OFFICIAL PUBLICATION OF THEMINNESOTA MUNICIPAL BEVERAGE ASSOCIATION

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Municipal Liquor StoreBox 32966Minneapolis, MN 55432

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PAIDPermit No. 1770Minneapolis, MN

Volume 69, Number 3, 2010

Introducing:

The Institute For Beverage Professionals

An on-line employee training center featuring Wine 101

Liqueur, 27.5% Alc. by Vol., Southern Comfort Company, Louisville, KY ©2010 PERFECTLY MIXED SoCo® & LIME.

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DIRECTORSTOM AGNES(President)Brooklyn Center Liquor5625A Xerxes Ave. NorthBrooklyn Center, MN 55430763-381-2349

BRIAN HACHEY(Sec./Treas.)Stacy Wine & Spirits 30962 Fenway Avenue Suite 700Stacy, MN 55079. 651-462-2727

NANCY DRUMSTA Delano Wines & SpiritsP.O. Box 108Delano, MN 55328763-972-0578

LARA SMETANA(Vice President)Voyageur Bottle Shop205 - Main Street SouthPine City, MN 55063320-629-2020

MICHAEL FRIESENHawley LiquorP.O. Box 69Hawley MN 56549218-483-4747

VIRGENE SHELLENBARGER Liquor Hutch245 Washington Ave. EastHutchinson, MN 55350320-587-2762

MUNICIPALLIQUORSTOREVolume 69, Number 3, 2010

Official publication of the MinnesotaMunicipal Beverage Association. Published six times annually: September/October,November/December, January/February,March/April, May/June, July/August. For advertising and editorial inquiry contact Paul Kaspszak, Editor, Box 32966, Fridley,MN 55432. Phone 763-572-0222 or 866-938-3925. Advertising rates availableupon request. Change of address: List both old and new address.

STEVE GRAUSAMEdina Liquor6755 York Ave. SouthEdina, MN 55435952-903-5732

GARY BUYSSERogers Liquor22350 South Diamond Lake RoadRogers, MN 55374763-428-0163

BRIDGITTE KONRAD(Ex-Officio)City of North BranchP.O. Box 910North Branch, MN 55056651-674-8113

MICHELLE OLSONSebeka LiquorP.O. Box 305Sebeka, MN 56477218-837-9745

BOB LESLIEPelican Rapids LiquorP.O. Box 571Pelican Rapids, MN 56572218-863-6670

TONI BUCHITEFifty Lakes Bar & Bottle ShopP.O. Box 828Fifty Lakes, MN 56448218-763-2035

On The CoverOne of the trends in our business is a shift away from full-time employees to part-time staff.

A great number of these employees are very part-time and working the night shift. Unfortunately these

individuals probably do not have high product knowledge, yet they often come into contact with

customers who have the most purchasing power.

To help address this disconnect, MMBA has introduced a new on-line training course to help address this

situation.

The Institute for Beverage Professionals (IBP) is open to full and part-time employees in all sectors of the

beverage industry.

IBP's goal is to provide training that will translate into improved individual sales skills, a higher personal

professionalism, and enhanced facility revenue and image.

The training includes written materials, testing and certificates of completion.

IBP is designed to be a supplemental training that should be combined with instruction provided by an

employer.

The first course is on wine. Planned future courses include beer, spirits, customer service and more.

The course (including a preview area) can be found on the MMBA website atwww.municipalbev.com .

MMBA President’s Message

As an effort to keep in touch with ourMunicipal Beverage history I havereproduced this article from the summer of 1985.

Look for the similarities to our timesand the differences. As a wise manonce said, “We live in a world ofcycles.”

Tom Agnes

Municipals Now ControllingTheir Own Futureby Gene O’Brien

As the only man in the MinnesotaMunicipal Liquor ranks who can lookback and survey a period of 45 years,I’ve witnessed some amazing changesover four and a half decades.

This publication, the “MunicipalLiquor Store,” was started in 1940,four years after Minnesota MunicipalLiquor Store Inc. (MMLSI) was established, and six years after repealin 1934. In the first year of its existence (1934) 68 stores were openedbetween February first and December31st. Honors for being established asthe original “muni” in Minnesota go toMarshall where MMLSI Treasurer JimVan Hyfte holds forth as manager.

During the early days, as soon as theissue carrying the earnings records ofMinnesota “munis” came out we weredeluged with requests for copies,“everybody wanted to get into theact!” There was still a number of“dry” counties, some 28, if memory

MUNICIPAL LIQUOR STORE 4

serves us rightly, and many real, bonedry (no bootleggers). Well, it didn’ttake long before one by one the “dry”counties voted to go "wet" with visionsof $$ Signs dancin’ in their heads. Inone fell swoop the last 13 were broughtout of their long dry spell by legislativeact when Karl Rolvaag was governorin 1963. Again, the deciding factor wasthe municipal liquor dispensaries.

In those days the battle cry was“Control” of liquor traffic. Better tohave the community own and controlthe business, it would have no interestin profits, only control was the day’swatchword, Control is now completelyforgotten about for the most part, somestill mouth it hypocritically, but in their hearts it’s the money. Woe betidethe combination of the two, control and profits is the order today and it’sreligiously carried out by MinnesotaMLS managers.

