Thursday, June 14, 2012

Washington State Liquor Sales: A Perspective on Privatization

Liquor for thought: Wasn't it all about removing state control?

No, not in this case. Knowing what the market looks like at this point in time; who did this legislation really benefit? Customers? At present, there is less selection and a horizon of relatively higher prices for the forseeable future. Retailers? A business opportunity for sure, but with the 10% distributor fee and 17% retailer fee in addition to state taxes, who profits? Liquor Corporations? Yeah...probably not. So, if "we" aren't to benefit significantly from Initiative 1183, then who?

Consider this scenario: Washington State wanted more money from a liquor business without the responsibility of maintaining their current operating expenses, employee-driven health care costs and the growing headache of dealing with customer complaints. Washington State's population wanted what only a private liquor market could offer; "real" accountability, competition, quality service and more options at their time, their price and suited to their needs. It just so happened that a private business named Costco wanted the opportunity to sell liquor with pockets deep enough to afford it. Here, is the opportunity. The state, seeing a similar end to their control in mind, fosters this business's plans in pursuit of their own agenda. By passively supporting this plan, the state sheds the responsibility of its expenses without expense. It also implements a new group of taxes, called "fees" to fit a newly created private market like a glove. If the existing state liquor store's net profits weren't enough, then step it up by substituting private stores and add a little growth factor. In effect, allowing private businesses to retail liquor cures their headache while giving rise to the opportunity for the number of store's selling liquor to increase by 100 fold. More importantly, the potential for each new retailer's sales to yield big returns imposed by the new taxes, I mean "fees" should increase as well. Cha-ching! The state satisfies the need for privatization of their voting population and, at the same time, passively absolve themselves from their current role in the relationship, selling liquor to the consumer. To achieve this, the state, without too much arm tugging, allows its public advocate for the plan, Costco, to be the face that sells the idea to the consumer via an initiative. Sold! I-1183 passed and privatization is here. So, who did this legislation really benefit? If this scenario is true, Washington State is pretty damn clever if you ask me.

Washington State Liquor Sales: A Field Guide to Privatization

The unanimous vote approving Initiative 1183 is in full effect. Private liquor sales commenced at midnight back on June 1st, 2012 and after being controlled for decades by Washington State, are now being cared for by private businesses. Even if you haven't followed the transition closely, by now, you probably have noticed the signs or shelving displays at your local grocery store or pharmacy showing off their new liquid merchandise. Perhaps you have already taken advantage of this new spirited convenience with a bottle or two. Or, maybe you haven't due to media reports about taxes and high prices. For those who have a few unanswered questions like: Who, exactly, is selling spirits now? Are the prices and selection that different between stores? What's up with the taxes? Why are the prices so high? then read on. To understand this brave new world of privatized liquor sales (at least the first two weeks of it), Seattle area grocery stores, department stores, pharmacies, wholesalers and small retailers were visited to get the details. The goal of sharing these notes from the field, is, at least, to confirm what you may already know, and, at most, assist you in making your next purchase of rum or otherwise an informed one. Knowing a little about the new landscape may get you to the first sip of your favorite bottle with minimal casualties. Aye Mate!

So, who's selling liquor now? You will find liquor for sale at all the likely suspects with sizable locations; that is, those 10,000 square feet or above. Well, how big is 10,000 sq. ft.? Think about a square box 100 feet wide x 100 feet long. Got it? Good. The majority of the liquor sellers now are chain grocery stores (Albertsons, Metropolitan Market, QFC, Safeway) and pharmacies (Bartell Drugs, Rite Aid, Walgreens) followed by department stores (Walmart, Fred Meyer, Kmart) and private club wholesalers (Costco, Sams Club). You may also find smaller businesses like wine merchants (Esquin, Wine World) have started selling liquor. What about the previous WSLCB state store locations you say? The majority were taken over by private owners via the state's auctions and many have yet to reopen their doors. A few WSLCB contract stores closed and are no longer. Its early yet, but expect to see more and more of the previous state stores open with new owners in the next few months.

