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Quotulatiousness

July 21, 2024

LCBO strike reportedly settled

Filed under: Business, Cancon, Government, Wine — Tags: , , — Nicholas @ 03:00

A tentative deal was announced on Friday afternoon, then un-announced after the LCBO claimed the union had added financial demands to the return-to-work conditions after the contract itself had been agreed, and then on Saturday, re-announced. If the deal is ratified by the union, LCBO stores across Ontario should re-open on Tuesday.

It was the first LCBO strike in Ontario history, and it’s open to debate whether the union members will get all that much for their two-week unpaid break. The National Post‘s Chris Selley thinks not, calling it the “Stupidest. Strike. Ever.”

“LCBO at Parkway Mall” by Xander Wu is licensed under CC BY-SA 4.0 .

A week into the strike, a scant 15 per cent of Ontarians told Leger marketing that shuttered LCBO outlets had “affected (them) personally”. Only 29 per cent said they felt the government should legislate or arbitrate LCBO workers back into stores as soon as possible. Eleven per cent said they didn’t even know the strike was happening. And 32 per cent said they had explored “alternative locations” to buy booze, of which there are nowadays myriad.

Many more explored those opportunities in week two of the strike, I suspect, as fridges and wine racks were depleted. That’s potentially bad news for the LCBO’s future retail market share. But you didn’t even need an alternative to the LCBO: With a few days’ planning you could get all your regular brands delivered for free. Delivery and wholesale options were running as normal. Restaurants and supermarkets supplied by the LCBO were still supplied, and though there were reports of empty shelves at some supermarkets, that wasn’t truer than normal at the one I visit.

[…]

So this all looks like a terrible miscalculation by union leadership on behalf of its members — both a fundamental misreading of who had leverage, and a bizarre tactical choice to make the strike first and foremost about expanding the sale of ready-to-drink cocktails and seltzers (RTDs) to supermarkets and convenience stores.

Not wages; not benefits; not the number of full-time positions — things people can at least relate to — but where you can and cannot buy a White Claw or a Caesar in a can. Did they really think people would care?

Near as I can tell, it was an attempt to make this about the LCBO’s retail future: RTDs are a big and growing slice of the alcohol market in Ontario, only accessible (before the strike) at the LCBO. OPSEU wanted us to believe that by allowing supermarkets to sell them, Ontario would make no profit on them. And that’s their baked-in advantage: An incredible number of Ontarians, including far too many journalists, cannot wrap their minds around the notion of the government taking its cut at wholesale rather than retail.

Still, this gambit clearly fell flat.

Update: Fixed broken link to NP.

July 14, 2024

When the Ontario Progressive Conservatives backed away from LCBO privatization

Filed under: Business, Cancon, Politics, Wine — Tags: , , , , , — Nicholas @ 03:00

In the National Post, Terence Corcoran posts an excerpt from last year’s The Harris Legacy: Reflections on a Transformational Premier edited by Alister Campbell:

“LCBO at Parkway Mall” by Xander Wu is licensed under CC BY-SA 4.0 .

Almost 30 years ago, in 1995, the Ontario Progressive Conservative government led by Mike Harris promised to privatize the Liquor Control Board of Ontario (LCBO). “We will sell off some assets, such as the LCBO,” said the party’s famed election document, the Common Sense Revolution (CSR). The LCBO could have been a true privatization — a full-fledged divestiture of a government monopoly into a new open and competitive market, but it never happened.

The failure to privatize the LCBO, lamentable from a consumer and economic perspective, remains a significant lost opportunity to demonstrate the benefits of privatization. If Harris had successfully de-monopolized the alcohol market, the whole concept of privatization would have been given a major boost. Instead, the government backed away from privatization of the alcohol market, preferring instead to allow the corporation to substitute modern marketing and retail razzle-dazzle to give the false impression it was offering the public the best of all worlds.

The LCBO failure is also a demonstration of the degree to which the Common Sense Revolution’s starting principles fell short in grasping the essential benefits of private versus public ownership and control. Neo-liberalism isn’t exactly a fine science. The Wikipedia entry on “Neo-liberalism” is a 30-page effort (including 400 footnote links to hundreds of warring academic papers), reflecting an economic and ideological scramble that dates back more than a century. But when the Harris government came to power, major elements of the free-market model were often overshadowed by fiscal policy objectives. With the LCBO, the Harris government veered off the neo-liberal course in pursuit of standard political objectives.

