News   Nov 21, 2024
KingSett Proposes 67-Storey Tower on Yonge South of Wellesley Station
 1.2K     4 
News   Nov 21, 2024
Toronto Coach Terminal Redevelopment to Include Housing, Paramedics Hub, Employment Spaces, Public Plaza
 2.7K     11 
News   Nov 21, 2024
News Roundup for November 21, 2024
 516     0 

LCBO Moves - Rumoured and confirmed

gabe said:
Yes the beer in PA is crazy cheap. I picked up a 24 pack of Harp for $28. 24 pack of Harp at The Beer Store here is $54!!!! You can always pick up 24 packs of Coors or Moslon on sale for under $20. Our Beer Store sales are a slap in the face. They got $34 24 pack of beer on sale that's 80 cents off :rolleyes:
Click to expand...

Isn't the difference just (or mostly) taxation? So how does that change if someone else is selling the beer?
 
TOareaFan said:
Isn't the difference just (or mostly) taxation? So how does that change if someone else is selling the beer?
Click to expand...

In Ontario, there is a legislated minimum. From this link:

In setting retail prices for the products it sells, the LCBO strives to balance several key elements of its mandate.


  • Promoting social responsibility in the sale and consumption of beverage alcohol
  • Providing excellent customer service, including offering customers a broad product selection and value at all price points
  • Generating maximum profit to fund government programs and priorities.

The LCBO also ensures that it meets the legislated requirements under the Liquor Control Act concerning minimum price and uniform price. (Minimum prices are the lowest prices that products can be sold and uniform price requires the price for a particular product to be the same throughout the province)


To achieve this necessary balance among the key elements of its mandate, and to meet public sector standards of openness, fairness and transparency when it buys products for resale, the LCBO uses a standard mark-up pricing structure. Mark-ups vary by product category (among beer, wine, fortified wine, spirits, liqueurs for example) and there is an additional charge on imports to cover supplementary costs associated with those products, but otherwise the mark-up is consistent for all products. For example, all domestic whiskies are marked up at the same rate and all imported whiskies are marked up at the same rate.


This standard mark-up pricing structure, established by the LCBO in consultation with the Ministry of Finance many years ago, allows suppliers to be confident that the LCBO provides fair and equitable treatment to its business partners.

As a result of the LCBO’s fixed mark-up structure, when LCBO buyers and suppliers discuss possible purchases, they focus on the product’s final retail price. The payment to the supplier for the products follows automatically from the application of the fixed mark-ups and other elements of the pricing structure (for example, freight costs and currency exchange rates if the purchase is in a foreign currency). As part of the agreement to purchase, the supplier must provide the final quote or cost to the LCBO, usually per case.


While the quote is derived from the agreed-upon retail selling price, suppliers occasionally make mistakes in the quote price due to changes in freight or currency rates or as a result of calculation errors. The LCBO’s practice had been to ask suppliers to correct any errors. Beginning in 2012, when suppliers provide a quote that is lower than that required to meet the agreed-upon retail price, the LCBO accepts the lower price. This encourages suppliers to be diligent in providing accurate quotes. If the price quoted is higher than that required to meet the agreed-upon retail price, the supplier is asked to provide a lower quote.


pricing-one.jpg
LCBO buyers make every effort to get the best products in each price band, whether for sub-$10 wines, or super-premium spirits. They review more than 50,000 submissions annually and negotiate with suppliers to make the best of these products available at good prices. The LCBO is an attractive customer for manufacturers and there is fierce competition for listings. As a result, suppliers frequently submit products to the LCBO at prices lower than those charged to other jurisdictions.


The LCBO’s social responsibility mandate means that pricing strategies practiced by some private sector retailers or retailers not selling beverage alcohol products are not appropriate to the LCBO. For example, private retailers sometimes choose to offer some products at below cost or at a much reduced mark-up as “loss leaders†to attract customer traffic. This strategy would be inconsistent with the LCBO’s mandate to promote socially responsibility in the sale and consumption of beverage alcohol.


For more detailed information on LCBO pricing, see the LCBO Customer Service portion of the website: http://service.lcbo.com/app/answers/detail/a_id/570/kw/pricing
Click to expand...

Canadian versus Imported - LCBO Pricing Structure

Why are some Canadian alcohol products more expensive than foreign alcohol products at LCBO?

The differential in price is likely due to the difference in supplier quotations.

LCBO prices are set by its suppliers. The price that is seen in-store is the supplier's price plus fixed taxes and markups. These are illustrated in the attached Pricing Examples.

It is our suppliers who determine their quotations and the currency they choose to quote in. Many suppliers quote us in Canadian dollars therefore the price we pay to them is unaffected by changes in the exchange rate. It is the supplier and not the LCBO who retains the difference in the exchange rate should they choose not to pass the savings along. If a product's retail price is not competitive in our market, it's sales will be affected. Products that do not meet our province-wide sales quotas are discontinued.


File Attachments
Click to expand...

Beer prices.jpg
 

Attachments

  • Beer prices.jpg
    Beer prices.jpg
    102.8 KB · Views: 1,727
Anyone who believes a single word of that drivel is "over served".

The whole scenario is out the window in a free market model, imagine if the government inflicted a monopoly market in automobiles on you and decided which models you may buy and the price you must pay for them. GM, Ford etc would be mighty unhappy unless they were being very well compensated for the loss of control in marketing their products.

Hey, wait a minute, maybe that's why we don't hear any complaints from the producers of the LCBO's products. Hmmm.
 
