Pour - Fall 2021 - ABLE BC
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Pour
THE QUARTERLY
Fall 2021
» EMAIL MARKETING » RETAINING STAFF
» LEGAL RISKS OF COVID » INDUSTRY CONSOLIDATION
PM40026059
FEATURES
10 Compensation & Retention
Strategies
Employers need to work even harder
than before to retain their high-performing
employees.
up front
Leveraging
12 Fox & Hounds
This Aldergrove pub boasts many
long-term employees and patio space
Email Marketing
larger than its interior space.
14 Legal Risks and Realities
6
Email is a powerful of COVID-19
What is the risk of being sued for
opportunity for gross negligence? Can you require
small businesses. staff to be vaccinated?
See how to create 22 Brand Consolidation:
and execute a great Better Together?
campaign. What are the pros and cons of
global brand consolidation?
DEPARTMENTS
4 ABLE BC Industry Update
5 BC Liquor Industry Trends
9 Beer Notes: Expanding your Tap List
18 LDB Update:
The Cooler Category is Growing Rapidly
21 Day in the Life of a Publican:
Marilyn Sanders
24 What’s Coming?
25 BC Hospitality Foundation
26 Wine Report: What Makes Wine Orange?
27 Spirit Spotlight: Bourbon:
The Spirit of America
28 LCRB Report
29 Names in the News
29 Product Showcase
30 ABLE BC Membership Report
EXTRAS
20 Challenges Facing Import Agents
» ABLE BC Industry Update
by Jeff Guignard
ED Report and supporting members who want to make
By the time you read this, BC’s longest-ever their temporary patios permanent.
State of Emergency will have ended. After We are also working hard to advance the
months of sacrifice, hard work, pain, and interests of our liquor retailer members, who
Quarterly Publication for the inestimable financial hardship, we will have finally have been waiting years to see the moratorium
Alliance of Beverage Licensees
turned a corner in the fight against COVID-19 and on new LRS licenses extended a further 10
2nd floor 948 Howe Street, Vancouver, BC V6Z 1N9 begun the long road to recovery. years. As you may recall, the Attorney General
T 604-688-5560 F 604-688-8560 As one pub owner in downtown Vancouver committed to extending the moratorium at our
Toll free 1-800-663-4883
info@ablebc.ca www.ablebc.ca @ABLEBC told me, “It feels like we can finally breathe again.” 2020 BC Liquor Conference. Since then, many
We all know that BC’s hospitality, accom- of you have joined me in engaging directly
2020-2021 Board of Directors & ABLE BC Staff modation, and tourism industries were hit first with Minister Farnworth to request his help
President Al McCreary and hit hardest by this 18-month pandemic. in getting this over the line. We are making
Past President Poma Dhaliwal We will also be among the last to fully recover. steady progress, and I hope to be able to offer
Vice President Al Deacon
Treasurer Trevor Kaatz To give you an idea what we’re up against, here a positive update later in the fall.
Directors Brady Beruschi, Michael Brown, are some sobering statistics from June 2021: We are also working to support both LP
Yvan Charette, Stephen Roughley, • 15% of our hospitality industry has already and LRS members with the introduction of
Angie Eccleston
Director-At-Large Lorne Folick closed permanently licensee-to-licensee sales. Since I started this
Executive Director Jeff Guignard • 80% report losing money or barely breaking job over seven years ago, it has never made
Director of even for over a year sense to me that a pub or restaurant should
Membership &
Communications Danielle Leroux • 50% are unsure their business will survive be prohibited from buying liquor from a private
the summer liquor store; instead, they are forced to buy
The Quarterly Pour Editorial Committee: In the midst of our darkest hours, we worked from a government liquor store (or direct from
Megan Carson, Trevor Kaatz, Paul Rickett
with our provincial government partners to domestic BC manufacturers). It is a blatantly
Designed, Produced & Published by: secure nearly $200 million of direct financial unfair and illogical policy that needlessly
EMC Publications support for our industry—via Circuit Breaker restricts an LRS from selling even convenience-
19073 63 Avenue, Surrey BC V3S 8G7
Ph: 604-574-4577 1-800-667-0955
Grants, Small Business Grants, and a long- based, one-off bottles of speciality products
info@emcmarketing.com overdue wholesale price for hospitality licensees. not available at a GLS. While there are some
www.emcmarketing.com On top of tens of millions you received from the minor issues to resolve—for example, our agent
Publisher Joyce Hayne
Designer Kyla Getty
federal wage and rent subsidies, I know these and BC manufacturing partners have raised
Sales Marina Lecian funds were integral to helping many of you legitimate concerns based on their experience
Beatriz Friz survive. Although these funds were a drop in in other jurisdictions—I remain optimistic that
ABLE BC Editor Danielle Leroux
the bucket when measured against the scale of we’re very close to a workable solution that
Copyright EMC Publications your losses, not a single dollar would have flowed will enhance private sector opportunities
without the hard work of our BC government across BC’s liquor industry. As an important
PUBLICATIONS MAIL AGREEMENT NO. 40026059
partners, who deserve our thanks. I wish to first step in this direction, in July we successfully
RETURN UNDELIVERABLE CANADIAN ADDRESSES
TO CIRCULATION DEPT EMC PUBLICATIONS express my sincere gratitude and appreciation to secured approval for private liquor stores to
19073 63 AVENUE Solicitor General Mike Farnworth, Attorney sell to holders of Special Event Permits.
SURREY BC V3S 8G7 General David Eby, Minister of Jobs Ravi
email: info@emcmarketing.com
Kahlon, their talented staff, and the relentlessly Stay Informed: Monthly Vir tual
dedicated teams at the LCRB and LDB. Their Meetings
support has been a crucial lifeline for many in I know how hard it can be to keep on top of
our industry who are still struggling to recover, all the latest—and often rapidly changing—
The opinions & points of view expressed in and I cannot thank them enough. information. If you have questions you want to
published articles are not necessarily those of ABLE BC. I’d love to say that our work is now complete, ask, I hope you’ll join me the last Thursday of
Advertisers are not necessarily endorsed by ABLE BC.
but we all know we have a long road ahead. every month at 10 a.m. for a virtual “State of
With the need for pandemic closures and the Industry” update. I’ll take your questions
stringent public health protocols behind us, directly, go over key information from the
we will be refocusing our efforts on industry’s past month, and get you up to speed on key
other challenges, such as the growing labour discussions with government. To register,
shortage, the crisis of skyrocketing insurance please RSVP to danielle@ablebc.ca
premiums, logical policy reforms like licensee- Of course, you can also always reach me at
to-licensee sales, faster and more transparent any time at jeff@ablebc.ca
licensing application processes and timelines, Stay safe and sane out there.