In 1995, the LCBO was a government owned and operated province-wide corporation that controlled liquor and wine wholesale and retail markets. Another private monopoly player, the Beer Store chain, while owned and operated by the brewing industry, was also essentially a government-sanctioned beer monopoly. The CSR neo-liberal objective should have been to privatize the alcohol market by selling the LCBO, deregulating the Beer Store monopoly and allowing beer sales through supermarkets and even corner stores. More importantly, dismantling the LCBO would allow other corporations to enter the alcohol retail business and provide consumers much more choice, which has been the Alberta experience. Notably, Alberta achieved a successful and deregulated approach without sacrificing provincial revenues.

The neo-liberal objective of privatization is to benefit consumers and enhance economic productivity through competition. Instead, the Harris government fell into the fiscal policy trap that routinely captures politicians, bureaucrats and corporate insiders. Instead of aiming to benefit consumers, the objective soon became how to maximize the fiscal return to government. Never mind the consumer and the market. The objective became preserving — and enhancing — government revenues.

At the time, anti-privatization advocates frantically pointed at the Alberta experience of privatization of their provincial liquor monopoly, which (briefly) generated a lot of retail horror stories that Ontario newspapers gleefully republished (and, likely, emphasized out of proportion to the actual Alberta market). You can still hear Ontarians casting aspersions on the Alberta market as if nothing at all had changed after the initial rough patch. From what I’ve heard from Albertans, they have far wider choices of alcoholic beverages in stores much more conveniently sited with better open hours than anyone in Ontario enjoys. The Alberta government still gets at least as much in tax revenues from alcohol sales without needing to be in the distribution or retail business. It doesn’t seem to be the utter disaster that Ontario media portrays it to be … rather the contrary.

July 7, 2024

Ontario’s LCBO strike may be both justified and counterproductive

Filed under: Business, Cancon, Government, Wine — Tags: , , , , , — Nicholas @ 03:00

Ontario’s main importer and distributor of wine, beer, and spirits is now facing its very first actual strike, as the negotiators couldn’t come to an agreement by the strike deadline on Friday morning. On the face of the dispute, the union certainly has some solid grounds for the strike, as pay hasn’t been keeping pace with (official) inflation and far too many of the LCBO’s workforce are on work schedules that keep them from earning full-time wages. On the other hand, over the last decade or so, both Liberal and Progressive Conservative provincial governments have been making piecemeal changes to the market so that the LCBO is far from the only place Ontario drinkers can purchase their preferred booze. Just off the top of my head, here are some of the alternative options now available to Ontario consumers:

“LCBO at Parkway Mall” by Xander Wu is licensed under CC BY-SA 4.0 .

  • The Beer Store, Ontario’s other (foreign-owned) booze oligopoly for beer and cider is still operating normally at all their retail locations and agency stores. They also have online ordering for delivery available to ordinary consumers.
  • The LCBO is still offering online sales — not same-day, but free delivery.
  • Ontario’s vast array of craft brewers are still able to sell individual cans or bottles of beer from their bottle shops or storefront locations (pre-packaged 6-, 12-, 24-container or other types are still limited to the Beer Store oligopoly, of course).
  • Ontario’s wineries are similarly still operating normally for retail sales at the winery or (for a few older wineries who still have grandfathered privileges from earlier licensing regimes) stand-alone retail stores.
  • Ontario’s much smaller — but growing — number of distilleries are also operating normally and are able to sell their locally produced whiskey, gin, vodka, etc. from their tasting rooms/bottle shops.
  • Many, many grocery stores in the province now sell wine, beer, or both, and are all operating normally. They may be slower to replenish the shelves as the LCBO’s limited number of non-union staff will be handling re-supply.

In addition, if the strike continues for more than two weeks, the LCBO will open a select number of their stores for limited hours across the province (again, limited by the number of non-unionized staff available to operate the stores). With all of this (and I’m sure I’m missing some options in my list), consumers may begin to draw the conclusion that the LCBO isn’t as essential as it once was:

On Thursday evening, Colleen MacLeod, chair of the team bargaining on behalf of government liquor-store employees, declared the summer of 2024 utterly ruined.

“Tonight, (Premier Doug) Ford’s dry summer begins,” said MacLeod, of the Ontario Public Service Employees Union (OPSEU), hours before the first ever strike in the Liquor Control Board of Ontario’s (LCBO) history became official.

