Stock Auditor Magazine August 2010

www.iltsa.co.uk ISSN 1471 - 0471

Stock AuditorThe magazine for the Institute of Licensed Trade Stock Auditors Issue 90 August 2010

How longHow longbefore this gasbefore this gascylinder needscylinder needsretesting ?retesting ?

Find out how you can tellon page 14.

Visit theVisit theChampagneChampagne

region inregion in20132013withwith

I.L.T.S.AI.L.T.S.A.0 & 11

How much is myHow much is mybusiness worth ?business worth ?As some members approach retirement Steve Berry offers adviceon what your business may be worth ......

Page 4

Page 6 The BudgetPage 7 MLR - progress to

datePage 8 & 9 Trevor Knight

continues his journey around Britain

Page 12 Le ChefPage 13 Spirit Substitution Page 16 Personal demeanour

Also...Also...

This magazine is published by the Institute of Licensed Trade Stock Auditors. Whilst welcoming any contributions, theeditor reserves the right to alter or amend them if necessary.

Any opinions expressed are not necessarily those of the Council and are accepted only on that understanding. No part of this magazine may be reproduced or transmitted without written permission of the publishers.

Printed by :- Pickles Printers, Halifax, West Yorkshire 01422 353239All Subsciptions payable in advance. Published 6 times per year post free Annual Subscription £24.00

© Institute of Licensed Trade Stock Auditors 2010

CONTRIBUTIONSCONTRIBUTIONSMany thanks to the members andothers who have made this issuepossible:- Gordon Andrews, Steve Berry, Ron Foster,George Giles, Greyeye Technology, LeChef, Mike Murdoch, Trevor Knight, andTrevor Perrott.Thanks also to Peter Hodgson, RitaBroadbent and Amy Swift for proof readingthis issue.

Deadline for the October 2010 issue is25th September 2010.

TakingStock

Copies of the2nd editionof ‘TakingStock’ are

now availablefrom the Secretary at a cost

of :-Members

£ 16.00 ( Plus £1.30 p.& p. )Non-Members

£ 19.95 ( Plus £1.30 p.& p. )

Steve BerryF.I.L.S.A.� 01968 670600

President� [email protected]

Trevor PerrottF.I.L.S.A.� 01483 829437

Chairman� [email protected]

Ron FosterF.I.L.S.A.� 01793 704186

Treasurer� [email protected]

Mike MurdochF.I.L.S.A.� 01254 247496

Chair, Exam & Training

� [email protected]

Chris SwiftF.I.L.S.A.� 07768 962354

Marketing, Mag Editor

� [email protected]

Richard GraftonF.I.L.S.A.� 01305 813225

Five Year Plan� [email protected]

EditorialEditorialWelcome to this, the August edition,of the ‘Stock Auditor’ as thesummer is drawing to an end. Inthe North West there is a hosepipeban, parts of the Leeds-Liverpoolcanal system have been shut toconserve water and yet as I writethis we have just had the wettestJuly on record and it is rainingagain. That said there have beensome fantastic short periods ofbaking hot sun. The unseasonalweather has not really done thelicensed trade a lot of favours andfor some I fear it may be the finalnail in the coffin.

Reading the trade press thereappears to be some positive newsand indeed one of my clients hasexpanded after four years of‘consolidation’. I am convinced thatthe businesses which survive willbe in much better shape thanbefore, I think there will be a lot lessof them but the Institute officeseems to be handling moreenquiries from concerned andinformed licensees than everbefore. I also think that far more isbeing asked of our members with

clients demanding much moreinformation than ever before, butusing that information to maximisetheir profits and push theirbusinesses forward. Included withthe magazine is our latest directoryof qualified members. If you knowof anyone who may want furthercopies please contact the office.

January will be the next big test forour trade when the VAT rateincreases, I am already talking thisthrough with my clients, pointing outthat absorbing the rise is not aviable option. In addition there maywell be further duty increases in theAutumn, nothing has been ruled out.

As part of the build up to the 60thAGM in the Champagne region ofFrance I intend to feature snippetsof information about Champagnes infuture editions. The three articles inthis issue are all linked.

Enjoy the read and I hope you allmanage to take a well earned restbefore the snows come.

ExaminationsExaminationsWould all associate membersplease note that the nextexaminations are on Thursday 21stOctober - booking forms availablefrom the office.

Brett WebsdaleM.I.L.S.A.� 07850 118201

Member Benefits� [email protected]

Diane Swift

� 01422 833003

Secretary� [email protected]

Taking Stock BooksGoods Received BooksBar Requisition Books

Allowance BooksFlexible Dipsticks

Sectional DipsticksInstitute Ties

Membership ListsSelf - inking stamps

Lapel badgesBlademaster

Document cases

OFFICE DETAILS

Tel :- 01422 [email protected]

Brockwell HeightsBrockwell Lane

TriangleSowerby Bridge

HX6 3PQ

ILTSA CALENDAR 2010

AVAILABLE FROM THESECRETARY

F E L L O W S H I PF E L L O W S H I PAny member, with the requiredseven years full membership, canapply for fellowship. Pleasecontact the Secretary for details.Any applications willthen be placed on theagenda for theNovember councilmeeting.

