Craft Beer Prices in US vs LCBO

Swampale · Post by **Swampale** » Thu Jun 06, 2013 5:47 pm

I find it hard to get prices from some US Craft Beer store web-sites, but when I do a lot of the bigger bottles of beer are cheaper here from the LCBO. I have seen the 30 cans of Coors light etc. for $15.99, but the real beer in single bottles that are in bigger sizes like 600 ml or larger are cheaper here. I don't get it. What gives?

TheSevenDuffs · Post by **TheSevenDuffs** » Thu Jun 06, 2013 6:03 pm

Can you provide some examples?

sprague11 · Post by **sprague11** » Fri Jun 07, 2013 10:17 am

I can give a few, all with bottles from overseas. The chimay anniversary that came out here was at least 10 dollars cheaper in the lcbo than the states. The 8 wired bottle that was here was a couple dollars cheaper. Tehe schneider nelson sauvin was about 6 dollars cheaper at the lcbo than places i saw it in the states.

Streets · Post by **Streets** » Fri Jun 07, 2013 10:43 am

The one cool thing about beer prices in the States is that there's no minimum price, so if product doesn't sell then stores can clear out stock for whatever they want.

For instance I didn't feel like stopping at the LCBO yesterday so I cracked a bomber of Shipyard Longfellow Winter Ale that my folks picked up for me in Florida.

The beer was probably past it's prime, but didn't seem to have any off flavours and was definitely worth the $0.99 price tag

. I've seen older stuff for sale on the LCBO shelves still listed at full price!

TheSevenDuffs · Post by **TheSevenDuffs** » Fri Jun 07, 2013 10:56 am

sprague11 wrote:I can give a few, all with bottles from overseas. The chimay anniversary that came out here was at least 10 dollars cheaper in the lcbo than the states. The 8 wired bottle that was here was a couple dollars cheaper. Tehe schneider nelson sauvin was about 6 dollars cheaper at the lcbo than places i saw it in the states.

That's why I asked. I assume he was talking about overseas bottles...

Derek · Post by **Derek** » Fri Jun 07, 2013 11:56 am

The LCBO is a HUGE purchaser, so occasionally the bulk discount actually outweighs the ridiculous taxes!

Craig · Post by **Craig** » Fri Jun 07, 2013 1:26 pm

They often don't bother to negotiate a bulk discount. On occasion, they reject products for being too cheap!

I think the main reason why some stuff is cheaper in the LCBO is their fixed mark-up. In the states, whoever is selling you a Westvletern gift pack is going to mark it up aggressively, because they know they can get away with it. The LCBO puts the same mark-up on Westy as it does on Carlsberg.

markaberrant · Post by **markaberrant** » Fri Jun 07, 2013 5:48 pm

sprague11 wrote:I can give a few, all with bottles from overseas. The chimay anniversary that came out here was at least 10 dollars cheaper in the lcbo than the states. The 8 wired bottle that was here was a couple dollars cheaper. Tehe schneider nelson sauvin was about 6 dollars cheaper at the lcbo than places i saw it in the states.

Ok, so now we are talking about overseas imports, which should be somewhat of a level playing field for US or CAN.

LCBO has huge buying power and fixed mark up, hence the lower prices. Ontario is pretty much the cheapest place in North America to buy imports. The prices everywhere else in the US and CAN are pretty comparable based on the places I've been.

Pretty much the same applies for overseas booze (ie; scotch), it typically aint any cheaper in the US.

midlife crisis · Post by **midlife crisis** » Fri Jun 07, 2013 10:04 pm

Yes, agreed; though i've noticed that one exception appears to be tequila.

Belgian · Post by **Belgian** » Fri Jun 07, 2013 10:28 pm

The USA stores can price to 'what the market will bear' at the high end, whereas the LCBO seems much more motivated to move out seasonal or 'featured' extra-premium products and get rid of them (cycle them through) quickly.

At the low end, the USA stores can volume order and try to dominate local sales with the best price. So those stores may rely on very different margins for different reasons (some products could be almost loss leaders or 'volume sellers' they need to move a lot of to make money, while other smaller orders are specialty items people would buy anyway that they need to mark up to make up some extra profit for the overall bottom line of the store.)

The American stores might have a more 'composite' markup strategy, in other words, whereas the LCBO can afford to be much more linear and dump Sam Adams Utopias for half its possible market price.

markaberrant · Post by **markaberrant** » Fri Jun 07, 2013 11:12 pm

midlife crisis wrote:Yes, agreed; though i've noticed that one exception appears to be tequila.

I am pretty sure tequila doesnt come from overseas.

midlife crisis · Post by **midlife crisis** » Sat Jun 08, 2013 9:13 am

Well, fine. But it is an imported spirit, which is what we were discussing. The "sea" is the pertinent factor, i suppose?

cattersley · Post by **cattersley** » Fri Jun 21, 2013 5:21 pm

You can still get good 6ers ( 7 - 9$), 12ers (10 - 16$).