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Globe Highlights Crazy BC Wine Prices PDF Print E-mail
Written by Mark Hicken   
Wednesday, 06 January 2010 18:36

A recent Globe and Mail wine column by Beppi Crosariol provides a range of wine picks for consumers who want to find a reasonably priced “house wine”. However, the picks highlight the ridiculous price of wines in British Columbia. For the wines that are chosen, you can see the significant wine price differences between Ontario and BC here. Only two wines are the same price and nearly all of the wines are much more expensive in BC - up to 33% more expensive! Remember, this is a comparison between two liquor monopolies … not a comparison between the U.S. and Canada where the differences would be even greater. Something is seriously wrong with the BC LDB pricing structure when you have differences this large between MONOPOLIES. Of course, if Canadian shipping laws weren't also so absurd, we would at least be able to order from Ontario ...

 
Liquor Store Privatization Heats Up Nationwide PDF Print E-mail
Written by Mark Hicken   
Thursday, 17 December 2009 19:22
The possibility of retail liquor store privatization has hit the headlines nationwide in the last few days as Ontario announces that it is considering the sale of the LCBO. It is also rumoured that the B.C. government is considering further privatization at the retail level. In both cases, the provincial governments would likely retain control at the wholesale level in order to ensure that they could continue to collect the same (or more) liquor tax revenue as they currently do. A sale of retail stores would generate much needed cash for deficit-ridden provincial governments who are looking at ways to raise funds to spend on essential social services such as health care and education. See this Retail Liquor Store Privatization Update and Analysis for more information.
 
Greater Freedom for Licensee Retail Stores PDF Print E-mail
Written by Mark Hicken   
Thursday, 03 December 2009 00:51
Effective Dec 2, 2009, licensee retail store (LRS) licenses (the newer private retail store licenses) have been uncoupled from the liquor-primary (LP) licenses with which they were formerly required to be associated. See this story on WineLaw.ca for details. This change will allow greater freedom for LRS operators to move their operations and/or transfer them to other parties. We may see an increase in the transfer of LRS licenses ... perhaps even to a supermarket operator?
 
FedEx to Direct Ship U.S. Wine to Canadian Consumers PDF Print E-mail
Written by Mark Hicken   
Saturday, 28 November 2009 17:53
FedEx has just announced that it will be part of a new "direct purchase" system which will allow U.S. wineries to direct ship wine to consumers in British Columbia, Alberta and Ontario. This groundbreaking announcement will allow individuals in these provinces to purchase wine direct from U.S. wineries. FedEx will retain control of the shipment at all relevant times but will collect and remit the applicable taxes and liquor board markup on behalf of the liquor boards. The system will be "transparent" for the consumer with the wine arriving direct to their home or business from the winery and FedEx taking care of all the customs issues (consumers will be charged by credit card for the various fees). [Update: it's not clear whether there is regulatory approval for this new system - see this article for more info.]
Last Updated ( Thursday, 03 December 2009 00:50 )
 
Alert: Vancouver Bylaw Threatens Wine Consumption in Restaurants PDF Print E-mail
Written by Mark Hicken   
Friday, 23 October 2009 19:15

Customer: A bottle of the Caymus Cabernet please. Waiter: Sorry, sir, I am afraid you'll have to order something cheaper. It's a little slow in here tonight and we can't sell any more expensive wine unless we sell more food.

Sound ridiculous? Perhaps not in Vancouver ...

The City of Vancouver is currently implementing changes to its bylaws regarding the operating hours of restaurants and liquor service in restaurants. One little noticed section of the changes seriously threatens the business viability of most restaurants in Vancouver and would have extremely detrimental effects on the consumption of wine in restaurants.

As part of the condition of granting a restaurant a food-primary license, the province (LCLB) currently has a requirement that the restaurant primarily be in the business of selling food rather than liquor. The province can currently check this by enforcing a requirement that in any 24 hour period, the restaurant should not be selling more liquor than food. While this method of testing the balance seems problematic to me, it generally has been accepted by restaurants because food sales at lunch (and/or breakfast etc ...) can balance out higher liquor sales at dinner.

The City, however, is proposing to change the 24 hour check to an 8 hour check. That would mean that solely during the hours of dinner service, a restaurant would have to sell more food than liquor. It doesn't take too much thought to realize that this is a completely unworkable rule. Suppose, for example, that a single table of two orders an expensive bottle of wine ($150) with two entrees ($50). That purchase would skew the sales toward liquor instantly. If that was the only table for the night, or if all other tables ordered 50/50, then the restaurant would be off-side for the night. I would venture to guess that this rule will be immediately unworkable in most popular restaurants in Vancouver.

The effect on fine wine sales could be dramatic. If the manager for the night notices that the restaurant is running 50/50, then theoretically he or she should prevent customers from ordering expensive wine because that would throw the restaurant off for the 8 hour period. Any restaurant that sells moderate to expensively priced wine should be extremely worried about this rule. As the Olympics approaches, this is a huge backward step for the modernization of wine laws in Vancouver.

Update (November 3, 2009): Good News .... The City of Vancouver has withdrawn the proposed bylaw and it will not be considered in its original form, as described above. There will now be a "rethink" and further consultation with the industry.

Last Updated ( Tuesday, 03 November 2009 19:40 )
 
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