Desperate? Delusional? That’s up for debate. OPSEU’s press release announcing the strike suggests “delusional.” At one point it claims the LCBO is “Ontario’s best-kept secret.”

What could that possibly mean?

The release then quotes OPSEU president J.P. Hornick as follows: “We told Ford not to ruin everybody’s summer, but now he’s closed the Science Centre and forced a dry summer for Ontarians by refusing to offer a deal that would be good for LCBO workers and Ontario.”

The Ontario Science Centre is a tired old children’s destination in North Toronto that has been neglected in every way by consecutive provincial governments. I’m quite sure few people in Ottawa, Windsor or Thunder Bay have ever even heard of it. Mashing it together with the LCBO, just because OPSEU represents employees at both, suggests the union really doesn’t understand the fight it’s getting into.

If the Ford government is willing to dig in its heels and fight — which isn’t something it’s particularly known for — this could be a great win for the Ontario consumer.

It’s not 1990. The LCBO shutting the doors to its retail stores is really only a minor pain in the rear end, thanks to years of piecemeal, needlessly complex and and too-slow but nevertheless significant liberalization that really kicked into gear under former Liberal premier Kathleen Wynne. (Ford is often mocked for being obsessed with alcohol, but Wynne was nearly beyond parody. If her government woke up in a crisis Monday morning, it was safe to say she’d find herself announcing more beer and wine in supermarkets by Thursday afternoon.)

Anecdotally, as I was in on Thursday picking up a small selection of wine and beer, I overheard a conversation with one of the staffers and another customer where the staffer didn’t believe there’d actually be a strike and that the only result of the brinksmanship at the bargaining table would be that they would have to do more re-stocking next week after the (understandably) higher sales during the past week.

April 17, 2017

QotD: The dubious “value add” of the LCBO

Filed under: Business, Cancon, Government, Quotations — Tags: , , , , — Nicholas @ 01:00

The liquor board’s cocktail recipe of the month, offered on its website, is for “gin and lemonade,” which you make with a shot of gin and some lemonade. The gin is cherry, so there’s that. Its three recommended beers of the month are themed for the hockey playoffs. They are — I am not kidding — Molson Canadian in a bottle, Molson Canadian in a can, and Molson Canadian in a larger can. The value the LCBO’s adding that a private retailer couldn’t is not obvious.

David Reevely, “LCBO union uses government’s rhetoric against it in brewing labour battle”, National Post, 2017-04-06.

March 24, 2017

The LCBO “phones in” their Ontario VIP selections

Filed under: Business, Cancon, Wine — Tags: , , — Nicholas @ 03:00

Michael Pinkus on the odd choices of wines to celebrate some Ontario wine luminaries:

Let’s be honest, the LCBO is lackadaisical, at best, when it comes to promoting Ontario wines, and they do it with such a blasé attitude it is embarrassing in the way they continue to absolutely fail the people of Ontario … let me explain and expand.

The main feature of the April 1, 2017 release is “Visionaries, Innovators and Pioneers” (VIP) – on a global scale – here you’ll see names you recognize and wineries that are household names (or one’s that should be) – people like Angelo Gaja (Italy), Ben Glaetzer (Australia), Ken Forrester (South Africa), Michel Chapoutier (France) and Nicolas Catena (Argentina) and for each they pair a wine to go along with them … I question the wine selection for these iconic wine luminaries, but what the hey, sometimes those iconic wines are sold out (icon wines do that) and you then have to go for secondary wines by those producers.

Then I reached the part with our local VIPs: Moray Tawse (true, a more recent member of the VIP club and in my opinion kind of an easy choice by the LCBO), even more lazy are the wines selected, far from what I would call his “iconic” ones; but that seems to be par-for-the-course in this release. Tawse makes single vineyard / single block wines that are “the bomb”, yet the LCBO chose a “Growers Blend” and a “Sketches” wine, seriously?

But the one that incensed me the most was Chateau des Charmes, not for the man they named, Paul Bosc Sr., who is a Visionary, Pioneer AND Innovator in Ontario, but the wine that was chosen to represent him: Cabernet Icewine? When I saw that, you could have knocked me over with a feather; what happened to Gamay Noir Droit? Single vineyard varietal offerings? Sparkling wine? Or even Equuleus? But instead of showing off these iconic / original table wines the LCBO goes for the easy layup of Icewine; which isn’t even what Bosc is known for (though he makes excellent versions of it), that honour should have gone to Inniskillin (Donald Ziraldo and Karl Kaiser)

September 26, 2015

The LCBO backs away from auctioning rare wines in Ontario

Filed under: Business, Cancon, Wine — Tags: , , — Nicholas @ 04:00

Rick Van Sickle on the LCBO’s recent decision to hand over the rare wine auction market to a private auctioneer:

Quietly last week, Ontario’s booze monopoly finally threw in the towel over its glitzy rare and fine wine auctions and awarded the contract to an independent auction house — another case of letting private industry do a job that the LCBO couldn’t handle.

