cartel

Thursday February 12, 2015

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

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

BSChanges 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.

Monday, December 22, 2014An 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.

Saturday November 15, 2014“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

Monday, December 22, 2014Editorial 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

December 1, 2007

Buried beneath the weight of all the news over Karlheinz Schreiber’s tedious performance before the House of Commons Ethics Committee was the announcement of another probe by Parliament into allegations of price fixing by Canada’s largest chocolate making companies. It’s been reported that the Canadian divisions of Nestle, Cadbury, Hershey and Mars are under investigation by regulators over alleged price fixing of chocolate bars. The Competition Bureau of Canada has requested that the companies hand over documents related to their pricing arrangements. It is understood that no charges have yet been made and that there is no solid evidence of any wrongdoing. Well, I thought it warranted a cartoon, even though I’m probably the only cartoonist who bothered with this story: