Legislative Notes

THE CUSTOMER IS ALWAYS RIGHT

BY SCOTT STENGER, STENGER GOVERNMENT RELATIONS

The old saying is there are two rules in business: Rule No. 1 is the customer is always right and Rule No. 2 is see rule No. 1.

That may be an oversimplification, however, it makes the point of how TLW members run their businesses — focus on the customers in order to be successful. In the alcohol beverage industry, taverns and restaurants are the customers of the thousands of manufacturers competing to have their products in retail establishments. It is no surprise that most brewers, wineries and distillers strive to build strong relationships with their customers in the hopes of having their products available to the public. Strangely, Wisconsin craft brewers, wineries and distillers are opting for a different business model.

The Assembly State Affairs Committee recently held a hearing on Assembly Bill (AB) 869, which, as originally introduced, contained the following provisions:

• Extend bar closing hours to 4 a.m. statewide during the Democratic National Convention (DNC) July 13 to 16. • Clarify the licensing issue at Road America. • Address the vendor permit issue at Wisconsin State Fair Park. • Close the brewery loophole that allows their retail operations to stay open all night. Under the bill, they are required to follow Class B retail closing hours. • Require that private event venues get a state permit to operate and follow Chapter 125 regulations. • Extend winery hours, requiring them to close at midnight rather than 9 p.m.

The Wisconsin Craft Brewers Guild, Wisconsin Winery Association and Wisconsin Distillers Association feverishly worked to kill the bill. According to their own testimony, they opposed the bill, which established minimum regulations for private event venues like wedding barns, because winery hours were extended (something they long supported).

They killed a bill that would have helped their customers and wineries without sound reason. In addition, they told the committee they supported the closing hours for breweries, which are the same as taverns, contained in the bill. Had they raised substantive issues about the bill, that is one thing, but their meritless opposition to the bill is a curious way to treat their customers.

Democrats and Republicans on the committee questioned why the group opposed provisions of the bill they long supported. It made no sense to the legislators on the committee. There was nothing in the bill they testified against other than the winery closing hours — something which they strongly supported for the last four years!

A brewery, winery or distillery should want to make every effort to build a strong relationship with TLW members and retailers across the state in the hopes they sell their product. Yet they all lined up to oppose the bill, a priority issue for the TLW and its members. There was nothing else in the bill that would adversely impact manufacturers.

Every business model links the success of manufacturers to the sale of their products through retailers. Manufacturers need retailers more so than retailers need manufacturers. That is why it doesn’t make sense that the craft industry tries so hard to alienate TLW members, the very people they need to sell their product and expand their business. They certainly have a right to support or oppose any bill they wish — and we have that same right to make our members aware of their efforts to hurt the business of mom-and-pop tavern owners in Wisconsin.

If the craft industry had legitimate issues with the bill, we would work with them to address those issues, but they did not identify any. Just like the legislators on the committee, we were perplexed by their opposition to the bill. However, we stand ready to meet with anyone at any time.

AB 869 eventually passed the state Assembly with a provision we successfully lobbied — to increase funding $25 per operating while impaired (OWI) conviction for our SafeRide Program. The funding will add to the success of the SafeRide Program and continue to help reduce alcohol-related fatalities in Wisconsin. The final bill contained the following provisions and was sent to the Senate for action:

• Increase the SafeRide surcharge by $25 per OWI conviction. • Extend bar closing hours to 4 a.m. in southeast Wisconsin during the DNC. • Clarify the licensing issue at Road America. • Address the vendor permit issue at Wisconsin State Fair Park. TLW