Canadian auction house Waddington’s will now conduct the auctions under a special licence through the LCBO.

The company added a new addition to their portfolio of fine art and luxury goods – Waddington’s Fine Wine and Spirits Auctions. “Ontario wine enthusiasts will now be able to better manage their cellars of fine wines and spirits with this connection to the enormous world wine market,” said Waddington’s President Duncan McLean.

The Toronto-based, Canadian-owned auction company was awarded the exclusive contract to provide fine wine and spirit auction services in Ontario under the authority of the LCBO, a first for an Ontario auction company. Waddington’s conducted the LCBO’s Vintages Fine Wine and Spirits auctions from 2009 until 2013.

The inaugural live fine wine auction will be conducted Dec. 12 at Waddington’s Toronto gallery, and an online fine wine auction will be offered Nov. 23-26. These auctions launch what will be a regular schedule of wine and spirits auctions and events for which Waddington’s is currently accepting consignments. All wines consigned are stored in a secure, temperature, light, and humidity-controlled wine vault.

August 20, 2014

New report calls for Ontario to break up the LCBO

Filed under: Business, Cancon, Economics, Wine — Tags: , , , , , — Nicholas @ 13:33

In the Toronto Star, Richard Brennan reports on a new study by the C.D. Howe Institute calling for the province to join the modern era:

The “quasi-monopoly” LCBO and The Beer Store have hosed Ontario consumers long enough, a C.D. Howe Institute report says.

The right-wing think tank said the Ontario government should strip them both of their almost exclusive right to sell beer, wine and spirits, suggesting the report proves that opening up to alcohol sales to competition will mean lower prices.

“The lack of competition in Ontario’s system for alcoholic beverage retailing causes higher prices for consumers and foregone government revenue,” states the 30-page report, Uncorking a Strange Brew: The Need for More Competition in Ontario’s Alcoholic Beverage Retailing System, to be released publicly Wednesday.

The report includes tables comparing Ontario beer prices to other provinces with greater private sector involvement, particularly with Quebec, where a case of 24 domestic beers can be as much as $10 cheaper and even more for imported brands.

Since 1927, when the Liquor Control Act was passed, the Liquor Control Board of Ontario and the privately owned Brewers Warehousing Company Limited have had a stranglehold on alcohol sale in the province.

“The Beer Store’s quasi-monopoly of beer retailing is … an anachronism,” the report says, referring to the foreign-owned private retailer that is protected by provincial legislation.

May 10, 2014

Former head of the LCBO at the Ontario Wine Awards

Filed under: Business, Cancon, Humour, Wine — Tags: , — Nicholas @ 13:17

Michael Pinkus attended last night’s award ceremony and found the star of the proceedings was the master of ceremonies, former LCBO head Andy Brandt:

The 20th Annual Ontario Wine Awards were held Friday night at the Queen’s Landing Inn in Niagara-on-the-Lake hosted by former head of the LCBO Andy Brandt; who had to be one of the unintentionally funny MC I’ve ever experienced. Between the butchering of words (Pinot “Griss”, Cabernet “Frank”, “Sara” for Syrah, “Ca-lom-us” for Calamus and “Toss-e” for Tawse) and the total omission of names he did not want to pronounce like Musque and Viognier during the presentation — he seemed uncomfortable giving out the awards, but was good at puns and for a few stories. All-in-all Brandt was a train-wreck, but at least you knew the room was listening for his next faux-pas and he was the talk of the room over beers and desserts at the after-party (the most talked about host I can remember). One person commented to me, “He’s my favourite MC at [The Ontario Wine Awards] ever, I just never knew what was going to come out of his mouth from one moment to the next. Obviously pronunciation has gone out the window tonight, it’s a free-for-all.” Others could not believe that the once head of the LCBO could not pronounce grape varieties correctly.

