Beverage Bulletin July 2012

California Beverage Retailers Association

P.O. Box 56686

Sherman Oaks, CA 91413

(818) 788-8120

Ron Ziff, Editor



July 2012


This Month's Stories:

Famous Quotes from Thomas Jefferson and Jayne Ann Krentz

What Happens in Las Vegas Gets Cured in Las Vegas

Rare Whiskey Treasure Found

Class Action Lawsuit to Hit the Restaurant Industry

The Six Most Influential Cocktails of All Time

Update on Modelo

Grocery Industry Shake-Out Continues – Fresh & Easy - Albertsons
Foie Gras Still Sold in San Francisco
The Economy Makes Changes in Restaurants
Marketing to Millenials
New Dust Bowl?
12 Fastest Growing Companies
A New Brew
Gallo Sets Goals for Wine Sales
Peet's Coffee Sold

How much caffeine is in your Coffee?
New Uses for Spent Grain
Drinking and Your Health

Hot New Cool Drinks for Summer Sales

...and the Industry Calendar


Famous Quotes:

Thomas Jefferson

Good wine is a necessity of life for me.” ~ Thomas Jefferson


Jefferson was a well known Gourmet and Wine Connoisseur. He invented the Dumb Waiter to get his wine from the cellar to his dining table. During his White House years he ran up a wine bill of $10,000. That's $200,000 in today's dollars. Jefferson was also involved in the stocking of the wine cellars of our first five presidents.


Life is like making good wine. You don't want to rush it, or you'll miss all the nuances.” ~ Jayne Ann Krentz


What Happens in Las Vegas Gets Cured in Las Vegas

Dr. Jason Burke has opened Hangover Heaven clinic in Las Vegas to treat hangovers. The clinic has operated since April out of a medical office and 2 mobile vans that drive The Strip. A 3rd van is on order. He serves about 70 patients a week who pay for his services privately because hangovers are not covered by any health insurance. The ailments include muscle aches, headache, nausea, and vomiting. Treatment includes intravenous hydration and medication for nausea and inflammation. His fees range from $20 for a B-12 shot, to a $90 vitamin cocktail given by IV, and his most popular “Salvation Package” at $150. The same services would cost $500 to $3000 at a hospital. He also sells T-Shirts with post-hangover slogans for $19.95. Dr. Burke says he only deals with the after effects of drinking. But he takes about 25 reservations in advance each weekend from people planning to have a hangover.


Rare Whiskey Treasure Found

Bryan Fite was installing air conditioning in his St. Joseph, Missouri home when he made an outstanding discovery. When he removed an insulated pipe in the attic he found it contained 13 bottles of 100 year old whiskey. The bottles included Guckenheimer's Rye, McBrayer's Cedar Brook Bourbon, and Hellman's Celebrated Old Crow. The Hellman's are extremely rare. The company went out of business in 1918 when it lost the right to the Old Crow name. The value of the bottles is undetermined.


Class Action Lawsuit to Hit the Restaurant Industry

The law firm of Trief & Olk is investigating claims from service industry employees like bartenders, waiters, waitresses, servers, busboys and other employees who are claiming they aren't being paid what they're legally obligated to receive. Trief & Olk is investigating allegations of unpaid wages, unpaid overtime, tip pooling and other illegal practices in the restaurant and bar industry. At this writing the lawsuit will include California Pizza Kitchen, Denny's, Dave & Buster's, P.F. Chang, Uno Chicago Grill, Houlihan's, Johnny Rockets, Sizzler, T.G.I. Friday, and hundreds of other restaurants and bars across the country. Employees who are being considered for inclusion in the lawsuit are being asked 3 questions: 1) Were you asked to come in before the start of your shift without clocking in, or asked to perform tasks after clocking out? 2) Were you required to share your tips with management or employees who do not directly serve customers? 3) Were you allowed a 45 minute meal break for any shifts over 6 hours? 4) After factoring in your tips, did your hourly rate pay you at least minimum wage?


The Six Most Influential Cocktails of All Time

  1. Martini – The ultimate cocktail. Clean and sophisticated. James Bond had his “Shaken, not stirred.” A martini symbolizes all cocktails.

  2. Margarita – The standard for sour cocktails. Tequila, Cointreau, and salt. It touches almost the entire palate of tastes: sweet, sour, salty.

