beverage purchasing control

Copyright © 2006 by John Wiley Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved& Sons, Inc. All rights reserved

Beverage Purchasing Beverage Purchasing ControlControl


Alcoholic Beverage Alcoholic Beverage Classifications Classifications • Serving Alcoholic Beverages Serving Alcoholic Beverages

• Alcoholic beverages refer to those products Alcoholic beverages refer to those products which are meant for consumption as a which are meant for consumption as a beverage, and where a significant amount of beverage, and where a significant amount of ethyl alcohol content is present.ethyl alcohol content is present.

• Alcoholic beverages are generally classified Alcoholic beverages are generally classified as:as:

• Beers (lager beers and ales)Beers (lager beers and ales)

• Wines (red, white, rose)Wines (red, white, rose)• SpiritsSpirits


In moderate doses, ethyl alcohol is a mild tranquilizer; in excessive doses, it can become toxic.

While the special requirements surrounding the service of alcohol are many, controlling beverage costs is similar to controlling food costs.

Alcoholic BeveragesAlcoholic Beverages


Beer is a fermented beverage made from grain and flavored with hops.

Wine is a fermented beverage made from grapes, fruits, or berries.

Spirits are fermented beverages that are distilled to increase the alcohol content of the product.


WinesWines

• Varietal: named for the variety of grape Varietal: named for the variety of grape that predominates the wine.that predominates the wine.

• Brand Name: known primarily by the Brand Name: known primarily by the name of the producer.name of the producer.

• Geographic: named for its place of Geographic: named for its place of origin, can be as large as a region or a origin, can be as large as a region or a district or as small as a vineyard, Fr. district or as small as a vineyard, Fr. Chateau.Chateau.

• Generic: named for a well-known wine Generic: named for a well-known wine producing region, but not produced producing region, but not produced there. i.e. “California Burgundy”there. i.e. “California Burgundy”


Additional Wines & Additional Wines & BeveragesBeverages• Sparkling wines: Champagne, Asti Sparkling wines: Champagne, Asti

Spumanti, sparkling burgundySpumanti, sparkling burgundy

• Fortified wines: wines with a small Fortified wines: wines with a small quantity of spirits or brandy added; Port & quantity of spirits or brandy added; Port & SherrySherry

• Wine coolers: blends of wine and fruit Wine coolers: blends of wine and fruit juicejuice

• Blush wines: “pink wine” combination of Blush wines: “pink wine” combination of white and red grapes, light and sweetwhite and red grapes, light and sweet


Alcohol Production Alcohol Production Processes Processes

• FermentationFermentation: Natural, chemical : Natural, chemical process by means of which sugars in process by means of which sugars in a liquid are converted to ethyl a liquid are converted to ethyl alcohol and carbon dioxidealcohol and carbon dioxide

• DistillationDistillation: Process by means of : Process by means of which alcohol is evaporated from a which alcohol is evaporated from a fermented liquid and then condensed fermented liquid and then condensed and collected as a liquid and collected as a liquid


Nonalcoholic BeveragesNonalcoholic Beverages

• Coffee, Tea or MilkCoffee, Tea or Milk

• CarbonatedCarbonated

• Non-carbonatedNon-carbonated

• MixersMixers– Other ingredientsOther ingredients

• Garnishes, Cream, Garnishes, Cream, Lemon & Lime juiceLemon & Lime juice

Copyright © 2006 by John Wiley & Sons, Inc. AllCopyright © 2006 by John Wiley & Sons, Inc. All rights reserved rights reserved

Types of EstablishmentsTypes of Establishments

Controls must be modified to meet the characteristic and inherent increased responsibility created by the sale of alcoholic beverages.

There are two primary classifications of establishments that serve alcohol: restaurants that use it as an accompaniment to food, and those locations whose primary offering is alcohol.


Purposes of Beverage Purposes of Beverage Purchasing Controls Purchasing Controls

To maintain an appropriate To maintain an appropriate supply of ingredients for supply of ingredients for producing beverage products.producing beverage products.