September 19, 2013

The LCBO’s new “Ontario Boutique” outlets – doing a Wal-Mart to Ontario wineries

Filed under: Business, Cancon, Wine — Tags: , , , , — Nicholas @ 09:13

In the latest Ontario Wine Review, Michael Pinkus talks about the opening of three new “Ontario Boutique” LCBO stores. These stores are the LCBO’s response to rising demand for quality Ontario wines … opening stores to directly compete with the wineries.

Well it happened; the LCBO opened their Ontario Boutiques to great fanfare on September 12, in three cities: Niagara Falls, St. Catharines and Windsor … three places that have wineries nearby. Three places where the local populace could hop in their cars and within 15 minutes be at any of a dozen wineries in the area. The way we should all view this is the LCBO utilized the Wal-Mart approach to competition: get in there and fight it out with already established businesses. According to reports, they are beautiful, well-stocked and something to see. Now, I’m not questioning whether or not the LCBO was going to do a nice job on these in-store boutiques, heck they have the money to sink into them (yours and mine), I question their location and I question why the Wal-Mart tactics?

[…]

Someone who did get it (Bob) emailed me directly, putting it very succinctly: “The Wine Council’s information shows that the majority of VQA wines are still sold at the wineries. I asked one of their staff why they were putting a new VQA [boutique] in the Glendale store in St. Catharines rather than Toronto, and was told that it was because they sold more VQA wine in that store than any other in their system. Obviously, they are intent on trying to steal as much business away from the local wineries as possible, and therefore to deny the wineries (for the most part Canadian small businesses) as much profit as possible.”

While another reader, Gaye, admitted she has finally seen the light: “I always took your rants re: the LC mildly, as I like being able to shop in the “biggest” importer of wines in the world (sic). But I love Ontario wines, and living in Toronto always bemoan the difficulty of going to Niagara wineries and driving back … for obvious reasons. So I thought these boutiques were inevitable and of course would be in the place most Ontario wine was drunk, Toronto. As your excellent wife said, “a no-brainer”. This is incredible, opening in Niagara Falls? As if our wine was just something to be sold to tourists. Now I’m totally on side.”

September 5, 2013

LCBO to offer expanded Ontario wine displays starting next week

Filed under: Business, Cancon, Law, Wine — Tags: , , — Nicholas @ 10:57

Sounds like a reasonable thing, doesn’t it? The LCBO is the primary distribution channel for all Ontario wine, so making the best of the province’s wines more accessible is a good thing, yes? Well, sorta, as Michael Pinkus explains:

The LCBO must think we’re all stupid … that or they are run by a bunch of nincompoops – or maybe it’s a combination of both. On September 12, 2013 the Ontario wineries are finally going to see the fruits of their labours sold in special, larger and more prominent sections in some LCBO locations. Now if you were running the LCBO (more apropos to say: if you ran the circus), but if you ran the LCBO and you had some extra money kicking around and deemed it time to (finally) help Ontario wineries, show pride in the wines this province makes, and get the word out that Ontario is making world class wines, where would you put those new locations?

I asked my wife, an American, who can’t seem to grasp the concept of the LCBO, that very same question: “if you were opening up new sections within existing LCBO stores to promote Ontario wines where would you put them?” Her answer was immediately, “Toronto, it’s a no-brainer,” she said, “why where are they putting them?”

London, Ottawa, Kingston and Kitchener also all come to mind as potential locations for these new “boutiques” before the three locations the LCBO has chosen: Niagara Falls, St. Catharines and, you guessed it, Windsor; if they added Belleville to the mix they’d really hit the quad-fecta – but I shouldn’t give them any ideas – who knows, maybe that’s already in the works.

Why these locations matter is because they are smack dab in the heart of wine county; where wine already exists. There the locals have access to drive to their favourite wineries to buy their wine. As we all should know by now the LCBO can’t have you shopping at the competition, can they? Not when their unwritten mandate is to rule the province with an iron fist where booze is concerned … big sister Wynne doesn’t want to take her eye off the bottle, not for a second. Why you might ask would the LCBO put their stores in these locations? Think about it this way: when Wal-Mart comes to town where do they park their stores? Right next to the Canadian Tires and the Zellers locations (or as close as possible anyway) – they want to take on the competition directly. The LCBO is placing these new expanded Ontario sections in St. Catharines, Niagara Falls and Windsor – I trust you see the similarity.