4 The Quarterly Pour
BC LIQUOR INDUSTRY
trends Source: BC Liquor Distribution Branch
Wholesale Sales: January - March 2021
Litres increase/decrease increase/decrease
over previous quarter over previous year
Beer – BC Commercial 28,691,235 - 3.6% - 6.1%
Beer – BC Micro Brew 6,460,561 - 2.6% - 0.6%
Beer – BC Regional 9,571,494 - 13.4% - 12.5%
Beer – Import 4,902,232 - 20.6% - 35.9%
Cider – Domestic & Import 3,375,934 - 6.4% - 11.1%
Coolers 13,025,259 + 12.4% + 30.6%
Gin 369,723 - 24.8% + 10.9%
Rum 742,184 - 42.3% - 7.6%
Tequila 236,001 - 5.9% + 2.2%
Vodka 2,002,688 - 19.2% - 9.2%
Whiskey 1,615,184 - 32.4% - 5.8%
Wine – BC 8,795,634 - 22.4% - 4.8%
Wine – Canadian 214,930 - 40.0% - 6.3%
Wine – USA 1,640,549 - 29.2% + 0.3%
Wine Total 16,912,487 - 23.5% - 3.9%
Hospitality Sales: January - March 2021
Litres increase/decrease increase/decrease
over previous quarter over previous year
Beer – BC Commercial 2,901,990 + 1.5% - 36.2%
Beer – BC Micro Brew 1,575,553 + 10.6% - 38.7%
Beer – BC Regional 1,528,978 + 5.7% - 41.9%
Beer – Import 573,519 - 11.0% - 57.6%
Cider – Domestic & Import 261,587 + 12.2% - 47.1%
Coolers 168,826 + 16.2% - 39.0%
Gin 38,700 + 14.6% - 48.3%
Rum 43,873 + 7.0% - 38.4%
Tequila 52,626 + 20.1% - 39.6%
Vodka 137,101 + 12.2% - 42.2%
Whiskey 69,359 + 3.1% - 41.7%
Wine – BC 692,266 + 0.6% - 33.7%
Wine – Canadian 10,883 + 14.8% - 28.8%
Wine – USA 97,450 - 1.7% - 34.7%
Wine Total 1,251,218 + 0.9% - 32.1%
Coolers continue their strong growth with a 30.6% increase over the first quarter of last year. See the LDB Update on page 18 for further trends
on refreshment beverages.
After strong wholesale rum sales from October to December, this category fell dramatically from January to March.
Imported beer saw significant declines in both wholesale and hospitality sales. Although BC micro brews saw a 10.6% increase in hospitality,
those trends were not seen in wholesale, so there’s an opportunity to stock and promote more micro brews in retail, since there’s obviously
demand for those beers.
The Quarterly Pour 5
Leveraging Email
Marketing
by C o n n er Ga lway
No one reads the newspaper anymore. maligned email message has become so pivotal to our professional lives,
There’s a now-familiar source of anguish in the marketing industry— but whatever the case, our inboxes are consistently one of the most
whenever we get comfortable with a medium, people’s behaviours shift used apps on our phones, and the most personal way to communicate
and we are forced to tear down and rebuild what we communicate at scale.
with our audience.
That behaviour shift has only been accelerated by the global pandemic, A Powerful Opportunity
which forced us all indoors and onto our devices. Happy hours turned It’s that last factor that makes email such a powerful opportunity for
into Zoom calls, wine tastings small businesses. There may not
tuned into live streams and be a single other opportunity that
our inboxes are consistently
even the ubiquitous Facebook allows us to create a connection
newsfeed seemed to lose with as many individuals as we
people’s attention in favour of like, to craft messages they’re
more engaging platforms like
YouTube and TikTok.
one of the most used apps going to find valuable, and then
d i s tr i b u te th o s e m e s s a g e s
on our phones
Media consumption shifted without technical skills, with very
for every platform, except one little cost, and directly to people’s
despite a billion+ reasons that personal devices.
it should have. Regardless of how compelling the case for email may sound, the
Email is pretty much the same as it was back in 2010. Features fact remains that very few small businesses are making an effective
have been added here and there, and we consume a lot more of them use of the channel, which raises the question: Why? If email is such a
on our phones, but even though companies like Slack, WhatsApp powerful, direct, and (presumably) profitable marketing tactic, why isn’t
and Basecamp have raised many billions of dollars in an explicit and everyone taking advantage?
collective effort to revolutionize email, it remains the one communication The answer starts with misconception and ends with execution.
channel that has stubbornly persisted. Ask a group of 100 people how they feel about email marketing,
Maybe it’s the simplicity of the technology, or the fact that the much- and you’re likely to get at least 90 rants about unwanted spam and
phishing scams.
6 The Quarterly Pour
Ask those same people about their favourite media companies, or
digital services, and they’re likely to tell you about the great content that
they serve up and the ways that they make their lives easier.
The fact is, that much of the content that we receive, and many of
the services that we use are largely powered by email. No one minds
when ESPN sends updates about our favourite team, or Uber lets us
know that they’ve introduced a new service in our area.
Email doesn’t need new technology, what it needs is a PR campaign
because a few bad apples over the years have tarnished this massively
useful tool that we all use every day.
Unfortunately, the idea that email marketing has little or no value
has become so widely accepted that it’s embedded itself all way into
the very marketing departments that are responsible for developing
messaging, thereby creating a self-fulfilling prophecy of content that
no one wants to see.
Rethinking Email
When we look around and see nothing but spam and scams, then it
can be difficult for us to imagine a better way. Fortunately, there are
a few brands out there that have taken a minute to re-think the email
opportunity and are delivering the type of content that is valuable, not
only for their subscribers’ faces, but for the business’ bottom line as well.
One prominent example of high-value email marketing comes from
an app company that is likely on most of our phones: Vivino.
