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Quotulatiousness

October 6, 2011

Why the LCBO isn’t like Foodland Ontario

Filed under: Bureaucracy, Cancon, Food, Government, Wine — Tags: , , — Nicholas @ 09:01

Michael Pinkus tries to decide who to vote for in today’s Ontario election on the basis of who’d be the most likely to put Ontario’s wineries on an equal footing with foreign wineries in their own province:

It’s election day, and I don’t want to take up a lot of your time on a day when you should be concentrating on who to vote for. Over the past few months I have given you food for thought from Tim Hudak’s vision of the wine industry in Ontario to Andrea Horwath’s working with the LCBO option, and I heard or received nothing about the reigning Liberal party’s platform on the subject of the wine industry, I guess for them it will remain status quo. So I guess it’s up to you to decided where your loyalties lie and who you chose to believe as to what difference they’ll make, if any.

[. . .]

Part of an email I received about election promises …
“David Peterson campaigned on putting wine in corner stores in 1985 and he won — twice!
Mike Harris campaigned on putting wine in corner stores in 1995 and he won — twice!
Where are those promises in this campaign [I need to know who to vote for].”
– John

[. . .]

The LCBO affects all wineries in Ontario, but truthfully it is not the sole fault of the liquor board, they are just following their mandate to make money for the government. Two days before the election, the Grape Growers of Ontario released this plea:

“Consumer access to the wines made from Ontario grapes is a keystone issue for the future success of the industry, and unless Queen’s Park is willing to make substantive changes to the way it promotes and sells Ontario wines, the industry will continue to tread water … The domestic market share of Ontario wines is stagnant at around 39% while other winemaking regions are flourishing in their own backyard, some with market shares in excess of 90% … By making changes in the way the LCBO presents Ontario VQA wines on its shelves, how many Ontario VQA labels are available and how those wines get onto the LCBO list, accompanied by an increased, year-round promotional effort within the LCBO, the sales of Ontario’s wines will grow.”

They’re not telling you who to vote for, but they are asking you to be mindful of your vote. But I think it’s more to do with what happens after the election that counts, not the foreplay leading up to it. After the euphoria of victory has subsided we have to hold elected officials to what they promise, or pressure them to give us better and help our wineries, who are after all, tax payers themselves, yet work in a very restricted and restrictive environment. As a lover of Ontario wine you have to demand more. As the Grape Growers point out in that same plea: “We want to see provincial politicians who understand that marketing foreign wines in an agency owned by the province is like Foodland Ontario launching a promotion of Georgia peaches. It’s just not right. We can no longer afford to just sit back and watch.” Now that would be a nice change.

May 3, 2011

QotD: The LCBO’s Trend Report

Filed under: Cancon, Government, Quotations, Wine — Tags: , , — Nicholas @ 10:27

The recent LCBO report says that ‘People are buying Pinot Noir and Ripasso’. Roughly translated the message is ‘we’d like more people to buy these, and other wines in the $16–$20 range, and not the cheap South American stuff. Please be trendy and support our profits.’

[. . .]

In case you’re not clued into the workings of LCBO promotions I suggest you read the fine print on the inside back cover ‘this advertising is paid for by participating suppliers’. It’s no different than all the other fliers.

Billy Munnelly, “LCBO Trend Report”, Billy’s Best Bottles Wine Blog, 2011-04-20

January 10, 2011

Kelly McParland on the bad old LCBO

Filed under: Bureaucracy, Cancon, History — Tags: , — Nicholas @ 12:22

Kelly McParland contrasts the Ontario government’s treatment of alcohol and tobacco as they’ve reversed position over time:

Ontario’s government-owned liquor monopoly operated bleak little dispensaries that had all the allure of an all-night pharmacy. No actual booze was allowed to be displayed, for fear the merest glimpse might turn solid citizens into a blubbering mass of addiction. You elbowed your way up to utilitarian counters with display boards that listed the limited products deemed acceptable for purchase. Using stubby little pencils, you scribbled down the name and code of the offending brand, then stood in line with similarly sad-sack individuals and handed your little list to a disapproving civil servant, who sent someone off to fetch your bottle and wrap it in a brown paper bag so as not to alarm any passing school marms or Sunday school teachers.

That was before the Ontario government realized just what a gold mine it had on its hands, and began redesigning liquor stores to serve as candy stores for grown-ups. Now there are free samples when you enter, kitchens to pass on recipes that encourage you to eat your booze as well as drink it, snob sections for high-priced wines and whiskies, and aisles full of expensive imported brews and hard-to-obtain craft beers, for people who only drink beer but want to feel just as snooty as everyone else.