  3. Old Fashioned – Sugar, Ice, Bitters, Bourbon, and lots of tradition.

  4. Bloody Mary – It's a meal in a glass! A Bloody Mary is the only cocktail that's acceptable to drink in the morning. Every bar has its own version from a simple mix plus vodka to stylized creations.

  5. Champagne Cocktail – A sugar cube soaked with bitters and dropped into Champagne. It's light and elegant for the ladies.

  6. Bellini – This one goes back to the 30's and Harry's Bar in Venice. It should do well considering the current Prosecco craze. It's just peach puree' and Prosecco in a champagne flute.

Update on Modelo

Update: Last month we reported the purchase of 50% of Modelo by minority partner AB/Inbev. The price was first reported as $12 billion; then $15 billion; finally $20 billion. Modelo controls 59% of the domestic Mexican market. Currently, indications are that it can grow 6% annually in its home market. Modelo's Corona is the leading import in 38 countries, including the U.S. AB Inbev estimates cost savings from combining operations at $600 million.

Grocery Industry Shake-Out Continues

Update: U.K. retailing giant Tesco PLC could give up its American supermarket venture, Fresh & Easy Neighborhood Market, if the chain continues to disappoint and not make a profit. Last month we reported difficulties at the California chain. Speaking to the company’s annual stockholder meeting this month, Tesco CEO Philip Clarke said: “If we see there is no chance of success, we’ll do as we’ve just done in Japan,”

This is what happened in Japan: Tesco is paying rival Japanese supermarket chain Aeon £40 million to take its losing chain off its hands. After plowing more than £250 million and nearly 10 years into breaking into the Japanese market, Tesco CEO Philip Clarke initiated the sale last summer. Tesco was desperate to get out. Tesco sold a 50% stake for 1 Yen (less than 1 cent) and put up £40 million into the new joint venture. Tesco said, this means we have "no further financial exposure to the Japanese business or its operations". The £40 million will be used to convert the stores to Aeon and retain the 1,000 workforce.

Update: Super Valu parent of Albertsons has announced quarterly earnings for the period that ended in June were down 45%. The company is suspending dividends and reducing planned remodels in order to fund price reductions for an everyday low price strategy. The company is also considering a sale of all or some of its parts. Analysts say there may not be potential buyers. The company's problems stem from the acquisition of Albertsons in 2006 and $12.4 Billion in debt acquired at the time. Southern California has been its weakest division.

Foie Gras Still Sold in San Francisco

Update: California's ban on selling Foie Gras has an exception. The San Francisco restaurant, the Presidio Social Club is located on Federal land in the Presidio National Park. It is happily still serving goose liver. This month it served Goose Liver Sliders with Sauterne, $20.


The Economy Makes Changes in Restaurants

A recent Harris Poll shows that 70% of Americans say they are cooking and eating at home more than they did at the beginning of the recession. 57% say going out for dinner is a luxury. Only 29% said they would cut other expenses in order to eat out.


NPD Group reports the growing influence of online marketing for restaurants. In the first quarter of this year 926 million restaurant checks were the result of online marketing. This trend accounted for 6% of the total number of checks, and 8% of the dollar volume.

Restaurant Job Growth. In the 12 months ending June 30, 2012 restaurant job growth was 2.7%, more than double the 1.3% total U.S. employment growth. Restaurants have added 575,000 jobs since the recovery began in March 2010, 116,000 January through June 2012. Current staffing is 193,000 above the pre-recession peak. The industry is the nation's second largest employment group.


Marketing to Millenials

Millenials, people born between 1982 and 2001 will become the next “mega-generation” and replace baby boomers in the eyes of marketers. Alix Partners reports that this group will present marketing problems of the future. They are 23% less likely to buy by brand and 18% less likely to shop at traditional grocery stores. They are open to new channels; buying online, using smart phones, new brands, delivery services, and mass merchants. Meanwhile, Baby Boomers are entering their retirement years and reducing consumption. These new consumers value convenience, freshness, health, variety, and are very price sensitive. One growing trend is evolving as they shift beyond natural and organic foods and search out “simple claim free labels”; products that have understandable ingredients and don't claim to be better for you.

New Dust Bowl?