In recent years the opening of a municipal event has become rarer and rarer. Just the reverse has beenhappening. Too many stores haveclosed, mostly because of managementproblems, and some for lack of invitingfacilities. The incapable manager succeeded during the “fair trade”,brought on by a suicidal price warbetween the Twin Cities small andlarge stores, and as everyone had thesame markup it was comparativelyeasy job to make profits. There were notough competitors breathing downmanagers’ necks.

Partly as the result of the incomepossibilities of “mass merchandising”,

several of the heavy producing storesin the Twin Cities area went to “warehousing operations”. These stores carried huge inventories and are, at present tremendous successes. To meet this change several operationsin the state have “cleaned house”. The old dumpy outlets have beenrevived by building new plants orremodeling old ones. MMLSI has beenin the thick of advocating the changes.Their “Outreach Program” has scoredmightily in restoring faltering operations.Store changes in design has made the“minus” more convenient and invitingto patrons and profits have risen correspondingly.

“Fight Back” has been the rallying cry and it’s working. Something of atriumph was scored recently by LynGriffin, MMLSI executive director and“Outreach” genius (In our book). Thetown of Rush City sold its municipalstore, the new owners couldn’t makethe operation go and the operationcame back to the city. Then, wonder of wonders, in a Cinderella switch the R.C. operation was completelyremodeled, opened auspiciously and is now operating profitably. The manager, Larry Mash, is ecstatic overthe change of the premises and thechange in the patrons who now flockinto the refurbished quarters! SO, IT CAN BE DONE-FIRST CAPABLE MANAGEMENT WITHOUTCOUNCIL INTERFERENCE IN DAYTO DAY OPERATONS’THAT ANDIMPROVEMENTS IN THE PHYSICALPLANT CAN AND DOES WORKWONDERS!

Tom AgnesPresident

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MUNICIPAL LIQUOR STORE 6

Who is Profit Minnesota?

We’re a coalition of small businesses,community organizations, local charitiesand Minnesotans throughout the statewho support state-regulated gaming asa REAL solution to our state’s budgetcrisis without raising taxes.

Our state is in serious financial trouble;our charities are losing money, our services are being cut and jobs areleaving Minnesota in record numbers.

With a budget deficit near $6 billion,solving our current financial crisis isn’tgoing to be easy. It’s going to take creative solutions and ideas, andfrankly, courage to make decisions thatwill help our state and communities inevery corner on Minnesota. We can’tsimply raise new taxes or cut the services that Minnesota’s children, veterans and public safety providersdepend upon daily.

The time is now to pass proposals thatwill create new revenue outside of simple tax hikes and budget cuts. Thetime is now to support state-regulatedgaming in licensed bars and restaurants.

Profit Minnesota is a true grassrootseffort that is supported by over 4,900licensed bar and restaurants throughoutthe state. Our partner organizationsinclude the Minnesota LicensedBeverage Association, HospitalityMinnesota and its allied associations.

Why is the organization called ProfitMinnesota?

Our coalition has a simple goal: provide a creative idea that will help toraise significant new revenue for thestate budget without simply raisingtaxes. Our proposal will provide financial support for charities throughout the state such as veterans

groups, youth athletic organizationsand volunteer fire departments. We’llalso be saving small businesses andjobs that are struggling in every community. I think we can all agreethat Minnesota comes out a winner inthat scenario.

Explain the Profit Minnesotaproposal?

Our coalition of small businesses andcharitable organizations is asking thestate legislature and the next governorto allow for state-regulated gaming inlicensed bars and restaurants throughoutMinnesota. Whether talking about pulltabs and bingo or Video LotteryTerminals (VLT’s), the games alreadyexist in paper format. By simplyupgrading them into 21st Century technology, we’ll be providing muchneeded new state revenue forMinnesota.

According to the Minnesota StateLottery and the State of MinnesotaGambling Control Board, this proposalhas the potential to drive over $630million worth of new revenue into thestate annually, and as much as $230million to charitable organizations suchas youth athletic clubs, VFWs andAmerican Legions and volunteer firedepartments.

What is “state-regulated gaming?”

In the Profit Minnesota proposal, state-regulated gaming includes three formsof games of chance that are currentlylegal and available in Minnesota:Video Lottery Terminals (VLT’s), pulltabs and bingo. Our proposal asks thelegislature for two things: 1.) Allow forregulated gaming to be approved inlicensed bars and restaurants, and 2.)Allow for these games to upgrade to21st Century technology as opposed tothe paper format they currently use.

This proposal will generate over $630million in new state revenue. With alarge budget deficit looking us in theface, this seems like a good solutionfor Minnesota communities.

What does this mean for Minnesota?

With a crippling $6 billion deficit, ourproposal brings creative ideas to thetable that will provide much neededstate revenue without raising a singletax. This proposal will help the state’s general fund while saving ourstruggling charities. Whether fundingprograms such as K-12 education orpublic safety through the state budget,or supporting charities in every com-munity that fund youth hockey andbaseball teams, help repair VFW’s andAmerican Legion’s for our vets andprovide defibrillators to fire depart-ments - every one of our communitiesstands to gain under this proposal.

What are the benefits of thisproposal?

This proposal will not only help fill the huge hole that we have in the state budget by creating new, non-existing revenue without raising anytaxes, it will also help to give a muchneeded contributions to charitableorganizations in the state that saw losses of $400 million last year ascompared to 2004. This proposalstands to raise $630 million in newstate revenue every year!

How much money is generated?

According to the Minnesota StateLottery and the State of MinnesotaGambling Control Board, this proposalwould bring in $630 million in staterevenue annually. This money could beused to fund things like improving ourK-12 education, state health servicesand public safety services in everycommunity.

