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LCBO / The Beer Store

Should the LCBO be deregulated?


  • Total voters
    169
  • Poll closed .
The article really doesn't explain the issue very well. They hint at it with the quote from the booze companies:

“The disputed provision would inflate retail liquor prices across Canada to an unreasonable extent, by requiring suppliers to raise prices they charge in other jurisdictions,” the booze companies argue in an application to toss out the clause.

But they don't explain that the reason the companies have lower prices in other provinces is because the LCBO itself won't allow them to have a lower price in Ontario.

Josh Rubin knows this stuff. I wonder if he didn't have enough time to write it down, or some editor cut it out?
 
How long should the LCBO supply chain take to catch up, ie restoking the grocery and agency stores? Will it take a week, two weeks or more?
To me this shows that no matter how much you open up the retail side, having the LCBO as a monopolistic wholesaler is what needs to be rethought. What is so wrong with Sobeys/Metro/Lablaws from dealing directly with Molson/Coors or InBev? Why couldn't an individual Ma and Pop store make a deal with the local Winery or Craft Brewer?
It would probably work better if it were a corporation-to-corporation arrangement, but I don't see a small craft producer having much bargaining power with a multinational. Would the producer deal with each store or corporate? Would corporate 'big grocery' even allow stores to do this? How does a ma-and-pa corner store deal with off-shore producers such as Scotch Whisky, rum, etc. I'm near North Bay and can buy craft beer and cider produced several hours away. Would small producers need a fleet of travelling salespersons wandering the countryside? As is often the case, large markets and population density sometimes make things more feasible.
 
The government of Ontario should streamline alcohol pricing. Rather than setting minimum prices, they should collect excise tax per unit of ethanol. Let producers, distributors and retailers take it from there.
 
The government of Ontario should streamline alcohol pricing. Rather than setting minimum prices, they should collect excise tax per unit of ethanol. Let producers, distributors and retailers take it from there.

Ontario already has alcohol excise tax, and a very high one at that by global standards.

The problem here, is that on top of that, and a fixed, very high LCBO mark-up, is that the LCBO also does backwards pricing............setting not simply a floor price for which it will sell but a floor price it will pay.

That's insane...........and not the way any system should operate, but in our case, that's the way it does operate.
 
Ontario already has alcohol excise tax, and a very high one at that by global standards.

The problem here, is that on top of that, and a fixed, very high LCBO mark-up, is that the LCBO also does backwards pricing............setting not simply a floor price for which it will sell but a floor price it will pay.

That's insane...........and not the way any system should operate, but in our case, that's the way it does operate.
It seems a bit random. I was in Alberta a couple of months ago and stopped in a large wine/liquor chain there. Some items were much cheaper than LCBO, some slightly cheaper, some more expensive.
 
How long should the LCBO supply chain take to catch up, ie restoking the grocery and agency stores? Will it take a week, two weeks or more?
To me this shows that no matter how much you open up the retail side, having the LCBO as a monopolistic wholesaler is what needs to be rethought. What is so wrong with Sobeys/Metro/Lablaws from dealing directly with Molson/Coors or InBev? Why couldn't an individual Ma and Pop store make a deal with the local Winery or Craft Brewer?

For Grocery we were told 2-3 weeks. The skids that were ordered at the begining of the strike only started arrving this week.

I agree things need to change. The way the LCBO handle things left a lot to be desired. From the wineries that were ghosted to stores being shown we are not that important. The lack of communication. The store I was at did about 80k in sales and we lost money on it meanwhile the LCBO would of made a nice profit.
 
It would probably work better if it were a corporation-to-corporation arrangement, but I don't see a small craft producer having much bargaining power with a multinational. Would the producer deal with each store or corporate? Would corporate 'big grocery' even allow stores to do this? How does a ma-and-pa corner store deal with off-shore producers such as Scotch Whisky, rum, etc. I'm near North Bay and can buy craft beer and cider produced several hours away. Would small producers need a fleet of travelling salespersons wandering the countryside? As is often the case, large markets and population density sometimes make things more feasible.

Corporate big grocery would order from the multi-nationals directly, not leave that to individual stores.

That said, depending on the chain there is still a small amount of discretion with some store managers to carry extras, though these are generally supplied through the central warehouse system.

There are exceptions.

Foodland banner stores, though affiliated to Sobey/Empire can order from non-Sobeys suppliers, with the exception of meat I believe. Empire takes a dim view of stores sourcing their own. But they can deal with farmers/independent vendors otherwise as long as they carry mandatory products from the house lines.

****

Larger convenience stores (Circle K) are as much corporate chains as big grocery, and would operate likewise.

Indy grocery/convenience can order from whom they like; but generally get the bulk of their stuff through a major wholesalers like Sysco. The soft drink vendors (Coke/Pepsi) and Frito-O-Lay snacks generally deliver directly.

But nothing would prevent such a store (if the regulations allowed it) from going to a local craft brewer, opening a whole sale account and picking up 5 two-fours for singles, and a few sixpacks to move as such.

Delivery by said brewer would likely be available in proximity to the brewery the same was it would for a restaurant, while getting it further may mean making special arrangements.
 

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