What are they selling? Don't expect to find the same selection that existed in the state stores. In fact don't expect to find more than 60% of what was available at most state stores. The liquor selection (brands and sizes) is going to be very similar at grocery stores like Safeway and QFC. I am told most stores within each chain carry similar inventory with few exceptions. For example, in select locations where the demand is greater, high end products are available in closed cabinets. Standard categories (rum, whiskey, tequila etc.) featuring the most popular brands is more or less what you should expect to find. The variety of choices decrease when going to smaller sized chain pharmacies like Rite Aid, Bartell Drugs and is even thinner (less than 20 options) at Walgreens. Not the news you were expecting? Well, thankfully there are businesses who buck this unfortunate trend. A few retailers offer wider selections including, many Northwest products, a more robust scotch and liqueur display as well as a few premium options. Noteworthy for their selections are the QFC Liquor Store (U-Village), Metropolitan Market (Queen Anne) and Esquin (SODO). The majority of liquor sellers carry both 750ml and 1.75L bottles size options, however other smaller sizes like 375ml and 50ml (minis) are not easily found. Unlike the access to smaller bottle sizes found in previous state stores, today's retailers carry the smaller bottles locked in cabinets and behind the registers. Size is another point to consider if buying liquor from Costco. Like most stores, Costco carries a typical selection of popular brands but only by the handle (1.75L) in most cases. So if you looking for a fifth of this and a fifth of that, Costco may not be your best choice. What if you can't find what you are looking for? Speak up! Certain grocery stores are taking recommendations and requests for items, however, no special order forms or catalogues exist yet.

What's up with the price tags? Taxes haven't changed. In fact, Washington State's Spirits Sales & Liter Taxes haven't changed in the past few years. Sales and Liter Tax for liquor remains at 20.5% plus $3.77/liter respectively. What has changed is private retailers' price tags. In the previous state-controlled system, these taxes were included in the list price below the bottle. Today, you see the list price and then at the register you see the final price when taxes are added, just as sales tax is added for other items. Got a calculator on that smart phone? You may want to become familiar it. Bartell Drugs, however, is one exception where you will see they list both the price before and after taxes on their tag below the bottle. Nice! Why did price tags change? One reason is that the state mandated that retailer's price tags have the taxes be listed near the bottle price to inform consumers. Another potentially confusing point to clarify is many grocery stores have a regular price with a "club" price below it. Readers note, the price differences between them can be significant so if you are buying liquor at a Safeway, make sure you are part of their "club" when you get to the cash register.

We voted for a private marketplace and the liquor prices are higher? Yes, yes we did. If the taxes didn't change and the competitive forces in this private system should lower prices, then why are the prices higher. There are two reasons that explain this. First, is the two new state "fees" included in the price; a 10% distributor fee and a 17% retailer fee. A dynamic duo; both payable to the state. This 27% burden to the bottle's pre-tax price is the major culprit. These new fees will be passed on to the consumer by most retailers until legislation is created to reduce or remove them. Hint, hint...The other explanation is that we are only in the second week or privatization and competitive forces, let alone awareness of competitor's prices, has yet to begin impacting the pricing. Let's help start that now, shall we?

Here is a snapshot of a few rum prices from the first week of privatization:

Liquor
Safeway
QFC
Metropolitan Market
Bartell Drugs
Wal-Mart
Costco
Esquin
Bacardi Superior
x/20.99
9.59/17.59
9.99/17.99
11.99/21.99
11.97/19.97
x/17.99
12.99/23.99
Meyers
16.99/33.99
19.99/x
15.99/x
17.99/x
17.88/x
x/26.99
19.99/x
Sailor Jerry
21.99/36.99
24.99/31.99
19.29/x
21.99/x
18.64/x
x/x
23.99/41.99
Ron Zacapa
51.99
x
54.99
x
x
x
55.95
x = not available; sizes = 750ml / 1.75L
Prices do not include State Sales Tax 20.5% or State Liter Tax $3.77/L (or $2.83 for 750ml, etc.)