The wine-identifying app has become a market leader by scanning,
rating, and recommending wine for its users, but most often when we’ve
got the app open, we’re in the process of pouring, not buying wine. While
some commerce happens in the app, Vivino has become incredibly
effective at gathering user preferences, then matching them with
special releases, seasonal recommendations, and curated discounts.
Vivino closes the loop on their customer relationship by knowing what
people want, when and where they want it, and then using their various
channels to match those.
A little closer to home, there is a small winery in BC doing some really
creative things with their wine program. The company is appropriately
named Niche Wine Co. and the winemakers send out regular messages
that tell stories about their wine, shout out local small businesses,
offer seasonal recipes, and even give behind the scenes looks at the
winemaking process. What makes the email so compelling is that it’s
not a standalone marketing tactic—it’s a reflection of everything that
they’re up to. If you subscribe to their wine club, you’ll find products
from those same small businesses as thoughtful little surprises tucked
next to your bottles, and if you follow them on Instagram, you’ll get to
dig just a little deeper into the stories that they’re telling.
When the content is valuable, people don’t just tolerate email
marketing, they look forward to opening it. And the impact for our
businesses is that, when it’s time to tell a story to our community, we
never have to worry about the latest algorithm update, or who’s paying
attention to what media channel. We’ve built our own media, and
we never have to ask anyone’s permission to communicate with our
audience, as long as we can keep their trust and attention.
Keeping Trust and Attention
The only question that remains to be answered is: How? It sounds
wonderful to own a media channel, but the fact is that, like everything
in marketing, we must first break through the noise to capture people’s
attention. Following are a few techniques that email marketers use
consistently to build, grow, and receive value from their email marketing
strategies:
The Quarterly Pour 7
1. Give Them a Reason to Sign Up. No one gets excited about a box a short text message to a friend about the email that they’re about to
at the bottom of a website that says “Sign up for our e-newsletter”. In a send—that may allow you to relax and write the way that is going to
media landscape that’s screaming for our attention, and in a world where connect with people.
the majority of people think that they don’t like email marketing, we’re
going to need to do better than that. A common technique is called a 6. All Roads Lead Through Email. Email list growth is not about
lead magnet, which involves developing a high value piece of content, tricking people into signing up—it’s about authentically using your
then driving traffic to a page where people can get access to it for free, various customer touchpoints to let people know about this high-
but only after they give you their email address. Lead magnets often quality content that you’re putting out into the world. When you’re
consist of online recipe books, a how-to video, virtual wine tastings, producing emails that you’re really proud of, promoting it gets a lot
or restaurant guides. The right fit for you, and for your email marketing easier, and you start to find opportunities in-store, on your website,
program is going to be unique to you and your audience. and in your social media content to let people know why they should
sign up.
2. If You’re Going to Be Your Own Media, Act Like It. Create emails
that are newsworthy. That doesn’t mean that you have to become a
7. Know the Laws. In recent years, many jurisdictions have passed
journalist, but it does mean asking: Why will my audience care about
laws that regulate or restrict the ways that we’re allowed to use
this message? Will they learn something? Will it make them laugh?
electronic communication for advertising and promotion. The impact
A good test that you can apply to your emails before hitting send is by
asking yourself: Why would my best customers forward this email to of those laws has been a big boost to high-value marketers because
their friends? they’re the ones who are happy to attract legitimate subscribers,
to email people respectfully, and to manage their lists responsibly.
3. Deliver Consistently. Sporadic emails get unsubscribed from. In Canada, our government has created a simple website that
Once people learn that they value your content, they like to be able to lays out the guidelines for us. It’s a highly recommended read for
rely on you. You don’t need to send it every week, or even every other anyone who’s planning to hit send on any form of business email:
week. However, if you take a month off, a number of your subscribers www.fightspam.gc.ca.
will have forgotten who you are and they’ll unsubscribe. There are many more tips, tricks, and techniques that email
4. Have No More Than One Call to Action Per Email. Since you’re in marketers use, and if you’re going to take your program seriously,
the media business now, you don’t want to overwhelm your readership you’d be well advised to learn as much as you can about them
with ads, but at the same time, you do want to make it easy for them to (recommended source: www.reallygoodemails.com), but as with every
get what they want. If you’re hosting an event, that’s a great opportunity form of marketing, the brands that have the greatest success are the
to invite your email list. Did you just publish a great new video on your ones that understand what their audiences want, that deliver great
Facebook Page? Let them know about it and ask them to comment content consistently, and respect the reader in the process. The best
on the post. The more that you are clear and intentional with your calls part is, so few brands are fully taking advantage of this opportunity,
to action, the more impactful that they’ll be, and that means limiting that it’s ripe for your brand to create something that’s going to surprise
yourself to just one objective per email. your community.
5. It’s All About the Subject Line. Before we can do anything with Conner Galway is the President of Junction Consulting. He publishes
our email marketing, we need to get people to click open. Write subject a weekly email about digital marketing and business called The Brief
lines that clearly communicate value and have fun with them. One that’s read by business leaders at many of your favourite brands. To get
the latest updates, opinions, and stories in your inbox every Monday,
technique that email marketers use is to imagine that they’re sending go to www.brief.wearejunction.com.
8 The Quarterly Pour
BEER NOTES
Expanding your Tap List
Beer is the lifeblood of the public house, but
it’s not what it used to be. Over the past decade,
an explosion of craft brew options has fractured
by Dave Smith
with reps from BC’s independent breweries
to select and procure a range of ales each
month.
Thinking back to when the program rolled
the long-time status quo behind the bar in many out, Andrews recalls, “In the beginning, it was
Canadian pubs. Take for instance Coquitlam’s a bit difficult for our old-school regulars who
venerable John B Pub, where the tap list has don’t like change. They would rather have the
grown exponentially, to the point that it now Buds and the Canadians and whatnot. But
boasts 86 beer and cider lines. Some specialty then we had this other clientele who were
craft houses have even more selection. looking for IPA.” Which is exactly the reason
Operators like these see the range of choices to add those new taps—but that doesn’t Sheila Andrews at the One20 Public House.
as a natural response to a generational market mean you have to subtract everything. Photo: Dave Smith
shift, and an opportunity to separate themselves Consider a house beer. As The Publican
from the pack. However, many other publicans reported in its Fall 2018 look at house beers, We were getting tropical hazies, sours, and
fear the havoc such a bewildering array would these can be a great option to help deflect so many different ones.” However, she warns,
wreak amongst their staff and clientele, so they customers’ concerns about change, and “Make sure you don’t have too many of the
choose to stick with basic beers. One20 Pub has adopted this approach. same type of beers.”
