Liquor - The City of Cape Mayor, Patricia de Lille, poured more than 5000 bottles of alcohol confiscated on beaches this holiday season down the drain at an Ndabeni storage area. The 2600 litres of confiscated alcohol were worth R66000. The haul of alcohol included cases of beer, ciders, brandy and champagne. Liquor is banned on all Cape Town beaches, but people persist in taking their alcohol to drink on beaches or other public spaces. Law enforcement officers will patrol the beaches over the festive season to try and curb the consequences of drinking illegally. The public is encouraged to support legal, liquor licensed businesses to enjoy liquor of their choice. (Article by New Age, edited by LiquorWise)

Liquor Licence Holders - Liquor Licence Holders were surprised by an compliance operation by Liquor Board Inspectors, the The South African Police Service and other liquor law enforcement agencies in the Wallacedene and Bloekombos area of Cape Town to investigate whether liquor traders were complying to the conditions of their liquor licences. Several fines were issued for selling liquor from incorrectly zoned parts of premises and for not having working fire extinguishers. The liquor licence holders were also investigated for serving alcohol to minors, selling alcohol for off-consumption with an on-consumption licence, lapsed licences(when not renewed annually) and the violation of trading hours. 1 700 inspections have been carried out in the Western Cape since April 2011. Fines in excess of R120 000 have been issued. Minister Winde expressed his concern about some liquor outlets which had produced home-made brews (fruit ale). According to him, it is sold cheaper than water. He promised that his department will be investigating all ways possible to stop the production and sale of it. "We are enforcing a zero-tolerance approach, and a further 400 raids are planned for the December and January festive period. In addition, law enforcement will keep a close watch on premises that have already been inspected to ensure that non-compliant behaviour has ceased," said Minister Winde. He acknowledged that liquor is an important income and employment generator for our province, but this must be weighed against its harms. If licensed outlets abide by the rules, we'll see a significant drop in the negative effects of alcohol. We encourage them to get their houses in order now. This December and January, we are ramping up inspections in partnership with SAPS, municipal law enforcement and local CPFs around the province to ensure responsible trading and consumption of alcohol. Through these actions, we are making our communities better together." Chairperson of the Western Cape Liquor Board, Mr Raybin Windvogel, explained that a licence is granted based on an agreement between the Liquor Board, the local community and the liquor trader : "We impose conditions for a reason and when sellers don't obey them, the entire community is affected by increased crime, vehicle crashes, domestic violence and general disorder. We need to guard against these highly damaging effects of alcohol by creating a culture of compliance." If liquor outlets have any queries relating to licensing, they can call LiquorWise on 0861059473.

Liquor Licence Renewal - The Gauteng Liquor Board has called on all Gauteng liquor licence holders to renew their licences. The liquor licence renewal period started on December 1 and licence holders are required to renew their licences. In terms of the Gauteng Liquor Act, licences are renewed annually. Liquor Licence Holders must ensure that they comply with the Gauteng Liquor Act because non-compliance is a punishable offence. The chief director of the liquor licensing office, said traders who continued trading without renewing their licences would be doing so illegally. Liquor Traders who trade without renewing their liquor licences, run the risk of having the businesses closed, their liquor confiscated and being prosecuted. The Liquor Board ensured that their office will be open during festive season to ensure that those liquor traders who want to renew their liquor licences can do so. Liquor Traders in Gauteng have been complaining for more than a year about the cumbersome renewal process which they have to follow when compared to other provinces. The following is a demonstration : Gauteng Liquor Licence Renewal - Collect Renewal Notice personally at Liquor Board - Make payment at FNB Branch - Present proof to Liquor Board Liquor Licence Renewal in most other SA Provinces - Renewal Notice Posted to Licence Holder - Pay per EFT - Keep proof of payment Liquor Traders say it is unreasonably time consuming and expense. (Article in New Age, Edited by LiquorWise)

Liquor Board - The Western Cape Liquor Conference will be hosted at the Old Mutual Auditorium, Mutual Park, Pinelands on 15 December 2011. LiquorWise will report on matters of interested to licence holders and the general public raised at the conference.

