Beer store – mackaycartoons

Thursday May 10, 2019

June 6, 2019 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 30, 2019

Ontario to end Beer Store deal, paving way for beer in corner stores

The Progressive Conservative government has tabled legislation that would terminate a contract with The Beer Store.

The previous Liberal government signed a 10-year deal with the brewers that permitted an expansion of beer and wine sales to hundreds of grocery stores.

Premier Doug Ford has indicated he plans to put beer and wine in corner stores, but he has to break that agreement to do so and the industry has warned that could trigger steep financial penalties.

While tabling today’s bill, Finance Minister Vic Fedeli said the current system is a monopoly that is a bad deal for consumers and businesses.

The legislation comes after the province’s special adviser on alcohol delivered a report Friday to Fedeli on ways to improve consumer choice and convenience.

The Tories also announced a number of loosened alcohol restrictions in last month’s budget, including allowing alcohol to be served at 9 a.m., seven days a week, letting people consume booze in parks, and legalizing tailgating parties near sports events.

Meanwhile, there’s been a swift reaction from Labatt Brewing Company Limited and Molson Canada 2005 — two of the three large brewers who predominantly own The Beer Store — to the legislation tabled Monday.

CBC Toronto obtained a copy of a lawyers’ letter from Labatt and Molson putting the government on notice of a potential legal challenge to the beer legislation. Blake, Cassels and Graydon LLP represent Labatt, while Molson is represented by Gowling WLG.

In the letter, the lawyers note that the 2015 Master Framework Agreement was negotiated with the province to enhance customer convenience, choice and shopping experience, while ensuring that customers in Ontario can purchase beer at prices below the Canadian average, and to enhance the beer retailing system for all brewers selling beer in Ontario.

“The Bill will destroy those benefits, legislate 7,000 Ontario-based The Beer Store employees out of work and cause billions of dollars in damages … and result in higher costs and prices for consumers,” the lawyers wrote. (CBC)

Thursday September 24, 2015

September 23, 2015 by Graeme MacKay

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Thursday September 24, 2015

Six-packs coming to Ontario supermarkets this fall

Consumers, craft brewers, grocers and owners of small bars and restaurants will finally quench their thirst for change under a new deal between Queen’s Park and the Beer Store, the Star has learned.

The 10-year accord clears the way for six-packs to be sold at 450 of Ontario’s 1,500 supermarkets starting later this fall at the same cost as in LCBO outlets and Beer Stores.

Beer prices in Ontario will continue — on average — to be among the lowest in Canada.

“Nobody thought you could get this agreement with the beer guys,” said a senior government official, referring to the foreign parent companies of Labatt, Molson, and Sleeman, which own the Beer Store and have enjoyed a virtual monopoly since Prohibition ended in 1927.

“For the small brewers, we are increasing their shelf space,” the insider said, speaking on condition of anonymity because the arrangement will not be made public until Wednesday.

Indeed, 20 per cent of beer shelving in supermarkets, the LCBO, and Beer Stores will be reserved for independent brewers from anywhere in the world that make fewer than 4.6 million six-packs a year.

That boutique category includes Ontario’s 100 craft brewers — such as Toronto’s Steam Whistle — as well as small Canadian firms like Brick. It does not encompass corporate craft brewer Creemore Springs, which is owned by Molson, or Labatt’s Goose Island. (Source: Hamilton Spectator)

Saturday March 14, 2015

March 13, 2015 by Graeme MacKay

Editorial cartoon by Graeme MacKay, The Hamilton Spectator – Saturday March 14, 2015

Kathleen Wynne not afraid to liberalize beer, wine sales, minister says

Premier Kathleen Wynne has the “steel” to bring beer and wine to Ontario supermarkets, says Economic Development Minister Brad Duguid.

In the wake of revelations by the Star’s Martin Regg Cohn that the spring budget will boast the greatest liberalization of booze sales laws in Ontario history, Duguid said no one should doubt Wynne’s fortitude.

