Beer Store / LCBO Sweetheart Deal

Today I’d like to bring some attention to a report the Toronto star brought out recently about the Beer Store (Brewers Retail Inc – BRI) and the LCBO. Basically what the report comes down to is that the Ontario goverment at the time (under premier Mike Harris) forced the LCBO to sign a deal that essentially gives the Beer Store free reign to do what they want without the LCBO getting in its way. Although it was the conservative government that did this, the liberal government has done nothing to change it in the last decade that they’ve been in power.

Nothing in the report has been a surprise to those in the industry for some time, and even to those who don’t pay much attention but often buy beer. The surprise was that the agreement was written and so detailed, and kept secret for 14 years. That isn’t really what I’m looking to discuss though, there’s plenty of discussion about that aspect already, instead I’d like to focus on something Ben Johnson said on twitter:

I agree with this wholeheartedly. As noted in the documentary by Mom’n’Hops the Beer Store is a private enterprise that essentially has a monopoly on most beer sales in Ontario, and has full sales statistics to any competitors who choose to sell through them. They also have a stranglehold on the restaurant business, gouging any restaurant that wants to sell beer even more than they gouge the average consumers who buy direct from them.

We need a real alternative to the Beer Store, and I don’t just mean let the LCBO sell 12 packs. Lets do something to introduce real competition to the system, to let all the Ontario local breweries have a fair chance to compete in the market and not just for limited LCBO shelf space. Lets do something real with the momentum.

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