included in the business decisions and the tasting of the wine,
but Eric is the expert.”
Stage Stop is a tiny part of the wine world, and that’s where
the Petznicks intend to keep it. “We want to stay small,”
Melinda says. “We want to continue to be what the industry
considers a boutique winery. We don’t have the facility right
now to actually do the pressings, to make the wine at our place,
to have a tasting room and all that, even though eventually we
could.
“The property itself originally started as a family retreat for
all our family to go up there with their kids and enjoy. We want
to keep that feel to it, even though we’re producing some great
product that we want to introduce to our family, friends and the
public. We’re not out to compete with the big guys; we’re
enjoying staying small.”
But Stage Stop will not be staying that small. Plans are in the
14 ALBA Reporter
works by the Petznicks to sell their wines online but will stay,
for now, at producing a hundred cases, although the capability
is there to turn out more.
Some of the more upscale restaurants in the metro Phoenix
area are serving Stage Stop wines. Over the past summer, Stage
Stop became one of the best selling wines at Beckett’s Table.
Lon’s at the Hermosa Inn, Vincent’s, L’Amore and Sierra
Bonita Grill are among the other fine-dining venues featuring
Stage Stop on their wine list.
When an award-winning veteran chef like Mark Tarbell,
owner of Tarbell’s on 32nd Street in Phoenix, gives a wine newcomer high marks, that really says something.
Reviewing the 2010 Stage Stop Vineyards Red Barn Red,
Tarbell said in part, “I love its freshness and drinkable character. The fruit is clean and pure. A fabulous effort by this new
winery!”
Patience is a necessary attribute in winemaking, although it
can be severely tested before reaching the marketplace. Like so
many things, something
as seemingly uncompli“Over the past summer,
cated as creating a bottle
Stage Stop became one of label
becomes a complex
the best selling wines at
chore when government
Beckett’s Table.”
gets involved. On the
federal level, all wine
label information must be approved by the Alcohol and Tobacco
and Tax Bureau (TTB), part of the Department of Treasury.
The TTB mandates that all wine labels on bottles sold in the
United States have this information: brand name, class, location
where the wine was bottled, percentage of alcohol content and
net volume of the contents. This is in addition to a health warning statement listing the risks of consumption, such as birth
defects and physical impairments. Many winemakers like to tell
their story on their bottles, which is also subject to TTB
approval, including text font sizes and any graphics.
“Going through this process can be frustrating,” says
Melinda. “It can take up to two years just to get a label
approved, and that doesn’t include complying with any state
regulations. What government people don’t understand is the
amount of time and expense that’s involved in this labeling
process.”
But government or no government, there’s no obstacle the
Petznick family of robust cattle ranchers and cattle feed producers can’t handle. For three generations they have successfully operated some of the largest ranching enterprises in
Arizona, including a longtime association with the late movie
actor John Wayne and his Red River Ranch in the farming community of Stanfield.
Melinda views Stage Stop Vineyards as something more
than just another business. She sees it as a modern-day addition
to the family heritage of being close to the soil and soul of
Arizona, a treasured legacy to pass on to her children and
beyond. v
“We’re not out to compete with
the big guys,” says Melinda
Petznick.
Stage Stop is
the new kid
on the winery block
and getting
great
reviews.
Melinda’s
first pick
On-location
photos courtesy
of Stage Stop
Vineyards.
ALBA Reporter 15
This-N-That
Big Apple Workers Steal Little Bottles
Eighteen employees at New York’s Kennedy airport were arrested on charges related to
stealing 100,000 mini liquor bottles as well as larger bottles of spirits, perfume and cigarettes. Fifteen of the suspects are current or former truck drivers working for an airline
catering company. The other three are security guards. A five-month investigation revealed
that the accused stole over $750,000 worth of liquor and other items. At the home of one retired truck
driver, a search warrant turned up 500 garbage bags filled with mini liquor bottles. Looks like airline
passengers at Kennedy won’t be flying high for a while.
Baboons Have a Heyday with Chardonnay
In South Africa’s Western Cape wine region, baboons are raiding farms and helping themselves to
tons of high-grade Chardonnay grapes. A University of Cape Town baboon expert, Julian O’Riain,
says that the animals find the fermented grapes especially tasty. He also said that the baboons eat large
quantities from the fermentation piles, “and then you have an entire troop of hiccupping baboons,
which is quite a sight to behold.”
One farmer said he lost up to 40 percent of his grape harvest in one month. At T-N-T, we just
wouldn’t tolerate this kind of monkey business.
