As with anything, there are lots of aspects of the liquor business that consumers don’t see, and that we didn’t understand when we started out 20 years ago. We would occasionally be surprised by what was asked of us, or of the added layers of regulations and rules. Surprises don’t happen much anymore, but one happened recently.

On a recent trip to Kansas City, I was taken by one of our distributor’s people to a lovely restaurant in Lee Summit. Their menu seemed to be full of fresh, seasonal flavors, with local peaches featured in some great dishes. Seemed like the right kind of place for us and our handmade, small-batch spirits.

We had lunch, and waited for the head bartender to arrive. Instead of any discussion of our company, our products, drink ideas, etc., however, the head bartender’s first statement was basically this:

“I can make anything taste good. For example, I use this mediocre citrus vodka (holding up a brand I’ve never heard of) and it’s in my number one selling cocktail. You know why I do that? Because they gave me Chiefs Tickets. So, if you want me to consider bringing in your products, I need to know what you’re going to do for me or for my guys (pointing to another bartender). For starters, how about a hotel stay and a meal at a nice restaurant in Chicago?”

Wow.

Now, I know this kind of thing goes on from time to time. When we switched over to our first large wholesaler, there were those phone-only conversations about what it would cost to be on the menu at this group of restaurants or that one, to see if we would entertain it. But, to have someone so blatantly state a demand like this over the bar during their lunch service was a first-time experience for me.

Herein lies one of the quirks of the liquor business. It is generally illegal for a manufacturer (distiller, brewer, etc.) to give anything “of value” to a licensed retailer (bar/restaurant/liquor store/etc.) as an inducement to purchase their products or to promote them over another brand. Both federal laws and state laws address this, although the state laws vary. For example, in Illinois, there are specific dollar limits on how much a supplier can spend on signage for a store, and very specific rules on what can be on the sign. Suffice to say, some things are allowed that benefit both the retailer and the brand, but there specific rules & limits, and sports tickets, hotel stays, etc. are not on the list.

I thought about pointing out that what he asked for is illegal, but I expect he already knew that. And he probably knows there isn’t a huge risk of any enforcement. I am not sure about Missouri, but the risk is very low in Illinois, based on my experience. The system seems to be complaint driven, and the vast majority of people aren’t going to stick their neck out to report something, especially when there isn’t a paper trail (and there almost never is).

At the same time, I am not going to engage in illegal pay-to-play activities just because some others do. I am a lawyer by training and I took an oath to follow the law. Honestly, it’s a real barrier sometimes in this business and in these times in the world, but my word still means something to me.

And, at least he let us know where he stands. Now it makes sense why he hadn’t bought much from our wholesaler, and we know not to waste any more time on that place or any other place he goes. Unfortunately, he may influence those around him to approach things this way too, which does not bode well for those of us who do not operate that way.