The Drought through the U.S. Midwest is the worst since the Dust Bowl of the 1930's. It is causing the failure of this year's corn and soy bean crop. This will have far reaching effects on the economy and our industry. The price of food commodities is already increasing; farmers are culling their herds of cattle early; food prices are expected to have heavy inflation. The increased price of corn will put pressure on the price of products we deal in: Bourbon, Vodka, and Gin; as well as the by-product of alcohol production, Margarine. Corn prices are up 44% since June 1. Beef prices are expected to rise 5% this year and another 5% in 2013. Dairy is expected to have consumer increases of 15% by year end.

12 Fastest Growing Companies

According to the National Retail Federation these companies were the fastest growing in 2011. Growth is listed in percentage.:

1)Amazon 42.5%
2)Verizon Wireless 37.1%
3)Apple/iTunes 36.9%
4)AT&T Wireless 27.2%
5)7-11 19.1%
6)Dick's Sporting Goods 18.1%
7)Alimentaion Couche-Tard 16.6%
8)Tractor Supply Company 16.3%
9)Dollar General 13.6%
10)Chick-Fil-A 13.1%
11)Nordstrom 12.7%
12)Dollar Tree 12.5%

    A New Brew

    AB/Inbev asked brewmasters at 12 plants to come up with a special brew for a tribute to August Busch's original yeast which is still used. 6 were chosen and will be voted on by consumer panels across the country. Of these 3 will make the final selection and be included in a special pack to be released this fall. One is a brew from California. Budweiser Small Batch 91406 (Los Angeles): A deep-amber lager with 6 percent ABV that uses four different types of hops. The beer is brewed by brewmaster Bryan Sullivan in Los Angeles and was developed in collaboration with Scott Ungermann in Fairfield and Dave Cohen in Houston.


    Gallo Sets Goals for Wine Sales

    Gallo has set a 5 year target of 1 million cases annual sales of Washington Wine from its purchase of Covey Run and Columbia wineries. Current sales are near 250,000 cases. Columbia will be re-positioned at $10 to $15 per bottle. Covey Run's future is undetermined.

    Peet's Coffee Sold

    Peet's Coffee & Tea has been sold to German firm Benckiser. Peet's has an annual volume of $378 million. The selling price was $1 Billion or 55 times earnings. The hefty price tag would indicate that Benckiser intends to expand Peet's to compete with those ubiquitous Starbucks stores. Coffee Bean & Tea Leaf may get caught in the crossfire.


    How much caffeine is in your Coffee?

    In mg per 12 fluid oz.: Generic Coffee about 200mg per 12 oz. depending on type & method of brewing; Starbucks Coffee 240mg. Compare that to: Tea about 77mg; Pepsi Max 69mg; Mountain Dew 55mg; Diet Coke 45mg; Sunkist Orange Soda 41mg; Pepsi 38mg; Coke Classic 34mg; 7-up, Fanta, A&W, Fresca, Sprite 0mg.

    New Uses for Spent Grain

    Professor Padu Krishnan at South Dakota State University is developing new uses for “Spent Grain”, also known as “Dried Distiller's Grain.” The product is what is left over after alcohol or ethanol has been made from corn. It is high in protein and fiber and has little starch left. It tastes like sawdust and smells like a brewery. Currently, it is being used as animal feed. Dr. Krishnan is finding ways to use it in products that people will eat. It can be used to extend products that contain flour. However, it has limitations. It will not rise and causes baked goods to crumble easily. Too much in the recipe turns a bread loaf into a brick.

    Drinking and Your Health

    Alzheimer's. Georgetown University Medical Center is starting a study to determine if resveratrol in red wine will have a positive effect on Alzheimer's patients.

    Osteoporosis. A new study at Oregon State University showed that women may be able to lower the risk of osteoporosis by drinking a moderate daily portion of alcohol as part of a healthy life style. Bones are in a continual state of renewal. In post-menopausal women a lack of estrogen slows the process of replacing lost bone. 80% of osteoporosis occurs in women. Past studies have shown that moderate drinkers have greater bone density due to unknown causes. This study indicates that alcohol may act the same as estrogen in reducing bone loss.

    Reaction to Red Wine. According to the University of British Columbia's Wine Research Centre up to 30% of adults are allergic or sensitive to red wine. Symptoms include facial flushing, migraines, heart palpitations, rashes, and nausea. The researchers have biologically modified a yeast to produce hypoallergenic red wine and eliminate the neurotoxins that are produced during fermentation.

    Hot New Cool Drinks for Summer Sales

    Rummy Bears (Gummy Bears for Adults)

    This one is going around. Gummy Bears infused with Rum for grownups. Want to try it? Here's the recipe.