Rare Scotch Sets Sensational Sale Record
Ever hear of Glenfiddich Janet Sheed Roberts Reserve scotch? If you have, you’ve probably never
tasted it because only 11 bottles of the rare elixir are known to exist. At the Vintages auction in
Toronto, a couple identified only as Dave and Paurie, were the successful bidders of a bottle of the scarce stuff for the
Canadian record price of $52,000. Over a thousand lots of rare wines valued at $2.3 million were also offered by Vintages,
with all proceeds going to the Wounded Warrior Project. T-N-T salutes everyone connected with this auction by helping to
assist and improve the lives of Canadian soldiers and their families.
The Birth of the Booze
We know you’ve been wondering where the word “booze” came from, so here we go. People mistakenly credit 19th century American distiller E. C. Booz for the origin. Not so. The term, and the spelling of b-o-o-z-e predate him by several centuries. The first English references to the word “booze,” meaning “alcoholic drink,” appeared in the 14th century, but it was
originally spelled “b-o-u-s-e.” The word also has some roots in the High German and the Old Dutch languages. Sorry, E. C.,
all you needed was an “e” at the end of your name and you would have had eternal fame.
ABC/ALBA benefits:
ABC was purchased by the Arizona Licensed Beverage Association, Inc. (ALBA)
in December of 2010. As a member of ALBA you are entitled to discounts on your
training. ALBA/ABC would like to be your trainer. Contact the office for a color
brochure explaining all of our services and a free statewide Quarterly Training
Schedule, or to register for a regular, special or in-house training seminar, call
toll-free 1-800-453-7597 or 602-285-1396, Mon. - Fri., 9 a.m. - 3 p.m.
The ALBA/ABC office is located at:
77 East Columbus Ave., Suite 102
Phoenix, Arizona 85012
16 ALBA Reporter
ALBA Reporter 17
TUDOR INSURANCE GROUP
Chuck Smith
Quality “A” rated companies looking to insure well run businesses
Quality coverage’s ———AGGRESSIVE Pricing for:
Restaurants – Bars–Clubs – Hotels/Motels – Liquor Stores – Grocery Stores
Convenience stores (with or without gasoline sales)
LET US HELP YOU
Phone: 480-656-4099 Fax: 480-452-0242
[email protected]
“My rule of life is prescribed as an absolutely sacred rite of smoking
cigars and also the drinking of alcohol before, after and if need be
during all meals and in the intervals between them. “
Winston Churchill
18 ALBA Reporter
Mary Zordan
Buying a Business? Selling a Business?
That’s our Business!
(over
business)
(over 30
25 years
years in
experience)
Specializing in Bars and Restaurants
Associate ALBA Member
JanCo West Business Brokers
(602)978-3313
Isaacson & Moore, P.C.
Van Leer-Ambassador Group
Insurance Services
Representing ALBA and Liquor Retailers Since 1985
Restaurant-Bar-Nightclub Insurance
Attorneys
Don Isaacson – Norman Moore
(602) 274-2200
3101 N. Central Avenue – Suite 740
Phoenix, AZ 85012-2638
E-Mail: [email protected]
ARIZONA LIQUOR PROFESSIONALS
Chuck Van Leer
480-776-6989
[email protected]
LLC
YES, I want to become an ALBA Member! My annual dues check of $225 is enclosed.
Business Name_________________________________________________________________Owner’s Name________________________________________________________
Liquor License#____________________________________________________________
Phone___________________________________________________________________________Fax ______________________________________________________________
E-Mail Address____________________________________________________________
Mailing Address _____________________________________________City_______________________________State ________________________Zip______________________
Credit Card #__________________________________________ Expiration Date___________________Signature_____________________________________________________
Please make check payable to ALBA
Mail Application & Check to ALBA 77 E. Columbus Ave. #102 - Phoenix, AZ 85012
Questions? Call 602-285-1092 or 800-453-5232
E-Mail: [email protected] Fax: 602-285-1258 Web Site: www.albainc.org
Pay by Visa, MasterCard or DiscoverCard
Remember: Dues are Tax Deductible.
ALBA Reporter 19
ALBA
77 E. Columbus Ave. #102
Phoenix, AZ 85012
PRESORT STD
U.S. POSTAGE
PAID
PHOENIX, AZ
PERMIT NO. 3449
Welcome New ALBA Members
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& Sports Fever
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Special Events on
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Schelstraete &
Affiliates
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Service Inc.
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★ Health-Care Insurance through Argus Group.
★ BMI and SESAC Music Licensing Discount
★ SFC Arizona Workers’ Compensation Cash Dividends.
★ Ongoing Programs to Guard Against Unfair Liquor Legislation.
★ Informative Quarterly Newsletter.
★ The full resources of a strong, established, respected trade association.
★ "A-Team" visitations anywhere in the state to personally help licensees
with special concerns and problems.
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