The Ontario government announced it will allow 450 grocery stores across the province to sell beer; it also will impose a new beer tax and appointing a new beer ombudsman. Here are five facts about Ontario's new plan:
Beer ombudsman
A job handling complaints about beer sounds a bit like the basis for a Canadian comedy sketch.
Should the person expect calls from Ontarians who don’t have enough to drink? Or when they feel
awful the next day and feel inclined to blame a skunky brew?
The actual Ontario Ombudsman, André Marin, was among the many who reacted incredulously. “A ‘Beer Store Ombudsman?’ Seriously?” he tweeted Thursday afternoon.
But the Ontario government’s report says someone will be named to handle issues that arise.
“An independent Beer Ombudsman will be appointed by the Independent Directors of [the Beer Store] to hear complaints from brewers and customers regarding operational issues,” it says. “If the Beer Ombudsman is unable to resolve a complaint, it may be submitted to a dispute resolution process.”
The lineup to apply can start forming over on the left.
Beer tax
The Ontario government is looking to raise an extra $100-million annually on sales of beer in the province.
There will be a “volumetric charge” on all beer sold in the province – what most people would call a tax, equivalent to $1 on a case of 24 – that retailers will have to swallow for the first two years. The province will also seek to claw back for the taxpayer some of the proceeds of legislatively imposed increases in the minimum price of beer, which the report says tend to be applied at all price points. And it will index to inflation some beer-related service charges at the LCBO.
Net impact? Pricier suds.
Cheaper Ontario beer
Maybe the higher price won’t bother Ontarians so much, because according to the report,
beer-drinkers pay less in this province than in others with less-stringent retailing
regulations.
The report compares what it describes as the “weighted average price of all home consumer packaged beer products” sold through the Beer Store. Using that metric, it claims that a two-four costs $34 to $35 in Ontario. It says the price paid by the consumer is about the same in Quebec, but the taxes per case are lower there, and about $40 in Alberta and British Columbia.
Don’t believe it? Take it up with the ombudsman.
Pilot for 12-packs
Of course, the two-four isn’t for everyone. The report calls for a trial selling 12-packs at 10
outlets of the LCBO, which had been restricted to sales of six-packs.
“If the 12-pack pilot is successful, there could be more than 220 LCBO stores (including the existing 167 LCBO combination stores) and 217 agency stores selling 12- or 24-packs of beer in smaller communities across Ontario,” the report says.
The recommendations are also touted as a way to make it easier for the LCBO or the Beer Store to open “new stores in under-served communities.”
Milk, eggs and beer
The report is calling for beer to be sold in up to 450 grocery stores across the province, as
long as they meet shelf-space requirements for small brewers and purchase the beer from the LCBO.
This will make it more convenient for some consumers. But it won’t be quite as simple as grabbing
chips, dip and beer from the same aisle.
The area selling beer will have to be physically distinct from the rest of the retail space – effectively a stand-alone boutique within the store. Employees will need special training, minimum pricing will be in effect and sales will be limited to six-packs.
These stores-within-stores are also to have the same operating hours as other beer retailers. So forget about making a midnight run for more beer.