A lawsuit launched by an aspiring craft beer retailer in Ontario could spell the end of The Beer Store’s stranglehold on private suds sales.
On Tuesday, Barge Craft Beer filed notice with the Ontario Superior Court alleging the deal between the province and The Beer Store constitutes “an unreasonable restraint on trade†and should be struck down.
The province has 60 days to respond.
Michael Hassell, the lawyer representing Barge, said his client is a fledgling craft beer distributor that wants to open “boutique†retail outlets across Ontario.
“In theory, they’re the only competitor to The Beer Store in the sense that they want to sell beer,†he said. “However, their focus would be on high-quality craft beer… not just the mass-produced, low-quality beer that’s the most popular item at The Beer Store.â€
Although businesses like Barge exist in places like Quebec and British Columbia, the Ontario Liquor Control Act forbids anyone other than The Beer Store or brewers themselves from selling beer to the public.
Founded in 1927, Brewers Retail – the non-profit which runs The Beer Store – was once a diverse consortium of beer makers. However, consolidation has left control of the operation in the hands of only three large companies: Labatt, Molson and Sleeman.
“They’ve used their monopoly to control the market,†Hassell said. “You can see all their brands sitting out in front of the store, while everyone else’s is behind a wall in the back room. That’s a pretty unfair situation.â€
If successful, Barge’s lawsuit would invalidate The Beer Store’s monopoly and force the government to draw up new legislation.
For more information, visit bargecraftbeer.ca.