To ensure that the quality of To ensure that the quality of ingredients purchased is ingredients purchased is appropriate to intended use.appropriate to intended use.

To insure that ingredients are To insure that ingredients are purchased at optimum prices. purchased at optimum prices.


Factors Used to Establish Factors Used to Establish Quantity Standards for Beverage Quantity Standards for Beverage Purchasing Purchasing Frequency with which management Frequency with which management

chooses to chooses to place ordersplace orders

Storage space availableStorage space available Funds available for inventory purchasesFunds available for inventory purchases Delivery schedules set by purveyorsDelivery schedules set by purveyors Minimum order requirements set by Minimum order requirements set by

purveyorspurveyors Price discounts for volume ordersPrice discounts for volume orders Price specials availablePrice specials available Limited availability of some items Limited availability of some items

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved

Two Types of States for Purposes Two Types of States for Purposes of Beverage Purchasingof Beverage Purchasing

License statesLicense states: States in which beverage : States in which beverage wholesalers (and sometimes manufacturers and wholesalers (and sometimes manufacturers and distributors) are allowed to sell alcoholic distributors) are allowed to sell alcoholic beverages directly to foodservice beverages directly to foodservice establishmentsestablishments

Control statesControl states: States in which the state : States in which the state government actually sells some or all alcoholic government actually sells some or all alcoholic beverages through its own network of stores, beverages through its own network of stores, thus exercising complete control over prices thus exercising complete control over prices


Dramshop laws, passed in many states, shift the liability for acts committed by intoxicated individuals from the individual to the server or operation that supplied the alcohol.

In all states, the sale of alcoholic beverages is regulated either by the licensing of establishments that are allowed to sell alcoholic beverages (license states) or by direct control and sale of the products by the state (control states).


While food products only require one level of quality per item, several qualities are chosen for alcoholic beverages.

Beer is the most highly perishable of beverage products, with a pull date of only a few months. Operators must, therefore, carefully select brand and packaging methods.

Generally, clientele, ambiance, and menu help determine what beer product will be selected.

Purchasing Beverage Products


Beer is typically sold in cans, bottles, or kegs.

Draft beer (beer from kegs) is often the preferred choice and cheaper for operators to serve. However, special equipment is required.

The shelf life of keg beer is the shortest of all packaging types, ranging from 30 to 45 days for an untapped keg, that is, one that has not yet been opened by the bartender, and even fewer days for a keg that has been tapped (opened).



Wine must also be selected according to product and packaging.

Operators generally sell wine by the glass, bottle, and split or half bottle.

If wine is also purchased for cooking, it will be bought from the beverage wholesaler also, but generally not of the same quality as that purchased for drinking.



As a good manager, you will build a wine list, the term used to describe your menu of wine offerings, that fits your own particular operation and guest expectations.

In developing a wine list, operators must offer choices for guests who want to spend a lot or a little.

A vintner is a wine producer.



However, avoid the temptation to offer too many wines on a wine list.

Wait staff should be trained to be knowledgeable but not intimidating to guests.

Generally, if operators are having trouble selling wine, the difficulty lies in the delivery of the product rather than with the product selected.



Distilled spirits have an extremely long shelf life; therefore, a wrong purchase is not usually a disaster.

Quality levels are most pronounced with spirits.

Packaging is not a particular issue when dealing with spirits.



Call liquors are those requested by brand name; extremely expensive call liquors are sometimes referred to as premium liquors.

Operators generally charge a higher price for call and premium liquors.

•In general, operators will select spirits in two major categories, well and call. Well liquors are those spirits that are poured when the customer does not specify a particular brand name.



Purchasing Beverage Products Remember, just

because a customer is price conscious and orders a well liquor, does not mean that he or she is not also quality conscious.

Quality spirit products at fair prices build customer loyalty.

beverage purchasing control

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