I wrote about the bad old days of the LCBO back in my first year of blogging:

A few elections ago, the Ontario government under Premier Mike Harris started talking about getting the government out of the liquor business. The LCBO, which up until that point had operated like a sluggish version of the Post Office, suddenly had plenty of incentive to try appealing to their customers. Until the threat of privatization, the LCBO was notorious for poor service, lousy retail practices, and surly staff. Until the 1980’s, many LCBO outlets were run exactly like a warehouse: you didn’t actually get to see what was for sale, you only had a grubby list of current stock from which to write down your selections on pick tickets, which were then (eventually) filled by the staff.

If the intent was to make buying a bottle of wine feel grubby, seamy, and uncomfortable, they were masters of the craft. No shopper freshly arrived from behind the Iron Curtain would fail to recognize the atmosphere in an old LCBO outlet.

During the 1980’s, most LCBO stores finally became self-service, which required some attempt by the staff to stock shelves, mop the floors, and generally behave a bit more like a normal retail operation. It took quite some time for the atmosphere to become any more congenial or welcoming, as the staff were all unionized and most had worked there for years under the old regime — you might almost say that they had to die off and be replaced by younger employees who didn’t remember the “good old days”.

Now, contrast that with the way tobacco products — which used to be sold just about everywhere (and to anyone) — are now the pariah of the retail world:

Meanwhile, anyone desperate enough to buy a pack of cigarettes has been reduced to the status of those sorry, forlorn customers who used to slip into LCBOs hoping not to be recognized. The latest government regulations will increase the size of the warning labels and the sheer gore of the illustrations. To catch a glimpse of the rotting teeth and ulcerated organs you have to ask someone to fetch you a pack from the nondescript, unlabelled shelves behind the counter, where they used to keep the dirty magazines before we started getting our porn free online. Fierce competition and viticultural advances have relentlessly pushed down the price of booze so that wholly acceptable products are available at ever more reasonable prices; tobacco prices, meanwhile, are so prohibitive they’ve spawned a cross-border smuggling trade that would have impressed Al Capone.

I’m not kidding about the “sold to anyone” line either: I was regularly sent to the store to buy cigarattes for my parents even before I was in my teens. The odd punctilious shopkeeper would occasionally require a note from an adult, but generally they didn’t even bother asking.

April 2, 2010

QotD: The KGBO, er, I mean LCBO

Filed under: Bureaucracy, Cancon, Law, Quotations, Wine — Tags: , , — Nicholas @ 00:03

Because we live under a monopoly regime that has no intention of loosening restrictive laws, we will never see “wine bar/stores” like this. Americans are jaded to these luxuries of free market access to wine and loads of selection. You read magazines where they tell you to talk with your retailer about finding the best wines from out of theway places and dedicated small producers, and the knowledgeable Ontarian’s reaction is “Yeah, right not in my lifetime will I see that.” While in the U.S. the ‘little guy’ whose passion for wine you can feel the moment you walk in the door and engage in a “which wine should I get” conversation. A recent discussion with an ex-pat American wine collector and drinker (just recently moved north of the 49th parallel) elicited disgust about the LCBO and its selection. “I’m from Chicago,” he tells me, “and I can’t find a decent bottle of wine up here and the selection is . . .” he trails off and shakes his head. Ontarians are used to it. We’ve grown up with Big Brother’s iron fist clamped firmly around our throat and his sweaty palm covering our eyes to what the world outside our borders is doing with booze (wine in particular).

I usually urge you to take a trip to wine country, but this year I want you to take a trip abroad, not to a wine country or region, but to a U.S. wine retailer or specialty shop, a grocery store will do in a pinch (yes I did say a grocery store). Check out, not only the selection but the price, what’s on sale and for how much, wines for under $4, 2 for 1, 3 for 1 or sometimes more for one low price. Discounts for multiple purchases, sale prices that actually seem like you are saving money and not just a dollar or two off. Pay attention to what you see, then ask yourself, “why don’t we have that here in Ontario?” You know the answer, it stares at you with big white letters on a big green background and they go by a four-letter acronym (do I really have to spell it out?) How about this, their first letters are L.C., although they should be K.G. If you are any kind of oenophile, be it novice or pro, you’ll realize that a trip across the border is enthralling and liberating — but then it’s back to the oppressive world of Ontario with Big Brother’s hands shielding you and stopping you and then you tell me honestly, which system would you like to live under?