Those concerns are legitimate since the craft Interestingly, for a bar that has connections Sheila advises to change taps with the
beer crowd still represents a minority of beer to dozens of small breweries, they have season: “We try to keep something fruity for
consumers. However, in terms of provincial partnered with Molson for their One20 Lager summertime. Wintertime, we will do things
sales figures, that minority passed 30% a few and three other house brews. These lines are like Stout and Dark Lager.”
years ago—and the age group driving the trend branded “House Craft” on the menu and sold Buy carefully. You need those rotating
isn’t going away. At some point, even the most at preferred pricing. taps to keep things interesting for the beer
reluctant operators will need to consider spiffing This might be encouraging news to those fans. But you don’t want “loser” kegs sitting
up their beer lists. who are interested in adding craft beer tap in the cold room for weeks. “There are a lot
For a balanced discussion on the merits of tap appeal but feel nervous jumping in bed with of beer reps who are super awesome about
expansion, we reached out to an operation that a fledgling microbrewery for their primary replacing product, but then you get the few
has been offering substantial consumer choice house brew. It demonstrates that it’s possible who are not so easy,” says Andrews. That’s
within a sustainable framework for several years: to leverage your existing relationships. Keep why she suggests to start small: “Maybe get
Delta’s One20 Public House. Following are in mind, however, that it’s still necessary to a 20L keg. Don’t go for 50L right away.”
some of the steps such an operator might have bring in some actual craft beer with street With a little common sense like that, you
in their rollout plan: cred to make the whole thing work. For this, can expand or refresh your existing tap
Choose a point person. After deciding to Sheila deals directly with the microbrewery selection, and provide a transfusion to your
pursue expansion, one of the first steps is to reps. beer list—the lifeblood of your pub.
nominate a team member who will champion the Get the right mix. Andrews shares, “We
Dave Smith is Editor of What’s Brewing,
project and act as an ongoing point of contact. did more of the simple ones to begin with. The
the Journal of BC’s Craft Beer Movement
At the One20, sixteen-year crew veteran Sheila IPAs were first, then the Stouts slowly came
(www.whatsbrewing.ca).
Andrews manages the beer program, working through, and it just progressed from there.
The Quarterly Pour 9
Compensation & Retention
Strategies
by G i n g er B ru n n er, C P H R
It goes without saying, the COVID-19 pandemic has severely impacted Through thoughtful, strategic compensation planning, employers can
BC’s tourism and hospitality industry. Businesses have had to make set themselves apart from their competitors and encourage their top
tough decisions, including reducing or adjusting hours of operation, performing employees to remain with the organization.
service offerings, and staffing levels in order to remain viable. As a Here are a few considerations when it comes to the impact of
result, many industry workers have been displaced from their jobs. compensation on employee retention:
While some workers have found alternate positions within the industry,
Compensation Planning. Compensation strategies will vary between
others have left the industry all together in search of more stable
employers. Some will aim to pay at or above minimum wage ($15.20
hours, higher pay, or a different work environment. This has industry
per hour), others will strive to pay the BC Living Wage (amount varies
employers concerned as many are struggling once again to recruit or
depending on the community), while others will focus on paying wages
recall workers.
that exceed those of their competitors. There is no one single strategy
Additionally, the perception of the tourism and hospitality industry’s
or structure that will work for all businesses. Employers need to find
work environment has been damaged during the pandemic. Job
the right compensation strategy that will help them achieve the goal of
seekers may be hesitant about working in the industry due to concerns
attracting and retaining employees, while ensuring that it is sustainable
about job security, health and safety, career advancement, and
within the financial model of the business as well as fair and equitable
competitive wages. Employers are concerned about the lack of skills
for all. With the recent June 1, 2021 increase in the BC minimum wage
and qualifications of job applicants, as well as the lack of immigration
and elimination of the Liquor Server minimum wage, some employers
into Canada during the pandemic—as immigrants make up a large
may be reviewing, reevaluating, and/or adjusting their overall wage
percentage of the tourism and hospitality workforce.
structures to reflect the increase and ensure that other wages within
As businesses both within the tourism and hospitality industry
their organization remain competitive.
and other industries start to ramp up operations, the competition for
talent intensifies and the lack of skilled workers remains. Employers Total Compensation. Total compensation is a term that refers to
will need to work even harder than before the pandemic to retain their wages or salary, and any other benefits, programs, or opportunities
high-performing employees. available to employees through their employment. Total compensation
Compensation plays a critical role in employee retention, but works to help employers retain employees, particularly when they offer
employee expectations are changing. While paying well enables benefits or opportunities that their employees value (e.g. extended
employers to attract more qualified talent, wages are only one part of health benefits, mental health supports, learning and development,
the compensation puzzle. Employees who are paid well and feel valued career advancement, employee discounts, flexible schedules, paid
on an ongoing basis are more likely to stay longer with the organization. time off, bonus/incentives).
10 The Quarterly PourWhen planning or reviewing your compensation strategy, be sure to less impactful, or even delaying changes to allow time for teams to get
consider total compensation. What perks, benefits, or opportunities back into their rhythms and business volumes to settle, post pandemic.
does your business offer employees, in addition to wages? Why should
Reward and Recognize Employees. Rewards and recognition form
an employee choose to remain employed with your business? What’s
part of the overall total compensation package, and now more than
in it for them? Some recent studies suggest that post COVID-19,
ever, employees will choose to stay with organizations where they feel
employees are reevaluating their work/life balance, resulting in an
valued and appreciated. Rewards don’t have to be big or expensive.
increased desire for more flexible working conditions. If you are not
Focus on smaller, more frequent ways to recognize and reward
sure what your employees value most, ask them.
employees. It may sound trite, however, a simple thank you does go
Gratuities and Retention. While a long way. As we move past the
tip- ou t /gratuit y str ucture s va r y pandemic, find ways to recognize
What perks, benefits, or
throughout the industry, one thing and reward loyal employees who
is cer tain—ser vers are attracted have helped the business through
to positions that offer the greatest these challenging times. Surprise
potential to earn gratuities. With
the recent elimination of the Liquor
opportunities does your them with an extra paid day off,
premium shif t choices, or (as
business offer employees?