Liquor Board - The Eastern Cape Liquor Board's multi-million rand, 5 year lease has been cancelled by an order of the High Court in Grahamstown. The court found that the tender process was fatally flawed because the Board had not followed the "Preferential Procurement Regulations". It found that, although the tender may have been competitive, this was subject to the administrative requirements of the tender, which had to be met. The full text will be available soon on the LiquorWise website under "Liquor Boards". (Article by LiquorWise)

When you decide to apply for a liquor licence be sure of the type of business you are going to open. There are different types of liquor licences and each one has their own conditions and regulations. In this article if the business owner has a Hotel Liquor Licence, this does not mean that he may manage a strip club within the Hotel. Visit our website if you have any liquor licence related queries! Two men were arrested for drug possession and another for operating an illegal strip club in Primrose, Ekurhuleni police said on Saturday. Inspector Mveli Nhlapo said police received a tip-off about suspicious activities at a hotel on Friday. "The 40-year-old owner of the hotel was arrested after he was found to be running an illegal strip club in the building," said Nhlapo. The other two men, aged 25 and 40, were found with cocaine and dagga. (Article by News24 – Edited by Liquorwisee)

Residents around Gauteng will be spoilt for choice as more township restaurants and other leisure establishments are going the legal route and improving their standards. The Gauteng Liquor Board said that it had noticed an increase of about 50% in the number of restaurants applying for liquor licences in townships like Soweto, Katlehong and Sharpeville. Monga Phaladi, secretary-general of South African Leisure Tourism & Hospitality, said that there was an increase in black people who were legalising their establishments. “Now black establishments want to be legalised and display their licences and health certificates so that they can benefit from tourism,” she said. Phaladi said that the legalisation of establishments led to professionalism and a higher quality of products on offer. She said Tiger Brands had offered cooking courses for a year to 10 emerging restaurants in Ekurhuleni, Tshwane and Johannesburg. Bally Chuene, chairperson of the Gauteng Liquor Board, said they had noted a increase in outlets in the townships. “Our inspectors went to see that equipment like stoves and proper kitchens are there,” he said. Chuene said that they conducted thorough inspections before granting licences. Phaladi called on the government to bring business to restaurants in townships. “We are grateful for the support and funding they give us, like the project with SA Tourism whereby they adopt and market a restaurant, but they need to start utilising township establishments themselves,” she said. Phaladi said that by using these establishments, the government would also be promoting tourism in that area. “Mainly restaurants in heritage sites benefit, but they can come to us and we will tell them about other places,” said Phaladi. (Article by The New Age – Edited by Liquorwise)

Some businesses has reacted with anger at the moratorium, calling it an exercise in futility. The MEC, Ms Mahlangu, said that her department now "had its house in order", but wanted to use its "new regime" to address the social and economic implications of liquor trading. The new system allowed for occasional and catering permits to be issued from 17 November and licensing renewals from 1 December 2011, but the moratorium on new licences would not be lifted. Businesses are saying that the Gauteng’s economic development department should have found a way to continue issuing licences while improving its systems as a lot of staff are sitting around, doing nothing." The CEO of the Federated Hospitality Association of SA, Brett Dungan, said the department should not have needed "to fix something that shouldn’t have been broken. Besides the loss of revenue for the hospitality industry, the moratorium had also been "massively inconvenient", he said. Ms Mahlangu said her department was also concerned about large retailers selling alcohol in traditionally black townships . When issuing new licences in townships for large retailers such as Spar , Pick n Pay and Woolworths, the department would "protect the interests of the small players out there", she said. "Why should we squeeze the small guy to give Woolworths a bigger margin?" she asked. However, she did not say how her department planned to do this. (Article by gernetzkyk@bdfm.co.za, edited by LiquorWise)

