Friday, February 4, 2011

Ilinois Liquor Tax Saga Revisited

Back in 2009, I wrote a post about the quickly proposed and passed increase to the liquor tax rates in Illinois, which was rather dramatic. In my second post, on August 25th, I wrote that Wirtz Beverage had challenged the constitutionality of the law.

Recently, the Illinois Appellate Court actually agreed with Wirtz and ruled the "Illinois Jobs Now!" act was unconstitutional. The Illinois Constitution requires that any new legislation address a single subject, and the court found that a bill covering as wide an array of topics as was included in this law did not satisfy the requirement. (Full text of opinion here - loads as a .pdf)

If the opinion stands, Wirtz stands to receive a significant tax refund. Of course, the State of Illinois is appealing, and the Supreme Court has granted a stay, pending the appeal. Which means the liquor tax, as well as the other taxes included in the package, are still being collected for now.

The tax is/was assessed on the wholesaler, who in turn collected it from the retailer (who passed it on to the consumer, in most cases). If they get a big fat refund, do you suppose Wirtz Beverage will pass that back to the retailers?

Thursday, February 3, 2011

Trusting a Blogger

Earlier this week, in one of the industry update emails I receive, I noticed the following headline: " Wine drinkers trust merchants over bloggers." I scanned the article, thought to myself "huh" and kept going. Yet, for some reason, during the "Blizzard of 2011" here in Chicago, I kept coming back to this article in my head. So today, I actually pulled the article, as well as the press release on which it was based.

Provenance of the Claim
The email I received said the article was from "Harpers." So, I was thinking Harper's, you know, the magazine that's been around since the 1840's. No, in fact, it was in Harpers Wine & Spirit Trades Review, which appears to be an industry magazine published by a UK publishing company. The article was a summary of the press release put out by the folks at Wine Intelligence, a UK-based company "[c]reating value for wine businesses through strategic advice, branding and research."

The Gist of the "Research Results"
The Harpers article was pretty much a retelling of the press release, in which the following conclusions were asserted about US wine consumers:
  • 20% of regular wine drinkers trust what independent bloggers write about a wine
  • 80% of regular wine drinkers trust what their wine merchant tells them
  • 66% of wine drinkers look for wine information online, and 33% of them use social media to do so
  • The most used websites are those run by "wine shops, newspapers and smaller wine producers"
The summary quote says that "It looks as if the trust levels built up over time by local wine merchants are transferring into the growing power of the Internet, while word-of-mouth recommendations are also migrating into the Facebook era. Clearly bloggers will have a role to play in this new world, but this research shows how important it is to build up trust levels among your audience."


And So What?
The tone of the press release, and the article, clearly imply that bloggers are not widely trusted, and at least one writer took it as an attack. Another responded by pointing out why in fact some bloggers should not be trusted. I happen to agree with him in some respects - there are some bloggers out there who don't really know what they're doing. That's pretty much true of everything.

I also think there is another way to look at this discussion. In a study, by a UK-based company that works and is likely funded primarily by larger wine interests, and likely to have used a very broad brush in the study (we've only got the press release, after all, it's ₤1,300 for the full report), they're saying that 1 in 5 drinkers trust a blogger for information on what to drink! 1 in 5! Of the group comprising all regular wine drinkers, you've got all those people who love white zinfandel and/or other things most wine connoisseurs would not touch, and all those people who don't use computers regularly, let alone read blogs. Yet 20% of the audience not only reads, but also trusts, at least one blog! And of course that number is growing, as everything moves online.

It's a Question of Trust
Just as the press release, as well as the other writers, point out, the fundamental issue is trust. People take recommendations from those they trust. There are good bloggers, and bad bloggers, just like there are good retail wine folks and bad ones. Most people aren't going to trust Joe Schmoe liquor clerk who just started working there part-time. But they should (and I do) trust our guy at the local wine store, Keith, who is one of the most knowledgeable, thoughtful guys we've ever known in the wine business.

Bloggers can build up trust - many have already done so. It takes time and effort, just like building up a reputation as a trustworthy retailer does. And those folks have had many more decades to do so than the blogging community.

Go bloggers!

Monday, January 24, 2011

Crickets and a Cocktail Competition

Well, it's been crickets chirping here for a few months. I cannot believe how fast time flies by - it's just like my parents said it would be. Well, I'm going to do better on the blogging front, and I'm starting off with a post about a recent cocktail competition here in Chicago.

