Looking for the original Bar Towel blog? You can find it at www.thebartowel.com.

We have a trivia question in order to register to prevent bots. If you have any issues with answering, contact us at cass@bartowel.com for help.

Introducing Light Mode! If you would like a Bar Towel social experience that isn't the traditional blue, you can now select Light Mode. Go to the User Control Panel and then Board Preferences, and select "Day Drinking" (Light Mode) from the My Board Style drop-down menu. You can always switch back to "Night Drinking" (Dark Mode). Enjoy!

Beer in Grocery Stores

This forum is for discussing everything beer retail: LCBO, Beer Store, Grocery Stores and Indie Stores.

Moderators: Craig, Cass

User avatar
saints_gambit
Bar Fly
Posts: 652
Joined: Mon May 31, 2010 2:38 pm
Location: Toronto, Ontario
Contact:

Post by saints_gambit »

zane9 wrote:
saints_gambit wrote:...Apologies if I get a little stroppy about it. It's a huge industry and societal change whose most frequent criticism is that it's not working perfectly a month in...
No apologies needed. I think there was, for decades, a lot of pent-up anger at the "Nanny State" of Ontario, most recently targeted at Dear Leader Wynne. Most of us were entirely fed up with a system that ignored everything but its perceived controllers ( a combination of the macro-brewery cartel and the stale-dated moral finger-wagging of "government" telling us how to behave). Impatience for change has its roots, and I think we can forgive the criticism to some degree.

Over time, the baby-steps changes brought in will become the new normal. Hopefully we'll see even more change that benefits the consumer/public.

I think we'd all do well to remember that even the largest craft brewers are having serious trouble keeping up with demand for the grocery chains. Imagine what would have happened if they'd decided that you could sell beer everywhere. The situation would be this: Craft brewers completely overwhelmed, large brewers with existing supply chains able to get on shelves everywhere and the domination that people assumed would happen with grocery stores would have actually happened. The grocery store thing is taking advantage of market momentum.
saintjohnswort.ca

zane9
Posts: 429
Joined: Mon Feb 22, 2010 1:05 pm
Location: Hamilton

Post by zane9 »

saints_gambit wrote:...Imagine what would have happened if they'd decided that you could sell beer everywhere. The situation would be this: Craft brewers completely overwhelmed, large brewers with existing supply chains able to get on shelves everywhere and the domination that people assumed would happen with grocery stores would have actually happened. The grocery store thing is taking advantage of market momentum.
Fascinating. So in that scenario we see the essential elements of craft beer: (small-scale production; local/hyper-local sensibility from some of the producers; taste leaders; market drivers) crashing into the current model of modern-era distribution and sales: scaled-up supply chains; uniformity with some brand differentiation; quick adoption of social trends (locavore, "know your farmer", etc.)

So we can now see yet another reason why the multi-national brewers are buying the smaller-scale producers. Mill Street,for example, is getting an almost immediate expansion in capacity in the east end of Toronto, and Labatt (AB InBev) gets its newly-purchased "craft brewery" products on grocery shelves, in volume.

User avatar
saints_gambit
Bar Fly
Posts: 652
Joined: Mon May 31, 2010 2:38 pm
Location: Toronto, Ontario
Contact:

Post by saints_gambit »

zane9 wrote:
saints_gambit wrote:...Imagine what would have happened if they'd decided that you could sell beer everywhere. The situation would be this: Craft brewers completely overwhelmed, large brewers with existing supply chains able to get on shelves everywhere and the domination that people assumed would happen with grocery stores would have actually happened. The grocery store thing is taking advantage of market momentum.
Fascinating. So in that scenario we see the essential elements of craft beer: (small-scale production; local/hyper-local sensibility from some of the producers; taste leaders; market drivers) crashing into the current model of modern-era distribution and sales: scaled-up supply chains; uniformity with some brand differentiation; quick adoption of social trends (locavore, "know your farmer", etc.)

So we can now see yet another reason why the multi-national brewers are buying the smaller-scale producers. Mill Street,for example, is getting an almost immediate expansion in capacity in the east end of Toronto, and Labatt (AB InBev) gets its newly-purchased "craft brewery" products on grocery shelves, in volume.
Exactly.
saintjohnswort.ca

BakaGaijin
Posts: 472
Joined: Tue Jan 21, 2014 10:41 pm
Location: Burlington

Post by BakaGaijin »

zane9 wrote:
saints_gambit wrote:...Imagine what would have happened if they'd decided that you could sell beer everywhere. The situation would be this: Craft brewers completely overwhelmed, large brewers with existing supply chains able to get on shelves everywhere and the domination that people assumed would happen with grocery stores would have actually happened. The grocery store thing is taking advantage of market momentum.
Fascinating. So in that scenario we see the essential elements of craft beer: (small-scale production; local/hyper-local sensibility from some of the producers; taste leaders; market drivers) crashing into the current model of modern-era distribution and sales: scaled-up supply chains; uniformity with some brand differentiation; quick adoption of social trends (locavore, "know your farmer", etc.)