(Continued on page 9)

Profit Minnesota Supports State-RegulatedGaming for Bars & Restaurants

Not only that, but this proposal alsohas the potential to raise $230 in charitable donations every year forlocal hockey and little league teams,veterans groups and volunteer firedepartments.

Where does the money go?

This money will be used to fill theholes in our states crippling $6 billionbudget deficit. It will go to help fundour states struggling charities. It willhelp provide for small businesses andsave jobs in your community. See ourillustrated chart here (link to the piechart) for a break down of where thisrevenue will go.

Do other states have this type of gaming?

Several states have successfullyproven that this is a great way to raiserevenue, especially in these tough economic times. South Dakota is sohappy with its similar state-regulatedgaming laws that its voters have overwhelmingly supported it on theballot twice!

A quick and easy breakdown of theestimated state-regulated gamingdollars…where does the money go*?

• Total gross revenue from controlledstate-regulated gaming in this proposalis estimated at $14.7 billion in 2011,with $742.57 million going to stateprograms.

• Video Lottery Terminals will account for $14 billion

• Electronic pull tabs and bingo will account for $2.3 billion

• $14.86 million will be paid to player prizes

• $629.1 million to the state GeneralFund to support services such as K-12education, health care, aid to local governments and public safety.

• $228.8 million to Charitable Donations

• Allied Charities of Minnesota reported losses of $400 million in

total sales from 2004 to 2009. • Allied charities has reported a

57% reduction in charitable contributions since it’s high mark in 1989.

• This money will support groups such as veterans organizations, youth athletics, Lion’s Clubs and volunteer fire departments.

• $113.4 million - to the Environment and Natural Resources Trust Fund tofinance projects that preserve, restoreand enhance our state’s naturalresources.

• $273.5 million - will be paid toretailers in the form of commissionsand incentives.

• This money supports licensed bars and restaurants and machine operators in communities throughout Minnesota. Keeping money in local economies and supporting small businesses and jobs.

• $208.8 million will be used foradministrative costs such as vendorcosts.

MUNICIPAL LIQUOR STORE 9

Projected Revenue Distribution Fiscal Year 2010Percentages based on total gross revenue, excluding 91% for player prize payout

Retailer Commission1.7%, $273.5

General Fund3.9%, $629.1

Administration1.3%,, $208.8

Environment andNatural Resources Fund

1%,, $113.4

Charitable Donations1.4%,, $228.8

Projected Dollar DistributionFiscal Year 2011

Dollar Amounts in MillionsAll Figures Are Rounded

*Source: Minnesota State Lottery and State of Minnesota Gambling Control Board

Gross ProfitAs MMBA travels the state visiting members, a common factor in

those facilities not maximizing profitability is a low gross profit (total sales minus cost of sales).

Cities with relatively low gross profits should consider whether thegross profits reflect their intended markup policies. (Remember,

there is a difference between mark-up and gross profit.)

In addition, if gross profits are well below the intended markup ofinventory, a number of factors can be in play such as theft, poor

inventory control, or damage of inventory.

Good gross profit amounts are in the 24% - 25% range for off-saleand 42%- 45% range for combination facilities.

MUNICIPAL LIQUOR STORE 10

A law enacted during the 2010 legislative session, Chapter 206, prohibits mayors and council membersfrom being employed in their city. Ittook effect on Aug. 1.

The law applies to individuals who are:

• Elected or appointed on or after Aug. 1, 2010.

• Employed on a full-time, permanent basis by the city.

The new law was proposed by Sen.Gen Olson (R-Minnetrista) and Rep.Steve Smith (R-Mound) as a result of a situation in the city of Mound wherea full-time city employee also servedon the city council. The bill authorsstated that simultaneously holding bothpositions would create a conflict ofinterest for individuals who could bevoting on budgets and other issues thatwould directly impact their own salaryand other employment benefits.

During the committee hearings, Moundofficials testified in support of the bill,which as enacted, will not force anindividual to immediately resign, butwould be effective for an individual’sfirst election occurring after Aug. 1.

The new law is generally similar tolaws applicable to school and countyboard members. For instance,Minnesota Statutes, section 123B.195prohibits a school board member frombeing employed by a school board in aposition that earns more than $8,000per year. The law is not as restrictiveas the county employment restriction

under Minnesota Statutes, section375.09, which prohibits any and allsimultaneous employment with thecounty for county board members,regardless of full-time status or earningslimitations.

Section 1 of the new law impacts home rule charter cities by creatingMinnesota Statutes, section 410.191,which prohibits a mayor or city councilmember in a home rule chartercity from being employed by the city,notwithstanding charter provisions tothe contrary. A city charter could probably be more restrictive than thenew law by prohibiting employment ofany sort. Statutory cities are similarlycovered under section 2 of the law.

The new law defines “employed” asfull-time, permanent employment “as defined by the city’s employmentpolicy.” This adds further importanceto the task of clearly defining theemployment status of those workingwithin the city.

CHAPTER 206--H.F.No. 3350

An act relating to local government;prohibiting city employees from serving on the city council or as

mayor; amending Minnesota Statutes 2008, section 412.02,

by adding a subdivision; proposingcoding for new law in Minnesota

Statutes, chapter 410.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OFMINNESOTA:

Section 1.[410.191] CITY COUNCIL MEMBERS; CITYEMPLOYMENT.Notwithstanding any charter provision,neither the mayor nor any city council member may be employed by the city. For purposes of this section,“employed” refers to full-time permanent employment as defined bythe city's employment policy.EFFECTIVE DATE.This section iseffective August 1, 2010, and applies topersons elected or appointed to serveas mayor or city council member on orafter that date.