Price Example: So, if you purchased a bottle of Ron Zacapa from Safeway and added your Sales and Liter Taxes, your total price would be calculated as follows: $51.99 + ($51.99 x .205) + $2.83 = $65.48

To put this in perspective, here is the price of what our neighbors to the north pay: 
Ron Zacapa ~ $79.99 - Vancouver, BC (BC Liquor Stores)

Also, please note that the above prices may not reflect the prices this week or next as many grocery stores' liquor prices change regularly. Sale items and specials occur weekly to bi-weekly unlike the once monthly Temporary Price Reductions offered previously by state run stores. Check your weekly newspaper fliers and online promotions for the latest sales!


This private market of liquor sales is still in its infancy and the past two weeks may not look like those ahead, so...

Stay calm and drink rum!



Cheers!




Friday, May 18, 2012

Seattle Rumdrops: Drink Locally at Liberty

Drink Locally
Prepared by Keith Waldbauer
April showers brings..? Well, in Seattle, that answer is often, May showers. This Spring, as our ubiquitous rain clouds slowly shrink for the Sun's short debut, I will assure you there is nothing "dry" about Seattle in our view. For this post, we return to our good friends at Liberty, who just released their new cocktail menu. Fittingly, its looking in full bloom. Page after page of new cocktails are there for your drinking enjoyment, but let's go directly to what matters - the one titled, Rum! Lined with plenty of options; Drink Locally catches my eye. Keith Waldbauer, co-owner of Liberty, nods to signal I have made the right choice. First, fresh blueberries and quartered lime wedges are pressed in a Mason jar before me. Then, Novo Fogo Silver Cachaça and a few dashes Scrappy's Aromatic Bitters are added to this rather crafty vessel. So, what about this cocktail's name? Locally owned by Draxos Axinte, Novo Fogo Cachaças need little introduction in these parts. Remember The Rum Collective meeting featuring Novo Fogo last year? If not, take a look at the review! His impressive sugar cane-based line of cachaças demand respect and do wonders when mixed properly. The fabulous array of Scrappy's Bitters are also conveniently crafted here in Seattle. There you have it, an honest name for an honest drink.

The jar is sealed, served and I am told you can shake it up how you like it. Fun!
Lid off, its refreshing, balanced and a perfect drink to start off springtime.

Drink Locally
Prepared by Keith Waldbauer


Cheers! 

Tuesday, May 8, 2012

The Rum Collective's 8th Meeting: Deco Rums at Local 360

Deco Coffee, Silver and Ginger Rums at Local 360
Local 360 is a restaurant that prides itself by living up to its name. They serve local food and drink sourced within a 360 mile radius of Seattle. Simple, sustainable and green are admirable goals. Sounds challenging right? Let's consider rum, a spirit historically produced in tropical climates like the Caribbean. A little too far away. What about local rum? Washington State laws have made it nearly impossible to produce rum here due to raw ingredient requirements. This makes serving rum at Local 360 more difficult still. However, and luckily for us, our more craft distillery-friendly neighbor, Oregon, makes rum and pretty good rum at that! Eastside Distilling, a new small batch distillery located in Portland's historic district (175 miles away) is producing an eye-catching line of rums under the name Deco, which are already winning awards.



Local 360 Tasting Room
In the back of their restaurant and bar area, a private space decorated with local art and filled with candles awaits us. The swashbuckling rum drinkers who fill the room on this weeknight set a fine example of what is important. That being Rum. Priorities right? Healthy sized tasting samples are poured and several different plates of chef's appetizers are brought out. Time to support local!






Honey Bee Cocktail with Deco Ginger Rum
Prepared by Paul Ritums
Greeting cocktails are served. The Honey Bee is refreshing and spirit forward. Deco Ginger Rum's natural ginger flavor holds up well and pairs nicely with honey and soda. Paul Ritums, the bar manager at Local 360, constructed two cocktails exclusively for this event. Let's take a look at the first...