42 Below Vodka sponsors a cocktail competition each year in a variety of cities around the globe, and the Chicago round was last week. Unlike many competitions, this one is judged based primarily on the taste of the drink and the competitor's performance while making it. I've missed the competitions in past years, but have heard stories of costumes, singing throughout the 5-minute time limit, and various other stunts to win. So I had to go this year and check it out.

The event did not disappoint - it was fun and fast-paced, with a variety of cocktail styles and performances. Since the sponsor is a vodka brand, of course all recipes involved vodka, and interestingly, many used the straight version, not the flavors, which are a bigger differentiator for the brand (Manuka Honey, Kiwi, Feijoa, etc.).

A quick recap of the ten competitors and their drinks:

James Keener from the Signature Lounge
"The Beet Martini" made with the straight vodka, beets, caraway syrup, grapefruit zest, and creme fraiche caviar. Much to my surprise, it did not taste very "beet-y," which was a good thing because I don't like beets.

Milan Mijatovic from the Silversmith Hotel
"Fall in Loooooooove" made with cinnamon and cranberry-infused vodka, fresh lemon, bitters, and agave syrup. Delicious and seasonal, with dominant cinnamon notes. Milan wore a fantastic mask, and managed to make all of his drinks on time and without spilling, despite the mask.

Edith Rubicala from the Signature Lounge
"The Black Widow," made with the manuka honey flavor, horchata and some other ingredients that I unfortunately missed. It was a classic dessert-style drink, sweet and creamy.

Andy Gold from Bonny's Bar a/k/a the "Boston Brawler"
Andy was fun to watch, he was witty and funny while making "The Pigeon and the Squirrel." He used the straight vodka and Koval rose hip liqueur, Chartreuse, fresh grapefruit and egg white. It was herbaceous and complex, with nice texture.

Dante LoPresti from Double A
I missed the name of Dante's drink, but he used Bonal Gentiane-Quina, jasmine tea, and egg white, with a fresh orange zest garnish. The drink was balanced and tasty.

Andre Cunningham
Andre was quite funny and energetic during his cocktail-making session, and had the crowd laughing. For his cocktail, he used the plain vodka infused with pear skins, Luxardo Maraschino, red chili simple syrup, rhubarb bitters and fresh lime juice. His garnish was a bruleed pear in vanilla sugar.

Bryson Ryan from the University Club
Bryson's "The Sweetest Light South of the Equator" contained an unusual combination of ingredients, using the plain vodka, blanco tequila, creme de banana, spiced rum, and icewine. I must admit I was skeptical on hearing the ingredients, but it was better than I had expected. Sweet, but with some interesting, complex flavors.

Tim Lacey from the Drawing Room
Tim was the only competitor to bring on-stage assistants, and he took the event's "Cocktail Carnival" theme to heart. He brought his very ow n carny with a bull horn, as well as a lovely assistant making cotton candy garnishes (played fantastically by his wife Lisa). Tim used the Manuka Honey flavor, as well as honey syrup, lemon juice, apricot liqueur, ginger beer and tiki bitters. His "All Sales are Final Void Where Prohibited by Law" was delicious, balanced, and complex, and seemed to actually play to the flavor of the vodka.

Sergio Serna from the Drawing Room
While he didn't have on-stage help, Sergio instead brought Capoeira dancers to accompany his drink making and music, and they were great. He used the Kiwi flavor, along with fresh lemon, green tea syrup, falernum and a flamed thyme garnish (soaked in Chartreuse). Unfortunately, I didn't get to taste this one - I'm sure it was great.

Tim Williams from Province
While he didn't have dancers or stagehands, Tim was funny and witty, and brought his mom along for good luck. Tim used the plain vodka, ancho chile-infused honey, Cherry Heering, fresh lemon juice and candied lemon peel for garnish. His "The Federale" was spicy, smooth and complex.

And the Winner Is....
The competition was fierce, and the judges had some tough decisions to make. And the host made it tough on the two Tims when he announced the winner. He said it's "Tim........." and drew it out for a long time. Luckily, the winners were Tim Lacey AND Tim Williams.

Congrats to Tim and Tim, who are off to New York City next month to fight for the national title and a trip to New Zealand!