Beer Petition Has Been Read at Queen’s Park

Derek Forward’s End the Beer Store Monopoloy petition was read yesterday at Queen’s Park. The next step according to the rulebook is for the Legislative Assembly to provide a response. They have 24 days to do so – that means we can expect something by November 5. (If you haven’t been following Derek’s End the Beer Store campaign you can catch up here).

In the meantime, Derek wants us to contact Premier Dalton McGuinty so he knows that people care about this issue. Here are the Premier’s contact details:

Tel: 416-325-1941

Fax: 416-325-3745

Email: dmcguinty.mpp.co@liberal.ola.org

Address: Honorable Dalton McGuinty, Room 281, Main Legislative Building, Queen’s Park, Toronto, ON  M7A 1A4

Also contact your own member of government and tell them what you think. Here is a list with address and contact details. The more noise we make, the greater the odds of ending the archaic Beer Store monopoly.

 

1156 Days Without LCBO Privatization

where did they hide the file?

The July 2005 report “Strategy for Transforming Ontario’s Beverage Alcohol System” called for the privatization of the LCBO and the Beer Store. Commissioned by the McGuinty government in early 2005, it has gone ignored for 1156 days and counting. Probably hidden in some musty warehouse somewhere. 

When it was first commissioned, finance minister Greg Sorbara commented: “This is an opportunity for impartial experts to undertake a comprehensive review of the industry and recommend ways it can work better.” Indeed the head of the task force was ex LCBO man John Lacey, former vice-chair of the board of the LCBO. Why has the government ignored its own group of admittedly impartial experts?

Just read some of the comments from the report:

“Monopolies lock up economic value, and uncompetitive markets hold back innovation and value creation, leaving untapped revenue ‘on the table.'”

“…in order to ensure the socially responsible sale and use of beverage alcohol, it is not necessary for government to own and operate retail and wholesale facilities itself.”

“Currently the LCBO decides what products to carry, and tends to favour those that generate a high sales volume. Wineries and distilleries producing small volumes or specializing in niche products have few options if their offerings are not listed. The same goes for import agents representing foreign products. The new system would change this by replacing the LCBO‘s monopoly with an array of new retail and wholesale channels.”

“Some may prefer to keep the system as it is and muddle through. This, however, would solidify the existing vested interests and make it much harder to effect change in the future. After 78 years, action is long overdue. It is time to transform Ontario’s beverage alcohol system. I close with what I believe are the real outcomes of our recommendations:

1. the consumer would get greater convenience and choice and would benefit from a competitive retail environment;
2. the government would remove itself from investment risk while increasing its annual revenues;
3. Ontario would continue to benefit from sound social responsibility practices; and
4. the existing commercial inequities would have been materially addressed.”

Sound like heresy. No doubt the government has muffled the privatization report because they were expecting fawning comments like “only government can be counted on to properly buy and sell booze” and “government officials should keep up their 70+ years of repressing Ontarians.” We at the Endthelcbo remind the Ontario government that its time to pay attention to its own recommendations and privatize the liquor business. Sign our petition to end the LCBO here.

 

The Archaic LCBO upholds the Equally Archaic 1928 Importation of Intoxicating Liquors Act

I recently stumbled upon a gem of a Canadian law called the 1928 Importation of Intoxicating Liquors Act (IILA). This is one of those truly silly pieces of legislation enacted in the prohibition era to “save” Canadians from the evil of drink. Somehow it has survived till now.

Basically the IILA prevents the importation into a province of any “intoxicating” liquor that has not been purchased on behalf of and consigned to the government liquor body of the province. Among other things this means that if, say, a Quebecer visits an Ontarian winery website and wants to order a bottle of wine direct from the winery – they can’t. It contradicts the good old 1928 Importation of Intoxicating Liquors Act.

The IILA is one of three acts along with the Liquor Control Act and the Liquor Licence Act that cements the LCBO monopoly in place. Knock it out and Ontarian consumers would be able to bypass the LCBO by purchasing directly from out of province wineries and breweries. Restaurants too would benefit by having access to a greater selection, cutting out the LCBO middleman. Small and medium size wineries would benefit by having a means to efficiently link with their consumers rather than having to go through the monolithic LCBO bureacracy. 

I only learnt about the IILA because Mission Hill, a winery in British Columbia, was recently taken to task by the LCBO for allowing Ontarians to purchase wine directly (story here). We should all be grateful to the LCBO for upholding this vital 1928 law and protecting us from those dirty British Columbians and their swill.

Of course the LCBO didn’t do this to protect Ontarians. It did it because it doesn’t like competition. If enough of us start to order wine directly from B.C., that means we won’t be buying it at the LCBO for a large markup. And that would be a threat to the juicy salaries that LCBO execs get.

Perhaps in the old days the law made sense. Or maybe not. But in todays electronic day and age where we buy stuff from people all over the world using the internet, why do we still have a law from 1928 that prevents Ontarians from transacting with other Canadians?

 

Recent press coverage of LCBO and the Beer Store

It’s not very flattering coverage, and deservedly so.

The Shark Guys cover Derek Forward and his Beer Store campaign here. A quote:

Our home province of Ontario is one of the few places on earth (along with Muslim theocracies, the highlands of Papua New Guinea, and certain stretches of the Australian outback), where you can’t simply wander into your corner store to buy a six-pack but are compelled to take your business to a government-affiliated outlet, which in a feat of Burges Dubai-like creative heights, was dubbed “The Beer Store.”

