The LCBO in the Budget

Bytowner · Post by **Bytowner** » Wed Mar 10, 2010 10:50 am

Interesting musings on the future of the LCBO in the budget

The above article isn't particularly enlightening, but I'm sure you've all heard about it by now. Getting out of the liquor business in Ontario seems to be a no-go... getting into the liquor business elsewhere is where it's at. As far as I can tell, the idea is to sell shares in the LCBO to outside interests to allow it to compete outside of Ontario, or even Canada. I know I certainly didn't see this coming. Weird. [/url]

Belgian · Post by **Belgian** » Wed Mar 10, 2010 2:36 pm

Do we WANT our province going out with its public corporations, competing internationally, with the free use of our tax dollars? What if they LOST money??? Who pays for that? Tax hikes?

Sounds like we'd be funding a multinational company (or companies) which already places its own interests above our own.

Bad enough we effectively support the ownership of the beer storeby three major brewers with strong international ties - and even pay extra for this!

Labatt owned by AB - InBev (Belgium)
Sleeman owned by Sapporo (Japan)
Molson joined with SAB/Miller in the joint venture "MillerCoors" in the USA and Canada

Kel Varnsen · Post by **Kel Varnsen** » Wed Mar 10, 2010 3:31 pm

Belgian wrote:Do we WANT our province going out with its public corporations, competing internationally, with the free use of our tax dollars? What if they LOST money??? Who pays for that? Tax hikes?

Sounds like we'd be funding a multinational company (or companies) which already places its own interests above our own.

It sounds weird and I am wondering what sort of locations would allow this sort of thing? I mean even the provinces that have more private liquor stores still have provincial liquor control at some level. I am not sure how say quebec would feel about LCBO's opening up and competing with the SAQ, and I am not sure how LCBO's would be able to open up in a place like Alberta with private sales. And I am not sure how the government in any location would feel about a company as huge as the LCBO opening up in their area, with the LCBO's buying power, and sending all their profits back to Ontario.

Ukie · Post by **Ukie** » Wed Mar 10, 2010 7:26 pm

There are many areas the LCBO could explore other than opening liquor stores in other provinces. I mean could they buy some craft breweries in Ontario and develop their own beer based on say BT's knowledge to compete directly with TBS, keep your beer BS we have our own, would this be allowed?
In the provinces that have private stores they could buy up chains. Now they own the distributors and the suppliers, there is an economic term for this that escapes me besides monopoly.
I remember how Canada Post changed from a antiquated government department in the 70's to a Crown Corporation in the 80's eventually buying Purolater. The LCBO is a big company making big money, think how much they have evolved from the old days of the order pads with the green pencils.

Kel Varnsen · Post by **Kel Varnsen** » Thu Mar 11, 2010 8:34 am

Ukie wrote: In the provinces that have private stores they could buy up chains. Now they own the distributors and the suppliers, there is an economic term for this that escapes me besides monopoly.

Someone can correct me if I am wrong, but don't most of the provinces that have private stores doesn't the government still control distribution. I mean for example in Alberta you can buy beer or whatever from a private store, but isn't the Alberta government basically the wholesale distributor to those stores. So if the LCBO were to open stores in Alberta, I am not sure what advantage they would have, since instead of being able to get stock from their own warehouses (which take advantage of their buying power) would they have to be supplied from Alberta government warehouses?

northyorksammy · Post by **northyorksammy** » Thu Mar 11, 2010 11:41 am

no business logic to this
or to the way the LCBO operates at all
better if the businss-minded Conservatives get back in with a big majority

SteelbackGuy · Post by **SteelbackGuy** » Sun Mar 14, 2010 1:08 pm

northyorksammy wrote:no business logic to this
or to the way the LCBO operates at all
better if the businss-minded Conservatives get back in with a big majority

There might not be any business logic in any of it, but over 87% of Ontarians are more than happy with the LCBO, and that number is only rising.