What is the LCBO's agenda? Our own InfoLine

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Belgian
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What is the LCBO's agenda? Our own InfoLine

Postby Belgian » Wed Apr 13, 2005 2:21 pm

By this I mean, what (if anything) do we know of their stated or actual mission?

As a crown corporation, do they have an abiding interest in the culture of what they sell, and do they also have a strong commitment to what we as Ontarians want? What have we the right to expect of it?

In short, what motivates this (extremely profitable) corporation to purchase, distribute and market the beers it sells, and it's general activity?
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Re: What is the LCBO's agenda? Our own InfoLine

Postby Josh Oakes » Wed Apr 13, 2005 6:00 pm

Belgian wrote:By this I mean, what (if anything) do we know of their stated or actual mission?

As a crown corporation, do they have an abiding interest in the culture of what they sell, and do they also have a strong commitment to what we as Ontarians want? What have we the right to expect of it?

In short, what motivates this (extremely profitable) corporation to purchase, distribute and market the beers it sells, and it's general activity?


I guess the first thing is that they are not "extremely profitable". That so-called profit isn't like the profit that other retailers record. LCBO "profit" includes taxes collected, unlike every other retailer in the country. How they are legally allowed to cook the books and mislead people like that I'm not sure.

But I think the proof is in the pudding. They don't represent anyone's interests but a handful of large wine and liquor companies, LCBO upper management and that of their bloated, uneducated, unionized work force.
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Postby Rubaiyat » Wed Apr 13, 2005 11:23 pm

josh -- the lcbo IS very "profitable".

OUTSIDE and OVER AND ABOVE all taxes ... there is a 145% markup - yes that's right ... a 145% markup - on spirits, for example ... 64% on wine ... and so on. gross profit mind you (i.e. before admin costs, warehousing, salaries, etc.) but OVER AND ABOVE ALL taxes indeed.

there you have it.

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Postby detritus » Thu Apr 14, 2005 7:11 am

Paul,

I don't think Josh was implying that the LCBO was selling products at a loss. Any reasonable interpretation of 'profitable' includes admin costs, warehousing, salaries, etc. - i.e.: net profit.

The point is that the 'profits' the LCBO reports to the government (and the public) include the sales/sin taxes - take those off the books (as they should be) and the picture is less rosy.

-Josh (the other Josh)
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Postby JerCraigs » Thu Apr 14, 2005 10:34 am

Something that has been increasingly nagging at me is if they are the liquor CONTROL board, why are they advertising???
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Postby Josh Oakes » Thu Apr 14, 2005 11:30 am

detritus wrote:Paul,

I don't think Josh was implying that the LCBO was selling products at a loss. Any reasonable interpretation of 'profitable' includes admin costs, warehousing, salaries, etc. - i.e.: net profit.

The point is that the 'profits' the LCBO reports to the government (and the public) include the sales/sin taxes - take those off the books (as they should be) and the picture is less rosy.

-Josh (the other Josh)


Precisely. You can't run a business based on gross profit. Any business without a healthy gross won't be in business for very long. Net is what counts, and the net for the LCBO isn't so shit hot.

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