Server minimum wage, liquor servers COVID-19 restrictions permit) plan
now earn the regular minimum wage in-person lunches, coffee chats, or
($15.20 per hour). This change may other celebrations. Send gift cards
have some employers considering with handwritten thank you notes
reevaluating their tip-out structure to reflect the increased hourly and give shout-outs at staff meetings, on internal emails, or social
earnings of servers. If so, employers need to carefully consider media channels.
the potential impact of making such a change within the currently As COVID-19 restrictions lift and BC continues to move forward
competitive job market. Gratuity discussions and changes can be a from the pandemic, all businesses will need to adapt and change to
difficult and thorny topic for employers due to the potential impact on fit the new normal. Compensation planning, consideration of total
employee earnings and retention. Consider including employees in compensation and gratuities, and rewarding employees are just a
the decision-making process to help determine the most appropriate few ways in which employers can create competitive compensation
structure for your team and generate buy-in. And as there never packages that will help to encourage employee retention. Visit the
seems to be an “ideal” time to make changes to gratuity structures, go2HR website for more information about Understanding Tips and
consider making smaller incremental changes over time that will be Gratuities, compensation, and retention.
Ginger Brunner, CPHR is Senior HR Specialist at go2HR.
The Quarterly Pour 11The Fox & Hounds
PUB
by Jacquie Maynard
When Debbie and Jeff Paul met at 16 years old, it was the start of After a $250,000 renovation, the Fox & Hounds ended up as a
a loving, life-long relationship with not only each other but with the traditional English-style pub seating 90 people with a pool table and
hospitality and pub industry, too. Debbie’s parents owned hotels, so dartboard—now, it’s a casual fine dining restaurant and pub that seats
growing up, she was fully entrenched in hospitality. When Jeff joined the 150, with a brand-new patio that’s bigger than the inside, and a fountain.
family, he quickly realized that the best way to spend time with Debbie The most recent renovation project was undertaken in 2011 when the
was to work at the hotel. After working their way through high school, Fox & Hounds hired internationally renowned artist Dan Sawatzky to
the pair were hooked on each other and the industry. recreate its interior. With curving brick walls, carved cement and wood
“We didn’t want to work for Mom and Dad anymore and decided we details, and massive trees that hold up the entrance to the building
wanted to sell our house and buy a pub,” says Debbie. “So, we did, and and surround the fireplace, Sawatzky certainly created a one-of-a-kind
lived in the office upstairs for the first year!” atmosphere.
In 1993, the pair were offered a suitable price for their pub and they “Dan created an indoors that is very unique,” Debbie says. “There are
bought the Fox & Hounds pub in Aldergrove. a lot of artistic elements, and people love it. It’s really cool to sit there
The rest is history—and what an interesting history it has been! and pick out all of the little details. You see something new every time.”
Building the Dream ‘One Hell of an Orchestra’
Even though the pub’s interior was less than 15 years old, it needed a If you ask Debbie, she’ll say that the success of the Fox & Hounds is all
lot of work. thanks to the staff because building it was a team effort. Astonishingly,
“It was kind of a dingy little pub when we bought it. It was definitely many of them have been there for over 10 years, and one staff member
well-worn,” Debbie laughs. “We stepped into a bit of a mess, but it’s even came with the pub when they bought it.
got good bones, so we got it freshened up.”
12 The Quarterly PourChef Donna Meneghetti –
At the pub since it started
28 years ago in 1993
Angie Vecchies, Assistant Jeff, Debbie and Billy Paul
Manager – A long-time with Angie & Donna
employee of 24 years Photos Courtesy of The Fox & Hounds Pub
Assistant Manager Angie Vecchies has been working at the “You can be the greatest conductor, but if you don’t have a good
restaurant since she was 14 years old! Debbie says the deal was: keep orchestra, you’re hooped,” she says. “And we have one Hell of an
your grades up, or your fired. Luckily, Angie graduated with honours and orchestra.”
has been a part of the team for 24 years now. She was even their son
Billy’s first babysitter. Billy Paul is now the second generation involved, Community Gathering Place
working under his dad’s wing to take over one day. To the Pauls, cultivating a welcoming atmosphere is the most important
Donna Meneghetti was working part-time at the pub when the thing.
Pauls bought it in 1993 and was quickly offered the position of Kitchen While Aldergrove may be a passing-through point, Debbie says that
Manager, even at the young age of 19. Debbie says it wasn’t about her 65% of customers are local. The majority come in for happy hour and
age, it was about her ability, and she hasn’t regretted the decision for on the weekend, but she says that around 60% of their business is
a moment. Donna has been mentoring the Pauls’ youngest, Ken, in the now related to food, showing that all members of the community enjoy
kitchen since he was 12 and he aspires to take part in the business frequenting the pub.
as well. “It’s our community gathering place,” she says. “We are really grateful.
“I get all choked up because we wouldn’t have what we have without We’ve worked hard at it and had lots of headaches and heartaches, but
the people we work with,” she says, her voice cracking with emotion. it’s been worth it. The people along the way have made it worth it.”
“We can’t do it—not without all of them.”
Altogether, the Fox & Hounds and Fox Liquor Store employ 36
people, and to the Pauls, every one of them is family.
The Quarterly Pour 13Legal Risks and
Realities of COVID-19
by Lo r n e Fo li c k
As commercial hosts gradually return to full service in accordance So what is “gross negligence”? At law, “basic” negligence is established
with Provincial Health Orders (PHOs), it is important to remain aware of where a person’s conduct falls below the standard of care expected
the legal risks hosts still face concerning COVID-19. Venues that breach of a reasonably prudent person in similar circumstances, and such
PHOs may of course face fines and enforcement actions. But any conduct causes reasonably foreseeable harm. The threshold for gross
establishment that opens its doors to customers during the pandemic negligence requires a marked, significant breach of the standard of care.
also opens its doors to a small but real risk of being sued for negligence, Gross negligence is more than a mere mistake or a momentary lapse of
if someone connected caution. It is somewhere
The threshold of gross
with the premises falls ill between negligence and
with COVID-19. conscious wrongdoing.