The Moratorium The moratorium (six month-ban) on the issuing of liquor licences in Gauteng was instituted unilaterally by MEC Mahlangu on 8 August 2011. Considering that Gauteng is the economic hub of South Africa (producing some 70% of its GDP), many businesses reacted to the news as an April’s Fool joke. They quickly realised that April had long gone! The province’s liquor board’s doors were shut to licence applications and according to Gauteng’s director of liquor Max Mothlake, they were to stay shut until well into 2012. Why a Moratorium? The Liquor Board wanted to use the moratorium to end the backlog of pending licence applications. The other big factor was that the corruption game at the board was fake licences. “If falsified licences weren’t being printed by corrupt staff internally they were being printed externally in collusion with staff members,” says Mothlake, who in March was charged with fixing the shambles. Reaction from Government MEC Mahlangu apologised for the “unforeseen” result of the moratorium on the Classic Government radio programme. She indicated that the necessity of the moratorium will be reviewed in October 2011. Reaction from Business Mr Brett Dungan(Fedhasa CEO) requested that burocratic hindrances be removed to allow business to grow. Less business activity means less tax, which impairs government (including The Liquor Board) from doing its job. Was (is) it Legal? The Application to Court Two separate applications were submitted and argued during September 2011 in the North Gauteng High Court in an effort to declare the moratorium illegal. Regrettably for business, they were unsuccessful by reason of technical legalities. However, this was enough to stop any further costly challenges by business. Effect on Business In General The applicants to court presented evidence of estimates that they will lose up to R350 000 per month due to the moratorium. This is due to the loss of liquor sales, as well as the public supporting licensed restaurants. The Moratorium has also brought development in Gauteng’s hospitality market to a halt. Sales of businesses involving liquor licences are frozen and opening of new establishments halted. Some active businesses have been waiting two years for their permanent licences. All functions requiring a temporary liquor licence (“occasional permit”) will not be able to serve liquor. Pretoria University’s annual spring day festival was cancelled because the organisers could not secure a liquor licence. Franchise Groups Keg Franchise - Food and restaurant franchise conglomerate Famous Brands’ efforts to revamp its Keg pub brand have been stymied by the Gauteng Liquor Board’s decision to freeze all new liquor licence applications until next year. Famous Brands bought 28 Keg and five McGinty’s franchised outlets from Kingco in late 2010 in a R27m deal that added a leisure component to the company’s mainly fast food offering. At the time Famous brands conceded the Keg brand needed “renovation and innovation”, but plans for a revamp have been put on hold. Famous Brands CEO Kevin Hedderwick says a newly re-branded Keg in Johannesburg’s northern suburbs, which is central to plans to convince franchise holders to convert to a new trading format, cannot open its doors until the board lifts the moratorium on applications for new liquor licences. Hedderwick says developments are most frustrating. “We’d love to show our franchisees how good the new look for the Keg is ... We wanted to show them where the new brand is headed.” Instead Famous Brands is lumped with a lease that has to be serviced and has incurred development costs with no way of generating cash flows. Hedderwick is hopeful the board will reopen applications in early February. However, the end of the moratorium in early February will begin with a phased reopening of licence applications — which means it might still be a long wait before first round is called in the new-look Keg. Spur Franchise group - “We planned to open up to 10 restaurants each with 60 staff before the end of the year,” says Spur Corp MD Pierre van Tonder. “Without liquor licences it’s impossible.” SAB Miller - Egoli region GM Leonard Volschenk says Gauteng liquor board estimates suggest there are 10000 fraudulent liquor licences in the province. About 15000 legitimate licences have been issued. Volschenk points to the problem SAB faces in supplying liquor outlets with suspect licences. “Only the liquor board [can] confirm whether a licence is valid and it has been unwilling to engage in a verification process,” he says. Some light on the Liquor Licensing Horizon ? The sixth-month liquor licence moratorium on temporary(occasional) liquor licences is to be lifted from 17 November. The moratorium on new liquor licences remains in place, economic development MEC Qedani Mahlangu told reporters on 15 November. She said stringent measures had been introduced to curb the issuing of fraudulent licences. The Moratorium had allowed the department to improve its efficiency and to solve problems relating to the liquor licensing process. These included the issuing of fraudulent documents. “Stringent measures have been introduced to curb the issuing of fraudulent licences [and] to date we are confident that no fraudulent licences have been issued,” Mahlangu said. The department was about halfway through dealing with a backlog of about 2450 applications. A new IT and business processing system had been designed to handle applications and would be in place for occasional and catering permits from Thursday. She said liquor licence renewals for 2011/12 would begin on 1 December 2011. Don’t get too excited Businesses hoping for normality to be restored next February 8 should prepare themselves for more frustration. The moratorium’s end will not result in the liquor board’s doors being opened in a business-as-usual way. It will be a phased reopening. “We don’t want to be flooded by an unmanageable volume of applications,” says Mothlake Have the floodgates been opened? The question on many people’s lips are whether the success enjoyed by the Gauteng Liquor Board now sets a precedent for any of the remaining 8 provinces to follow suit? The answer wasn’t long to be forthcoming – North West province announced a moratorium on tavern licence applications soon after the moratorium was unsuccessfully challenged in the Gauteng High Court. All have gone quiet from the other provinces for now, but don’t be surprised if the silence doesn’t last very long – the new Western Cape Liquor Act and the Kwazulu Natal Liquor Act will be implemented in 2012. Watch this space!