Honey Bee
1.5oz Deco Ginger Rum
0.5oz Spiced Honey Syrup
0.5oz Lemon juice (fresh squeezed)
Honey Cream Soda (top off)
Garnish: Lemon twist
by Paul Ritums







The chef's appetizers didn't last long. It is no secret fresh ingredients taste better and Local 360 isn't shy about it. Combine these morsels with some hand crafted cocktails and it's only a matter of time. In minutes, plate after plate were left empty. I pause and recall the proverbial mention of some people after drinking; that they need some food to soak up all the alcohol. Those who broke bread in The Rum Collective have a different saying; needing some rum to soak up all of this food!!

 












The Rum Collective Tasting
The tasting commenced with Deco Silver Rum moving on to their Ginger Rum and ending with their Coffee Rum. The Silver Rum is made from fermented molasses and is the base spirit for their each of their expressions. I am told their Ginger Rum is made from infusing ginger root for a certain time period. Its taste is not of the overly hot or sweet kind, but captures a rich essence of natural ginger with a spicy finish. Their Coffee Rum received a Silver Medal at the 2011 San Francisco Spirits Competition and is made by combining a local coffee blend from Arabica beans (a secret recipe from one of Portland's Coffee Roasters) giving it a robust, natural coffee flavored spirit, with caffeine. Seattle's espresso loving palates have no problem appreciating this. To complete the tasting, a bottle of Deco's newly released Gold Rum was opened and enjoyed.


The closing cocktail of the meeting featured Deco Coffee Rum. All who fancy flavors of coffee, rum, or port and the smooth caressing texture of egg white drinks, were in for a treat. Yum!

Portside Cocktail
1.5oz Deco Coffee Rum
0.25oz Port
0.5oz Orange Simple Syrup
1 Egg white
Garnish: 3 espresso beans
Finish: Flaming oils of orange peal over surface
by Paul Ritums

Portside Cocktail with Deco Coffee Rum
Prepared by Paul Ritums

One More Please!


Portside Cocktail with Deco Coffee Rum
Prepared by Paul Ritums


Cheers to Paul Ritums & Local 360 for their hospitality and dedication to locally sourced, quality food and great cocktails!

Friday, May 4, 2012

The Rum Collective's 7th Meeting: Banks Rums at Ba Bar


Banks 5 Island Cocoa Passion Sling
by Evan Martin
Quality ingredients make for the beginning of a quality product. If we apply this cocktailian rule to a meeting, then featuring Banks Rums, cocktails crafted by an award-winning bartender and the foodistry of Ba Bar should produce a first-rate rum tasting experience. Here are the details...

Guests were greeted appopriately; with awesome. An eye catching rum cocktail to be specific. Take a peek at her centerfold photo. Just looking at it makes you thirsty! Evan Martin, previously at Naga Lounge, now bar manager at Ba Bar, illustrates Banks 5 Island Rum's bold character in a refreshingly tropical Cocoa Passion Sling. Evan interjects, the idea is a "blending of exotic flavors of absinthe, chocolate and passsion fruit together in a tradtionally styled tiki drink." Passion? Oh yeah! Looking at her up and down, I'll admit I like her features and as Steve Miller says best, "want to shake [her] tree"...no joke! Designed and built to perfection, here is what's under her orange and mint garnished hood.

Cocoa Passion Sling

1.75oz Banks 5 Island Rum
0.66oz White Creme de Cacao
0.75oz Passion Fruit syrup (house made)
1 freshly pressed orange (juice)
0.5 freshly pressed lime (juice)
Swizzle with crushed ice
garnish: orange slice, mint sprigs


Banks V.X.O., Banks XM 10yr Royal Gold, Banks 5 Island Rum
Banks 5 Island is not just another white rum. Period. Just read the dilemma in its description. "Its a pity to mix, and a shame not to." The Rum Collective solution? Mix it, sip it neat and mix it again! Ain't no shame in that! It is both novel and unique and surprised many after tasting it neat. Here is yet another example of why Rum is the most diverse distilled spirit. Banks 5 Island is composed of twenty-two different rums made at six distilleries in five locations, which were used to perfect a blend over 18 months. Wow! There is no other rum that has a blend of Trinidad, Barbados, Jamaica, Guyana, and Java. You won't find that in Bourbon, Scotch or Gin! Arnaud de Trebuc, the master blender, is not new to the art, having a long history blending Cognacs in addition to time spent with Angostura and Bacardi. Don't let its water like clarity mislead you. There is a fine blend of pot and column stilled rums of various ages within but the color acquired from aging has been removed by charcoal filtration. Jim Meehan of PDT, their talented consultant and co-author of The PDT Cocktail Book has placed his stamp of approval on this rum for good reason.