October 20th Refresher day

“ 21st Examination

“ 22nd Training Course

November 19th Council meeting

Trevor

3

ViewViewfrom thefrom theChairChairTrevor Perrott F.I.L.S.A.� 01483 829 437� [email protected]

Pubs and bars in my local areahave recently been targeted in aTrading Standards sting in aneffort to find places passing offwatered down, fake anddangerous alcohol as well-knownbrands. Believe it or not theyfound 17 cases where thecustomers were being connedwith the drink being eitherwatered down or a cheap productbeing sold as a well known brand.

They also found counterfeitchampagne brands being soldwhich included Raymond Vadim,Duplessis Mornay, Henry Flaubert,Charles Debussy, Pierre Plantard,Paul Gilbert and Henry Guillaume.Most worryingly they foundpotentially dangerous fake vodkaon sale which contained highlevels of methanol which couldcause nausea, vomiting and inextreme cases, blindness.

My local Trading Standardsoffice has rightly received anaward from the InternationalFederation of SpiritProducers for their efforts inkeeping our trade legal andsafe and no doubt my localarea will have to be awarefrom now on. Let’s hope thisis repeated in other areas inthe near future. ( see page15 for more details on thisgrowing problem ).

As we are now into theholiday season I hope youare all trying to get away tohave a well earned rest andreturn for a prosperoussecond half to your year.

What’s What’s mymybusinessbusinessworth ?worth ?

4

Unfortunately there is no magicformula or specific guidelines forvaluing a stocktaking business whentransfer of ownership has beendecided.

Unlike other businesses, moststocktaking firms are small innumbers or sole owner operators. Inthis respect goodwill value may beagreed commercially between bothparties rather than usual methods forplacing a value on a business.

When it comes to selling a business,the most important question you needto ask is “How much is it worth?”Regardless of the size there is noprecise way for it to be valued.

Usually there are relatively easy waysto value certain parts of most types ofbusinesses, where stock or fixedassets such as machinery andequipment may be involved. Yet eventhese may well have a substantialintangible element that needs to bedealt with.

These elements include the likes of“Goodwill”,i.e. the commercial valueof the business in excess of the netasset value, which can be notoriouslydifficult to value and in many caseswill come down to how keen apotential buyer is to acquire thebusiness in question.

When looking at the overall value of abusiness, there are a number ofdifferent valuation methods which arecommonly used…from usingearnings multiples to calculating howmuch it would cost to create a similarbusiness.

In the case of larger types ofbusiness there are generally threemain ways to prepare a valuation:

1. Earning value.This is based on a multiple of pastand in some cases future earningpotential of the business, taking intoaccount operating profitabilityadjusted for non cash items.

2. Asset based valueIn simple terms this method is basedupon assets minus liabilities.i.e. netasset value

3. Willing buyer or willingseller agreeing a price or marketvalue based on recent valuationsobtained from similar businesses.

Usually, a combination of all threevalue methods are used to arrive at afair market assessment.

More information on these appraisalscan be found on various internet sitesshould you wish to examine thecomplexities of a larger business ingreater detail.

For the purpose of this article,however, I am endeavouring to offera few guidelines for single operatorsor small stock auditing practices.

In the case of a single operator whohas painstakingly built up a businessover the years and now has a wellestablished client base, he/she willbe looking to obtain the best pricethey can get for their portfolio ofestablishments.

So who is prepared to pay forthe business?Existing stocktakers or stocktakingcompanies wishing to extend theirown client base?

However a key element is that thiscould only be acceptable if thecurrent fees charged by the sellerwere similar to those charged by thepurchaser. It is unlikely that a largestock-auditing company would takeover a business, where the fees arehalf of those charged to its existingclients. Alternatively a purchasercould demonstrate synergy savingsby spreading fixed costs across anenlarged business.

New stocktakers?

Someone wishing to start in theprofession who has maybe had someexperience or is familiar with thelicensed trade and would prefer topurchase an existing business ratherthan starting to build a nucleus ofclients from scratch.

This could be compared to astocktaking franchise, wheresomeone may pay around £10-£20kfor a training programme, hardware

Advice on buyingor selling astocktakingbusiness .....

Steve Berry F.I.L.S.A.

5

and software, a small client base butwith a head office support to build upthe portfolio and the payment of anannual commission or support fee.

What is it worth?From my experiences over the years,the most common valuations for smallstocktaking companies have beenbased on a percentage of turnover. Ihave known companies changehands for as little as 20% of thecurrent yearly income, to as high as75%.

It all depends on the quality of thecustomer base, margins earned andultimately how much somebodywishes to acquire the business.

If you take 30% as an example, a oneman business with a £50k turnover ayear would sell for £15k. This wouldbe comparable to the person takingover a stocktaking franchise but witha greater client portfolio althoughwithout a head office support.

In offering advice, I would tend to feelthat somewhere between 25% and50% would be a yardstick, withanything over being a bonus. Theprofitability of the business may bebrought into the equation on a highervaluation.