The sixth-month liquor licence moratorium on temporary(occasional) liquor licences will be lifted from 17 November. The moratorium on new liquor licences remains in place, economic development MEC Qedani Mahlangu told reporters on 15 November. She said stringent measures had been introduced to curb the issuing of fraudulent licences. The moratorium took effect in August to allow the department to improve its efficiency and to solve problems relating to the liquor licensing process. These included the issuing of fraudulent documents. The department was about halfway through dealing with a backlog of about 2450 applications. A new IT and business processing system had been designed to handle applications and would be in place for occasional and catering permits from Thursday. "Stringent measures have been introduced to curb the issuing of fraudulent licences [and] to date we are confident that no fraudulent licences have been issued," Mahlangu said. She said liquor licence renewals for 2011/12 would begin on December 1. (A News24 Article, edited by LiquorWise)

STARTING UP When Mike Russell put together a business plan for his westside restaurant, the Cowboy's Bar-B-Que and Country Club, he knew nothing would wash down a smoky rack of ribs like an ice-cold brew."Barbecue and beer is just like a national pastime -- the way football and beer go together," he said with his long, Texas drawl. "It's like peanut butter and jelly." And so, Russell turned to his Realtor for help. A restaurant beer and wine license used by a restaurant that recently shut down was available. Russell was in luck. That was more than a month ago. Originally thinking he would own a license in 90 days, Russell knows it will be at least three months before he can begin serving alcohol in his new restaurant, which has yet to open. As many would-be restaurant owners across Montana have discovered, navigating the state's process for obtaining an alcohol license is a rigorous, confusing test. The process, which often hinges on a decades-old quota system, is driving away new restaurants in Helena and in other cities, some say. "To get a beer and wine license, it's hard," Russell said. "It's like pulling a tooth out of an elephant's mouth." SIZING UP THE SYSTEM In 1947, the state passed a law that provides for a population-based quota system that plays a large role in deciding how many alcohol licenses are available across Montana. "In Helena, our quota is full, but in Lewis and Clark County, there are several licenses available," said Shauna Helfert, administrator for liquor control division of the Montana Department of Revenue. There are several kinds of licenses. There are the off-premises licenses, used by businesses like grocery stores that sell alcohol, but don't allow a person to consume on the property. Then there are the on-premises licenses, which restaurants, casinos and bars vie for. ON CONSUMPTION LICENCES – 3 MAIN GROUPS: A Restaurant beer and wine license -- commonly referred to as a "cabaret license" -- where the business must serve food to the patron who orders a drink. Hours of operation are limited from 11 a.m. to 11 p.m. and a majority of the restaurant's income must come from food sales. A Beer license (with a $200 fee, wine can be added) allows an establishment to serve beer and wine. It must serve food if it has opted for the wine amendment (a basket of popcorn would qualify) but the person served doesn't have to eat and can simply be sitting at a bar. An All-beverage license allow all types of liquor are allowed to be served, without a food requirement. Allowable hours of operation are 8 a.m. to 2 a.m. It is the most common license in place at casinos and bars. There are liquor licenses that allow gambling and those that don't; and, any establishment that does allow gambling must have at least a beer-wine license. Gambling is not allowed with a cabaret license. That's just the start. DIFFERENT LICENCES FOR DIFFERENT PREMISES AND USES – A TANGLED WEB! Some off-premise licenses only allow for beer and wine, others for hard liquor. There are also catering and concessions stipulations. Meanwhile, brewery taprooms do not have to hold an alcohol license and are regulated under completely different rules. On-premises licenses used by restaurants, bars and casinos are often the misunderstood, expensive and contentious. Among those, there are licenses to be used in the city (in this case, Helena and East Helena are combined) and a five-mile bubble around it, and those that are used in the county. For the Helena licenses, 23 all-beverage licenses are allocated and 42 are issued (those extra licenses were grandfathered in during the 1947 legislation). There are 19 beer licenses allocated and 20 issued, and 19 cabaret licenses, which are all that can be issued. For Lewis and Clark County, 44 all-beverage licenses are allocated with 34 issued. Meanwhile, there are no quotas on beer and wine licenses in the county, outside the five-mile bubble. To make it a little more confusing, the number of licenses available is often in flux. Since the quotas are based on population, cities like Butte, which has shrunk over time, have lost available licenses. Those taken away are often redistributed around the state, which means areas of growth, like