Friday, 25 April 2014

Where should beer, wine and spirits be sold in Ontario ?

The Beer Store & LCBO debate with public opinion & free enterprise
By Mark Schadenberg
Should more satellite locations for The Beer Store and LCBO be created?
In Oxford County, for example, I know Embro, Thamesford (Picture of sign was taken before recent gas price elevation) and Innerkip already have sites selling beer and spirits in a limited supply and with limited choice in brands.
Should grocery stores sell beer and liquor? What about more corner stores in larger centres already served (pun) by LCBO and The Beer Store outlets?
Professional curler and former world champion Glenn Howard (pictured), who has worked for The Beer Store for more than 30 years in the Midland – Penetang area, is touring the province on behalf of his employer (See link below) and suggests it would not be a good practise to expand beer distribution to more stores, and in particular stores not carrying The Beer Store name.
The health unit of London – Middlesex is also against the idea as can be seen in the CTV2 London video below.
It's an interesting debate, but I would think that as long as stringent guidelines are in place, it would be fine to sell wine, beer and booze in a few corner stores. The folks at The Beer Store are afraid of countless layoffs, but that's the same fear Canada Post employees had when stamps went on sale at corner stores, which also now feature secured mail boxes and mini post offices.
Certainly not all variety stores should be able to sell alcohol, but the ones selling cigarettes and lottery tickets now do a thorough job of collecting identification from under-age consumers.


The National Post story below includes comments from the Ontario Convenience Stores Association (OCAS):
“Convenience stores have demonstrated their ability to responsibly sell age-restricted products with the highest standards in the province,” OCAS CEO David Brays said in a news conference in Toronto.
Cigarettes and lottery tickets — which are off-limits to those under 19 and 18 years old, respectively — have long been sold in corner stores, he said in response to a controversial ad campaign released last week by The Beer Store.
“Convenience stores are already responsibly offering alcohol in over 200 communities and it’s time to add on to the existing system with more options for consumers,” the OCAS said in a statement.

Special Occasion Permit
I would expect one regulation which would stay in place, is that product purchased for lisenced events (weddings, buck-and-doe, etc), would only be acquired from The Beer Store and LCBO stores. Application for Special Occasion Permits should remain the sole responsibility of the LCBO as well.
Our economy is all about supply and demand, so it would be impossible for a corner store to carry the variety of brands that are available at the big distribution stores, so if you wanted to buy a unique brew or other lower-volume drink, you would still be required (in my opinion) to visit the LCBO or The Beer Store. Therefore, it would appear in my opinion, that the true advantage of this de-regulation would be the large brewing companies, who already control much of the varied availability at The Beer Store.
The price of transportation to the variety store from its distribution network (The Beer Store / LCBO) could also mean the cost of a '2-4' would be more at a convenience cash register. The empties would be returned to The Beer Store (depending on exactly how system is set up) and that's when the consumer would make his/her next purchase. Right? I would think/hope so.
It's an interesting multi-angle debate. It's about de-regulation, free enterprise, small stores jockeying for market-share position versus large grocery stores (who will be give the right to sell), it's about unions, floor space in your neighbourhood store, and also about population demographics. If Innerkip, Thamesford, Embro and other small locales can sell beer in small community stores, where do you draw the line. Woodstock has a brand new The Beer Store under construction plus a second store. Is that enough for a population hovering under 40,000. Woodstock has just once LCBO store, but you can buy wine at Zehrs.
One quick edit I add here after reading a comment from a co-worker, this could also have a negative effect on who works at your favourite variety store as all employees selling alcohol would have to be 19. Taking a Smart Serve course would be easily done.
Care and concern takes place daily at restaurants and pubs with a liquor license; I believe the same will occur at convenience stores, but the large distribution stores will still have their place in the market.
A fun debate . . a good discussion to have with your friends on the back deck while enjoying a beer or vodka cooler.

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