It is often said, that five to seventimes the operating profitability is auseful guideline to purchasing abusiness. Imagine a situation wherethe same business as above, has anoperating profit of £10k per year.Using the five times method, wouldthat business be selling at £50k if theowner was only taking £20k inpersonal drawings to create thatprofit?

Everyone has a different perceptionof what they feel are adequatedrawings to maintain their life style.This can distort the earnings methodof calculation on a small turnoveroperation, and should be consideredwhen “normalising” earnings.

With the complexities involved inselling a stock auditing business,other concerns can be involved. Froma purchasers point of view…how canthey be assured of keeping all the

clients they paid the seller for? It isalso advisable for a non competeclause to be in any sale agreement.

Some business changeovers havebeen organised on a sliding scalewhere a top price has been agreedbut paid in intervals over a fixedperiod, with payments reducedaccording to how many clients thepurchaser has still secured at eachstage.

A common occurence would be toagree a price with the purchaser,working along with the vendor for afixed period for continuity to exist andthis allows clients the chance toadapt to the new provider, while theseller is still in contact.

Another alternative for potentialsellers, would be to sell off theirportfolio in lots, especially if the clientbase is well spread. This could bedone on the percentage of turnoverbasis for what each job couldgenerate per year, using the 25% to50% method. In this way, if the sellerwished to maintain servicing some ofthe jobs, rather than retiringcompletely, it would be a satisfactorysolution.

Another option for potential sellers,would be to retain their entire clientbase but sub contract the work out toother stocktakers, during retirement.

It may be a cliché, but a business isonly worth what someone is willing topay for it. Many small businessowners grow attached to theirbusinesses and often value theircompanies at higher levels thanindustry conventions would dictate.So it is worth being realistic about thetrue value of your company beforeoffering it up for sale.

There are other factors to take intoconsideration with a stocktakingcompany that has a few employeesand possibly equipment, offices andtransport involved in the sale. Adviceon this will be detailed in a futuremagazine.

Whatever the business it isrecommended to consult anaccountant or financial advisorbefore offering it for sale.

“From my experiencesover the years, the

most commonvaluations for small

stocktaking companieshave been based on a

percentageof turnover. I haveknown companies

change hands for aslittle as 20% of the

current yearly income,to as high as 75%.”

6

TheTheBudgetBudgetIts implications for theLicensed Trade and usin particular....

VAT: change of standard rateIt is proposed to increase thestandard rate of VAT from 17.5% to20% with effect for any supply madeon or after 4 January 2011. The ratechange does not affect either zero-rated supplies nor those suppliessubject to VAT at the 5% reducedrate.

VAT Flat Rate SchemeThe VAT Flat Rate Scheme simplifiesVAT for businesses with an annualturnover (VAT exclusive) of up to£150,000. The percentages used in thescheme will change from 4 January2011 to reflect the increase in thestandard rate of VAT. For thoseregistered under ‘Business servicesnot listed elsewhere’ that rate willincrease to 12% of the VAT inclusiveturnover.

Alcohol taxationThis will be reviewed in the Autumn.Although no new increases in therate of duty on beer, wines and spiritswere announced the Government willcontinue to increase duty rates by 2%above inflation each year to 2014 / 15.

Cider duty, as expected, was reducedfrom 36.01p to 33.46p a pint up to 7.5%abv. Over 7.5% abv to 8.5% abv therate was reduced from 54.04p to50.22p a pint. Secondary legislationwill be introduced shortly on cheap,strong cider.

The personal allowanceFor those aged under 65 the personalallowance will be increased by£1,000, from £6,475 to £7,475 for2011/12. This should benefit virtuallyall our members.

Income Tax ratesThere are no changes announced tothe main rates of tax for the currentor future years. In particular, the new50% rate (42.5% for dividends)remains for those with taxableincome above £150,000.

National Insurance ratesTo ensure that the majority of higherrate taxpayers will pay the same total

level of income tax and NationalInsurance Contributions (NICs) aspreviously planned, the Governmentwill reduce the basic rate limit by£2,500, and the upper earnings andprofits limits for NICs by £1,650, basedon current estimates of the RetailPrices Index. These changes will takeeffect for 2011/12.

Corporation tax ratesThe main rate of corporation taxwhich generally applies to companieswith profits of more than £1.5 millionis to reduce from 28% to 27% from 1April 2011. There will be furthergraduated reductions so that themain rate will be 24% by 1 April 2014.The small profits rate of corporationtax which generally applies tocompanies with up to £300,000 ofprofits is to reduce to 20% also witheffect from 1 April 2011.

Capital allowances on plantand machineryTwo key areas of change to capitalallowance rates are to take effectfrom April 2012.The first measure will reduce themaximum Annual InvestmentAllowance. This is available to mostbusinesses and provides immediate100% tax relief on the purchase ofqualifying plant and machinery. Theallowance is currently £100,000. It isto decrease to £25,000.The second measure reduces therates of writing down allowances perannum on expenditure not relieved byother allowances as follows:from 20% to 18% on expenditureallocated to the main plant poolfrom 10% to 8% on expenditureallocated to the special rate pool.Transitional rules will apply forchargeable periods which span 1April 2012 for businesses within thecharge to corporation tax and 6 April2012 for businesses within the chargeto income tax.

