Talk or Action?

[tupalev]

Having more places to sell beer is vitally important to the craft brewers in this province - they have long argued that shelf space is one of their top issues. So this could be a very important announcement for those that have a plan in place to be able to distribute to these "new" sales locations.

And maybe I'm being slightly optimistic, but perhaps this will bring some folks back to the beer distribution game - we have seen a few key players leave over the last few years (the increase in logistics costs is another massive negative effect on small brewers' bottom lines as well).

[S. St. Jeb]

but I don't think we'll see significant changes

It is my sense too that the only significant changes will be where you can buy beer, nothing that will affect pricing or selection.

[S. St. Jeb]

Having more places to sell beer is vitally important to the craft brewers in this province - they have long argued that shelf space is one of their top issues. So this could be a very important announcement for those that have a plan in place to be able to distribute to these "new" sales locations.

And maybe I'm being slightly optimistic, but perhaps this will bring some folks back to the beer distribution game - we have seen a few key players leave over the last few years (the increase in logistics costs is another massive negative effect on small brewers' bottom lines as well).

"The Beer Store will still be the primary distributor of beer to retailer outlets, bars and restaurants until at least 2031 while the market adjusts to the new regulations, the province said, but smaller Ontario craft brewers will be able to distribute their products through other channels if they wish."

https://www.cbc.ca/news/canada/toronto/ ... -1.7058335

[Cass]

Officially official:

https://news.ontario.ca/en/release/1003 ... box-stores

The pricing wording is a bit confusing but looks like it will be fairly consistent with the way it is now. Confirmed that the LCBO will continue to be the wholesaler so the door remains closed for importing.

Today, the Ontario government announced that beginning no later than January 1, 2026, consumers will be able to buy beer, wine, cider, coolers, seltzers, and other low-alcohol ready-to-drink beverages at all participating convenience, grocery and big box stores across the province. This new, more open marketplace will introduce up to 8,500 new stores where these products can be purchased, the largest expansion of consumer choice and convenience since the end of prohibition almost 100 years ago. Spirits like vodka, gin and whisky will continue to be sold at the LCBO.

"We made a promise to the people of Ontario to deliver more choice and convenience,” said Premier Doug Ford. “Today, we’re delivering on that promise. There’s no reason why Ontario consumers shouldn’t enjoy the same convenient shopping experience as Canadians in every other province when buying some wine for their holiday party or a case of beer or seltzers on their way to the cottage.”

As a first step in the transition to a new retail marketplace, the government has informed Brewers Retail Inc. (The Beer Store) that the Master Framework Agreement (MFA), signed and extended for ten years by the previous government in 2015 and limited the number of retail stores that could be authorized to sell alcohol, will not be renewed after it expires on December 31, 2025. The Beer Store and LCBO will continue their retail operations in Ontario’s new marketplace.

“The people of Ontario will soon have more choice and convenience on where they can buy alcohol,” said Peter Bethlenfalvy, Minister of Finance. “As we move towards implementing this expansion, our government will be taking a responsible, measured approach so we can ensure our transition to a new marketplace is smooth, safe and stable.”

The government’s balanced approach also includes the following initiatives:

