Andrew Peller, one of Canada’s largest wineries and listed on the Toronto Stock Exchange, recently reported its quarterly results. It earned about $3 million on revenues of $60 million. Five years ago the company was earning just $1.5 million on revenues of $35 million. That’s the kind of growth many wineries would love to see.
Unfortunately, most wineries will never get the opportunity since Ontario law perversly protects the oldest and largest wineries like Andrew Peller from the newer and smaller upstarts. Walking down the streets have you ever encountered private wine stores named either Vineyards Estate, Aisle 43, or WineCountry Vintners? Have you wondered why they can sell wine along with the LCBO?
The three shops listed above are part of the 100+ retail wine shop network owned by Andrew Peller. Law passed back in 1987 prevents any wineries from opening new wine stores. Only those already in existence were allowed to remain. Lucky for it, Andrew Peller had already established its retail network. Since then it has been hocking its product through its chain of stores, a few on-site winery stores, and the LCBO, while newer entrants can only sell through the LCBO and their one on-site winery stores. That’s one less retail selling network and one less opportunity for customers to taste the product of the newer and smaller wineries.
If that’s not blatant favoritism, I don’t know what is. Worst of all, it’s the sort of favoritism that helps the elite minority, the entrenched status quo, and those who are already far ahead. Sign the End the LCBO petition and support the right of anyone to open a wine store, not just the select few.