    1 Bag Gummy Bears (other shapes will also work)

    Rum, or you can substitute tequila, Vodka, Whiskey, or some other spirits.

    1) Put the Gummy Bears in a bowl.

    2) Pour enough liquid over them to cover and go slightly over.

    3)Leave Gummy Bears to soak for 5 to 8 hours.

    4)The Bears will swell up as they soak up the liquid.

    Do not leave too long. The Bears will dissolve into the liquor if left too long. Be careful eating them. They are very potent! Each Bear will absorb about 1 shot.


      Pomegranate Margaritas

      8 lime wheels, for garnish

      1 cup triple sec
      1 3/4 cups chilled pomegranate juice
      Ice cubes
      2/3 cup fresh lime juice
      1 1/2 cups silver tequila

        Pour 1/4 cup of the pomegranate juice into a saucer; spread kosher salt in another saucer. Moisten the outer edge of 8 margarita glasses with the pomegranate juice, then coat with the salt.

        In a pitcher, stir the remaining 1 1/2 cups of pomegranate juice, the tequila, triple sec and lime juice. Working in batches, shake the mixture in a large ice-filled shaker, then strain into the glasses. Garnish each margarita with a lime wheel and serve.










          Mango Peach Sangria

          1/4 cup mint

          1 cup Grand Marnier
          2 peaches, cut into thin wedges
          1 bottle Viognier
          1/3 cup water
          1 mango, chopped
          1/3 cup sugar

            In a saucepan, cook the sugar and water until the sugar dissolves; transfer to a pitcher and refrigerate until cold. Stir in the Grand Marnier, Viognier, mango, peaches and mint and serve over ice.


            Brewsky Sangria


            1 cup plus 2 tablespoons fresh lemon juice

            Four 12-ounce bottles lager, chilled
            2 Bosc pears, sliced, for garnish
            1 cup triple sec
            2 Bartlett pears, peeled and chopped

              In a food processor, combine the Bartlett pears with 2 tablespoons of the lemon juice and process to a puree.

              Slowly pour the beer into a pitcher. Stir in the remaining 1 cup of lemon juice, the triple sec and the pear puree. Fill pint glasses halfway with ice. Add the sangria and garnish with the Bosc pear slices.


                Industry Calendar

                8/9-12 Los Angeles Food and Wine Festival-CBRA Members can get a 10% discount on tickets call Peter at (213) 763-7934

                8/12-14 Comida Latina - Anaheim

                8/12-14 Western Foodservice Expo-Anaheim

                8/17-19 Sta Rita tasting at La Purisma Mission

                8/18 Long Beach Grand Cru- Long Beach

                9/1-3 L.A.Times Taste of L.A.

                9/3 Labor Day

                9/9 Grandparents Day

                9/12 Sysco Fall Show - Anaheim

                9/16 Mexican Independence Day

                9/17 Rosh Hashanah (starts sundown 9/16)

                9/26 Yom Kippur (starts sundown 9/25)


                New Legislation for 2012

                Our industry has more laws controlling it than most industries. The State Legislature and the ABC give us license privileges and can take them away. 2012 has several new laws that you must follow. New alcoholic beverage laws are being introduced that will be effective in 2013. Many critical issues are pending. Is your business safe? Members are encouraged to look through the Legislative Bulletin. If there is a new law that is a problem for your business, call the association office now. The CBRA is your voice in Sacramento. If you are not a member, join today. The CBRA is your only voice when it comes to new beverage laws.

                Brands and Comments

                The CBRA Newsletter has not accepted any payment from any of the brands mentioned in this edition. The editor, Ron Ziff, welcomes comments at


                CBRA Membership Remains Open

                Now, more than ever, access to your industry is important. The CBRA is California's only statewide association of licensed retailers, and our membership continues to be open for the first time in 20 years.

                At CBRA we deal with licenses and regulations that affect the beverage business on a daily basis. That's why CBRA offers practical solutions, unique products, services, information, and timely advice for both large and small beverage businesses. With reasonable fees, superior service, and associates that are easy to reach, CBRA helps you to run your business better and easier. One of the most valuable services we offer is that call to the ABC to ask your question. We can ask that question and keep you anonymous. That's something you just can't do yourself.

                Join or renew your valuable membership today. You can't afford to delay.

                California Beverage Retailers Association – California's Only Association of Licensees. We're #1!


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