June 4, 2013

LCBO intransigence triggers constitutional challenge

Filed under: Bureaucracy, Business, Cancon, Law, Liberty — Tags: , , , , , — Nicholas @ 11:02

This is kinda fascinating:

What started out as a simple privacy commissioner complaint has turned into a constitutional challenge of the validity of the Liquor Control Board of Ontario (LCBO) — and this time the Board has only itself to blame for the brouhaha, proving once again that Ontario’s LCBO is so far out of touch with the realities of today’s world, it’s downright scary. At a time when they should be thinking about transitioning out of the alcohol business, the Ontario provincial government and the LCBO seem to be clinging to its very existence with even more tenacity and verve than before. They’re like the old boxer clinging to past glories who just has to show you the right hook he can still throw — yet only ends up throwing out his shoulder. In the LCBO’s case, the word “Control” won’t be pried away from its “cold dead hands” anytime soon… or will it? In its most recent fight, the LCBO is proving it is a government entity most in need of being on the chopping block — if not the auction block — of government institutions that should be moved over to the private sector.

[. . .]

Why the LCBO has chosen to play hardball over such a trivial matter is incomprehensible; according to reports, the LCBO has decided to appeal the order and has asked that the records be sealed in the process. This seems to contravene common sense. “A government entity has chosen to spend hundreds of thousands of taxpayers’ dollars to fight an order by the Privacy Commissioner whose sole purpose is to make these decisions,” Porter says.

Now fed up with the collection of information, Porter and his team have decided to question the entire existence of the LCBO as it contravenes the Constitution Act of 1867 by challenging the Importation of Intoxicating Liquors Act (IILA) itself — which bans the free flow of goods (including alcohol, wine and beer) between the provinces. The argument hinges on Section 121: “All articles of Growth, Produce or Manufacture of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces.” This challenge could, and would if successful, lead to the downfall of the LCBO. Social networks were abuzz with the news about the challenge. Alfred Wirth, president and director at HNW Management Inc., applauded the news on Facebook: “Any progress towards competition among merchandisers is to be appreciated – even if it’s for domestically-produced products. Several years ago, when I questioned why Ontario couldn’t privatize the LCBO, the then Minister of Health said that alcoholic beverages were a crucial health matter which the province had to control. Despite the risk of people (including underage youth) freezing to death during our cold Ontario winters, he did not explain why the sale of crucial winter coats could be entrusted to Sears, the Bay, etc…” While Porter himself posted an analogy to cigarettes: “How about this one. Cigarettes are so dangerous that you cannot advertise them on TV, print, billboards or even display them behind a counter… but they can be sold at any store. Alcohol is so dangerous that it has to be sold at a government store with specially-trained people… but the government itself floods the market with advertising and even publishes a free magazine where 50 per cent of the content is about consuming the product.”

Energy lawyer Ian Blue has joined the Vin de Garde team for the action. I interviewed Blue in 2010 about the IILA, which is now under fire. Here’s what Blue had to say: “The law that gives provincial liquor commissions a monopoly and the power they have, is federal law, the Importation of Intoxicating Liquors Act; it’s highly arguable that the law is unconstitutional. It’s also pretty apparent to government constitutional lawyers, who are knowledgeable in these matters… [If the Supreme Court of Canada] takes a hard look at the IILA, and if they do an intellectually honest interpretation, the IILA probably cannot stand up to constitutional scrutiny.”

In 2009, lawyer Schwisberg commented to me when speaking about the IILA: “The very underpinning of Canada’s liquor regulatory system is unconstitutional. Isn’t that a mind blower?” Blue said: “There is nothing natural or logical about the existing system. It bullies, fleeces and frustrates wine producers and the public… If the IILA were to fall… wine producers could probably make quantum leaps of progress towards a fairer and more rational system of liquor and wine distribution in Canada.”

April 11, 2013

Ontario’s LCBO workers vote in favour of a strike

Filed under: Bureaucracy, Cancon, Government — Tags: , , , , , — Nicholas @ 08:50

Michael Pinkus is looking forward to a potential LCBO strike:

Call me an anarchist but I want the LCBO to go on a nice, big, long strike. And by the time you read this newsletter I am 100% sure that the sheeple of the LCBO will have given their bargaining team the go ahead for strike action. Now the LCBO’s contract was up on March 31, 2013 — which means currently the guys and gals roaming, stocking and generally keeping track of the aisles are without a legal contract with the provincial liquor board. I’m not about to get into the nitty-gritty of the contract negotiations, but when I read in the Liquor Board Employees Division (LBED) Bargaining Bulletin: “The offer we received from management can only be described in one word: Outrageous!” — well I just felt that I had to look a little deeper to see how the LCBO was screwing their own people (which is a nice change from the people of Ontario they screw daily).