Small business taxThe government remains committedto a review of IR35 and smallbusiness tax and will release furtherdetails shortly.

George Osbornepresented his‘Emergency Budget’stating that it wastough but fair.

MLRMLRThe continuingsaga......

7

With the recent change inGovernment it was thought that itwould be a good time to try and haveour concerns over our inclusion inMLR regulations reviewed. A letterwas sent to Dr. Vince Cable asBusiness Secretary and to HMTreasury.

It was pointed out that theGovernment had pledged to reducered tape and reduce costs and theymay want to start by reviewing theneed of stocktakers to register forMLR. We reiterated our commentsthat by the time we became involvedour clients had been vetted manytimes by various organisations andprofessionals. We again explained indetail exactly what it was ourmembers did and how we were notwell placed to follow any cashthrough the business - our membersare primarily concerned with stockmovements and not cash.

We commented on the fact thatregistration fees had risen by anunacceptable 28%.

We also asked that the Governmentlook very closely at the need for alllicensed trade outlets to carry outcompulsory audits, at least on anannual basis. We again asked fordetails of the number of stockauditors registered and proof of theeffectiveness of them being included.

We received notification from Dr.Cable that he had referred the matterto HM Treasury and we eventuallyreceived a reply from HM Treasury.Unfortunately it did little or nothing toanswer our concerns.

‘ The long standing objective of UKGovernments has been to ensure thatwe use financial tools effectively andproportionately to tackle crime andterrorism’. It is so effective andproportional that they cannot tell usaccurately how many stocktakershave registered. The Treasury thenwent on to give an example of howthey see pubs in particular as highrisk because of the cash salesinvolved. The example that they gave

would not have been discovered byour members and seems tostrengthen our argument that weshould not be registered. Howeverthey do appreciate that the Institutehas drawn the need to be registeredfor money laundering compliance toits members.

Because of the apparent lack ofunderstanding we have again writtento Dr. Cable and HM Treasury seekingfurther clarification and laying out ourconcerns. In particular we stronglyemphasised that the only reason wehave advised our members toregister, is to keep within the law andnot because we agree with the needfor the regulations.

I know that many of you are annoyedthat we seem to have been ignoredbut rather than break the law and notregister, now is the time to write toyour local MP and raise the issue atthe highest possible level. Pleasecopy the ILTSA in with anycorrespondence.

There is currently a series ofseminars touring the country aboutthe legal obligations of MLR.Supported by HM Revenue &Customs and a range of governmentagencies, departments and publicsector organisations.

The available dates are:-

For further information and to bookplaces visit Business Link athttp://tinyurl.com/3antuct

Why not go along and ask yourquestions ?

Now is the timeto contact your

local MP andmake your

feelings known !Croydon 20th September

Cambridge 23rd September

Leeds 13th October

Manchester 9th November

Belfast 3rd March 2011

Norwich 24th March 2011

8

When I set out on my imaginary journeyseveral years ago, my objective was to

feature the most interesting of the country’snew brewers and, because of my interest in

our country’s heritage, the main themerunning through the series was to reflect

that. None of the featured breweries hasbeen operating for more than thirty yearsbut they reflect the country’s history over

the past three hundred. I continue myreflective journey across the country in the

East Midlands in the rural county ofLeicestershire

The old market town of Melton Mowbray isrenowned for its pork pies and Stilton

cheese and fine beers are also brewed inthe area to accompany these excellent

products. BELVOIR BREWERY (pronounced“beaver”) was set up in 1995 using mostly

original equipment obtained from thedefunct Shipstone’s Brewery and artefacts

recovered from traditional cask alebreweries throughout the country. Its

brewery tap - Beaver Tap - was opened in1998 in Nottingham and was reputed to be

the brewery tap furthest from the site ofits brewery. A few miles away, in the

Vale of Belvoir, stands Belvoir Castle, seatof the Dukes of Rutland, where recordsshow that in a period of 18 weeks from

December 1839 the inhabitants andvisitors consumed 70 hogsheads of ale -

about 28,000 pints!!

Public perception would have us believethat brewing is strictly a male occupation

but this is becoming a thing of the past.Brewster is the old English term for a

female brewer, derived from the times whenwomen used to brew and sell most of theale drunk in England. Brewster Sessions

was also the name of the legalestablishment where pub licences were

granted or renewed. Perhaps Sara Bartonhad this in mind when she set up her

brewery, BREWSTERS in January 1988 atStathern in the heart of the Belvoir Valley.

A Master of Brewing, Sara’s original brewplant had a five barrel capacity and, in theearly days, she not only brewed the beers

but also sold and delivered her increasinglypopular product.