Sec. 2. Minnesota Statutes 2008,section 412.02, is amended by adding a subdivision to read:

Subd. 1a. City council; city employ-ees. Neither the mayor nor any citycouncil member may be employed bythe city. For purposes of this subdivision, “employed” refers to full-time permanent employment asdefined by the city's employment policy.EFFECTIVE DATE.This section iseffective August 1, 2010, and applies topersons elected or appointed to serveas mayor or city council member on orafter that date.

Presented to the governor March 29,2010

Signed by the governor March 30,2010, 10:39 a.m.

New Law Prohibits Mayors &Councilmembers from City Employment

Inventory LevelsAs MMBA travels the state

visiting members, a commonfactor in those facilities notmaximizing profitability is ahigh inventory level.

Recognizing fluctuations through-out the year, a recent MMBA survey indicated the followingaverage inventory amounts as apercentage of total gross sales:

Metro 10%

Greater Minnesota15%

MUNICIPAL LIQUOR STORE 12

Theft is an all too common problem in the bar industry. It's estimated that50% of all bartender employees stealand that percentage is even higherwhen you take into account theft fromadditional staff members like servers or managers.

Such a prevalent case of thievery canmake any bar owner a little paranoid.But how do you know if your employeesare stealing from you? How can you besure that theft is occurring in your bar?

If you suspect that something is goingon, there are some clear signs to lookfor. These theft indicators will let youknow that someone is stealing fromyour bar in some way -- by stealingmoney, inventory, giving away freedrinks, bringing in outside liquor, etc.

The presence of one indicator shouldgive you reason to suspect that you’regetting ripped off. If you find morethan one indicator, the chances increasethat someone is stealing from yourbusiness and you must take immediateaction.

Top 10 Bar Theft Indicators:

Theft Indicator #1: Uneven DrawerCounts

One of the first things to do when yoususpect theft is to take an unannouncedmid-shift “Z” reading of the cash register or pos system. Taking the reading by surprise should catch dis-crepancies between what money shouldbe in the register and what is actuallythere. If you find that a drawer is underor over a significant amount, theemployee responsible for that drawermay be stealing.

Often bartenders will keep track ofhow much the drawer is under or overand they will pocket that money ormake up for it before the end of the

night. An employee that has consistentuneven drawer counts is probably tak-ing money out of the register.

Theft Indicator #2: Higher PourCost

There are lots of things that can causea rise in your pour costs and theft isone of them. When employees stealinventory or money (in nearly anyway) it drives up your pour cost.

Investigate if high pour cost is the onlyindicator of theft. If it is, be sure toevaluate other possible reasons for highpour cost before you make any staffchanges.

Theft Indicator #3: Too Many CashRegister Commands

Take a look at the readings from yourcash register or pos system. If younotice an excess of void or no sale cashregister commands, theft could beoccurring.

Employees may not be ringing in sales and keeping the cash or theymight be stealing cash directly out of the register. Require manager verification for voids and discourageemployees from using the no sale key.You could also have employees keep arecord of why no sale was used duringtheir shift.

Theft Indicator #4: CustomerComplaints

Does it seem like customers are complaining more frequently? If you’rehearing customers complain about“weak” drinks, shortchanging or notreceiving a receipt, it could mean thatemployees are stealing.

By making drinks weaker, bartenderscan save some of the liquor for a laterdrink that will be sold off the record.Sales without receipts also point todrinks that were sold with the bartenderpocketing the money. Shortchanging is just as bad because it means thatemployees are stealing cash from customers.

Employee Theft IndicatorsByBarBusinessOwner.com

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Start putting tighter cash controls inplace. Make sure that every sale isrung into the register and that everycustomer gets a receipt.

Theft Indicator #5: FrequentBreakage

Check your liquor bottle breakagecharts and see if there’s been an unusual amount of breakage lately.Accidents sometimes happen, but if itseems like your breakage numbers haverecently spiked theft may be occurring.

Employees might be stealing bottles orselling the contents and keeping themoney for themselves. Make a newrule that breakage must be verified by amanager when entered into the record.

Theft Indicator #6: AbnormalInventory Purchasing

Have there been any changes in yourinventory order recently? Are youordering more? If the order you placewith your supplier is getting bigger andbigger but your sales have remainedthe same, someone is probably stealingfrom your bar.

Employees could be stealing alcoholfrom the storeroom or selling drinksand pocketing the money. Doublecheck inventory records (like requisitionsheets) to see if the records are inconsistent with your sales.

Theft Indicator #7: Counting Systems

Often when bartenders steal cash fromthe register they need to rememberhow much money is in the register. Butthis is hard to do while you're working.So to keep track of how much the register is over or under at any giventime, many bartenders use countingdevices.

A counting device can be almost anything -- a pad and paper, stacks ofcocktail swords, matches, even stacksof glasses can be used as a makeshiftabacus. If you spot a counting device behindthe bar or near the cash register, theft is

likely happening at your bar. Removethe counting device at once and do a“Z” reading of the cash register ifappropriate.