Billings, Bozeman, Missoula and the Flathead Valley, have been getting them. A lottery system is used to determine who is awarded the available license. Those that are transferred from one area of the state to another are not allowed to offer gambling. Each license is treated as personal property and supply and demand determines the market price. Still, any deal involving an alcohol license transfer must be approved by the Department of Revenue, and a license cannot sit idle for more than a year. No individual can own more than one all-beverage license, by far the most valuable of them all. "I can only guess that they didn't want just one person to gobble up all the licenses in the city," Helfert said. LICENSES AREN'T CHEAP – A LIMITED QUOTA ONLY The quota system is sore spot for some folks, Russell among them. "That's why your big national restaurant chains do not come to Helena, (it) is because you cannot get a license," he said. Cathy Burwell, the president of the Helena Area Chamber of Commerce, tends to agree. "We have a lot of the chain restaurants that want to come into Helena," she said. "Helena is an eat-out town with higher income levels." But, many turn away because of either a lack of licenses, or the cost, she says. While an increase in licenses would certainly help businesses looking to start a new restaurant, the problem is that a sudden increase in availability would hurt the value of existing licenses, an asset that in which many current holders have a substantial investment. "We want growth and we want new businesses to come to Helena, but at the same time, we don't want our current businesses to lose their asset," Burwell said. "It's their retirement fund for a lot of bars." JUST HOW MUCH IS A LIQUOR LICENSE WORTH? According to the Department of Revenue's website, the Red Garter Casino on Prospect Avenue purchased its all-beverage license for $650,000 in August. Drae's Station Casino on Custer Avenue bought one about a year earlier for $400,000. The most recent beer and wine license transaction in June was for $107,000. The more-restrictive cabaret licenses are far less pricey. Russell is paying roughly $28,000 for his carbaret license. He sees it as a worthwhile investment considering the price of other types of licenses. But he knows that there are other states, like his native Texas, where there is no quota system, only yearly license renewal fees. Selling alcohol is far less expensive there. Just to get around the problem, some Helena businesses are going in on a liquor license together. Chili's and Macaroni Grill, which have a common owner, share a building and an alcohol license. The same goes for Lucca's restaurant and the neighboring Rialto Bar downtown. "In Montana, I think that's become a common way to do business," said Joe Hrella, co-owner of Cafe Organica, for which he bought a cabaret license for $20,000 in February. "There are several of them in Bozeman that do it that way." A BETTER WAY? The process for purchasing a license can be lengthy. Cafe Organica, on Park Avenue, received its license nearly nine months after beginning the process. Hrella thought it would be easier since he had previously held a license. "You would think it would be able to happen relatively fast and it should be a pretty streamlined system," he said. He was happy to pay the cost for his license, feeling it adds to his cafe. However, Hrella would like to see something done to address the high cost and limited availability of licenses. But he also understands the complexity of equitably unwinding the quota system. "For those with the more expensive licenses, I would have to take their side, even though we would like to see more variety of restaurants across the state," he said. He suggests a buy-out program that would compensate some license holders and allow for less costly licenses to be made available. Though it has its problems -- licenses in different areas are certainly worth more than others, likely leading to an appraisal system -- Hrella says revamping the quota system would eventually mean more revenue for the state, and more establishments competing with each other. "More competition is better," he said. Dax Cetraro, who owns numerous bars and restaurants, including the Rialto Bar in Helena and Grand Plaza Casino in Butte, doesn't mind the competition. But, he sees the definite benefits of a quota system beyond just personal gain for his family, which has been in the bar and restaurant industry since the 1960s. "There's a big push out there to control drunk driving, serving of minors, responsible drinking, etcetera," he said. "If there wasn't a quota system, then everybody would be able to sell liquor or beer. It makes it a potential problem because you don't have the control." Establishments with liquor licenses require their staff to go through training and take steps to make sure they are serving alcohol responsibly. If the state wanted to open up and increase the amount of licenses, it had better make sure it increases those serving programs and law enforcement as well, Cetraro said. "We're under their guidelines, we're monitored, and that, to me, is responsible," he said. (Article by Independent Record - McClatchy-Tribune Information Services via COMTEX - Edited by LiquorWise)