Brewster’s is always keen to try new hopsand recipes, with many of the beers comingout in its “Wicked Woman” range which is

added to every 6 - 8 weeks. Each beer isbrewed to 4.8% abv. and a brand newrecipe that tries to reflect the character ofthe chosen Woman - past “Women” haveincluded Lily Langtry, Nell Gwynn, Medusaand Jezebel.

My journey continued northwards where Iwas to meet another lady much involvedwith beer. Along with husband Rob, DebraEvans was a teacher in 2002 when theydecided to enter the exciting world ofbrewing. Within months they had given uptheir secure professions and their plans fora brewery were taking shape in the semi-derelict Cunnery Barn on the ChatsworthEstate in Derbyshire.

Two years to the day from the start of theenterprise the first ale was brewed - anemotional event for Rob. PEAK ALESbecame a reality when the Duke ofDevonshire officially launched the breweryin April 2005 and the Reverend John

Elkington-Slyfield blessed the undertaking.Debra has her very own place in thissuccess story - as she says “he brews it - I

The NewThe NewGenerationGeneration- revisited- revisited

Trevor KnightF.I.L.S.Areflects on histravels

use it”. She does just that with a long listof recipes - “Debra’s Delicacies” - usingRob’s various brews to give a truly localflavour to a wide variety of delicious dishes.

Heading north again my journey brings meto the “steel” city of Sheffield. KelhamIsland is an area of Sheffield where theisland is formed by a mill race leaving andthen rejoining the River Don. It was here in1990 behind the renowned Fat Cat PublicHouse that KELHAM ISLAND BREWERY wasborn - the first new independent brewery inthe city this century.

In June 2007, along with many areas of thecountry, The Fat Cat and Kelham IslandBrewery suffered from extensive floodingand although the waters had receded by thefollowing morning, both were left with a sixinch layer of malodorous sludge.

In 2008 the brewery was proud to be askedby the Lord Mayor’s Office to create aspecial bottled beer in honour of TheChestnut Troop, 1st Regiment Royal HorseArtillery, on their return from a seven monthtour of duty in Iraq. On 29th February 2008,after parading through the city, each soldierwas presented with a bottle of Horse Power,the special commemorative brew.

The Yorkshire Dales beckon and nearShipley, north of Bradford, I found abrewery in a most unexpected setting. Themodel village of Saltaire is named after itsfounder and the River Aire which runsthrough the village. Titus Salt had thevillage built so that he could manufacturefine woollen fabrics using the most efficientmethods available whilst providing a healthyenvironment for his workers. A religiousman and a firm believer in education, thevillage had its own church, school andinstitute.

In 2004, Tony Gartland, a lawyer for twentyyears, decided to abandon it all to train as abrewer and established SALTAIREBREWERY in a vast Victorian building whichhad once housed generators providingelectricity for the local trams.Restoration took 15 months and thebrewery opened in June 2006. TheVisitor Centre has a wealth ofinformation - facts, figures and trivia- in an exhibition of the science andhistory of brewing and the actualbrewing process can be observedfrom the mezzanine floor bar.

Titus Salt’s original mill building hasnow been converted to shops and the1853 Gallery which houses a collectionof the works of local artist DavidHockney. Sympathetic to the TemperanceMovement, Salt did not build either a publichouse or a saloon in his village but, inaddition to the Brewery, Saltaire now has apub called appropriately - Don’t TellTitus!!!

9

Next time will see mereminiscing on my

travels throughYorkshire and in tothe North East and

journey’s end so I dohope you’ll join me

then.

The Council have put some time andthought into making this a special

celebration, just as we have done for the40th and 50th years.

Whilst this is some time away we need tobe making some provisional bookings to

secure the right venue and at the rightprices. We have decided that it wouldfitting to take ILTSA AGM in 2013 to the

Champagne region for a weekend toremember. From Wednesday 15th May

through to Sunday 19th May, with the AGMon the Saturday as normal.

The central location and conferencefacilities of the Best Western Hotel de laPaix in Reims is ideal for our needs. It is

central to the pedestrianised zone where allthe bars and restaurants are located, within

a few minutes walk of the Cathedral area.With ease of access from the main A4 road

from Paris. It is about 5 minutes walk fromthe train station coming in from either Paris

Est or Charles de Gaulle airport and hasunderground car parking for those wishing

to drive.

The itinerary, although by no meansconfirmed or set in stone will be along the

lines of:

�Arrive sometime on the Wednesday

15th May - free evening.

Thursday 16th May

�Visit the Montagne de Reims the

highest point in Champagne for panoramicview over the various areas to get the “feel“for the terrain.

�Walk amongst the vines at the

windmill at Verzenay, that belongs toChampagne Mumm.

�Onwards to the light house museum,

that is a reminder about the importance ofthe Marne valley in its heyday as animportant port, now housing a history ofChampagne.

�Next to the village of Hautvillers to a

visit a small Champagne house for a tastingin the village.

�Visit the abbey there where Dom

Perignon is buried, in the same village.

�Visit to a large Champagne House to

see the vast underground cellars or“Crayeres” and another tasting. PossiblyPommery or Dom Ruinart. ( These vast chalkpits were excavated in Roman times andnow are protected historic monuments.)There are only a few in the middle of Reims.