After some satisfying small plates courtesy of Ba Bar, the discussion moves on to a story about Demerara, Guyana. Its rich rum soaked history in the 18th and 19th centuries included hundreds of distilleries, supplying the Royal Navy's Rum habit and bragging rights to some rare wooden pot and column stills, one of which is the last remaining and oldest continuously working wooden Coffey still in existence. Today, much has changed. After the Royal Navy served its last rum ration in 1970, we now have what is known as Black Tot Day preserving the memory. Only one distillery remains on the east banks of the Demerara River in Guyana, owned by Demerara Distillers Limited (DDL). However, for this meeting, there are still a few rums from Demerara's heigh day still with us and one is present for the tasting! Banks DIH Rums are gems and if you can find them, drink up. Not to be confused with Banks 5 Island Rum, Banks DIH Rums began with Jose Gomes D'Aguiar in 1840 as part of a diverse family business. Today this demerara rum is sourced from the stocks at DDL and aged in bourbon casks, blended and finished off in Sherry Casks. We taste two remarkable rums, the V.X.O. and XM 10 year Royal Gold, both aged in bourbon barrels for 7 and 10 years respectively. They are both finished off in sherry casks for 6 months. We have seen this type of aging process and the favorable results it produces at previous meetings featuring Doorly's XO and Ron Dos Maderas. Tasting the XM 10 year Royal Gold was a real treat. Yum!


Banks 5 Island La Floridita
by Evan Martin
The final cocktail is served up neat. This La Floridita is beautiful and shows off the spirit's character as well as the art and skill of the bartender. Evan tells us he adapted the original recipe in the La Floridita Bar Book famed by the legendary Constante Ribalaigua Vert to fit what the actual vermouth used at that time may have been. Dolin Vermouth de ChambĂ©ry, what is called for, was probably a sweeter white vermouth at that time and not the more common sweet or dry vermouth of French producers today. Could this be a taste of authenticity? After a sip, I am a believer. Cheers to historical libations and the merits of all of cocktail purists. Enjoy!


La Floridita

1.5 oz Banks 5 Island
0.75 oz Blanc Vermouth
0.5 oz Grenadine (scant)
0.5 freshly pressed lime
2-3 dashes Chocolate Bitters
Garnished with a slice of lime 

Thursday, April 26, 2012

Rum Renaissance 2012: Rumming Through the Days - pt. 3


Brugal VIP Party at the Soho Beach House

Brugal knows rum and they also know how to throw a party! Remember last year? This year, the view from the private club on 8th floor in the Soho Beach House left many with their mouths open in awe, just in time for a sip of a delicious cocktail. Six specialty concoctions to choose from including a glass of their premium Brugal 1888. Oh yeah!

Some went to the pool to view the Brugal girls (yes, in bikinis) staying dry under their see-through umbrellas. Like the rum, it was a refreshing sight.
Some went to the bar to cool off with a cocktail titled Caribbean Kiss. Either way, the view of a sea of cocktail glasses being raised as the sun went down marked the beginning of a rumtastic night!



Bacardi VIP Party at Penthouse Bacardi U.S.A.

Penthouse Bacardi U.S.A.
One needs only an appetite for rum, fun and nostalgia when entering Bacardi's Penthouse. Images of a perfect daiquiri fill my mind, but then a distraction in the form of a barrel-aged El Presidente changed that. This rum-based lovely was on the menu among several other libations to indulge in while going back in time as you walk in their side rooms loaded with historical information and artifacts. Speaking of age, this year marks 150 years of Bacardi Rum and a perfect time to raise your glass to toast one of the most successful brands in history. Celebrating with a live DJ, tasty appetizers, and of course, copious amounts of rum is my kind of birthday party! Happy 150th Bacardi!!