The good news is that By using the gross
commercial hosts have
been granted at least
negligence might have very negligence standard, the
MO protects essential
significant insurance implications.
partial protection against service providers from
civil liability connected l e s s e r m i s t a ke s, b u t
with COVID-19. British allows plaintiffs to hold
Columbia’s Ministerial them responsible for more
Order No. M094 (MO) designates as essential services “restaurants and serious misconduct. This suggests that the province wants to strike a
other facilities that prepare and serve food, if operating under rules for balance between ensuring socially beneficial venues can remain operable
physical distancing or other recommendations from the PHO.” It goes despite the pandemic, while still holding them to a reasonable standard
on to add that essential service providers are immune from tort liability of conduct—and allowing anyone injured by serious misconduct to obtain
unless they cause loss through “gross negligence”. compensation through civil lawsuits.
14 The Quarterly PourDetermining whether an act or omission is grossly negligent is not
easy, and it varies by context. Allegations of gross negligence are
most common in cases where the defendant has some degree of
authority or power, and the plaintiff is particularly vulnerable—think
of police officers, teachers, search and rescue volunteers, etc. But
it can apply to other situations, too, including commercial hosts.
The threshold for gross negligence in those cases will depend on
factors such as the nature of the relationship between the parties, the
circumstances of their interaction, and the kind and possible severity
of the loss or injury that might result. In the context of a bar or pub
operating during COVID-19, a single infection due to the failure to
enforce social distancing might not constitute gross negligence, but
if that failure was habitual and ongoing, or the outbreak led to death,
or the host deliberately delayed disclosing the outbreak to health
authorities, resulting in further infections, such misconduct might be
gross negligence.
The threshold of gross negligence might have very significant
insurance implications. Commercial general liability insurance policies,
commonly held by commercial hosts and other businesses, typically
cover liability for bodily injury, but some policies may specifically
exclude liability for injuries resulting from gross negligence. Many CGL
policies also exclude liability for pollution, and some speculate that the
presence on the insured’s premises of the virus linked to COVID-19
might be “pollution”.
The MO’s gross negligence standard allows responsible businesses
to resume operations with some protection against liability for potential
outbreaks. Of course, resuming business necessarily increases the
risk of infection for an insured’s employees, resulting from ongoing
exposure to customers and other staff. An insured might be sued by
employees who fall ill for not taking reasonable steps to protect them
from infection. How far can businesses go in mitigating that risk, and
can they require employees to be vaccinated against COVID-19?
Currently, no legislation or regulations specifically allow employers to
require their staff to be vaccinated, but they likely have the discretion
to make vaccination a prerequisite to employment. Implementing
such policies can carry its own legal risks. Imposing a vaccine
requirement might constitute a breach of an employee’s existing terms
of employment, perhaps exposing the employer to a claim for breach
of contract, or even constructive dismissal—especially if no similar
requirement existed previously, or if the vaccination is not sufficiently
connected to the actual risks the employee faces at work. Employers
might also face human rights or privacy complaints from employees
who object to being vaccinated because of health, religious, or other
personal reasons. In many cases, employers might get better results—
and keep happier, healthier employees—by encouraging voluntary
vaccination rather than forcing the issue.
Lorne P.S. Folick is Partner and CFO at Dolden Wallace Folick LLP. He
is an insurance defence lawyer who specializes in defending restaurant,
bars, pubs and hotels. Lorne has argued many of the leading cases
in this area and routinely provides risk management presentations
and materials for the industry. Recently, Lorne authored the definitive
textbook in liquor liability exposures in Canada.
The Quarterly Pour 15Hester Creek's New Tiers of Terroir The sunny hillside south of Oliver where Hester Creek Estate Winery is located is a special place for those who love British Columbia wines. It is steeped in history, yet looking to the future of winemaking, with a soil and climate ideal for growing both big reds and elegant whites. Now that unique sense of place is being celebrated both in and on the bottle, with a fresh approach from winemaker Mark Hopley. Since stepping into the role in 2020, Hopley has introduced new wines, including a patio-perfect bubble, and a new three-tier system with updated packaging that pays homage to the winery’s unique site. “The goal with that was to be recognizable, but to have a fresh new take,” Hopley says. “The more we can identify that sense of place, the more you get buy-in from the consumer.” Here are three wines, one in each tier, that capture the essence of Hester Creek’s enlightened wine growing. Foundation Wines: 2020 Pinot Blanc, $15.99 plus tax it is fragrant with peach, nectarine, and apricot notes as well as hints of The “Foundation” tier comprises wines that are widely available, such as honey, minerality, and sagebrush. the crowd-pleasing Character red and white blends and the prosecco- “The grapes for this are from a really old block on our vineyards, style Ti Amo sparkler that was introduced last year, and promptly sold Block 4, which was planted in 1968. They’re these gnarly old vines, and out. (Production this year has increased from 300 to 1,000 cases.) with age, you get less fruit hanging and more intensity in the finished One of the most interesting wines in the lineup is the Pinot Blanc, which product,” Hopley says. at $16 a bottle is a terrific value given its impressive pedigree. A gold The vines are some of the oldest vitis vinifera in the valley, planted medal winner at the 2020 San Francisco International Wine Competition, by a previous owner of the property, an Italian immigrant named Joe 16 The Quarterly Pour ADVERTISING FEATURE
Busnardo. Back when most people believed
only hybrids could grow here, he planted a
number of traditional varieties to see what would
happen. “The cool thing is he planted this really
diverse vineyard. He was very much ahead of
his time,” Hopley says.
The other thing that makes these grapes
so exciting is that they retain such freshness
despite the hot South Okanagan sun. “Being
on the Golden Mile Bench, BC’s first sub-
Geographical Indication, the sun sets behind us,
so we lose the sun in the afternoon and hang
onto the acids,” Hopley explains.
Origin Wines: 2018 The Judge, $43.99
The Origin tier comprises Hester Creek’s two flagship Bordeaux-style blends,
which are as rich and voluptuous as they are complex and sophisticated.
The more Cabernet-driven of the two is Garland, named for winery owner
Curt Garland; the juicier, more Merlot-forward one is The Judge, which the
winery first introduced in 2007, and like the Garland is crafted entirely with
estate, handpicked fruit from some of their oldest vines.