Michael Pinkus, “Is it a Shop or is it a Bar? Whichever it is, I want one here”, Ontario Wine Review, 2010-04-01

November 26, 2023

Ontario’s beer market may see radical changes soon

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

For beer drinkers outside Ontario, the province’s weird beer retailing rules may seem to be from a different time, but that’s only because they are. Until fairly recently, the only place to buy beer was from one of two quasi-monopoly entities: the provincially owned and operated LCBO or the foreign brewery owned Beer Store. LCBO outlets were limited to single containers and six-packs, while Beer Stores sold larger multipacks and also handled bottle deposits and returns. In the last few weeks, the Ontario government has indicated that long overdue changes are coming:

“The Beer Store” by Like_the_Grand_Canyon is licensed under CC BY-NC 2.0

The only thing we really know at this point (and it’s been reported by the Toronto Star and now CBC, and earlier by this website, all from sources) is the horribly unfair deal The Beer Store has had since 1927 in Ontario is about to come to an end. It’s expected that The Beer Store will be given notice by the end of December under the Master Framework Agreement (MFA) that the deal will be all but dead. They will have two years to wrap things up while a more modern system of booze retailing is fine-tuned and prepared for implementation. There’s a new era dawning in Ontario, one that would seemingly benefit grocery and convenience stores, local brewers, Ontario wineries, and obviously consumers who will get wider selection, more convenience and competitive pricing.

“The MFA has never been about choice, convenience or prices for customers, it has always been about serving the interests of the big brewing conglomerates, and that’s what needs to be addressed,” Michelle Wasylyshen, spokesperson for the Retail Council of Canada, whose board of directors includes members from Loblaw, Sobeys, Metro, Walmart, and Costco, told Mike Crawley of the CBC.

The end of The Beer Store MFA in whatever iteration it will look like will have a cascading impact on local VQA wine. Ontario wineries hope that it’s a positive impact and are cautiously optimistic that wide open beer and wine sales at grocery and convenience stores means more sales and less levies for their products.

As the CBC pointed out in its story, the looming reforms “pit a range of interests against each other, as big supermarket companies, convenience store chains, the giant beer and wine producers, craft brewers and small wineries all vie for the best deal possible when Ontario’s almost $10-billion-a-year retail landscape shifts. And — this is a biggie — the LCBO lobbying efforts to keep its antiquated system of monopoly retailing intact, which seems to be a big ask with what we now know from sources. Something must give.

Some key bullet points from the CBC report:

  • Will the government shrink the LCBO’s profit margins, including its take from products that other retailers sell?
  • Will retailers such as grocery and convenience stores be required to devote a certain amount of shelf space to Ontario-made beer and wine, or will they have total control over the inventory they stock?
  • Will small Ontario wineries get any help in competing against big Ontario wineries whose products can contain as much as 75% imported wine?

The government has been listening to all stakeholders in the booze industry in Ontario for over a year now. Three key associations — Ontario Craft Wineries, Tourism Partnership Niagara, and Wine Growers Ontario — joined together to commission a report titled Uncork Ontario. That report, which concludes that the Ontario wine sector is well positioned to drive sustainable economic growth for the region, the province, and the country and has the potential to drive at least $8 billion in additional real GDP over the next 25 years, launched a campaign to lobby the government for radical changes to reach those lofty goals, or at least put the wheels in motion.

One of the big issues for Ontario wineries is a punishing 6.1% “sin” tax charged on every wine made in Ontario but not foreign wines. It’s a tax that’s been hurting Ontario wineries for years even though a grant was issued to wineries to help pay that tax back. To this date, the tax has not been cancelled and wineries keep remitting the tax owed monthly and can only hope the grant keeps getting extended. Ontario wines are among the highest taxed in the world with up to 73% of every bottle sold going to taxes and severe levies at the LCBO.

August 13, 2022

The lure of old wines

Filed under: Europe, France, Wine — Tags: , , — Nicholas @ 03:00

In The Critic, Henry Jeffreys admits his continuing love for mature wines, even past the point most people would consider them drinkable:

For some people wine appreciation is like big game hunting. It’s about ticking off the prizes: Latour, Petrus, Romanee Conti. Whereas for others it’s about chasing unicorns, looking for mythical wines so rare that they are almost impossible to obtain. I don’t have the money for either, but even if I did, I still think I would take the greatest pleasure in opening a strange old bottle and being surprised by how delicious it is.

I’m fortunate in having friends and relatives who think wine is more for keeping than for drinking. When my grandfather died, we inherited all kinds of strange things that he’d been saving including a half bottle of 1937 Army & Navy claret.

I’ve certainly never had the deep pockets to go after any of those tip-top wines, although I used to be able to go to LCBO wine tasting events where there’d occasionally be opportunities to try a few ultra-expensive wines (Petrus, Château Margaux, Nuits-Saint-Georges, Chassagne-Montrachet, Puligny-Montrachet, etc.). If I’m totally honest, in a few of those cases, the bouquet of the wine promised far more than the taste could deliver … I appreciate and enjoy better quality wines, but I don’t taste enough difference between a $50 bottle and a $500 bottle to justify paying the premium.

Oddly certain people get quite upset at lovers of very old wine. On Twitter recently a sommelier wrote “your taste sucks” to someone who expressed an enjoyment of such wines.

The French look at this peculiarly British habit as close to necrophilia. Americans, too, drink vintage port after a couple of years rather than waiting a generation as is customary.

