CRAFT BEVERAGE INDUSTRY UPDATE
W
ith the new grocery
and wholesale
channels in Ontario
increasing shelf
space for brand
labels, competition is squeezing
margins for the craft brewery industry.
But creatively, craft breweries are
expanding their space in the hospitality
industry and effectively finding new
sources of revenue. By adapting their
production facilities to accommodate
concerts, festivals, corporate events, and
weddings, they can enhance product
brand with interactive customer
experience.
Although this model promotes brand
and additional revenue, it also has
attendant risks not associated with
product manufacturing and distribution.
Hosting any social function involving the
sale of alcohol has risk management and
insurance implications. If not addressed,
the company may be assuming financial
and reputational risks.
The stakeholder channel has now been
expanded to include guests/invitees, 3rd
party providers, caterers, DJs, bands, and
florists. Employees now have additional
responsibilities in not just selling
products, but serving alcohol. The brew
tour bus/limos bring in a very “missioned”
social experience that must be managed.
Typical bookings of birthdays, retirements,
and celebrations of life are reservations
only without a formal contract, similar to
restaurants.
•
•
When there is a facility rental, a
standard contract should be used
to include the requirement for the
renter to carry their own event
liability. Further, evidence of
coverage should be provided showing
the facility as an additional insured
Facility should disclose all business
activities to their own insurer,
comply with any subjectivities and
loss control recommendations
to ensure integrity of their own
coverage
• Staff serving alcohol are Server
Intervention Program (S.I.P.) trained
• Premise housekeeping – interior
and exterior properly kept in clean
condition to mitigate spills that lead
to slip’n falls, with increased patron
traffic
• Compliance with fire codes, liquor
permits and health safety (e.g.
maximum number of people)
•
Brew Tours – elevate guests’ risks.
Make sure tour organizers have
proper liability coverage
Consider all the items above and create
a risk management program around
these events. Event revenue can be a nice
alternative for a business in this growing
market.
Do not shy away from the ambiance of
hosting a great event in a great space.
Do your due diligence and manage the
risk properly to protect what you have
worked so hard to build.
Be sure to contact your broker if this
is a path you would like to go down, or
contact myself directly.
As we always look at unique ways of
offering a customized risk management
& financing option, we have created
with the help of Signature Risk LIVE an
exclusive Event Liability policy.
This provides two important things:
1. The ability for a winery, brewery or
distillery to separate their operations
liability from the event liability exposure
and have customized insurance coverage
to host various events all year long
2. Providing the ability to sell event
insurance to their customers, at a profit,
as a value added service and introduce a
new revenue steam for their business
Cheers, Joshua Kearley
Founder/Program Specialist
Beverage Protect powered by BKIFG
BY: JOSHUA KEARLEY
PROGRAM SPECIALIST, BEVERAGE PROTECT
POWERED BY BENSON KEARLEY IFG
Contact him today at
[email protected] or at
1-844-213-2469
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