So we can now see yet another reason why the multi-national brewers are buying the smaller-scale producers. Mill Street,for example, is getting an almost immediate expansion in capacity in the east end of Toronto, and Labatt (AB InBev) gets its newly-purchased "craft brewery" products on grocery shelves, in volume.
Craft breweries bought by conglomerates do not qualify as 'craft' as per grocery store craft beer allocation requirements.

zane9
Posts: 429
Joined: Mon Feb 22, 2010 1:05 pm
Location: Hamilton

Post by zane9 »

BakaGaijin wrote:Craft breweries bought by conglomerates do not qualify as 'craft' as per grocery store craft beer allocation requirements.
Interesting. Is there a website where these requirements are published? Thanks.

BakaGaijin
Posts: 472
Joined: Tue Jan 21, 2014 10:41 pm
Location: Burlington

Post by BakaGaijin »

zane9 wrote:
BakaGaijin wrote:Craft breweries bought by conglomerates do not qualify as 'craft' as per grocery store craft beer allocation requirements.
Interesting. Is there a website where these requirements are published? Thanks.
Sorry, I don't recall where I read that.

It might be published somewhere on this site if you want to dig through other threads. Might be posted somewhere on Bens Beer Blog as well. I'm sure the Google machine can help you find it. ;)

User avatar
saints_gambit
Bar Fly
Posts: 652
Joined: Mon May 31, 2010 2:38 pm
Location: Toronto, Ontario
Contact:

Post by saints_gambit »

BakaGaijin wrote:
zane9 wrote:
saints_gambit wrote:...Imagine what would have happened if they'd decided that you could sell beer everywhere. The situation would be this: Craft brewers completely overwhelmed, large brewers with existing supply chains able to get on shelves everywhere and the domination that people assumed would happen with grocery stores would have actually happened. The grocery store thing is taking advantage of market momentum.
Fascinating. So in that scenario we see the essential elements of craft beer: (small-scale production; local/hyper-local sensibility from some of the producers; taste leaders; market drivers) crashing into the current model of modern-era distribution and sales: scaled-up supply chains; uniformity with some brand differentiation; quick adoption of social trends (locavore, "know your farmer", etc.)

So we can now see yet another reason why the multi-national brewers are buying the smaller-scale producers. Mill Street,for example, is getting an almost immediate expansion in capacity in the east end of Toronto, and Labatt (AB InBev) gets its newly-purchased "craft brewery" products on grocery shelves, in volume.
Craft breweries bought by conglomerates do not qualify as 'craft' as per grocery store craft beer allocation requirements.
The nomenclature is important here. Ontario doesn't recognize "craft". Ontario recognizes "small brewers" in their legal framework.

In an odd way, Mill Street getting bought is good for everyone. It takes them out of the "small brewers" allocation and keeps the large international brands at bay because shelf space is finite. Of course, some people will be unaware that Mill Street was purchased. Probably the vast majority don't know what "craft" is or isn't. However, if they're willing to drink Mill Street, they'll be willing to drink other craft.
saintjohnswort.ca

User avatar
S. St. Jeb
Seasoned Drinker
Posts: 1049
Joined: Tue Mar 22, 2011 11:44 pm
Location: Burlington, ON

Post by S. St. Jeb »

saints_gambit wrote:The nomenclature is important here. Ontario doesn't recognize "craft". Ontario recognizes "small brewers" in their legal framework.
Interesting. For reasons I can't explain, I've never been keen on the term "craft beer". Back in the 80s and 90s, we spoke of "micro-breweries". "Small brewers" is actually simple and I think conveys quite well what is meant.

