Smoking Ban? Bar Patrons Will Drink to That, AON Study Finds

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. October 14, 2008

MAY 29, 2007. Bartenders who know their stuff sell higher quality wines when cigarettes aren't allowed. Smoking bans can mean better business for restaurants and bars -- particularly if wine-savvy bartenders talk up their supply and promote brands of higher quality, according to the "Vine to Wine" report released this week by Aon Corp. (NYSE:AOC) .

Establishments selling beer and wine in California are reported to have seen an increase in annual sales by more than $2 billion between 1997 and 2002. A law effectively banning smoking in public places took effect in 1994. Sales and employment at restaurants and bars are reported to have increased also in Florida and Delaware and in several U.S. cities including New York after smoking bans took effect.

Since a smoking ban was introduced in Scotland in March 2006, wine sales in bars have increased 8 percent, according to AC Nielsen. The increase is attributed in part to bar patrons sampling better, more expensive wines. Restaurant and bar owners can increase revenues by encouraging bartenders to talk to customers about pricier, higher quality brands, according to the Aon report.

Training can be delivered through:

o wine tastings for the team to sample the wine list and understand grape varieties, regions, etc., enabling them to enjoy the products and make recommendations;

o training booklets on health & safety, underage drinking. etc.;

o partnering new recruits with experienced bartenders so they can learn on the job.

"Bars in countries such as Italy and Ireland have benefited from smoking bans by catering to increasingly sophisticated wine drinkers," said Liam Dolan, principal consultant at Aon HR Solutions in London. "In the United Kingdom, traditional pubs are becoming more family oriented and 'gastropubs' are offering higher quality food and wines. Just 10 years ago, you'd be offered sweet or dry wine, but now you're more likely to have a choice of 20 wines from around the world."

Some larger bar chains in the United Kingdom are already seeing the benefits of increased staff training in the form of better staff morale and higher customer satisfaction, the report found.

To view the report, visit: http://www.aon.com/uk. Aon works on behalf of clients in the U.K. wine industry to find insurance products that protect the wine product throughout its lifecycle, as well as with restaurants and other establishments.