The Judge is made from 37% Merlot, 33% Cabernet Franc, and 30%
Cabernet Sauvignon. After spending two years in French oak, it has loads
of cocoa, leather, and vanilla notes as well as lush black cherry flavours and
a touch of savoury sage. The 2018 vintage is especially exciting as a cool
and early fall slowed down ripening, so it remains bright, lively, and elegant.
Moreover, Hopley says, “It has our best blocks from our estate property.
The Judge gets the best blocks, the best fruit, and the best barrels.”
It is, in short, the best way to taste a remarkable place.
Discover more about this historic property at hestercreek.com.
Source Collection: 2019 Syrah, $29.99 plus tax
The Source Collection is all about sourcing the best grapes possible,
mostly—but not only—from the estate itself.
This tier includes single varieties such as Cabernet Franc,
Chardonnay, Merlot, and Trebbiano, a rare white grape Busnardo
brought back from Italy. Indeed, that Italian heritage is still celebrated
throughout the winery. “The whole estate has a Tuscan feel,” Hopley
says. “We have the Tuscan-inspired Villa accommodations and
Tuscan-inspired restaurant with Terrafina.”
One of the Source Collection wines he is most excited with is
the Syrah, which blends grapes from the estate with some from
Black Sage Bench. It’s also a co-ferment, made the way Syrah is
traditionally done in its Rhône Valley home, with the addition of a
small amount of Viognier.
“What that does, is lift the aromatics,” Hopley describes. The
Viognier adds delicate floral notes and a lush mouth feel to an earthy
wine rich with black cherry, plum, and pepper notes, with hints of
bacon and toasted coffee. Full-bodied yet elegant, this wine sells Contact Hester Creek Estate Winery at
out year after year, and Hopley believes the slightly cooler 2019 info@hestercreek.com or (250) 498-4435.
vintage is among the best. www.HesterCreek.com
The Quarterly Pour 17» LDB UPDATE by BC Liquor Distribution Branch
The Cooler
Category
is Growing
Rapidly Cumulative YOY Change in Market Share Percentage Points
Ready-to-drink cocktails and refreshment
beverages (also known as coolers) have
become the go to beverages for summer, and
their popularity shows no signs of cooling off
anytime soon. The category has rapidly grown
to include hundreds of types of refreshment
beverages and ready-to-drink cocktails,
multiplying several times over its share of the
market today. The popularity of one specific
product type had not been seen since the wine
cooler craze in the 1980s until hard seltzers
were introduced to the market a few years ago.
Over the past 18 months the pandemic has
also played a part in driving the market growth
for refreshment beverages. Customers who
may have normally enjoyed a draught beer
Distribution Cases Shipped Per Financial Year
at a pub, sporting event or concert may have
turned to portable, ready-to-drink beverages
that could be consumed at home. Consumers
also appreciate the fact that hard seltzers are
gluten free, come with a lower ABV around
4-5%, and have a comparatively low-calorie
count in comparison to other drink categories.
This past summer, producers have continued
to satisfy customer preferences by bringing to
market a variety of new fruit flavours and teas.
18 The Quarterly PourOn a larger scale, the volume of cases
shipped by BC Liquor Dist ribut ion In-Stock Levels
Branch (LDB) distribution centres continues
to grow (23 million cases in the last fiscal
year) but the refreshment beverage category
can’t take all the credit. Wine, beer, and
spirits continue to maintain considerable
market share compared to refreshment
beverages, which held 11% market share
last fiscal year, and it continues to grow
incrementally each season.
A few years ago, when the refreshment
beverage product category in BC was starting
its rebirth or renaissance, it experienced its
own pain points and challenges when new
and popular products couldn’t keep up with
customer demand for a multitude of reasons.
Many lessons were learned in the summer of warehouse allocation and retail shelf space
2018 when a combination of manufacturer (and sometimes refrigeration), particularly in
FY 2021 $ Market Share issues, logistical warehouse constraints, the spring and summer.
By Category stretches of hot weather, and high customer L i c e n s e e R e t a i l S to re s ( L R S) a n d
hospitality operators also have visibility to
demand created the per fect storm and
disrupted product supply and heavily tested real-time inventory levels through both the
the supply chain. LDB Webstore and Hospitality Product
Since then, the LDB distribution centres Catalogue, and the LDB Wholesale Supply
have taken a number of steps to mitigate any Chain posts and updates a supplier stock
34% 27%
potential future risks to product categories out list weekly in the product information
and have successfully kept in-stock levels for resource section of the Wholesale website at
all products around 95%. www.wholesale.bcldb.com. This allows LDB
2%
LDB Wholesale works collaboratively with Wholesale customers to plan their orders
11% accordingly.
both suppliers and wholesale customers to
26% Customers can also learn more about
ensure that popular products flow through
the supply chain in a timely manner. This the latest products to enter the market and
collaboration is key, especially for products look up the top-selling products across
with dramatic growth in volume and seasonality all categories the previous quar ter by
spirits beer demand, which require careful planning by downloading the new product and top
wine packaged beer vendors, distribution centres, and wholesale seller lists available on the LDB Wholesale
refreshment beverage customers to ensure there is adequate website.
The Quarterly Pour 19Challenges Facing
Import Agents
by IVSA – Import Vintners Association
BC import agents (Agents) play an essential role in increases, the one generating more profit will
building hospitality and retail alcohol businesses continue to be the Government, through its hefty
by finding ways to educate their staff, increase mark-up on imports, GST, and Social Services
their margins, and improve product stability (Provincial Liquor) tax.
and customer loyalty. At the same time, Agents
are facing a worldwide shipping crisis, delivery
Moving Forward
Given all of these issues, Agents are looking at
delays, increased costs, and red tape—all items
ways to work with our hospitality/retail partners
that we are navigating to provide better service
and help them build their business. For instance,
to our partners.
we work with our industry partners to stock store
Delays are currently at an all-time high. Shipping
buying clubs with unique and semi-exclusive
delays, pricing delays, activation delays, and
products. Unique products like this consume
NSWP-SPEC (Non-Stocked Wholesale Product)
more time for sourcing, shipping and domestic
delivery delays combine for unprecedented cost
distribution. However, these products generate
increases. Exasperating the problem for BC
higher profits and thus help support private
Agents is a provincial mark-up system and a lack
retail/hospitality. Currently, these products are
of product parity for deliveries to hospitality and
not treated as equals to products listed in the
retail partners, which favours BCL-listed products.