There’s something magical about what decades can do to a wine. Quite austere clarets become heady and exotically-spiced while sweet wines begin to taste dry. I also relish the flavours that some might find less appealing: the tang of vinegar, the cooked taste of caramel and the whiff of sherry in wines that definitely are not sherry.

Maybe my taste sucks too but sometimes I prefer a wine to be old than to be particularly good. You adjust your palate, it’s like having a conversation with an elderly relative who’s a bit deaf but with great stories to tell.

May 30, 2019

Doug Ford versus the Ontario neo-prohibitionists, progressive temperance snobs and other social control freaks

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

During the last Ontario election, it was common to disparage Doug Ford as being “Trump-like”, and now that he’s the Premier, it turns out to be true in at least one aspect: Ford does have a Trump-like ability to induce a form of hysteria in his opponents. Ford’s crusade to liberalize Ontario’s alcohol market is a case in point. In the Toronto Star, all the old arguments against liberalization — usually portraying Alberta’s long-since liberalized market as a dystopian hell-hole of alcohol-shattered lives — are being dragged out again:

The key is that the Ford team doesn’t actually care about wine that will be sold in corner stores and more supermarkets. It’s a sop to tourists, which seems reasonable.

No, it cares about beer because beer is a social marker, a shorthand. Wine is considered urban but buck-a-beer is rural/semi-urban. Men drink it. Men with beerbellies drink it. To a government mysteriously seeking a vote that it already has, drinking beer is a signal that a man is a regular guy. But Ford is not a regular guy. He doesn’t drink. He’s not anxious. He’s not renting.

It is very much a problem that any government in power would believe this of the regular guy vote. Alcohol causes hospitalization, crime and early death. It destroys families and jobs, and eventually its victims drink to block out what they lost by drinking.

[…]

They may not know it, they may be doing it instinctively, but it is still madness. Alcoholics are costly to treat and they suffer terribly. Courting their vote comes courtesy of a report by a former health minister in Alberta where booze is sold in private liquor stores.

The problem, as Albertans know, is you’re too afraid to buy it. These stores are often shabby places that are magnets for violence. Watch out, Premier Ford, it’s Ontario and there’s going to be NIMBY.

I am aware that I’m writing like a preacher. Preach on, sister. Anyone over 30 learns to distinguish between people who drink for pleasure and those who cannot cope with it. We are horrified. We offer help.

Back in 2013, Colby Cosh neatly summarized the Ontario neo-prohibitionist rhetoric:

Albertans find it instructive to watch Ontario politicians debate the privatization of liquor retailing, which Klein’s cabinet bulldog, Dr. Stephen West, executed almost overnight in 1993. It was perhaps the representative policy move of the Klein era, the best symbol of his approach to government. Today one will hear Ontarians telling themselves the most bizarre things about Alberta in order to support the idiot belief that booze is a natural monopoly. “You can’t even get red wine there! All they have in the stores is various flavours of corn mash and antifreeze! The streets resound with the white canes of the blinded!” Talk to the saner residents and you rapidly discover the real root of Ontarians’ positive feeling for the LCBO, which is esthetic. It’s just nicer to buy a handle of Maker’s Mark from someone who makes a union wage and has a vague halo of officialdom. You leave the shop feeling okay about your vice.

Klein was liked by Albertans, not because of some mythic popular touch, but because there wasn’t an ounce of tolerance for this sort of thing in him. Alcohol was something he understood very well. (Too well.) People do not need liquor to be flogged to them any harder than the manufacturers already do; put a man in prison and he will make the stuff in the toilet starting on day two. What the old ALCB was really marketing to the public, and what the LCBO markets now, was itself — its own role as social protector/moral approver/tastemaker. Klein identified that part of the system as a parasitic growth, a vestige with no function but its own preservation; and he had West ectomize it with the swiftness of a medieval barber.

September 29, 2018

The Ontario government’s amazingly sensible approach to legal cannabis

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

Chris Selley expresses what a lot of surprised people must be feeling after Premier Doug Ford’s government introduced startlingly mature and sensible rules for the distribution and sale of cannabis products in the province after the federal government’s legalization is enacted:

The Ontario government tabled its cannabis retail framework in the legislature on Thursday, and it only further repudiates the Frightened Communist model envisioned by the Liberals. The government will sell pot online, as before, and will maintain a monopoly on wholesaling. But the rest will be up to the private sector, under the control of the Alcohol and Gaming Commission. As it stands, there won’t even be a cap on the number of licences; a government official said Thursday they expect 500 to 1,000 applications right off the bat.

In response, OPSEU president Smokey Thomas beamed out a furious press release on behalf of his spurned members — er, sorry, on behalf of Ontario’s “municipalities and communities.”

“Unlimited stores and unlimited places to smoke will cause unlimited problems,” Thomas averred. “It’s outrageous. We’re going to become the wild west of cannabis and Sheriff Doug Ford is going to skip town, leaving communities and municipalities holding the dime bag.”

