Beer Store opens ownership to all Ontario-based brewers

Written By Unknown on Rabu, 07 Januari 2015 | 22.39

The foreign-owned Beer Store consortium says it is opening up ownership to all Ontario-based brewers.

The group says the move is effective immediately and that both large and small-sized brewers will be allowed to participate.

Ontario's beer retail operations have come under scrutiny recently after a Toronto newspaper published details of an agreement signed in 2000 between the Liquor Control Board of Ontario and the Beer Store.

Premier Kathleen Wynne said in a year-end interview with The Canadian Press that the relationship between the Beer Store consortium and the LCBO looked unfair and would "absolutely" be changed.

An advisory panel chaired by former TD Bank CEO Ed Clark had already recommended the province charge the Beer Store for its virtual monopoly on beer sales, saying there was a clear value that could be auctioned off if the brewers won't pay up.

The Beer Store's current owners — three major brewing companies — say opening up ownership makes sense for Ontario brewers and consumers.

The Beer Store also announced a number of measures to make it easier for small brewers to get their product on their shelves.

Small Ontario brewers — defined as those who sell fewer than 1 million litres/year at the Beer Store — will pay no listing fee when stocking two of their products at the five Beer Store locations closest to their brewery.

Beyond those five stores, small brewers will also be able to list the same two products at any other Beer Store location at reduced listing fees, paying only the per-store fee. Small brewers will also be able to swap out a new or existing brand listing and replace it with a seasonal brand twice a year at no additional cost.

Do the Beer Store changes do enough to aid smaller Ontario breweries?


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