�Evening - Free with suggestions for

Restaurants or dinner in the Hotel

Friday 17th May

� Visit the South of the region to Troyes

and the pretty half timbered buildings andmarket square.

�Tasting of Pinot Noir based

Champagnes, famed in this area.

ILTSA 60thANNIVERSARYCELEBRATIONS

in 2013

Mike Murdoch F.I.L.S.A.

Reims Cathedral

10

�Travel back to Reims stopping at Ay on

the way and hopefully a visit to ChampagneBollinger.

�Friday Dinner - we are negotiating to

take over the first floor of a great restaurantcalled L’Apostrophe for a gourmetChampagne Dinner. A different style ofChampagne served with each of 4 courses -a Brut, a Vintage, a Rose and a Demi-Sec(sweet).

Saturday 18th May

�AGM in the morning with an optional

trip for partners or if they have had enoughof coaches then a walk around Reims takingin the Cathedral, shops and river. Stoppingto enjoy another glass of Champagne in themany pavement café bars.

Whilst this is only provisional we are tryingto cost this out to come in under £500.00 perperson. For all travel and accommodationin France plus the Friday themed Dinner.

The reality is that we need to have acommitment from each person in the formof a booking and a plan to save over the

next 20 months through the Institute in theform of a Direct Debit of £25.00 per month.

This way, we feel, would enable us to gaugethe response of the membership and moreimportantly give us negotiating powers withthe numbers to obtain special or reducedrates.

It must be stressed that this is a “holiday”and as such would be covered by holidayinsurance which you need to take outshould you have cause to cancel for anyreason before 2013.

11

Come to theChampagneregion for aweekend toremember!

An AGM not tobe missed

Mike Murdoch on aprevious trip with agyropalate

Hotel de la Paix, Reims

leleche

fche

f

STICKY PORK WITHSTICKY PORK WITHDIPPING SAUCEDIPPING SAUCE

Serves 4Preparation time 15 minutes Cooking time 30 minutes

Palm sugar, which comes in a block, isa type of sugar used in Thai cooking. Itis similar to dark soft brown sugar which

can be used instead. Be very carefulwhen adding the Thai fish sauce and

water to the palm sugar as it will SPIT.

Ingredients

100g (3.5 oz) palm sugar ,finelychopped

50 ml (2oz) Thai fish sauce 50ml (2oz) water

2 shallots, finely chopped 2 garlic cloves, crushed 1/2 tsp ground all spice

500g (1 lb ) pork tenderloin, thinly sliced

Dipping sauce

100ml (3.5 fl ozs ) rice wine vinegar 2 tsp caster sugar

1 large red chilli, thinly sliced coriander leaves to garnish

Method

Put the palm sugar in a saucepan andheat gently until melted. Add the fishsauce and water, stirring until thesauce is blended. Bring to the boil andsimmer for 5 minutes. Add the shallots,garlic, allspice and pork to the pan, stironce, cover and simmer gently for 15minutes. Remove the lid and cook for afurther 15 minutes, stirring occasionally,until all the liquid is evaporated and thepork is sticky.

Make the dipping sauce: Combine theingredients in a bowl and stir until sugaris dissolved.

Transfer the pork to a plate and garnishwith some coriander leaves. Servewith the chilli dipping sauce .

AND FINALLY ENJOY

12

Divers have found 30 bottles of champagnethought to pre-date the French Revolutionon the Baltic seabed.

When they opened one, they found the wine- believed to have been made by Clicquot(now Veuve Clicquot) between 1782 and1788 - was still in good condition.

The bottle - whose shape indicates it wasproduced in the 18th Century - has nowbeen sent to France for analysis.

If confirmed, it would be the oldest drinkablechampagne in the world.

According to records, Clicquot champagnewas first produced in 1772. Productionwas disrupted after the French Revolution in1789.

The wine found on the seabed wasperfectly preserved because of theconditions of dark and cold on the seabed.

If the bottles do come from the 1780s, thatwould make them around 40 years olderthan the current record-holder, a bottle ofPerrier-Jouet from 1825.

Wine experts estimate each bottle wouldfetch around 500,000 Swedish kronor(£45,000; $69,000) at auction.

The bottles were found off the coast ofAaland, an autonomous part of Finland. Thelocal authorities will decide what is donewith the shipwreck - and the champagne.

See page 15 for a differing view .....

Champagne FactsChampagne Facts

TreasureTreasureTroveTrove

We have covered ‘tipping’ in the pastbut in the current economic climate itappears that it is making somethingof a comeback. In 1999 it wasthought that 1 in 12 ( 8% ) of licensedoutlets were substituting at least onespirit brand at any time. The IFSP UK( International Federation of SpiritsProducers UK ) was formed at thistime. Working closely with TradingStandards and Environmental HealthAuthorities this trade associationhelped in a vast number ofprosecutions and name and shamearticles in local newspapers reducingthe rates to an estimated 1 in 50outlets or 2%.