Thomas predicted Premier Ford would hand out retail pot licences to “Conservative insiders” and “corporate donors.” (Corporate donations are illegal.) He accused Ford of funnelling what by rights should be public profits into “private pockets.”

“If Ontario’s finances are truly as bad as Ford wants us to believe, why is he giving away the millions, maybe even billions, in revenue we’d get if cannabis sales were public?” he asked.

Does the government make money on cigarettes? On alcohol sold in bars and restaurants, at privately run LCBO agency stores and, of late, in supermarkets? Of course it does. Scads of it.

So it’s all quite ridiculous, as OPSEU press releases tend to be. But Thomas is not wrong when he argues the new approach is remarkably permissive. Perhaps most notably, whereas the Liberals’ proposed rules banned using marijuana in public, the PCs’ would allow you to smoke or vape it anywhere you can tobacco (though not in cars or boats). But it’s far less permissive than one might expect in other ways as well.

September 28, 2018

Ontario government lays out the path to a fully legal cannabis market

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

There is going to be a gap between the federal legalization date next month and the beginning of legal sales from brick-and-mortar stores in Ontario in April:

With the legalization of recreational marijuana around the corner, the Ontario government has finally answered some of the most burning questions about where residents can officially buy and smoke pot.

A day before new pot legislation is set to be tabled, The PC government announced earlier today that starting Oct. 17, weed will be up for sale at private retail pot shops by April next year.

Doing away with the cap on the number of licensed cannabis stores in the province, the government is officially taking a free-market approach to what would previously have been an LCBO monopoly under the Liberal provincial government.

[…]

Until April, cannabis will be sold exclusively online, distributed through federal wholesalers and the government’s Ontario Cannabis Store.

The Alcohol and Gaming Commission of Ontario will be in charge of regulating the marketplace, including granting and revoking pot shop licenses.

Store owners will need to apply for a retail-operator license as well as a retail store authorization for every location they open, which will be limited to a set number, to prevent possible over-expansion, Walmart-style.

There will also be restrictions for federal cannabis growers, who will only be able to hold “a single retail license at a single production site located in Ontario,” said Ontario Attorney General Caroline Mulroney.

All currently existing pot stores who continuing to operate illegally after Oct. 17 will lose their right to ever apply for a license in the future, as will stores who have a history of dealing with organized crime and providing pot to minors.

Ontario’s new government agency, the Ontario Cannabis Retail Corp., will be in charge of handling online cannabis sales as well as wholesaling to private stores, who will potentially run the gamut from local pot shops to huge cannabis corporations.

There will be a minimum distance requirement between pot shops and schools set up in the future.

Any Ontario municipalities who don’t want pot shops on their turf — like Norfolk County in Southwestern Ontario, the first to vote no on cannabis storefronts — will have to opt out officially by Jan. 22, 2019, which they were previously barred from doing.

August 31, 2018

Farewell, buck-a-beer publicity stunt, we hardly knew ye

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

Chris Selley on the all-too-brief publicity stunt of cheaper beer for Ontario:

President’s Choice is ending its buck-a-beer promotion on Sept. 3, just days after it started: We get one week, one long weekend and then out of the pool, party’s over, back to class. PC-branded beer will rocket back up to $1.38 a bottle when you buy 24 at The Beer Store or $1.65 when you buy 12, which highlights just how steep — and presumably unsustainable — the discount really was. We shall see how long the two other participating breweries’ offers last, but they made it quite clear, as did PC, that this was a limited-time offer prompted by Doug Ford’s most shamelessly blunt populist pledge.

My goodness, though, what a commotion it will leave in its wake. Some brewers quite understandably took the opportunity to note the impact of aluminum tariffs on their bottom lines, to complain that Ford’s government was playing favourites by giving away expensive product placement in LCBO stores for $1 beer, and to note the government is actually raising taxes on beer.

Others, however, waxed utterly scandalized. “How about buck a pound of steak? Who would eat that?” asked one Toronto brewer who had perhaps not entirely thought through his rhetorical question. “We haven’t even given two thoughts about this,” Great Lakes Brewery’s communications manager, Troy Burtch, told the Toronto Star. “Why would anyone do this?” Burtch and Great Lakes have signalled their total uninterest by tweeting incessantly about it.

The Canadian Taxpayers’ Federation went after some of the affronted craft brewers for accepting taxpayer subsidies for their higher-end products. People on social media lined up for and against buck-a-beer, vowing to boycott the participants or those complaining about the program.

The whole thing was a dumb Ford Nation stunt, no question. But good grief. You can hardly blame the breweries, either for participating or for not: they were just trying to wring as much publicity as they could from the situation. No one is really any worse off, or at least not much. What we were really seeing among the chattering classes was a rerun-by-proxy of the June 6 election: to drink Ford’s swill was to vote Ford Nation; to boycott it was to stand bravely against their entire agenda.

