Some wholesalers see on-premise impacts
By Paul F. Vang
Montana Tavern Times
The statewide public smoking ban that went into effect Oct. 1 has affected some Montana businesses, especially casinos, though, according to some beer distributors and liquor stores contacted by the Montana Tavern Times, the change has had little impact on overall sales of alcoholic beverages in Montana.
“On-premise sales seem to be down a bit, though I view it as part of a long-term pattern over the past year, and more tied to the national economy,” is how Brian Clark of Fun Beverages in Kalispell sees it.
Clark is also the current president of the Montana Beer and Wine Wholesalers Association, though he cautioned that any views he expresses are his own, and not representing those of his association.
“Some of the taverns in our area went smoke-free early and our observation has been that they gained business, especially those with a significant food service,” Clark said, going on to note that, “As some taverns went smoke-free early, a lot of their smoking customers gravitated to the remaining minority of taverns, and then they had to go cold turkey. Now they're left high and dry so I feel for them. For some of those taverns, the October change depressed an already depressed market.”
Clark said he thought the economy was having a greater effect on their retailer customers. “We see a lot of trade-downs, both at on-premise sales and at off-premise stores, such as grocery stores. Instead of buying premium beers and craft beers, they're buying more of the budget brands. When people go to restaurants, maybe they're not buying bottles of wine, but buying it by the glass.
“The restaurant owners tell me that their traffic is about the same, but the tickets are about 20 percent less. People still want to enjoy a good dining experience, but they're taking some budget alternatives. They're skipping the appetizers or dessert, or buying wine by the glass. The good operators are making the adjustments.”
Mark Thompson, of Thompson Distributing in Butte, believes that the smoking ban has had an effect.
“Our initial take is, yes, it has an effect, and our market is a bit soft, and it does seem that convenience store sales are up,” he said.
On the other hand, Thompson says that the changes in consumer spending are also affected by national trends. “I'd be reluctant to say it's all part of the smoking ban.” Still, he adds, “We're concerned about our on-premise partners, and we don't like to see negative impacts.”
He says he sees that there have been negative impacts on sales to casinos. “They're hurting,” he comments.
He sees no changes in wine sales, however, and cautioned that, “It's still too early to see if there are any trends as a result of the smoking ban. Just one month isn't enough.”
Jack Joseph of Summit Beverages in Missoula observes that on-premise sales, especially to casinos, have dropped off. “I recently had lunch at a casino that actually went non-smoking a year ago, and the manager said that even their business is down.”
He added that, “I talked to some casino customers who say their lunch hour business is down. Apparently they had a number of customers who came in during their lunch break to have a few smokes and play the machines, and now that they can't smoke inside they're not coming in like they used to.”
He comments that he's observed that some local taverns have built shelters for smokers, and adds, “Going outside to smoke is fine in the summer. It's something else when it's winter.”
Joseph predicts that slumps in sales at on-premise businesses will be temporary. “Business will come back as people get used to it (non-smoking).” He also notes “a little upswing” in off-premise sales, though he also says there are trade-downs in beer brands, probably due to the economy. On the other hand, he says, “Sales of craft beers and microbrews are steady – in fact, going pretty good.”
Overall, he says of the smoking ban's impact, “I think we'll weather it. People will adjust to change, just as they always have.”
Liquor store operators, those operators licensed to sell spirits to on-premise operators, by and large haven't seen any changes in sales.
Cory Soule of the Belgrade Liquor Store says, “We've seen no changes in our sales, though it's probably too early to tell if the smoking ban will affect us.” He adds, “I think it affects casinos more than the regular bars. Also, a lot of the bars in the Bozeman area had already gone smoke-free prior to October.”
Mark Blinn, owner of the Park Street Liquor Store in Butte says, “We've seen no changes in our sales except for one uptown bar which previously attracted a lot of smokers as some other Uptown bars went smoke-free early.”
Norma Monfils, a manager at the Vine & Vat liquor store in Lewistown, has not noticed any changes in sales patterns.
Clint Prescott of The M.T. Glass liquor store in Helena says, “Some bars have been ordering less, and they complain about their drop in business.” He goes on to note that, “They're the ones who had smoking to the very end.” His conclusion? “I think it'll work itself out.”
Merry Deanda of the GNP liquor store in Miles City, says, “I don't believe it has affected our business sales.” In fact, she says their October sales were up, though she believes that might be related to the annual influx of people coming to the Miles City area for hunting. “They go for the premium brands of everything.”
She adds, “I hear complaints about the smoking ban, but I also hear positive comments, as well. Personally, I'm a smoker, and I think the ban deprived us of some rights. But when I stop at a bar, I'll go outside when I want to light up. It's not the end of the world.”