Not that I'm the buck-a-beer type but...

dutchcanuck · Post by **dutchcanuck** » Sun Dec 21, 2008 2:48 pm

Looks like we'll be paying more for our beer.
http://www.thestar.com/news/ontario/article/557097
I'm sure its a safe bet that if the cheapest beers are going to go up in price that the premium products will follow.
I really do miss the Canadian dollar being at par with the U.S. and all the fantastic Premier Gourmet trips that I indulged in...C'est la vie I guess.

mjohnston · Post by **mjohnston** » Sun Dec 21, 2008 3:06 pm

This is a policy decision affecting only the lowest priced beers directly but will have some trickledown effect.

Obviously, a higher price will mean fewer sales. Also, the affected products' prices will now have to be on par with the products currently selling at the higher price and those products are now direct competition.

However, the products selling at the higher price today are likely doing so partly to differentiate as more premium brands. Those products may have their prices raised to maintain an image of superiority.

I don't know that this minimum price policy decision should affect any of the prices for beers we would be interested in. This change is meant to reflect inflation over the last few years. Inflation affects our beers too, but tends to be applied as new products are listed and occasionally as individual price increases on specific products.

Bytowner · Post by **Bytowner** » Mon Dec 22, 2008 8:57 am

No chance the the big brewers had any influence in this decision... nope, none at all... unthinkable really...

GregClow · Post by **GregClow** » Mon Dec 22, 2008 9:22 am

Most of the comments I've read about this story (not just here, but other places as well) seem to be missing the most important point:

This change appears to have been triggered by a "suggestion" to the LCBO from the Ministry of Finance. Which is somewhat concerning, given that the LCBO is supposed to be an arms-length organisation with no direct gov't involvement in their management and decision making.

I'd consider this to be more of a concern than some supposed big brewery conspiracy.

GregClow · Post by **GregClow** » Mon Dec 22, 2008 9:28 am

Oh, and in regards to mjohnston's comments above - there is still quite a gap between the price of the former buck-a-beers and the "premium" brands. I suppose there's a chance that it might have a trickle-down effect (or should that be "trickle-up"?), but I wouldn't expect it to be a very big one.

And to inject a bit of humour into this: The old URL for the Laker Beer website, abuckabeer.ca, now redirects to lowestlegalprice.ca once you get past the age verification screen.

Bytowner · Post by **Bytowner** » Mon Dec 22, 2008 9:41 am

"I'd consider this to be more of a concern than some supposed big brewery conspiracy."

Greg, you don't need a tinfoil hat to believe that an industry that has always had a close relationship with Canada's political establishment can influence decision makers. Come on down to Ottawa and I'll take you to some of the lobbyist Christmas parties.

bujubanton · Post by **bujubanton** » Mon Dec 22, 2008 11:19 am

since the province gets a percentage share (on pst) of prices and LCBO takes percentage markup...always good to raise the minimum prices.

Where else did they have minimum prices set by the government?
Former Soviet Union?

GregClow · Post by **GregClow** » Mon Dec 22, 2008 3:11 pm

Bytowner wrote:"I'd consider this to be more of a concern than some supposed big brewery conspiracy."

Greg, you don't need a tinfoil hat to believe that an industry that has always had a close relationship with Canada's political establishment can influence decision makers. Come on down to Ottawa and I'll take you to some of the lobbyist Christmas parties.

Oh, I don't doubt that for a second. And yeah, maybe the big breweries did play a role in this.

But personally, I'd be more inclined to believe that it's a tax grab under the guise of "social responsibility" rather than the gov't doing InBev and Coors a favour. At least in this case.

woodpecker · Post by **woodpecker** » Tue Dec 23, 2008 6:38 am

in tough times, ppl drink more. makes $en$e to raise the price.

Rob Creighton · Post by **Rob Creighton** » Tue Dec 23, 2008 9:34 am

I believe the discount beers are over 25% of the market now (don't quote me on it but it's close). The mega's have been taking a $10.00/case hit on their "premium" beers since this started. Considering the products are identical in cost to make, their motivation to lobby for higher pricing at the low end is obvious and yes they do have direct links to the Premiers office.

woodpecker · Post by **woodpecker** » Tue Dec 23, 2008 11:10 am

i'd like to lobby for cheaper beer that actually doesn't taste cheap... Santa RU there?

kmallett · Post by **kmallett** » Tue Dec 23, 2008 10:51 pm

I don't mind picking up a case of Trailhead the odd time. It's my go-to cheap beer that actually tastes good! With the price of a case of Trailhead around $30.95 (according to TBS website) and the regular cheap beers like Lakeport at $28 a case... I'd much rather spend the extra 3 bucks and get something decent. I hope the Lucky Lager people of this province pick up on this and pick up a decent beer.

I still don't see why the government needs to step in and set a minimum price for products. Why can't we open up the market to competition and let the free market decide the prices for products?

Rob Creighton · Post by **Rob Creighton** » Wed Dec 24, 2008 8:16 am

kmallett wrote:Why can't we open up the market to competition and let the free market decide the prices for products?

Simple...history
Ontario=protestantism=neoprohibitionism=todays corporate Beer Store

Quebec=catholicism=liberalism=reasonably open distribition (language issues aside)

tupalev · Post by **tupalev** » Wed Dec 24, 2008 8:31 am

Simple...history
Ontario=protestantism=neoprohibitionism=todays corporate Beer Store

Quebec=catholicism=liberalism=reasonably open distribition (language issues aside)

Amen

Cass · Post by **Cass** » Sat Dec 27, 2008 9:12 am

I wrote an article about this (and a few more) on Freeourbeer echoing some of the points brought up here, if anyone's interested in checking it out.