Competitive pricing: Ontario will introduce competitive pricing to all private retailers to promote competition and a better deal for consumers. LCBO retail stores will maintain consistent pricing across the province to help ensure consumers do not pay more based on where they live, including in rural and northern Ontario. As they do in other provinces, retailers will have the option to set promotional prices consistent with relevant regulations. Minimum pricing policies will remain in effect to preserve standards for responsible consumption.
Pack sizes: Ontario is removing restrictions and exclusivities on pack sizes. Consumers will be able to purchase any pack size, including 12-packs, 24-packs or even 30-packs as is popular in Quebec of beer, cider and ready-to-drink alcohol beverages at convenience, grocery and big box stores, in addition to the LCBO and The Beer Store.
Recycling program: The Beer Store has agreed to continue to run the provincewide recycling program for alcoholic beverage containers until at least 2031 as part of a transition period in the new marketplace. This program, which is well liked and convenient for consumers with hundreds of locations across the province, helps keep costs down for producers and consumers while helping to protect the environment by diverting significant amounts of waste from landfills. The government will consult with retailers and industry stakeholders on the future of recycling and deposit return to ensure this important feature is maintained beyond 2031.
Support for local beverage alcohol producers: Ontario will provide a range of transitional and time-limited supports to Ontario-based producers to help with the transition to a more open marketplace, including:
Extending dedicated shelf space requirements across all new retailers for craft producers to provide opportunities for small producers to compete
Immediately enhancing the Vintners Quality Alliance (VQA) Wine Support Program beginning in 2024-25 for up to five years to 2028-29 to support the growth and sale of Ontario-grown VQA wines
Extending the Wine Marketing Fund and the Small Cidery and Small Distillery Support Program for up to five years
Supporting local economic development by directing the LCBO to promote and prioritize Ontario-made products, producers and workers by providing more and enhanced programs, promotions and strategies to help local producers grow Ontario product sales
Establishing a wine and grape industry sector table between government and industry partners
Introducing legislation that will, if passed, eliminate the 6.1 per cent wine basic tax at on-site winery retail stores, making Ontario’s tax regime competitive with other provinces, including British Columbia
Social responsibility: The government is providing an additional $10 million over five years in funding to the Ministry of Health to support social responsibility and public health efforts to ensure alcohol continues to be sold and consumed safely in the expanded marketplace. Existing requirements related to staff training, minimum pricing, hours of sale and warning signs will be maintained and applied to all new retail outlets.
Wholesale: The LCBO will be the exclusive wholesaler for all retail, bars and restaurants selling alcohol and will offer consumers an extensive array of choices, including domestic and imported products. This structure will continue to offer the benefits of the LCBO’s world-leading purchasing power and economies of scale and ensures sector stability, including maintaining an important employment footprint across Ontario and a significant revenue stream for government so that it can continue to invest in critical frontline services like health care and education. The province is proud of its LCBO workforce and will continue to support them through this transition.
Distribution: The LCBO will continue to work with producers and retailers to distribute wine and spirits in an expanded marketplace, including retail stores, bars and restaurants. The Beer Store has agreed to maintain its primary role in the distribution of beer to retailers, bars and restaurants until at least 2031 as part of the transition period, helping to provide stability to the sector and frontline workers. The province will also permit more flexible distribution models for small producers.
In the months ahead, the government will continue to meet and consult with industry partners, local beverage alcohol producers and other stakeholders on additional areas of the future marketplace including licensing, wholesale pricing and taxes, mark-ups and fees. The province will also conduct a broader review of taxes and fees on beer, wine and alcoholic beverages with the aim of promoting a more competitive marketplace for Ontario-based producers and consumers.

[tupalev]

While LCBO locations will maintain consistent pricing, private retailers will be able to set their own prices "consistent with relevant regulations," according to the province. Right now, all retail outlets have to adhere to pricing set by the LCBO.

There will still be a minimum price for alcoholic products to "preserve standards for responsible consumption," a news release accompanying the announcement said.

That does seem fairly positive in terms of seeing some price competition at the various outlets.

[tupalev]

Having more places to sell beer is vitally important to the craft brewers in this province - they have long argued that shelf space is one of their top issues. So this could be a very important announcement for those that have a plan in place to be able to distribute to these "new" sales locations.

And maybe I'm being slightly optimistic, but perhaps this will bring some folks back to the beer distribution game - we have seen a few key players leave over the last few years (the increase in logistics costs is another massive negative effect on small brewers' bottom lines as well).

"The Beer Store will still be the primary distributor of beer to retailer outlets, bars and restaurants until at least 2031 while the market adjusts to the new regulations, the province said, but smaller Ontario craft brewers will be able to distribute their products through other channels if they wish."

https://www.cbc.ca/news/canada/toronto/ ... -1.7058335

That's very positive - small brewers will not have to use TBS to get to these new retail locations.