A liquor licence is arguably the most important asset of a restauranteur’s business and one which impacts directly on the profitabilty of the business. They therefore have to be vigilant and careful in dealing with it. A restaurant owner needs to be kept up to date with all issues affecting its liquor licence, the trends in liquor licensed businesses and the changing views of liquor boards. It isn’t practical to employ a full-time, in-house liquor licence expert. But, there will always be questions concerning the liquor licence, whether from the local police officer/inspector, staff, the public or liquor board. LiquorWise has qualified and experienced staff to assist restaurant licence holders to: • Establish the current status of the liquor licence. Often a licence is renewed annually, without having been properly transferred. • Answer any day-to-day queries – such as the value which can be added to the business with a liquor licence, even for small establishments • Change the licensed premises (extend, add or increase floor area). • Transfer the liquor licence to another premises or person (when moving or selling). • Draft liquor licence clauses for use in agreements of sale (attorneys seldom specialise in liquor licensing – our qualified legal advisors assist with drafting of liquor licence clauses in sale agreements). Do not leave something as important as the legality of your liquor licence to chance. Employ a qualified and experienced licensing consultant - It’s a gamble you don’t want to lose! Contact LiquorWise on 0861059473 or email to admin@liquorwise.net - to assist restaurant owners/managers in a professional and reliable way.

The State Line Store in Marydel received a 7-day suspension and a $1,000 fine from the Caroline County Board of License Commissioners during a Wednesday hearing. The board voted to suspend State Line's liquor license for being caught selling alcohol to an under-aged customer for the fourth time since May 2007. The Caroline County Sheriff's Office conducted under-age sting operations for three days in August and three days in September. Owner Jeff Harris and license holder Veronica Deford testified in their defense along with their attorney Dennis Farina for an alleged violation that occurred on Sept. 22. That violation was dismissed when it was determined that no legal transaction had occurred involving the under-aged police cadet and the store. However, Harris admitted to a violation on August 12. Harris explained various methods the store has used to cut down on violations, and its effort to train employees, but he said it was not possible to monitor the clerks at all times. The store uses "mystery shoppers" that appear under-age to check on whether or not clerks ask for ID. A list of "mystery shoppers" was presented to the board. The shop also has software on its cash register reminding clerks to ask for ID during each purchase of cigarettes or alcohol. Harris said any clerk that fails to check the ID on anyone not obviously of legal age is instantly "let go." "Even when someone in supervision is there, they may be doing paperwork, stocking and other work," said Harris. "It happens so fast." (Stardem article, edited by LiquorWise)