Diplomatico VIP Party at Surfcomber

It started with a long visually captivating walkway past a pool to get up close and personal with Ron Diplomatico. Set outside with three bars, rum began to flow as the stage filled with women dancers wearing palm skirts. Yes please!









Darkness came, but the ladies on stage showed us the way with exotic fire dances. Sipping Diplomatico Reserva Exclusiva over ice was necessary to maintain "order and balance" as the Hawaiian dances and music intoxicated the soul.








Who doesn't love a full 'Diplomatico' moon to light the path to the next rum cocktail?







Appleton VIP Party at National Hotel

This year, the Appleton party made it clear; do it Jamaican and do it properly. The setting was fit for leisure and relaxed imbibing. Cocktails with swagger, freshly made with Appleton Estate Reserve and live reggae played by Jamaican musicians? Ya' Mon!














 
Appleton VIP Party Reggae Band

The Jamaican Reggae Band killing it!













The night with Appleton Estate continued and all were feelin' Erie!

Appleton Estate Reserve
Bar Display


RESPECT!!


Monday, April 23, 2012

Rum Renaissance 2012: Rumming Through the Days - pt. 2

The Great Rum Challenge

So, you think you know rum? Many came to test their prowess of rum knowledge; many were humbled. The test consisted of tasting eight rums and all you had to do is be able to identify them (see photo). The bottles from which each sample came were displayed on stage and discussed in detail giving each contestant a fair playing field. Sounds easy right?













 
The Great Rum Challenge
 
Congratulations to the only winner, James Soper.
There can be only one!


Miami Club Rum Distillery Tour

Miami Club Rum
We enter an art gallery to find one of Miami's newest rums. Surprised? Miami Club Rum's bottle, like the facility is white walled and pristine, covered with select blown-up portraits of local pinup girls. This small batch distillery boasts a rum created in part by wooden corkscrew style aging and the provocative rhythms of Salsa music. All present had the opportunity to meet and greet the maker of another interesting craft rum coming out of America today.









Now, off for some more rum!




Liars Club Pop-Up Bar

The Liars Club Menu
Few words can describe the spectacle of Bacchanalia the UK team brought to the Deauville's Famous Jazz Club on their opening night. Talented and fearless team leader, Captain Lyndon Higginson and his crew orchestrated a show to the level of Cirque du Soleil, except on Rum. Simultaneously, each team member was slamming out craft cocktails to pulse of music that made one's head spin, literally. It wasn't enough that each bloke would make you a tasty drink; they had to match each one they served by free pouring into their own mouths. Man up! Like a team of thirsty sailors, forced rum rations were dolled out to each other from behind the bar to boost their already ecstatic morale. Readers note, you won't find this scene at your local cocktail bar, or in fact, any bar in the USA. Awesome!!







Joe Fee (Fee Brothers Bitters) enjoying...
The crowd went crazy as glasses became rare and make shift vessels were used. As the night went on, the antics increased. This team is serious. All are members of this year's Bacardi UK Tiki Team. Not suprisingly they won this year's World Tiki Championships yet again. Rumtastic!







Liars Club Pop Up Bar
Left to Right
Danny Murphy, Alexx Mouzouris, Georgi Radev, Lyndon Higginson
This bloody brilliant scene can not be communicated by a simple post alone. If you were lucky enough to experience this in person, you will agree a movie is as close as you can get to properly highlight this British invasion. Thankfully, a co-drinker, Lauren Scheich, captured two short clips just as the party got started. Check this unedited footage out below.














Raw, Uncut & Unedited - The Final Video
The Liars Club
by Lauren Scheich





Cheers UK team and long live the style of Manchester's legendary Liar's Club!

The Liars Club Pop Up Bar Team
{Capt. Lyndon Higginson, Bart Murphy, Georgi Radev, Alexx Mouzouris and Danny Murphy}


..stay tuned for the next days' VIP parties!!