Theft Indicator #8: Lower Sales

There are lots of possible reasons forlower sales (like seasonality or a newcompetitor) so make sure you exploreother options if this is the only theftindicator you can find.

If there’s no other explanation for lowsales, employees may not be ringingsales into the register and taking themoney. Apply better cash control procedures and have management onthe floor to make sure that all sales arerung into the register or pos withreceipts for every sale.

Theft Indicator #9: Low BartenderProductivity

Your bartenders should have similarsales based on the shifts that they work.If you find that one or two bartendershave particularly low productivity, thoseemployees are suspect.

Track each of your bartender’s productivity by looking at their salesper shift and per hour. If there’s

someone who stands out as an under-performer, that person might be stealing.Take a closer look at that bartender anddetermine if theft is the reason for theirlow productivity.

Theft Indicator #10: Unusually HighTips

While employees that earn decent tipsare good for your business, if younotice that an employee is having anunusually high amount of gratuitiesyou should keep an eye on them. Its one thing to have a good night, butif staff members are bringing in moretips without additional effort, theycould be supplementing their tips withcash from the register or selling drinkswithout ringing them in.

Bring the issue up in a staff meetingand ask the employee to share howthey’ve been able to increase their tips.Tighten cash controls and closely monitor suspect employees.

It’s hard to tell if theft is occurring ifyou don't know what you're lookingfor. Analyze your operation and see if you uncover any of these theft indicators -- if you do, take actionimmediately to put an end to theft atyour bar.

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Theft is like a disease in your bar.Once it begins, it spreads and caneventually damage your bar operationto the point that it can’t recover.When you begin to realize that it’soccurring, you fight against the theft,but by that point it might already betoo late.

Fortunately there’s a better way to keep theft out of your bar -- by beingproactive with theft reduction proce-dures. So instead of fighting againstthe disease once you start seeing thesymptoms of theft, you get vaccinatedagainst the disease to keep it from happening in the first place.

When you decide to be proactive inpreventing theft at your bar, you mightnot know where to start. Below areseveral tried and true ways of minimiz-ing the risk for theft. Make these theftreduction procedures a part of yourday-to-day operations and keep the disease of theft from taking hold inyour bar.

Theft Reduction Procedure #1: CashControl

As soon as your bar is no longer serving alcohol the manager on dutyshould take a “Z” reading of the cashregister and take the cash drawer intothe office. Tips from the drawer shouldbe distributed by management only and register keys should be given tomanagers only.

Why it works:

With tight cash procedures in place, itlimits the chance that an employeecould steal from the cash drawer.Taking immediate “Z” readings at theend of a shift make it easier to spottheft when drawers are over or underand it will force employees to “reconcile” their theft during busyworking hours when they can be easilyobserved.

Theft Reduction Procedure #2:Visible Management

When managers are on duty, make surethat they are circulating around the barand observing what's going on.Remove the idea that the area behindthe bar is the “bartender’s domain.”

Why it works:

You’ve heard the old saying “while the cat’s away the mice will play.”Having managers visibly supervisingthe operation in your bar will giveemployees fewer chances to steal without being observed. Occasionallyventuring behind the bar will break

some of the assumed privacy that bar-tenders could use for theft practices.

Theft Reduction Procedure #3: Random Register Readings

Managers on duty should perform mid-shift “Z” reading from the cash registeron a random basis. The reading shouldbe performed and then the cask drawershould be replaced with a new one.

Why it works:

Taking random “Z” readings preventstheft in two ways. For one, if a bar-tender is stealing, the drawer may be

(Continued on page 16)

Theft Reduction ProceduresByBarBusinessOwner.com

MUNICIPAL LIQUOR STORE 16

under or over. If it’s over, the bartendermay have been keeping cash in thedrawer to be stolen later. If it's under,the bartender might have already pocketed cash and was planning onreplacing it later.

The other way that it prevents theft isbecause if bartenders know that randomchecks occur, they will be less likely tosteal from the cash drawer.

Theft Reduction Procedure #4: Non-Transparency in Management

While transparency in some aspects ofbusiness is a good thing, to preventtheft there are a few things that shouldnot be shared with anyone who isn’t apart of your management team.

Figures like pour cost percentages ormonthly profits can tempt someemployees to steal. They might beresentful that the bar is making somuch money and may find a way tocapture some of those profits for themselves.

Why it works:

If employees don’t know how muchyour bar is making, they won’t have abasis to rationalize their theft.

When employees know more about theoperation of your bar, they can be moreintelligent about stealing. Keepingsome information close to the belt willmake theft easier to spot.

Theft Reduction Procedure #5:Mandatory Receipts

Make sure that customers are issuedreceipts for every transaction at yourbar. Use a box for keeping usedreceipts so they can't be reused fortheft purposes. Get a locked box with aslit in the top large enough for receiptsfit through. After the ticket is paid, itshould automatically be dropped intothe box.

Why it works:

When every customer gets a receipt,it's harder for a staff member to pocketmoney from a transaction becausethere’s a record of the transaction.Instituting a locked box for receiptsmakes it difficult to reuse a receipt tosteal in the future.

Theft Reduction Procedure #6:Physical Bar Changes

Adding mirrors above and behind thebar and overhead lighting (like tracklighting) makes everything happeningback there more visible. With bettervisibility behind the bar, possible hidingplaces for cash, reused receipts orcounting devises cannot be easily hidden.

Going one step further and installingsurveillance cameras in your bar gives even more visibility into what’shappening.