[tupalev]

My initial reaction to the announcement is all fairly positive. Now all the small brewers have to do is get to 2026

[Tapsucker]

Recycling program: The Beer Store has agreed to continue to run the provincewide recycling program for alcoholic beverage containers until at least 2031 as part of a transition period in the new marketplace. This program, which is well liked and convenient for consumers...

Haw, haw, haw, haw, *sniff* *choke* haw, haw, haw... It's such a good thing they actually asked consumers.

[Cass]

Official Statement (?) from The Beer Store:



Unsurprisingly focused on employees (the union) and returns. They were never really about the beer, so why start now. I wonder if this was in part a response to Josh's article predicting a dismal future for TBS:

https://www.thestar.com/business/closin ... 10b26.html

[S. St. Jeb]

From the Toronto Star article:

"The shopping experience is just dreadful," said Beaumont. "They tried to elevate it with their express stores, but I think almost all of those are gone. Their model really hasn't changed in 40 years."

Forty years ago, you had to look at a display on the wall and ask for what you wanted. I'm sure there must be a few of those type stores still around, but most I know of are full walk-in self-serve. So whether you like TBS or not, I think calling the shopping experience 'dreadful' is a little severe.

[S. St. Jeb]

TBS will still handle the "Ontario Deposit Return Program" for the foreseeable future. I am curious what their obligation is for this in terms of geography. For example, if they want to close a store due to poor sales, are they obligated to maintain a return depot within a certain area based on, for example, a maximum distance to the next closest store?

[Cass]

From the Toronto Star article:

"The shopping experience is just dreadful," said Beaumont. "They tried to elevate it with their express stores, but I think almost all of those are gone. Their model really hasn't changed in 40 years."

Forty years ago, you had to look at a display on the wall and ask for what you wanted. I'm sure there must be a few of those type stores still around, but most I know of are full walk-in self-serve. So whether you like TBS or not, I think calling the shopping experience 'dreadful' is a little severe.

TBS does seem to have a fairly major consistency problem though. For example, there's one on Kerr St. & Lakeshore in Oakville (near very ritzy stuff) that is right out of the 70s - a run-down store where one still has to order from the "beer wall", with the exception of a macro self-serve area. On the other hand, where I grew up at Avenue & Lawrence, the new TBS there is full walk-in, bright and generally fairly inviting.

Not all stores are dreadful, but most certainly TBS rested on their laurels while modern retail standards & norms blew past them and left them in the dark ages. It really would be fascinating to know the executive boardroom conversations while the LCBO started modernizing and creating a premium experience, and if they truly thought their monopoly would last forever - or if they figured it would eventually end which is why they didn't do anything about it.

[MatttthewGeorge]

From the Toronto Star article:

"The shopping experience is just dreadful," said Beaumont. "They tried to elevate it with their express stores, but I think almost all of those are gone. Their model really hasn't changed in 40 years."

Forty years ago, you had to look at a display on the wall and ask for what you wanted. I'm sure there must be a few of those type stores still around, but most I know of are full walk-in self-serve. So whether you like TBS or not, I think calling the shopping experience 'dreadful' is a little severe.

In Elmira you have to use a screen in order to see what they have in store. I'd say that's "dreadful"

And just this weekend I went into a walk-in TBS to find one of the two 4-packs of Belhaven Stout listed. After standing in the store for 10 minutes trying to find it I had to line up just to ask about it. Guy said it was out of stock and when I told him their inventory showed they have two remaining he shrugged. I'd say that's "dreadful"

[S. St. Jeb]

The only Beer Stores I've been to in a very long time are three of the ones in Burlington, and they are all pretty decent.

Thirty+ years ago, I used to live around the corner from the one at Kerr and Lakeshore that Cass mentioned. Incredible that it has never been updated. With examples like that, I have little sympathy for TBS.

I've never been in one with a screen to order from like Matthew mentioned. I think I might prefer the "beer wall".

As for only finding one of two items listed in the inventory, that problem is not unique to TBS. But the response Matthew received isn't acceptable.