The IFSP produce authenticity testkits to detect spirit substitutionquickly. These simple litmus paperschange colour if all is well, but if nota formal sample is taken for furtheranalysis. The ILTSA has beenunsuccessful in obtaining supplies ofthese for use by our members.However there is still a need forvigilance by our members and a needfor advice for our clients. Thepenalties can be extremely severe.

Under provisions of the Licensing Act2003, persons responsible for the saleof alcohol and the DesignatedPremises Supervisor ( DPS ) whomust hold a personal licence, whocommit a ‘relevant offence’ mayhave the licence suspended for aperiod of up to six months. Inextreme cases this may mean theimmediate closure of a unit until anew DPS can be installed.

The ‘relevant offences’ are containedin Schedule 4 to the 2003 Act andcover the following offences:

Section 1 of the Trade DescriptionsAct 1968 ( c29)– false trade description of goodsSection 14 of the Food Safety Act1990 ( c16 )– selling food or drink not of thenature, substance or qualitydemanded.Section 15 of the Food Safety Act1990 – falsely describing or presentingfood or drink.

Section 92 (1) and (2) of the TradeMark Act 1994 ( c26 )– unauthorised use of trade mark etc.in relation to goods.

There are two main ways that ourclients may fall foul of the law. Thefirst is by ‘tipping’, this is the pouringof spirits into to a bottle of a differentbrand. This is usually substituting acheaper ‘house’ brand into aproprietary brand such as Smirnoff,Bells or Gordons. This may bedeliberate or by poor staff training, aninexperienced member of bar stafffilling up the bottle or optic forinstance. Unfortunately the lawcannot and does not differentiatebetween the two. If tipping hasoccurred your client faces a largefine, naming and shaming in the localpress and possible revocation of thelicense. There is no defence and itjust is not worth it.

A much more subtleoffence is ‘passing off’,supplying a brand otherthan the one that hasbeen requested. Manyof us have heard of thetest cases involvingBacardi and white rumfor instance. Spiritcompanies haveinvested vast amountsin their brands and quite rightly theyprotect them to the best of theirability.

I say subtle because the followingsituations may be deemed to be‘passing off’ and subject to actionfrom Trading Standards.

When drinks are served from a speedrail, it is an offence to serve analternative spirit when a brand suchas Smirnoff / Bacardi / Gordons /Bells, is displayed on the bar or backbar. The customer ‘thinks’ they aregetting something that they are not.

The same will apply for doublebanking, where a row of alternativespirits sit behind a row of thepremium branded spirits on optic.

SpiritSpiritSubstitutionSubstitutionOn the increase ?

Chris Swift F.I.L.S.A.

13

Please ensure that yourclients fully understand

what is meant by‘passing off’

14

At a time when our clients arelooking at cutting costs many arefalling victim to seeminglyattractive offers from non-reputable suppliers of dispensegas. The consequences of thiscould include:-

� One cylinder of bad gas couldruin up to ten kegs of beer� Customers will be lost due topoor beer quality.� Their beer supplier will refusecompensation claims� They will be at risk ofprosecution for being in breach ofseveral laws including Health &Safety Act and Food Regulations� Last but not least they may killsomeone – perhaps a stocktakercarrying out a count in the cellar.

Badly corroded or badly filledcylinders could result in explosionor leakage into a confined spaceof carbon dioxide or nitrogen.Both gases have no odour but canbe very harmful in confined areas.

The gases that we come acrossare of course Co2 and mixed gascontaining as its name implies amixture of carbon dioxide andnitrogen. Each has its ownconsiderations. It may be thatyour clients are offered liquidwithdrawal Co2 cylinder designedfor industrial Co2 applications.Use of such cylinders will destroydispense equipment as thepressure is far too high and thereis an increased risk of explosion.Liquid withdrawal Co2 cylinderscan be identified by a verticalstripe down its side or via anorange ring attached under thecylinder valve with the letters ‘DP’embossed on it.

Mixed gas are filled to a very highpressure, typically up to 220 bar,which is around 100 times greaterthan the pressure in a car tyre.

You do not want to be around ifthat valve blows due to bad fillingprocedures or corrosion.

The three mixed gas types used inthe UK market are:-

30/70 containing 30% Co2 and 70% nitrogen.



The brewer will normally stipulatewhich gas should be used butagain using the wrong gas willultimately detract from the qualityof the dispensed product.

Spotting a good dispense gascylinder

Product Label By law, all dispense gas cylindersmust clearly display a label orother printed information coveringthe following items:� Product Identity� Emergency telephone

number� Risk and safety phrases� Suppliers name� Hazard warning diamond

This is usually found on the valve guard or the cylinder shoulder.

Food Traceability LabelBy law, all cylinders supplied fordrink dispense must have aproduct tracability label on thecylinder or valve guard. This canthen help the supplier trace thecylinder and its contents if anyissues arise. These labels arechanged every time the cylinder isrefilled.

Cylinder Test Date RingsBy law, all dispense gas cylindershave to be regularly inspected and

CompressedCompressedGasGasCylindersCylinders

The hidden danger

in the cellar.