Why it works:

If your bartenders know that it’s easyfor management and customers to seewhat’s going on behind the bar, it willdiscourage them from doing anythingthat’s dishonest. Making these changesto your bar will also help managersspot bar theft if it happens.

Theft Reduction Procedure #7:Inventory Control

Only allow limited access to the store-room in your bar. Make sure that keysto the storeroom are only held by managers and that inventory is trackedfrom delivery to consumption with perpetual inventory sheets, requisitionsheets, par forms and records toaccount for breakage and spillage.Have employees help with inventorycounts on a rotational basis.

Why it works:

When there is little access to inventorythere is little opportunity for theft.Keeping good records will make itplainly obvious if inventory disappears.Involving employees in inventorycounts helps them see how much careis taken with inventory and that missinginventory would be immediatelynoticed.

Don’t wait until it’s too late to preventtheft at your bar. Taking a proactivestance will help to stop theft before itstarts and keep money and alcohol inyour bar where it belongs.

In the end, it is important to

remember that wecannot become

what we need to be by remaining what you are.

When you’re throughchanging, you’re

through

Why People Do Not Perform1) They do not know what they are

supposed to do

2) They do not know how to do it

3) They do not know why they should

4) There are obstacles beyond their control

Regardless where you are,we've got you covered.Rely on the MIIMA members for 'bottled water' quality ice,

first-rate service and fast, dependable delivery.

Minnesota Independent Ice Manufacturers AssociationMIIMA Members:

Ace Ice Company 2900 Fifth Avenue SouthMinneapolis, MN 55408612.824.9600800.862.9273Contact: Matt King

Carlson’s LakeshoreIce Company602 Ogden AvenueSuperior, WI 54880888.943.2665 Contact: Chuck Wessberg

Crystal Springs Ice Company 25503 Russell RoadPine City, MN 55063866.629.6267 Contact: Tom Valvoda

Mid Central Ice 39072 County Hwy. 49Perham, MN 56573218.346.4423877.346.4423 Contact: Dave Chase

Precise Ice Company608 Parkway DriveBelgrade, MN 56312320.254.8018320.293.0010 (cell) Contact: Mike Buckentine

Waterville Ice Company 14853 E. Benton, Suite 1Waterville, MN 56096507.362.8177 888.362.8177 Contact: Bernie AkemannMinnesota ice for

Minnesota businesses.

Perham

Belgrade

Waterville

Pine City

Minneapolis

Duluth/SuperiorMID-CENTRAL ICE LLCMID-CENTRAL ICE LLC

MUNICIPAL LIQUOR STORE 18

Platinum Member Don Sebastiani and SonsContact: Bryant PascoeAddress: 316 Willow Pointe Drive

St. Charles, MO 63304Phone: (636) 300-3524E-mail: bpascoe@donandsons.comWeb: www.planeteria.com/sandsons/

E&J Gallo WineryContact: Chris WeeseAddress: 730 North 4th Street #105

Minneapolis, MN 55401Cell: (763) 656-8763Web: www.ejgallo.com

Heck EstatesContact: Kathy Bilcik JonesAddress: 10135 Parrish Ave NE

Ostego, Mn 55330Phone: (763) 227-4214Fax: (763) 355-9585E-mail: kjones@heckestates.comWeb: heckestates.com

J.J. Taylor DistributingCompany of Minnesota, Inc.Contact: Mike BamontiAddress: 701 Industrial Blvd. NE

Minneapolis, MN 55413Phone: 651-482-1133Fax: 651-482-9810E-mail: mike_bamonti@jjtaylor.comWeb: www.jjtaylor.com

Life Media, Inc.Contact: Mike JuszczakAddress: 2928 Dean Parkway, Suite 51

Minneapolis, MN 55416Phone: 612-920-5433Fax: 952-881-7797E-mail: mike@lifemediainc.comWeb: www.lifemediainc.com

Pabst Brewing CompanyContact: Mike BrattensborgAddress: 7117 Emerald Lane

Eden Prairie, MN 55346Phone: (651) 334-8284Fax: (952) 937-2609E-mail: mjbratte@pabst.comWeb: www.pabst.comAdditional Contacts:

Bob Ourada, Area Manager, Metro, Southern (612) 251-1228Jeff Van Schoick, Area Manager –Metro, Northern (612) 281-1859

Pernod RecardContact: Will ArendAddress: 16280 Grinnell Avenue

Lakeville MN 55044Phone: (612) 802-6774E-mail: will.arend@pernod-ricard-usa.comWeb: www.pernod-ricard-usa.com

Retail Information TechnologyEnterprisesContact: Rick FeulingAddress: 1001 2nd Street South, Suite 100

Sartell MN 56377Phone: (320) 230-2282Cell: (320) 761-6423Fax: (320) 230-1796E-mail: rick@rite.usWeb: www.rite.us

Tervis TumblerContact: Rainer KuhnAddress: 201 Triple Diamond Blvd.