September 19, 2017

Ontario is getting exactly what they deserve in legalized marijuana

Filed under: Cancon, Government, Law — Tags: , , , — Nicholas @ 06:00

Pessimists, you can collect your winnings at the till. Optimists? Haven’t you learned yet? You expected a vibrant, dynamic free market in pot where your favourite budtender would be able to offer you a wide selection of high quality product to choose from? Forget it, Jake, it’s Ontario. Chris Selley explains why the pessimists got it right in the betting on how Ontario would choose to implement the legal marijuana market in 2018:

For nearly 15 years, I and other free market lunatics have been trying to impress upon Ontarians just how insane our liquor retail system is. Yet we still hear the same ludicrous arguments in its favour. “The LCBO makes tons of money for the province.” (Alberta makes tons of money from liquor sales too, without owning a single store.) “Public employees can be trusted to keep booze out of children’s hands.” (The Beer Store isn’t public. Nor are the scores of privately run “agency stores” in rural areas across Ontario.) “The LCBO provides good jobs.” (Not to real product experts it doesn’t — they would be far better off in a free market jurisdiction. And if the government’s role is to make good retail jobs, why not nationalize groceries?) “LCBO stores are pleasant. Liquor stores in the U.S. are gross.” (Nope! You’re just going to the wrong liquor stores.)

This hopeless mess is the foundation for Ontario’s new marijuana plan — and we’re hearing the same arguments in its favour. Last week, two columnists in the Toronto Star and one in the Globe and Mail spoke approvingly of the fact it would create “good unionized jobs.” The two Star columnists also mentioned the money that would accrue to the treasury.

“I’m fine with the profits going to the public purse instead of private businesspeople,” wrote one.

“Why wouldn’t the government seek to maximize revenues in the same way that it profits from alcohol and tobacco sales?” asked the other.

Even after all these years, it makes me want to tear my hair out: for the love of heaven, the “high-paying jobs” motive and the “profit” motive are at odds with each other. You cannot claim both as priorities. One way or the other, the government will take its cut on marijuana sales. The overhead costs of running its own stores, paying its own employees government wages, will simply eat into that cut.

If you can live with Ontario’s liquor situation, but you think your favourite budtender should be able to get a government licence to keep her “dispensary” up and running after legalization kicks in, my sympathy is non-existent. You either support consumer choice or you don’t. Ontario doesn’t, and that will never change until tipplers and tokers take up arms together.

August 6, 2017

The allure of fine wines

Filed under: France, Wine — Tags: , , — Nicholas @ 05:00

Dan Rosenheck recounts his first encounter with one of those mysterious Premier Cru wines:

If it sounds too good to be true, it probably is. So say those who have never had a whiff of 1998 Château Lafite Rothschild. In late 2011 I had been an aspiring wine connoisseur for about a year, long enough to have learned the names of the world’s most exalted beverages, but not to have tried more than a handful. Like many novices, I started out on Bordeaux, memorising the 1855 classification of the region’s reds into price tiers – called crus, or “growths” – and developing a childlike reverence for the premiers crus (“first growths”) at the top. Although there were no sub-rankings within each class, Lafite was listed first because it was the most expensive tipple in the France of Napoleon III, and my drinking buddies told me it was still considered the premier premier cru today. Chinese drinkers certainly thought so: they had bid it up at auctions to stratospheric heights after deciding, for still-obscure reasons, that Lafite and only Lafite made for an impressive gift – perhaps because its name was easy to pronounce in Mandarin, or because the estate had stuck the character for the lucky number eight on the label of its 2008 vintage.

So when a friend in the wine trade snuck me into Wine Spectator magazine’s “Grand Tasting” in New York that November, I made a beeline for the Lafite table. They were pouring the 1998: a middling harvest overall for Cabernet Sauvignon, which Messieurs Primi Inter Pares had nonetheless turned into a masterpiece. As a Frenchwoman doing her best to smile sprinkled her elixir among the parched mob, I made off with a couple of thimblefuls, and scurried to the corner of the room to stand watch over my booty.

The perfume wafted into my nostrils before I had time to lift my glass. “zomfg,” began my tasting note. (The “o”, “m” and “g” stand for “oh my God”, you can guess what the “f” is, and the “z” comes out when exuberance makes you miss the shift key.) The scents were so intense, so focused, so easy to distinguish: ripe blackcurrants quivering on the branch; cedar that conjured up a Lebanese hillside; tobacco or thyme leaves floating on the wind. How could a wine be this powerful and yet this elegant? At the tender age of 13, the 1998 Lafite did not yet offer much complexity, and its firm, astringent tannins left me puckering after every sip – the punishment a fine young Bordeaux inflicts on impatient drinkers who disturb its slumber prematurely. But oh…that smell. “I smelled this across the room,” I wrote. “I smelled this at the bar afterwards. I smelled this even when I was shoving pizza down my throat at 3am. And then I smelled it in my dream.”

