Recommendation to LCBO says sell beer in bigger formats
Toronto, ON – A recommendation today by Restaruants Canada to the LCBO suggests $500 million in revenue is being lost due to packaging restrictions put in place with an 2000 agreement with the Beer Store.
The fourteen year-old agreement, called “Serving Ontario Beer Consumers: A framework for improved cooperation & planning between the LCBO & BRI” effectively restricts the LCBO to selling only 6-packs and single cans of beer for any product also carried by the Beer Store. Sales of 12- and 24-packs of beer are confined to the Beer Store only.
Restaurants Canada, a national association of 30,000 foodservice businesses, presented a claim that if one quarter of public and licensee sales transferred from the Beer Store to the LCBO a new revenue stream of potentially half a billion dollars would open and also increase market competition.
“It is inconceivable that the government would protect a foreign-controlled monopoly like The Beer Store to the detriment of taxpayers,” says James Rilett, Restaurants Canada’s Ontario Vice President. “This is bad for taxpayers, consumers, and small businesses.”
The recommendation was directed to Ed Clark, Chair of the Premier’s Advisory Council on Government Assets in Ontario.
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