Venice, FL 34275Phone: (866) 680-6932 Toll Free DirectFax: (888) 876-6887Cell: (941) 483-6820E-mail: rkuhn@tervis.comWeb: www.tervis.com

Total Register SystemsContact: Brian AndersonAddress: 4215 Louisiana Avenue

New Hope, MN 55428Phone: (763) 537-1906Fax: (763) 537-1504E-mail: banderson@trs-pos.comWeb: www.trs-pos.com

U.S. Bank Government BankingContact: Jennifer VucinovichAddress: 101 East Fifth Street

St. Paul, MN 55101Phone: (651) 466-8750Fax: (651) 466-8910E-mail: jennifer.vucinovich@usbank.comWeb: www.usbank.com

VinocopiaContact: Marion DaunerAddress: 6636 Cedar Avenue South #300

Minneapolis, MN 55423Phone: (612) 455-4000Fax: (612) 455-4001Cell: (612) 532-0406E-mail: marion@vinocopia.comWeb: www.vinocopia.com

Wells Fargo Insurance ServicesContact: Tony BaldwinAddress: 4300 MarketPointe Drive, Suite 600

Bloomington MN 55435Phone: (952)- 830-7353Fax: (952) 830-3048E-mail: tony_baldwin@acordia.comWeb: www.acordia.com

Bellboy CorporationContact: Dave GewolbAddress: 2200 Florida Avenue South

Minneapolis, MN 55426Phone: (612) 544-8178

Dahlheimer BeverageContact: Nick DahlheimerAddress: 3360 Chelsea Raod West

PO Box 336Monticello, MN 55362

Phone: (763) 295-3347Fax: (763) 295-4947E-mail: nick@dahlh.com

Dakota WorldwideContact: Len SageAddress: 8200 So. Humbolt Ave.,Suite 302

Minneapolis, MN 55431Phone: (952) 835-4505Fax: (952) 835-4461E-mail: l.sage@dakotaww.comWeb: www.dakotaww.com

Johnson Brothers Liquor CompanyContact: Michael JohnsonAddress: 1999 Shepard Rd

St. Paul, MN 55116Phone: (651) 649-5800 / (800) 723-2424Fax: (651) 649-5894E-mail: mjohnson@johnsonbrothers.comWeb: www.johnsonbrothers.com

Quality Wine & SpiritsContact: Tom MorgalAddress: 7900 Chicago Avenue South

Bloomington, MN 55420Phone: (952) 854-8600Fax: (952) 851-0501E-mail: tmorgal@qwsco.comWeb: qwsco.com

Summit BrewingContact: Mark StutrudAddress: 910 Montreal Circle

St. Paul MN 55102Phone: (651) 265-7800Fax: (651) 265-7801E-mail: mstrudrud@summitbrewing.com

The Wine CompanyContact: Chris McDonnellAddress: 425 Minnehaha Avenue West

St. Paul, MN 55103Phone: (651) 487-1212E-mail: chris@thewinecompany.netWeb: www.thewinecompany.net

Crystal Springs IceContact: Tom ValvodaAddress: 25503 Russell RoadIne City, MN 55063Phone: (866) 629-6267

Canon River WineryContact: John MaloneyAddress: 421 Mill Street West

Cannon Falls, MN 55009Phone: (507) 263-7400Fax: (507) 263-8400E-mail: john@cannonriverwinery.comWeb: www.cannonriverwinery.com

Carlos Creek WineryContact: Tamara BredesonAddress: 6693 County Road 34 NW

Alexandria,, MN 56308Phone: (320) 846-5443Fax: (320) 846-7191E-mail: tami@carloscreek winery.comWeb: www.carloscreekwinery.com

CNHContact: Wayne HilbertAddress: 21 West Superior Street #500

Duluth, MN 55802Phone: (952) 431-4433E-mail: whilbert@cnharch.comWeb: www.cnharch.com

Fieldstone VineyardsContact: Charlie QuastAddress: P.O. Box 133

Redwood Falls, MN 56283Phone: 507-627-9463E-mail: charlie@fieldstonevinyards.com Web: www.fieldstonevineyards.com

Forest Edge WineryContact: Paul ShusterAddress: 35295 State 64

Laporte, MN 56461Phone: (218) 224-3535Fax: (218) 224-3502E-mail: shuster@paulbunyan.netWeb: www.forestedgewinery.com

Grand Pere Wines Inc.Contact: Brian DaunheimerAddress: 2222 Elm Street NE

Minneapolis, MN 55414Phone: (612) 929-3163 x 40Fax: (612) 605-7132E-mail: brian@grandperewines.comWeb: www.grandperewines.com

Hagen Beverage DistributingContact: Mark HagenAddress: 500 Industrial Lane

Worthington, MN 56187Phone: (507) 376-5903Fax: (507) 376-5951E-mail: hagenm@frontiernet.net

Madison Bottling Co.Contact: Dave BergersonAddress: RR2 Hwy 40 East

Madison, MN 56256Phone: (320) 598-7573Fax: (320) 598-3738E-mail: dbergerson@madisonbottling.comWeb: www.madisonbottling.com

The R & D AgencyContact: Don DunnAddress: 14480 Ewing Avenue S., Suite 101

Minneapolis, MN 55306Phone: (952) 882-8000

800-944-8004Fax: (952) 882-8004E-mail: ddunn@rdagency.comWeb: rdagency.com

The McComb GroupContact: Bill GortonAddress: 222 South Ninth Street, Suite 380

Minneapolis, MN 55402Phone: (612) 339-7000Fax: (612) 338-5572E-mail: bill@mccombgroup.com

Stan Morgan & AssociatesContact: Skip TroyakAddress: 35 Water Street

Excelsior, MN 55331Phone: (952) 474-5451Cell (952) 474-8253E-mail: sales@stanmorganassoc.comWeb: www.stanmorganassoc.com

Sunny Hill DistributingContact: Mike BaronAddress: East Highway 169

P.O. Box 333Hibbing, MN 55746

Phone: (218) 263-6886Fax: (218) 263-6111

Thorpe Distributing CompanyContact: Jack StevensonAddress: P.O. Box 120

Rogers, MN 55374Phone: 763-463-2000Fax: 763-463-2001E-mail: jackstevenson@thorpedistributing.comWeb: www.thorpedistributing.com

Tushie Montgomery ArchitectsContact: Gary TushieAddress: 7645 Lyndale Ave. So., Suite 100

Minneapolis, MN 55423Phone: (612) 861-9636Cell (612) 861-9632E-mail: garyt@tmiarchitects.comWeb: www.tmiarchitects.com

MMBA Commercial Members Are Available to You! Contact Them!

