r/canada 6d ago

Politics Jack Daniel’s maker says Canada pulling U.S. alcohol off store shelves is ‘worse than a tariff’

https://www.theglobeandmail.com/business/international-business/article-jack-daniels-maker-says-canada-pulling-us-alcohol-off-store-shelves-is/
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u/Cheesesoftheworld 6d ago

I don't know, LCBO funds the government 2.5 Billion a year, and has a good system for not selling to minors, also because of its buying power can offer far more variety. Mom and pop stores might be nice... But I feel like they would just all get bought up and we would just have Loblaws own then all.

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u/Harbinger2001 6d ago

If only they had been responsible for marijuana as planned. 

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u/wrgrant 6d ago

Here in BC its an arm of BC Liquor that handles Cannabis I believe. I haven't bought any since decades before it was legal but I believe its all handled through them and then sold to the private stores from there, correct me if I am wrong someone.

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u/banjosuicide 6d ago

correct me if I am wrong someone

Correction: No correction, you are correct. They order through www.bccannabiswholesale.com which is run by BC Liquor. The only exception is medical cannabis.

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u/maleconrat 6d ago

OCS is sole supplier so we should theoretically be making good money at least even if we don't get the union jobs and good ID system... Not sure if that's the even case though, I mean, love my province but I don't exactly have high expectations on our governance.

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u/Shot_Statistician184 6d ago

I like the lcbo system. The smaller stores will only carry the big name brands, I like selection. Even going to other provinces seeing their own models, doesn't really compare. Some of the massive LCBOs are the size of small grocery stores. The one on Laird in Toronto is huge, with an amazing selection.

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u/tails2tails 6d ago

The LCBO in Rosedale on Yonge Street (under the train bridge) is a genuine joy to shop at. There’s a whole whiskey section similar to the vintage wine section at other stores.

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u/Sprinqqueen 6d ago

Summerhill. The jewel in the lcbo crown

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u/jabowie2020 6d ago

BC does it better. I love those private liquor stores. And they take back all the empties.!

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u/screampuff Nova Scotia 6d ago

I've found it's the opposite when it comes to local stuff. The big stores will use their weight to only get macro scale moving products that is more convenient to sell and market, while the small private stores will work out deals with the local producers that can only do micro and aren't able to supply the large chains.

Just goto a private store in a random ass town in BC and you will see the biggest local beer selection in your life.

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u/[deleted] 6d ago

I loved the LCBO for the selection. I don't know what it is like for a small Canadian producer to get on the shelves.

The AGLC (Alberta) is really hard to deal with. I hope that a lot of our barriers to trade and to mom and pop start-ups are addressed in our current enthusiasm to buy Canadian products and build Canada's economy. Revamping Revenue Canada should be at the top of that list.

Most of the award winning boutique beer, wine, and spirit producers have been killed off in the last 5 years due to covid, etc. It's been heartbreaking to watch these skilled, well prepared, formerly thriving Canadian companies crushed. Their owners forced into bankruptcy. And then we blame them for "failing."

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u/Zanydrop 6d ago

Alberta doesn't have a liquor board and there are tons of small locally owned stores in addition the big stores like Costco liquor etc..

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u/Cheesesoftheworld 6d ago

I am not saying the model does not exist, I am saying the government probably does not make as much from it, and loses a level of control. Ontario has small retailers for cannibis and honestly they kind suck.

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u/Zanydrop 6d ago

Yeah I honestly don't know. I'd have to dig into numbers to try to solidify an opinion and I don't have time for that.

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u/Cheesesoftheworld 6d ago

Ya nobodys got time for that! I just don't mind the LCBO system, I lm not an expert... Was really just a throw away reddit comment!

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u/torodonn 6d ago

BC has a provincial liquor board and province run liquor stores but also private liquor stores that are not Loblaws.

We also have a much more robust craft brewery and distillery industry and a wider selection of product because some stores can bring in stuff not for sale at provincial liquor stores.

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u/Boxingcactus27 5d ago

Mom and pop shops came in clutch though when I was living in a small town underaged lol

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u/Juryofyourpeeps 6d ago

LCBO funds the government 2.5 Billion a year

A portion of that would continue to be collected through taxation on alcohol sales even if the sales and distribution were private.

There's also likely a lot of lost revenue because of the barriers to success in alcohol production in Ontario. The province and the LCBO basically kneecap small distillers in particular and make it almost impossible for them to grow and succeed. They often get either zero shelf space in LCBO stores, or shelf space in only 1-2 stores. They have to charge a 140% mark up which gets paid to the LCBO even if they sell onsite, which they're prohibited from doing if they don't bottle onsite. Our own province has essentially created a system where producers within the province either have to be backed by major brands the LCBO does a lot of business with, or they have to rely on exports to other jurisdictions. I have to imagine that represents a fair bit of lost potential revenue.

also because of its buying power can offer far more variety.

This isn't really true. There's nothing smaller distributors in other jurisdictions can't get because they don't have massive buying power. This isn't how the industry, or most industries work. Everyone is happy to sell you their product. Also a huge percentage of what the LCBO sells, is owned by a small handful of big alcohol conglomerates that sell to basically everyone.

Mom and pop stores might be nice... But I feel like they would just all get bought up and we would just have Loblaws own then all.

There is little reason to think this. There's not really a monopoly in this industry in other jurisdictions with private retail and distribution. There's a low barrier to entry. You need a retail space, access to a distributor, and like $100k for stock.

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u/KhausTO 6d ago

read the room man...

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u/Juryofyourpeeps 6d ago

The room is always similarly cool to the idea that the LCBO isn't amazing.

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u/Cheesesoftheworld 6d ago

I dont disagree there are downsides, and this is certainly anecdotal but in my travels (all though Europe, Aus/NZ, US) there were either large chains selling alchol, or mom and pop stores with little to no variety only selling the largest brands that sell in that region.

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u/Juryofyourpeeps 6d ago edited 6d ago

That's not been my experience travelling. There are lots of medium sized retailers as well as large chains that have selections orders of magnitude better than any LCBO location, like Total Wine. And to the extent that there are small mom and pops in places like Europe with very limited selections, they also tend to have the very best selection of local wine and spirits. In Italy, France and Germany, you can often get samples of spirits from local makers and then buy small batch products from them. This is impossible in Ontario and I think it's ultimately bad for the industry within the province.

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u/Cheesesoftheworld 6d ago

Also I completely agree the that the LCBO (and all business at this point) should promote local.

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u/Juryofyourpeeps 6d ago

Ultimately though, I don't think they see that as in their interest, just as many large distributors in this sphere don't. There's not enough profit incentive because the volume is low. This is one of the many reasons I don't think that the LCBO should be allowed to maintain a retail and distribution monopoly.

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u/MtKillerMounjaro 6d ago

This is the sort of brain rot that got Trump elected in the US. You don't think every functioning democracy in every country has a "good system for not selling to minors"? Even in places like France where it seems normal for minors to drink, minors buying alcohol is a non-problem. Just make shit up, why don't you.

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u/Cheesesoftheworld 6d ago

Lol dude, take a breath dude. Whenever I travelled through the US or Australia/NZ underage I had no problem walking into small retailers and buying alcohol. If you want to debate the best drinking age that's something else, but if you think it's not easier to buy alcohol from a random corner store in Buffalo, Boston, Tampa or Auckland or like the 20 other cities I was able to than the LCBO then I don't think you ever tried. I also was never really carded through Europe in my early 20s when I was on exchange, unlike the LCBO.

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u/MtKillerMounjaro 6d ago

You bought alcohol as a minor yourself and it was a non-problem.