User avatar
saints_gambit
Bar Fly
Posts: 652
Joined: Mon May 31, 2010 2:38 pm
Location: Toronto, Ontario
Contact:

Post by saints_gambit »

S. St. Jeb wrote:
saints_gambit wrote:The nomenclature is important here. Ontario doesn't recognize "craft". Ontario recognizes "small brewers" in their legal framework.
Interesting. For reasons I can't explain, I've never been keen on the term "craft beer". Back in the 80s and 90s, we spoke of "micro-breweries". "Small brewers" is actually simple and I think conveys quite well what is meant.
It was a good genre descriptor until it started including anyone independent. The problem is that it's almost completely legally unenforceable because it's so vague.
saintjohnswort.ca

zane9
Posts: 429
Joined: Mon Feb 22, 2010 1:05 pm
Location: Hamilton

Post by zane9 »

saints_gambit wrote:It was a good genre descriptor until it started including anyone independent. The problem is that it's almost completely legally unenforceable because it's so vague.
From Canadian Beer News, 23/9/15

"At least 20% of shelf space in all grocery stores, LCBOs and Beer Stores will be dedicated to beer from small breweries – both from Ontario and elsewhere – with “small” defined as those that brew less than 4.6 million six-packs a year"

napoleon
Posts: 282
Joined: Fri Dec 14, 2012 12:37 pm
Location: Toronto, Ontario, Canada

Post by napoleon »

zane9 wrote: "At least 20% of shelf space in all grocery stores, LCBOs and Beer Stores will be dedicated to beer from small breweries – both from Ontario and elsewhere – with “small” defined as those that brew less than 4.6 million six-packs a year"
That seems like a big number, but not sure I have an intuition for that. Can anyone give me a since of which brewers fall on either side of that line? I worry that's set so high that Mill Street qualifies as "small"

User avatar
Craig
Seasoned Drinker
Posts: 1946
Joined: Wed Apr 10, 2013 10:23 am

Post by Craig »

4.6 million six packs is 4.6*6*0.355 = 9.798 million litres a year. Which is basically 100,000 hectolitres. How big is that, in terms of breweries? It's hard to say, since so few publish their production numbers, but that's 1/4 the OCB maximum to be considered a craft brewer.

Iirc, most craft brewers in Ontario cap out around 75k HL, because there's a tax break right around there that doesn't make it worth it to get any bigger:
The maximum tax credit available to an eligible small brewer is $2,499,500 for non‑draft beer and $1,824,500 for draft beer on eligible sales exceeding 50,000hL and up to and including 75,000hL. The tax credit is subject to a phase‑out once eligible sales exceed 75,000hL and is fully eliminated when eligible sales exceed 150,000hL in the sales year.
http://www.fin.gov.on.ca/en/tax/bwt/

Ukie
Bar Fly
Posts: 763
Joined: Tue Oct 20, 2009 7:56 pm
Location: Hamilton

Post by Ukie »

Don't know if this was posted elsewhere, I was in my local large food store that had been granted the ability to sell beer in Hamilton. They have a sort of a food court area where you can get any type of Asian, Italian food , coffee and a pastry etc and you can eat in a number of booths they have there. Right before you enter this area there is a sign "Absolutely no consuming of alcoholic beverages on the premises" .

Classic

User avatar
Kish84
Bar Fly
Posts: 602
Joined: Thu Mar 25, 2010 7:41 pm
Location: Kitchener

Post by Kish84 »

Ukie wrote:Don't know if this was posted elsewhere, I was in my local large food store that had been granted the ability to sell beer in Hamilton. They have a sort of a food court area where you can get any type of Asian, Italian food , coffee and a pastry etc and you can eat in a number of booths they have there. Right before you enter this area there is a sign "Absolutely no consuming of alcoholic beverages on the premises" .

Classic
Makes sense, you can't go into the lcbo and down a drink after purchasing it. Now if any of those places offered alcohol (or have their liquor license) then it's a different story.
"There's always money in the banana stand."

User avatar
S. St. Jeb
Seasoned Drinker
Posts: 1049
Joined: Tue Mar 22, 2011 11:44 pm
Location: Burlington, ON

Post by S. St. Jeb »

Kish84 wrote:
Ukie wrote:Don't know if this was posted elsewhere, I was in my local large food store that had been granted the ability to sell beer in Hamilton. They have a sort of a food court area where you can get any type of Asian, Italian food , coffee and a pastry etc and you can eat in a number of booths they have there. Right before you enter this area there is a sign "Absolutely no consuming of alcoholic beverages on the premises" .

Classic
Makes sense, you can't go into the lcbo and down a drink after purchasing it. Now if any of those places offered alcohol (or have their liquor license) then it's a different story.
This relates to the issue of allowing bars to sell packaged beer for take home consumption. I'm curious what the historical or current rationale is for keeping sales for on-site consumption and take-home completely separate.

Post Reply