Government Liquor Stores.
The Shipping Crisis
Over the last 18 months, the world has seen
Product Parity
Product parity, where retail and hospitality
unprecedented supply chain disruptions.
accounts would receive Agents’ higher profit
Demand for containers dropped to its lowest
products (NSWP - SPEC) simultaneously as BCL-
point in Spring 2020, only to rise to its highest
listed products is crucial to building our partners’
point at the end of 2020. As a result, Spring
businesses. In addition, costs of product samples
2020 saw lower capacity, leading to an increase
have gone up nearly 15% over the last year,
in prices. At the end of 2020, record levels of
hindering Agents’ ability to train and educate
demand drove prices up once again, this time
hospitality and retail staff on product features and
due to lack of capacity. At the end of last year,
conduct permitted in-store tastings that create
freight forwarders tried to catch up on shipments
brand awareness with the end consumer.
that had been dropped in the summer. Their
World carriers have taken steps to relieve
efforts were unsuccessful due to the ineffective
the shipping crisis’ pressure by sailing empty
positioning of containers in the US to meet
containers to points of demand and manufacturing
demand in Asia and Europe and the dramatic
more containers to put into use. But these efforts
decrease in port workforce capacity due to
will take some time to return supply chains to
COVID-19. In short, traditional 30-day shipping
normalcy. Back in BC, to effectively support our
times can now reach up to six months.
hospitality and retail partners and deliver value to
How Will This Affect Products in BC? the end consumer, we must continue the reform
Agents have had to accept longer lead times of our legacy mark-up system on imports and
and higher inventory carrying costs back in BC, seek to level the playing field for all products
making it harder to maintain inventory and leading available in the province. BC Liquor Store
to dramatic increases in cash flow demands. It listed products should not have a distribution
is anticipated that retailers will be carrying more advantage.
inventory this holiday season, with noticeable Together with the BCLDB, the IVSA and
price increases from freight-forwarders passed the BTAP (Business Technical Advisory Panel)
along to retail and hospitality accounts. recommendations, we hope to see many of these
The BCLDB wholesale mark-up intensifies changes in the coming years. We are working
the slightest cost increases by three to four closely with all of our industry partners to make
times, resulting in dramatic wholesale changes. distribution improvements in BC. Our goal for a
Retailers and hospitality operators will then win/win scenario would include providing product
mark up the increased wholesale price before stability, assisting in educating staff and hence
the product reaches the consumer. Margins in assuring customer loyalty.
the entire industry vertical will be erased, and
The Import Vintners & Spirits Association
the consumer will end up paying more. Despite
(IVSA) is the voice of import agencies in British
Agents and partners absorbing the brunt of Columbia and Alberta and can be reached at
higher inventory carrying costs and other cost executivedirector@ivsa.ca.
20 The Quarterly PourA Day in the Life
OF A PUBLICAN:
Marilyn Sanders
The Sundowner
Creating a welcoming atmosphere is all in a day’s work for Marilyn,
extending this ethos to staff and customers alike. “We have happy staff
and zero turnover, which is amazing,” she says. “And we have great
customers—I’ve always fashioned any pub I’ve owned over the old TV
show Cheers—everyone knows your name. You can buy a burger and
beer anywhere, but you can’t have someone say ‘Hi Joe’ and bring your
by Amy Watkins beer or beverage of your choice before you ask for it.”
Marilyn’s experience in the hospitality industry began back in 1996 when
Early mornings are essential she bought her first pub, the Kennedy’s Pub in North Delta, before selling
when you’re working 10-hour that and buying the Jolly Coachman in Pitt Meadows with her business
days, seven days a week. partner Dave Crown. After 10 successful years (2003-2013) they sold
Pub owner Marilyn Sanders the Jolly Coachman and Marilyn retired to enjoy being a grandmother.
begins her day at 7am by Marilyn’s retirement was short-lived though as she was lured back two
reading the local papers and years later, when her friend Russ told her that his sister was selling their
doing a total recap of the pub, The Sundowner, and Marilyn had to buy it.
previous day’s sales at her Running a successful pub is not without its challenges and after a
pub, The Sundowner in Delta. busy day Marilyn catches up with the 6pm Global news before relaxing
“I check every item, every sale, for the evening. She can sleep easy knowing that she’s worked hard to
every side of fries, every bottle make things run as smoothly as possible. “Trust me, in hospitality there is
of beer,” says Marilyn. “I dissect a hiccup every minute,” she says. “So if there is only a hiccup every hour
it all and I do the banking. It’s then that was a good day.”
seven days a week, no days
off!”
On a ‘normal’ day, Marilyn
makes the 45-minute
commute from her home in
Coquitlam, travelling off-hours
to avoid traffic. “The first thing I do is walk the floor and then check
the merchandising bulletins and the BC Lottery information to make
sure nothing is outdated,” says Marilyn. “I then check the sign out front
and make sure it’s updated. I don’t want to go in on Monday and see
something from last Tuesday, I’m kind of a fanatic.”
Detail-oriented Marilyn talks to all the kitchen staff, front-of-house
employees, and customers when she’s at the pub. Customer service
and communication are key for Marilyn, and her social personality helps
keep people motivated. In her early career, between 1964-1995, Marilyn
worked for Safeway as a cashier and buyer, and for 25 years she was
President of the Safeway Employees’ Association.
Community involvement is a big part of Marilyn’s life in and outside
of work. Pre-COVID, the weekly meat draw raised funds for Dreams
Take Flight to send deserving kids to Disneyland—her manager
Bruce MacGregor even chaperoned twice. “It’s heartwarming,” says
Marilyn. “Customers love to know that the net profit goes to charity.”
Pub fundraising has also helped the local school with playground
equipment. “It’s a feel-good thing that makes us a big part of the
community,” says Marilyn. “The pub had closed down in March 2015
and we had so many hugs and kisses when we reopened it in June
2015 after a huge renovation. People said, ‘Thanks for giving us back
our neighbourhood pub.’” Sports fan and Canucks season ticket holder,
Marilyn also added more TVs to the pub (24 from four) so there’s “not a
bad seat in the house.”
The Quarterly Pour 21You can also read
