Red Deer, Alberta - 27 October, 2003 -

Sheree Davies points scanner at a partly empty bottle. Davies performs regular audits of liquor supplies to determine if consumption matches cash receipts. Like most auditors, Sheree Davies has a keen eye for waste and misappropriation. Only instead of balance sheets and income statements, she scrutinizes liquor bottles and beer kegs. Davies has the Central Alberta franchise for Bevinco, an international liquor auditing service that helps bars, pubs, lounges and other businesses that serve alcohol monitor their liquid assets. She measures clients' liquor supplies on a weekly basis and reconciles changes against cash receipts. Most bar owners are meticulous when it comes to managing the cash side of the business, said Davies. But as for regulating booze, their skills are often impaired.In fact, she said, establishments with class A liquor licences on average lose 30 per cent of their alcohol. "They have to start thinking of their liquor as money, because every ounce of liquor lost is money going down the drain." The biggest reason for spirits vanishing is "bartender sloppiness," said Davies. Bartenders routinely exceed the standard ounce of liquor when mixing drinks, or neglect to ring in sales. "With bartender sloppiness, it's a matter of retraining your staff," she said, adding clear policies and procedures are important. More serious problems are fraud and theft. Bartenders may dispense extra-strong or free drinks in hopes of attracting bigger tips or the gratitude of an attractive patron. They might also serve a higher quality liquor or beer than they charge for, or serve their friends "on the house." In extreme cases, said Davies, bottles are stolen.She added some losses can be traced to shipping and receiving problems, where the quantity or type of stock purchased is not what comes in. "That does happen quite often."Regardless of the source of the loss, the impact on a business's bottom line can be significant. Davies said it's not uncommon for a bar to come up $1,000 short every week ."That's $52,000 a year. I don't know anyone who can afford to lose $50,000 a year based on someone else's sloppiness." Davies conducts weekly liquor audits for about a dozen businesses in Central Alberta. Using an electronic scanner, a scale and a laptop computer, she checks every open bottle to determine consumption since her last visit. Beer kegs are weighed and unopened stock tallied. Ultimately, the results are reconciled against sales receipts and a variance report issued.If a problem is discovered, Davies arranges for a meeting with staff to discuss the matter and suggest changes. In some cases she conducts spot audits, performing unannounced checks during business hours to assess the performance of a particular shift or even an individual bartender. This can lead to employees being disciplined, dismissed or even charged with theft. "There's been situations where the RCMP has walked in right behind us after we've done an audit." Bevinco is based out of Toronto and has 175 franchises in 16 countries. There are five in Alberta.

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