ChampagneNewsRoederer, the Champagne house thatmakes Cristal, has announced thatthey will be testing out a new locationfor bottle ageing: under the sea.

Roederer said on Monday it hadplaced several dozen bottles 15meters (50 feet) underwater in thebay of Mont Saint-Michel, a rockytidal island off the coast of Normandy,last weekend. A cellarman came upwith the idea after realizing that thewater temperature in the bay, aconstant 10 degrees Celsius (50F),was ideal for ageing wine.

But if cork lets in scant amounts ofoxygen in a normal cellar, mightundersea aging turn the champagnea tad briney? They will stage atasting in a year to find out how it’sgoing. Assuming, that is,that lobsters haven’topened an underseanight club where thecases are stored.

15

tested to ensure they continue tobe totally safe to deal with thehigh pressures involved. Thesetests are done by a government-appointed inspection body everyten years. To help identify thedate the cylinder needs to beretested a plastic ring with aparticular shape and colour isused – see chart. The cylindercan be used but not refilled if thetest date has passed.

Rogue suppliers do not testcylinders and there is therefore anincreased risk of explosion.

Dispense Gas Checklist

You need to be able to answer YES to all the conditions to theright. An answer of NO mayindicate that the cylinder is unsafeand should not be used.

�Are the cylinder contents clearly identified on the cylinder label ?

�Is the product traceability label visible ?

�Is there a current coloured plastic date ring between the valve and the cylinder ?

�Is the cylinder valve sealed when delivered ?

�Does the cylinder look in good condition?i.e. No excessive rust, dents, gouges, bulges or defacing of any kind.

Further information can beobtained from DEFRAwww.defra.gov.ukor from the British CompressedGases Associationwww.bcga.co.uk

Test Rings - these indicate the year that cylinders must be retested.

The test ring shapes and colours follow an 18 year rotationas shown above.

STOCKAUDITOR16

www.iltsa.co.uk

Residential Training SeminarsOctober 2010

Training courses held in April andOctober - Full details on

www.iltsa.co.uk

For further details on all aspects of the Institutecontact the Secretary, Diane Swift

on 01422 833003Always look for the letters F.I.L.S.A. & M.I.L.S.A. Tel:- 01684 878042

Oldest Champagne inthe World

The world’s oldest champagne,bottled before Victoria becameQueen, is still drinkable, with notes of“truffles and caramel”, according tothe experts.

An “addictive” bottle of 1825 Perrier-Jouet was opened at a ceremonyattended by 12 of the world’s top winetasters.

Their verdict: the 184-year-oldchampagne tasted better than someof its younger counterparts. There are now just two 1825 vintagebottles left - and Perrier-Jouet has noplans to open them soon.

The wine and champagne expertsconvened at the winemaker’s cellarsin Epernay in France, for a “once in alifetime” tasting of the 1825champagne - officially recognised byGuinness World Records as theworld’s oldest and bottled just tenyears after the Battle of Waterloo.

It was heavily oxidised, with a sherry-like character. Wine tastes havechanged over the past 184 years - the1825 vintage was sweet, and evenhad a little brandy added at the“topping-up” stage.

It was this very sweetness thatexperts believe helped the wine tosurvive for so long, together with thefive to six atmospheres of pressurewithin the bottle.

(See page 12 for an update on this story)

The 184 year old cork was in goodcondition - helping to preserve the wine.

StocktakingCompany ForSaleEstablished 18 years.

A sole trader with a large strongexisting client base throughout theWest Country, approx. £60,000turnover, net profit approx. £40,000(based on average figures for the lastthree years).

Fully audited accounts - £75,000

For further details please contact theagent -

Peter Bartlett, Lewis Knight Accountants,

Venny Bridge, Exeter,

Devon EX4 8JQTel: 01392 206444

Thought forThought forthe monththe month ........

When you arrive at work how often doyou answer the greeting from a client of“How are you today?” with “Oh not togood, I have a cold & I didn’t finish workuntil late last night etc.etc”

If you think about this, how often wouldyou want to spend time with a friend ifthis was how they answered, every timeyou asked them that question. Youwould soon get fed up with it and try toavoid them.

The same will go for your clients if thisis how you are when you arrive at work.

They are looking at cutting costs withintheir business, the chances are theywill say “I am fed up with the stocktakermoaning all the time. We will stophaving it done especially as the resultshave not been too bad lately”.

You have then lost a client not becauseof the standard of work or lack ofadvice but because of your demeanourwhile you are in their company.

If your attitude of mind was to changeand even when you were under theweather you always said “I am verywell thank you, very busy but feelingfine”. You will find that not only are youlikely to be the last person to go whenthey cut costs but you will find that youactually do feel better in yourselfbecause of it.

We are all finding it hard to keep clientsand if by just changing our attitudewhile at work it helps keep us all inwork but we will be able to make sureour clients benefit from it and our clientbase is kept up.

Ron Foster F.I.L.S.A.

Stock Auditor Magazine August 2010

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Transcript of Stock Auditor Magazine August 2010