Randall Denley of the Ottawa Citizen also chimed in on government monopoly of alchohol here:

Limiting who can sell beer is nothing more than government greed thinly disguised by a safety argument.

and

The government’s real agenda is not difficult to discern. By limiting beer sales to the brewer-owned store and its own LCBO stores, the provincial government has eliminated any significant price discounting. Lower prices mean lower sales tax take, and sales tax on beer is big bucks.

So many Ontarians are aware of the absurdities of our current alcohol system that it can’t hold for much longer.

 

The Beer Store Monopoly Uncovered on Youtube

In the video below Derek Forward talks about his campaign to end the Beer Store monopoly.

The Toronto Star asks Ontarians who owns the Beer Store. Not surprisingly, most people have no clue.

 

Derek Forward vs the Beer Store

Derek Forward started an online petition 8 weeks ago to end the Beer Store. Since then it has attracted almost 6000 signatures, caught the attention of the press, and been championed by MPP Ted Chudleigh. On September 22nd Cudleigh plans to present Derek’s petition at the Ontario Legislature. Unfortunately the government doesn’t accept online petitions as legitimate (yo, 21st C folks), so Derek is asking for signatures in ink. So far he has around 2000 john hancocks. Not bad for 8 weeks of work!

This Saturday Derek is calling for a province-wide day of protest. He is asking Ontarians to collect signatures for three hours from noon to 3PM, if possible by setting up a booth in front of the local Beer Store.

Derek Forward outside of a Beer Store

According to Derek its best to find a Beer Store with an entrance giving onto a public sidewalk. These are rare since most Beer Stores have large parking lots in front, and as private institutions they can prevent people from campaigning on their property. With the right spot, a booth, some water, and a handful of petition sheets, you’ll have it covered.

If you don’t want to set up your own booth, here are some alternatives:

1. Print off a few sheets and carry them around with you the next few days, getting friends, family, and acquaintances to sign.

2. Give one to your local mom and pop store and tell them about the cause. The customers of the store can sign it.

Copies of the petition are available here. Print off as many as you like. They must be returned to Derek Forward at 2000 Appleby Line, Suite232, Burlington, ON L7L 7H7 before September 22.

 

Speechless in Seattle

Just got back from holiday. Below is a picture my girlfriend took at a Walmart in Seattle, Washington.

$3 Wine sold at Walmart

What? Wine for under $3? Sold in a family store in large quantities? Send the LCBO cops down there and round em all up. You can’t sell wine that way. It’s preposterous! If it already hasn’t collapsed into godless anarchy, Seattle can’t be more than a few days away.

But wait. Here’s a photo of Pike Market in downtown Seattle.

Typical Seattle street scene

The people look calm, relaxed, happy, prosperous. There are no fights and a distinct lack of drunken revelry. No one is praying to the devil, and not a single drunk is passed out on the sidewalk. Much like a typical street scene in Toronto. How can that be? Without the LCBO to protect them, shouldn’t they be stumbling around, sozzled on cheap and plentiful booze?

Could it be that… No… It can’t be… That individuals and businesses, left to themselves, can buy and sell alcohol responsibly, without collapsing into anarchy? That they don’t need the LCBO?

I guess I better sign that End the LCBO Petition I’ve been hearing about.

 

According to the LCBO, Seattle will be hellish

I’m spending my holiday in Seattle, Washington. After a bit of poking around on the net I’ve discovered that they sell alcohol in grocery stores and private specialty outlets out there. On this online discussion locals are actually chatting about which stores sell good wine. Can you imagine?

According to good old LCBO logic, when I get off the airplane tommorrow I will probably be entering a war zone. Why? The LCBO has taught us all that people simply can’t handle buying or selling alcohol through private channels and need big brother to do it for them. Therefore Seattle, cursed with legions of private alcohol stores, will be a city of drunken rioters, alcohol induced road kill, immoral capitalists selling booze to five year olds, sky high beer prices, wine snobs unhappy with the wine selection, and more.

Now I’m afraid. Wish me luck as I enter anarchy! I only wished the LCBO issued travel advisories too.

 

Andrew Peller enjoys its unfair profits

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.

 

Small winery owner speaks out against the LCBO

NiagaraThisWeek.com has published a letter by Steve Kocsis, owner of Mountain Road Wine Co. of Beamsville, Ontario.

He makes the case for allowing grape growers to be granted licenses to operate wine stores in urban Ontario. Each 20 acres would lead to one wine license. My favorite lines are:

Customers could be given broader choice, better service and greater convenience. The LCBO would have to lose its arrogance and sense of entitlement. Let them prove they are entitled to their Sunshine Law salaries by competing to serve their customers and dealing fairly with their suppliers.

Any improvement in access to our own markets would be welcome. Land-based licenses would be a full loaf. A loaf of bread and a glass of wine shared with our fellow Ontarians would be poetry.

Anything would be better than the crumbs we are being left as we watch foreign conglomerates and local bureaucracies eating our lunch, the lunch we work years and generations to earn, but somehow we do not get to enjoy.”

That pretty well sums up the plight of the small to medium size winery in Ontario. Mr Kocsis should be congratulated on his courage. Speaking up against the only seller of your product, the LCBO monopoly, is a risky thing to do.

The only thing I disagree with Mr Kocsis on is his prescription. Instead of allowing just Ontario grape growers the right to sell wine, everyone should be granted that right, including wineries, grocery stores, corner stores, and private citizens with a love of the product. The more open and free things are, the better the result.