New Rumor: Potential LCBO store in 777 Bay Street in the old Grand & Toy space (now vacant) that is situated under the Sobeys store. I had forgotten but there was an LCBO in the Dollarama space years ago. The area is currently well served unless they are looking to shift the Wellesley/Yonge Location further up Yonge St. The Atrium store is at capacity and the equidistant Gardens location can be busy - perhaps the LCBO sees the business the Wine Rack (Yonge/Grosvenor) is doing and wants to poach some of that business. If true would be a nice amenity to the complex.
 
themarc said:
New Rumor: Potential LCBO store in 777 Bay Street in the old Grand & Toy space (now vacant) that is situated under the Sobeys store. I had forgotten but there was an LCBO in the Dollarama space years ago. The area is currently well served unless they are looking to shift the Wellesley/Yonge Location further up Yonge St. The Atrium store is at capacity and the equidistant Gardens location can be busy - perhaps the LCBO sees the business the Wine Rack (Yonge/Grosvenor) is doing and wants to poach some of that business. If true would be a nice amenity to the complex.
Click to expand...

I am out of town right now but according to my partner, this has been confirmed.
 
themarc said:
Any idea of timelines on this?
Click to expand...

I assume he saw a sign at the location announcing it. It will take time to set it up, I suppose. This should further increase ROCP property values. No need to step outside anymore! ;)
 
Bayer said:
I assume he saw a sign at the location announcing it. It will take time to set it up, I suppose. This should further increase ROCP property values. No need to step outside anymore! ;)
Click to expand...

I had heard about the discussion of the probability via a tenant in the complex - it is the one small retailer the complex needs to grow as a destination.
 
Allegedly...

Union-led consortium offering to buy LCBO for $11B

From CTV news, at this link:

CTV Toronto
Published Thursday, October 9, 2014 6:16PM EDT
Last Updated Thursday, October 9, 2014 6:47PM EDT

A consortium led by Ontario’s largest union is offering to buy a majority stake in the LCBO for $11 billion, CTV News has learned.

The Ontario Public Service Employees Union teamed up with Onex Corporation -- one of Canada’s most powerful companies -- to make the multi-billion dollar bid to buy 75 per cent interest in the liquor store monopoly.

A presentation to the government obtained by CTV News stated that “an OPSEU-led deal†would be fully supported by labour and backed by public pension funds, and would ensure ownership and control by working Canadians. The LCBO pulls in $1.75 billion in profit to Ontario each year.

The proposal was first presented to the government in Nov. 2011. It was also discussed just before the 2014 provincial election in June, and as recently as the past few months.

OPSEU President Smokey Thomas said he doesn’t want Ontario to sell the LCBO, but should the province do so, it should remain a Canadian company. Thomas also confirmed that Onex Corp. and its CEO, Gerry Schwartz, were private partners in the union-led, buy-out proposal.

“That was them, that was their idea,†Thomas told CTV’s Paul Bliss. “I don’t discount anything they are saying. I have done a lot of research on them.â€

If the proposal was accepted:


  • Ontario government would receive $11 billion cash up front in exchange for 75 per cent ownership in the LCBO
  • $9 billion would come from a syndicate of 4 Canadian banks
  • $2 billion from an investor group, including Onex, OPSEU pension and other Canadian pension plans
  • Ontario would retain 25 per cent ownership, guaranteeing it at least $500 million each year in royalties
  • The majority of shares in the new private company would be held by OPSEU and the pensions

Under the plan, the Ontario government would continue to control and regulate the sale of alcohol.

It appears Premier Kathleen Wynne put the brakes on the union proposal that the government sole-source the sale

Wynne instructed Tom Teahen, her chief of staff, to send a letter to Thomas that stated, “If re-elected, Premier Kathleen Wynne will not be moving ahead with your proposal to sole-source sell LCBO to OPSEU’s pension plan and its private sector partner.â€

However, that still leaves the door open to a bidding process.

Thomas suggests the plan isn’t dead yet, saying he has urged Wynne and cabinet minister Deb Matthews to sell “to Canadians†if the government does eventually offload the LCBO.

The premier’s office won’t comment directly on the OPSEU-led proposal, but says it is looking at ways “to improve the efficiency and optimize the full value of several key government assets, including the LCBO.â€

Repeated calls to Onex Corp. for comment were not immediately returned.
Click to expand...
​
 
Also concerning the new College Park LCBO store at 777 Bay St., the small Yogen Fruz next door to that location has just closed. There is a Druxy's on the other side; I wonder if it will suffer the same fate. It wouldn't be surprising since the old Grand & Toy location alone is not that large.
 
Finally, the LCBO is moving to replace perhaps its worst Toronto-area store for age/appearance (though not selection/size); Coxwell/O'Connor.

The tender is currently on the LCBO website, with a closing date of Nov 14 for a 12,000sq ft replacement store.

There is an incongruity in that the actual documents state construction to be begin October 1, completion in April 2015, which clearly does not make sense based on the current tender close.

I believe this is the result of the tender having gone through more than one iteration.

I would assume (but don't know) that current plan will be for closure early in the new year with opening mid-summer.

***

Now if they would only get around to both adding stores to areas they're missing (Danforth btw Greenwood and Vic. Park, I'm looking at you)

As well as replacing the remaining 'disaster' stores; (Bloor/Lansdowne, Parkdale-Queen/Brock, Yonge/Wellesley, Chinatown, Gerrard/Pape)

Along with the grossly under-sized, notably Atrium on Bay.
 
Application: Building Additions/Alterations Status: Not Started

Location: 777 BAY ST
TORONTO ON M5G 2C8

Ward 27: Toronto Centre-Rosedale

Application#: 14 262583 BLD 00 BA Accepted Date: Dec 10, 2014

Project: Retail Store Interior Alterations

Description: To complete interior alterations to the existing vacant multi-use unit for fit up for new LCBO retail store.
 
According to the call for bids I saw last week, the College Park store will be 5,000 sq. ft., and the target opening date is April 2015.
 
You must log in or register to post here.

Back
Top