“If you’re questioning the determination of this premier to make some of these tough decisions that have not been made in generations in some cases, I would suggest that this premier has the steel to make those decisions,” he told reporters Friday.

“She’s determined to ensure we get full value out of those assets not for the sake of doing so but to ensure that we have the ability to invest that value in building a stronger province through investing in public transit and investing in infrastructure.”

Duguid said the government is awaiting the final recommendations of former TD Bank chair Ed Clark’s advisory council on government assets to determine the future of the Hydro One transmission utility and how to improve beer and wine distribution.

“The demands of customers are growing in retail, the expectations are growing,” the minister said.

“This does provide an opportunity for the government to provide Ontarians with a better retail experience,” he said.

“We’re very impressed to the work that Ed Clark has been doing to date with regard to both Hydro One and regarding the alcohol distribution system.” (Source: Toronto Star)

Thursday February 12, 2015

February 11, 2015 by Graeme MacKay

Editorial cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 12, 2015

Price hike possible amid potential Beer Store changes, Molson Canada CEO says

Changes to the Beer Store could lead to higher prices, the CEO of Molson Coors Canada warned on Tuesday.

Stewart Glendinning’s comments to The Canadian Press come amid a push from Queen’s Park for the Beer Store’s foreign owners — Labatt, Molson Coors and Sleeman — to start paying a “franchise fee.”
“My overall worry is that we create a problem for beer volumes in Ontario,” Glendinning said.

An expert panel headed by former TD Bank CEO Ed Clark recommended the fee, a cost the companies would not be allowed to pass on to consumers as a price hike. Clark said the province could strip the brewing giants of their monopoly should they refuse.

Clark also recommended the government-owned LCBO be allowed to sell 12-packs of beer instead of just six-packs. As the Star revealed in December, a secret deal between the LCBO and the Beer Store means lucrative 12-packs and 24-packs cannot be sold at liquor stores.

Glendinning’s comments echo those of Jeff Newton, president of Canada’s National Brewers — which runs the Beer Store — who has said that adding new taxes to the retailer and selling larger packs at the LCBO is a “recipe for higher beer prices.”

But the province is still exploring the panel’s recommendations.

“We know that changes need to be made at the Beer Store,” said Kelsey Ingram, spokesperson for Finance Minister Charles Sousa.

In November’s Fall Economic Statement, Ingram noted, Sousa expressed support for the recommendations, including improving transparency at the Beer Store, providing Ontarians with a fair share of profits, ensuring all producers, including craft breweries, are treated equitably, and extending the sale of 12-packs of beer into LCBO stores. ‎

On Tuesday, Glendinning described the Beer Store as a break-even co-operative. Sousa has previously disagreed. (Continued: Toronto Star)

Monday, December 22, 2014

December 22, 2014 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Monday, December 22, 2014

Kathleen Wynne warns ‘change’ looms for The Beer Store

Premier Kathleen Wynne says Ontarians can “expect some change” in the new year on the way booze is sold in the province, including a rethink of the government’s deal with the foreign-owned Beer Store.

While the premier remained coy about how far she is prepared to go, she said the Liberals are “absolutely” serious about reforms.

“I’m impatient to get at that,” Wynne told the Star on Wednesday during a year-end interview in her Queen’s Park office.

“There’s a distribution system that works very well, but the fact it works very well has a value to it, right?” she said of the privately owned Beer Store.

“So how do we realize that value for the people of the province?”

A blue-ribbon panel on monetizing provincial assets led by former TD Bank chair Ed Clark has recommended keeping the LCBO in public hands while expanding its operations and charging The Beer Store a “franchise fee.”

Clark has warned the brewers, who claim they cannot afford another tariff, they will not be allowed to pass along the levy to consumers in the form of higher beer prices.

If they balk, the government is threatening to take away the monopoly enjoyed by AB InBev, MolsonCoors, and Sapporo, the offshore parent companies of Labatt, Molson and Sleeman. (Source: Toronto Star)

Kathleen Wynne, Ontario, Beer, Beer Store, liquor, cartel, monopoly, alcohol