Industry Standards & Practices Code

[Cass]

Here's something interesting for your perusal today. Linked below is the "Industry Standards & Practices Code" issued by the Brewers Association of Canada, which all brewers need to consent to as part of their ACGO manufacturer's licence (see http://www.agco.on.ca/forms/en/2087_a.pdf )

It’s a document that covers a few things, notably trade practices between brewers and licensees (bars). What’s interesting is that it’s quite explicit regarding what brewers can't do when it comes to bar incentives.

Here's a sample of what is "expressly forbidden":

Any direct of indirect financial benefit including but not restricted to cash, cheques, rebates or credit arrangements that have financial impact on the Licensee either through their Canadian or international operations.

This includes, as examples are listed in document, price discounts, equipment, trips, renovation, furniture, decorating, etc. Swag – tap handles, coasters, glasses, are all ok as they meet the criteria of "raising the profile of the company or brand".

Here is the document:

http://bartowel.com/reports/industry_standards.pdf

(Evidently even though it's dated 1995, it's still in effect.)

[JerCraigs]

Huh.

[grub]

can we print off copies and hand them out to all the BMC sales reps? and the bars that demand such things?

[Rob Creighton]

and the bars that demand such things?

There's a bar that doesn't demand such things? I can count them on one hand

[JasonTremblay]

Ontario needs a wholesale overhaul of its regs and laws.

Some portions of the regs are nonsensical (no free beer, including samples), others don't get enforced (corporate bribes, free samples ), some hurt small brewers (no combining delivery trucks) and on and on.

And, once and for all, we have to face, head on, the dichotomy in the laws and regulations: we want Ontario to be awash in booze (and gambling) because it's a cash cow. But we also want to control access to booze (and gambling) because we are Ontario the good, and we don't want to lead our citizens into perdition.

Jason

[Tapsucker]

If I'm not mistaken, free samples are legal, but they have to be recorded and taxed. So for instance, a rep wants to hand out samples at a bar of their beer. They have to actually buy the beer from the bar, who buys it from them. Then they can hand them out.

I'm not sure how it works with the samples often given out at the LCBO and occasionally BS.

Also, every brewery I have visited in Ontario hands out free samples. I had a laugh in Halifax, where by law they have to charge you for a sample. In Ontario that would cause a hassle because the brewery would have to have a liquor license to sell you a sample and that would entail all of the infrastructure of a proper bar, bartenders and maybe even kitchen.

[Kel Varnsen]

Any direct of indirect financial benefit including but not restricted to cash, cheques, rebates or credit arrangements that have financial impact on the Licensee either through their Canadian or international operations.

This includes, as examples are listed in document, price discounts, equipment, trips, renovation, furniture, decorating, etc. Swag – tap handles, coasters, glasses, are all ok as they meet the criteria of "raising the profile of the company or brand".

I have always wondered why this thing is illegal when it is pretty much expected in other industries. I mean how many grocery stores will have those big coke or pepsi displays (that I am sure the supplier arranges) or free samples being given away by food companies. Hell my dad used to own a video store and the amount of free promo stuff he would get from suppliers was awesome. Not to mention that a lot of times, if he ordered over a certain number of copies for most movies he would get a price break on all of them. If that kind of thing is legal, I am not sure why it would be any different for alcohol companies.

[JerCraigs]

If that kind of thing is legal, I am not sure why it would be any different for alcohol companies.

Because alcohol is baaaad, is the short answer, and because taxing and regulating booze goes over much better than raising income taxes...

[Cass]

Huh.

Thought it might be interesting for people to see, as the chatter around the campfire is that these rules are broken almost all the time.

Makes you wonder why the rules are in place, considering that in our climate of intense enforcement for even the smallest thing (see: labelling, etc.) that they don't.

[JerCraigs]

I had no idea it was a condition of the licence... that's kind of a big deal. Eg. That is a VERY big stick to carry around when enforcing that stuff. So it does beg the question, why is it not enforced?

[Derek]

So it does beg the question, why is it not enforced?

Why does The Beer Store make political donations?

Rob provided some further insight here:
http://www.bartowel.com/board/viewtopic ... c&start=15

But yeah, if rules aren't enforced, they should just be eliminated (which might help level the playing field).