Arctic Glacier IceContact: Bob NikolaiAddress: 1654 Marthaler Lane

W. St. Paul, MN 55118Phone: (651) 455-0410Fax: (651) 455-7799E-mail: rnikolai@arcticglacierinc.comWeb: www.arcticglacierinc.com

Beam Global Spirits & WineContact: Leslie DefriesAddress: 3601 W. 76th Street Suite 20

Edina, MN 55435Phone: (952) 830-1131Fax: (952) 830-0123Cell: (612) 850-7342E-mail: leslie.defries@beamglobal.comWeb: www.beamglobal.com

MillerCoors Brewing CompanyContact: Jon ChanceAddress: 5805 Zenith Avenue South

Edina, MN 55410Phone: (952) 920-6862Fax: (952) 285-6862E-mail: jon.chance@millercoors.comWeb: www.millercoors.com

Minnesota Independant IceManufacturers AssociationContact: Steve KellyAddress: 2900 5th Ave. So.

Minneapolis, Mn 55408Phone: (612) 824-9600Fax: (612) 824-1974E-mail: steven@shamrockgroup.netWeb: www.aceice.com

Ste. Michelle Wine EstatesContact: Randy DobratzAddress: 16540 Hyland Court

Lakeville, MN 55044Phone: (952) 891-1560Fax: (952) 891-1560E-mail: randy.dobratz@smwe.comVoicemail:1-800-423-8396 Ext. 3813Web: www.smwe.com

Trinchero Family EstatesContact: Terri Uitermarkt

Minnesota District ManagerAddress: 1454 Heywood Ave.

Apple Valley, MN 55124Phone: (952) 432-2661Fax: (952) 432-2661Cell: (612) 281-4271E-mail: tuitermarkt@tfewines.comWeb: www.tfewines.com

American Beverage MarketersContact: Warren WestcoatAddress: 6900 College Blvd. Suite 440

Overland Park, KS 66211Phone: (913) 451-8311Fax: (913) 451-8655Cell: (816) 665-5521E-mail: Wwestcoat@abmcocktails.comWeb: www.abmcoctails,com

Anheuser-Busch, Inc.Contact: Marques SimmonsAddress: 10252 Grand Isle Place

Woodbury MN 55129Cell: (443) 797-5868Fax:E-mail: marques.simmons@anheuser-busch.comWeb: www.budweiser.com

Bacardi USAContact: Jeff LangeAddress: 22546 128th Avenue North

Rogers, MN 55374Phone: (763) 428-1048Fax: (763) 428-1048E-mail: jlange@bacardi.comWeb: www.bacardi.com

Brown-FormanContact: Donald FriedrickAddress: 850 Dixie Highway

Louisville, KY 40210Phone: (612) 2219-7985E-mail: Donald_friedrick@b-f.comWeb: www.www.brown-forman.com

Cold Spring BrewingContact: Mick DetvilerAddress: 962 W. Nebraska Avenue

St. Paul, MN 55117Phone: (651) 489-2376Fax: (651) 489-3127E-mail: mdetviler@aol.comWeb: www.gluek.com

Crown ImportsContact: Noah MasonAddress: 14709 Hillshire Lane

Burnsville,, MN 55306Phone: (952) 898-5576Fax: (952) 898-4083Cell: (612) 850-4988 E-mail: noah.mason@crownimportsllc.comWeb: www.crownimportsllc.com

Silver Member

Supporting Member

Bronze Member

Silver Plus

Arctic Ice, Inc.Contact: Chad FriedrichsAddress: 1090 South Victory Drive

Mankato, MN 56001Phone: (507) 345-8078 • (507) 327-4389Fax: (507) 388-4387E-mail: f.chadw@gmail.com

William Grant & SonsContact: Chris MortonAddress:Office: (612) 822-2408Fax: (612) 822-2415Mobile: (612) 242-6813E-mail: cmorton@wgrantusa.comWeb: www.grantusa.com

Wirtz Beverage MinnesotaContact: Kevin RyanAddress: 489 N. Prior Avenue

St. Paul, MN 55104Phone: (651) 646-7821Fax: (651) 646-1497Web: www.wirtzbeveragegroup.com/

minnesota.asp

W.J. Deutsch & Sons WineMerchantsContact: Joe MayneAddress: 18998 Baldwin St. NW

Elk River, MN 55330Phone: 763-241-7675Fax: 763-241-8842E-mail: joe.mayne@wjdeutsch.comWeb: wjdeutsch.com

C & L DistributingContact: Tim KoltesAddress: 1020 Industrial Drive So.

Sauk Rapids, MN 56379Phone: (320) 251-7375Fax: (320) 259-7981E-mail: tkoltes@budtime.com