What outrage would I find on the pages of the LCBO’s proposal? Are they locking the doors and throwing employees out on their ears? Are they proposing actual punishment for selling to minors (like the sting David Menzies did in July of 2012)? Will there be repercussions for doing a bad job, breaking the law, real penalties?

Now I have met, had dealings with, and actually, once upon a time, worked alongside some very good LCBO employees, most of them casual part-timers — but I can tell you that for every one good one there’s two that are lazy, surly and just generally people you don’t want to deal with in a retail situation — and sadly, those are the one’s you are likely to remember. So from the LBED Bargain Bulletin dated March 1, 2013 here are 2 of the 9 crazy demands the LCBO is making of their employees and the Union’s response to those “outrageous” proposals (I highlight my favs, but you can read the full bulletin here):

[. . .]

But who really suffers from an LCBO strike? California, Spain, Italy, France, Australia, Chile, in other words import wines and liquor producers, who can ONLY sell through the Province run monopoly, and they’ll be demanding the LCBO settle so their products get into the hands of Ontarians instead of sitting idly in warehouses collecting dust. Meanwhile local producers could see a boon as Ontarians thirst for wine is not met by the LCBO but instead by in-province wineries. Tourism to wine producing areas should also see an uptick; instead of visiting Grandma on a Saturday afternoon the family would pile into the car (with Grandma) to tour the highways and bi-ways of Ontario wine country. A long LCBO walk could mean that Ontarians finally get the taste for their homegrown wines en masse and will then demand greater access — one weekend away is quaint, but having to make the trek each and every weekend may prove too much. And with that kind of demand we could see movement in this province towards a freer market system with independent and corner wine stores. Maybe the government will get tired of having to pay all those wages, negotiating with an inflexible union and decide to sell off the LCBO — preferring instead to reap the rewards from taxes instead of paying the price of labour unrest … sigh, wouldn’t that be nice?!? As for the employees, the good ones will have no trouble finding a job in the public sector [I think Michael means private sector here], many in the same kind of newly created positions. The others? Well they’ll just go back to ditch digging where they belonged in the first place.

February 14, 2013

The LCBO crowds out another private business

Filed under: Cancon, Economics, Media, Wine — Tags: , , , — Nicholas @ 09:50

In the latest Ontario Wine Review, Michael Pinkus writes an obituary for Wine Access magazine and hurls “J’accuse!” at the Ontario government’s liquor monopoly for the murder:

Now there are some of you out there who will be asking how can the Ontario Liquor Monopoly put an Alberta-based magazine out of business — well it’s actually quite simple, if you’re willing to connect the dots: if you only have a certain amount of advertising dollars to spend in Canada how much are you going to allocate to the largest population in the country (Ontario); even more to the point, how much do you put into the Liquor Board willing to buy more product if you’ll spend more of your ad budget with them versus a magazine that might (or might not) increase your sales.

I have long advocated for the LCBO to cease publication of this magazine. Don’t get me wrong, it’s a beauty of a publication — my wife fawns over the pictures every issue — but it’s a publication that competes against private enterprise, and the LCBO is after all an extension of the government — so what I, and many others have said is unfortunately true: the government in essence, taking thousands of dollars out of the hands of the companies that pay taxes, their own populace, and competing against them. Sure I hear many of you saying “finally my tax dollars hard at work”: but ask yourself this question: how would you like the government competing against your business?

People don’t see the problem with Food & Drink magazine because they aren’t in the publishing business and are not affected by its publication, but consider these numbers: in the Holiday 2011 issue of said magazine, an almost Sears catalogue sized edition, there were 308 pages total, 140 of those were advertising (not including product placement and promotions within editorial / advertorial which is no doubt paid for as well — and don’t forget the 6 hefty inserts included inside the plastic wrapper) … that’s money that was not spent with privately run magazines that could have, and most likely, would have. Here are some more numbers to boggle the mind. According to the Luxury Media Sales website a full page in F&D magazine is $20,588 (2012 rate) — that’s a lot of money the government of Ontario is taking from their tax paying private enterprise magazines (in a democratic, free market system — who would believe the government is competing against their own populace). Think about that kind of money funneling out of your business sector, your chosen profession or what you do for a living (it’s close to 3 million dollars – 140 x $20,588) … do you think you’d be making the kind of money you are now? Would you welcome that kind of competition? And before you crassly answer “sure, the government can’t do anything right” also put in the fact that they’re the biggest game in town and control what you sell. The nightmare scenario is the closing of your business due to unfair competition and lack of revenue (but it’s the government, so what can you do) — in the publishing game you just shuttered a magazine because of lack of revenue and unfair competition. If you’re RedPoint Media you close down Wine Access magazine.