My first experience of a premier cru was at an LCBO tasting in downtown Toronto. I had developed an interest in wine a few years before, so I was very excited to try some of the well-known wines for the first time. Here’s what I wrote on the old blog (no longer online) in 2008: “That’s not wine … it’s an ostentatious status symbol”

At some point, an expensive bottle of wine stops being just wine and starts being primarily a status symbol. Case in point:

    Staff were delighted at the sale and the three customers were eager to taste the £18,000 magnum of Pétrus 1961 — one of the greatest vintages of one of the greatest wines in the world — which they had reserved from the cellars several weeks before.

    Unfortunately, the guests at Zafferano in Knightsbridge proved to be a little too discerning.

    As the magnum was uncorked, they declared it to be a fake, refused to touch the bottle and sent it back.

I enjoy wine, and I’m usually able to appreciate the extra quality that goes with a higher price tag … up to a limit. The most expensive wine I’ve tasted was a $400 Chateau Margaux, which was excellent, but (to my taste anyway) not as good as a $95 bottle I sampled on the same evening (a Gevry-Chambertin). Wine is certainly subjective, so my experiences can’t be easily generalized, but I think it would be safe to say that the vast majority of wine drinkers would find that their actual appreciation of the wine tapers off beyond a certain price point.

If you normally drink $15-20 bottles of wine, you’ll certainly find that the $30-40 range will taste better and have more depth and complexity of flavour. Jumping up to the $150-200 range will probably have the same relative effect, but you’ve gone to 10 times the price for perhaps 2-4 times the perceived quality. Perhaps I’m wrong, and the $1,000+ wines have transcendental qualities that peasants like me can’t even imagine, but I strongly doubt it. Any wine over $500 has passed the “quality” level and is from that point onwards really a “prestige” thing.

Update: A commenter at Fark.com offered this link as counter-evidence:

    “Contrary to the basic assumptions of economics, several studies have provided behavioral evidence that marketing actions can successfully affect experienced pleasantness by manipulating non-intrinsic attributes of goods. For example, knowledge of a beer’s ingredients and brand can affect reported taste quality, and the reported enjoyment of a film is influenced by expectations about its quality,” the researchers said. “Even more intriguingly, changing the price at which an energy drink is purchased can influence the ability to solve puzzles.”

This is why wines are generally tasted blind for comparative purposes (that is, with no indication of the wine’s identity provided). It’s a well-known phenomena that people expect to enjoy more expensive things than cheaper equivalents.

You can try this one for yourself: next time you’re pouring a beer or a wine for a guest, hide the container and tell them that what you’re pouring is much more rare/expensive/unusual than what it really is. Most people, either from politeness (they don’t want to be rude) or fear of being thought ignorant (that they can’t actually perceive this wonderful quality) or genuine belief in what you’ve said, will go along with the host’s deception and praise the drink as being so much better than whatever they normally drink.

Human beings are wonderful at rationalizing … and self-deception.

H/T to Colby Cosh for the original link.

May 12, 2017

“Maybe this is creeping privatization after all. It’s certainly worth a shot”

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

Chris Selley on the neither one thing nor the other state of alcohol retailing in Ontario:

On Tuesday the government enumerated 76 new Ontario supermarkets where, by Canada Day, you will be able to buy beer. That will make a total of 206 Ontario supermarkets where you can buy beer — an artificially limited selection of beer, only in six packs and singles and only during the same bankers’ hours as the LCBO and Beer Store. But still. That’s about one-third as many supermarkets selling beer as there are LCBO outlets selling beer; add in the 212 rural agency stores that sell wine, liquor and beer, and you’ve got almost two-thirds as many private enterprises selling beer as you have government bottle shops.

This could help prove several useful concepts that deserve much wider acceptance in Ontario. One is that it’s very easy for the government to make money off liquor sales without retailing liquor itself. Indeed, it’s easier; that’s why so many governments do it. The supermarkets buy the beer wholesale from the LCBO; the LCBO doesn’t have to worry about paying civil servants to sell that beer or running the stores.

Another is that the private sector can be counted on to keep liquor out of children’s hands. Indeed, with inspections and draconian fines in place, it can probably be trusted more. My observations suggest LCBO employees certainly card everyone who should be carded, but it’s nothing like it is in the U.S. I’m almost 41, not in especially good nick, and I still get asked about half the time.

Might Ontarians develop a taste for all this convenience? The hard cap on beer-in-supermarket licences is 450; having doled them all out, including agency stores, that would mean about half the liquor outlets in Ontario were privately run. And people might start to notice the bizarre inconsistencies: why can the Walmart on Bayfield Street in Barrie sell only beer, and only in six packs, while the Walmart on Hays Boulevard in Oakville can sell beer and wine, and meanwhile Hope’s Foodland in Novar, Mac’s Milk in Craigleith, Redden’s campground in Longbow Lake and Lac des Mille Lacs Bait and Tackle in Upsala can sell beer, wine and hard liquor — and smokes and fireworks and beef jerky and bread and eggs? Why can scores of convenience stores sell everything alcoholic as agency stores, but other convenience stores aren’t even eligible to apply for the new wine and beer licences?