So, in Clue fashion, who killed Wine Access? It was Colonel LCBO, in the wine cellar, with the government monopoly privilege.

January 24, 2013

The LCBO’s tentative, faltering steps to allowing wider sales of wine

Filed under: Bureaucracy, Cancon, Wine — Tags: , , , , , — Nicholas @ 09:39

In the latest Ontario Wine Review, Michael Pinkus pours scorn on the LCBO’s latest attempt to fend off an actual competitive market:

The LCBO is about money and profits — and about control. I know I will have people freaking out at me for saying this but I want you to ask yourself “why?” Why would the LCBO suddenly decide that grocery stores are the place to put locations? Doesn’t sound all that smart to me — and not what we asked for. We asked for the right to pick up booze and bread in the same place — the government has said fine but you’ll still have to visit two cashiers and wait in line. Heck, I could have gone across to the mall parking lot to the LCBO location, got a bigger selection than in that tiny kiosk they’ll most likely rent and I still would have had to stand in line at a different cashier — where’s the convenience?

Plus we already have Wine Rack and Wine Shoppe locations in grocery stores … and therein lies the rub (as Shakespeare would say). The LCBO already knows those stores are profitable, the “pilot project” is done, there’s no study needed, Vincor and Peller have already done the research (and if you don’t think the LCBO has had a look at those numbers you’ve got another surprise coming) — this is just another way for the LCBO to compete with those two companies — and by extension, the wineries of Ontario. [Ed. Note: just in case you don’t know Peller and Vincor hold the majority of private liquor store licenses in the province — something they acquired before 1988 when free trade came in].

“… and will also create new VQA boutiques for Ontario wines inside five of its own stores.” A novel idea? I don’t think so. They have one in St. Catharines already (of all places), and what do you want to bet the LCBO will place these new “boutiques” where they are most needed like Niagara, Prince Edward County and Windsor where wineries already exist — no better way to compete with your competition than on their own turf.

July 28, 2012

Matt Gurney: The LCBO and the “social responsibility” joke

Filed under: Business, Cancon, Government, Health — Tags: , , , , , — Nicholas @ 00:08

Following-up yesterday’s post on the call to break up the LCBO’s monopoly, Matt Gurney points out that the “social responsibility” claim is a farce:

It’s impossible for the LCBO to really pretend that its primary goal is to prevent Ontarians from drinking when it advertises heavily in print and broadcast media and has periodic sales and events to introduce consumers to new products. You’d think that would be enough to kill the social responsibility argument, but apparently not.

But there are plenty of other things that do. If Ontario believed that it had a social responsibility to directly control the sale of potentially harmful and addictive substances, why are cigarettes sold in every convenience store, milk mart and gas station in the province? Cigarettes kill an estimated 13,000 Ontarians every year. It’s completely inexplicable that this deadly substance can be sold by non-government monopolies while less lethal substances are tightly controlled under the banner of social responsibility. If the only way to ensure that alcohol is consumed in a socially responsible way is to have the province control its sale, why doesn’t that apply to tobacco? What about the two products is different in such a way that makes one OK for convenience stores and one not? This is the unanswered question that drives a stake through the heart of the social responsibility argument. Either the booze controls aren’t about social responsibility or the province is massively dropping the ball on the smokes. Which one is it, guys?

And it’s not like Ontario is somehow blind to the problem of smoking. During the tenure of Premier Dalton McGuinty, the province has cracked down on smoking in any number of ways, including but not limited to outlawing smoking in restaurants and bars (even those with specially ventilated smoking areas), making it illegal to smoke in a car containing a child (including, memorably, even if the child is a teenager who is also smoking), and forcing convenience store owners to cover up their cigarette displays, lest a child see a brightly coloured box and become a tobacco addict by default. All of these steps clearly demonstrate that Ontario is aware of, and concerned about, smoking. Yet I can still buy a pack at my local convenience store. Hmm.

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