September 18, 2016

When you’re a monopoly, what’s your attitude to customers? “Sod the proles!”

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

Rick VanSickle vents about the LCBO’s amazingly tone-deaf marketing:

Sorry, LCBO, but I don’t get you. Such a lame-o release on the birthday of our great country July 1, with paltry few Canadian wines released to celebrate our big day, and presumably a few folks out there looking to party with local wines, and then suddenly in the middle of September, you drop the big one.

What up with that? I mean, the Sept. 17 issue of the Vintages mag, with pages and pages of features on Ontario wines and the biggest selection of local wines of the year — am I missing something? Is this some sort of key date for us in Ontario and Canada?

I want to be there during your obviously very detailed board meetings to listen in on the thinking behind your planning. When you get to, say, July 1, does anyone go: “Hey, that’s Canada Day, let’s flood the aisles with great Canadian wine. It’s what the people want, the people who pay for our largesse, the people we work for.” Well, no, of course not, that’s ridiculous.

Instead, as they count down the calendar, they go: “OK, what do we have for the week of Sept. 17? Why, there’s absolutely nothing going on, so let’s make it the biggest Ontario wine release of the year! Yes, perfect!”

Of course, what does it matter anyway? It’s not like the guy down the street is doing any better because there is no guy down the street. It’s the beauty of a monopoly — guilt-free decisions because there is no wrong decision if you are the only game in town.

For example (stay with me here, we’ll get to the wine), if the government decided it was going to force a shoe-store monopoly on its populace and came to the conclusion at a big swanky retreat where such decisions are made (pure speculation) that it would be so cool to put out a big display of Converse runners at all their stores on the first day of winter. No winter boots, no mukluks, just running shoes and sandals. Wouldn’t that be hilarious? lol.

It’s funny but not really funny. We just accept that it’s wrong and carry on like a monopoly is beyond reproach, beyond accountability.

For the record, the Canada Day Vintages release featured a cover story called: South Side Story: Wines of Southern France with 12 pages of spectacular photography and enticing bottles of French wine proudly displayed with glowing reviews and effusive praise for all.

September 24, 2015

Ontario takes baby steps toward liberalizing the beer market

Filed under: Bureaucracy, Business, Cancon, Politics — Tags: , , , , — Nicholas @ 05:00

At the Toronto Beer Blog, a less-than-enthused look at the latest changes to minimally change the just-barely-beyond-prohibition-era rules for selling beer in Ontario:

This has been a noisy day in the wonderful world of beer sales in Ontario. The Liberal government released the details of the new 195 page master agreement between The Beer Store, the Province (LCBO), and the new kids on the block, grocery stores.

Much of the information is what we heard when they announced it with the budget. Some more details have come out. If you read my thoughts in April, you will remember I was not happy. I’m still not.

The good from today’s news is there are some clear definitions of what constitutes a grocery store (10 000 sq/feet dedicated to groceries, not primarily identified as a pharmacy); that the 20% craft shelf space is for both grocery stores and The Beer Store, and that there cannot be a fee to get listed (though we all know how effectively the province enforces pay-to-play in bars around the province); and that they have some novel system to divide sales licenses between both huge chains and independent grocers.

The old news about shared shipping for smaller breweries and no volume limit for a second on-site retail location are accurate, and very good news.

But here’s the thing: This is just more Ontario political craziness.

This is to “level the field”, apparently for small brewers, who nobody would suggest get a fair shake in the current system.

But what could have been an actual leveling of the playing field, turned out to be more insanity and government control and meddling. And remember, I’m saying that as a sworn lefty nutjob, who generally thinks having controls and regulations is a good thing.

Remember, these are not the ravings of a far-right-wing free-enterprise-maniac … these are the regrets of a self-described “sworn lefty nutjob”:

A level playing field would be one where anybody could apply for a license to sell beer, and do it. A brewery can pick and choose who they sell to, as a retailer can choose who they do business with. Nobody would need to guarantee a percentage of shelf space, because the market would control what products were successful and got shelf space.

This isn’t a level playing field, it’s just a bunch of new rules to try to counter how horrible we’ve allowed our playing field to get. Yes, it will be more convenient for people who shop at one of the 450 stores that have a license. But the agreement still favours The Beer Store heavily (for instance, grocers are limited in the volume they can sell. They can exceed the limit, but then have to pay a fine to the LCBO who distribute it to, you guessed it, the breweries who own The Beer Store to offset their lost sales. Seriously).

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