My take on Beer, RTD, and Wine in convenience stores
I was pondering the new landscape in Ontario for alcohol offerings, and I’d say that I’m in the middle ground on this issue. I’ve always thought we’ve needed more transparency around alcohol. I’ve never thought that the LCBO is the only place that can successfully retail alcohol in the province. In fact, I’ve always thought free market enterprise with the LCBO in charge of warehousing, would be a nice middle ground.
There is no need to reinvent the wheel when we taxpayers have paid for a straightforward system that works and would perhaps work better if some rules were tweaked. Currently my concern is the lack of options this new system provides as it limits the playing field to already established brands. Stop trying to sell me on how it’s better for the consumer as it’s not.
Grocers and Convenience stores select from a list of SKUs that the LCBO has created. I recently looked into submitting some Katy Moore Wines for this wholesale catalogue. I found within the fine print that the application would not be considered if the product were not currently listed with the LCBO. The wineries that we currently represent do not make enough wine to supply the LCBO.
So as a grocer or Convenience store owner I can purchase products out of a catalog of items that are already in the LCBO. I may purchase them at a 10% discount, the same rate as the hospitality industry was able to get just recently and then mark it up as they see fit on the shelf. At least those in the hospitality industry can access the wines from any of the agents operating in Ontario, the same can’t be said for Grocery or Convenience license holders.
The lack of options combined with the inherent nature of driving down to the lowest price possible (which is set by the LCBO) is not how alcohol should be sold. With this model, you’ll wind up only offering junk alcohol, just like junk food which is also readily available in Grocery and Convenience stores. As the saying goes “Life is too short to drink bad wine”. Let alone promote it for the sake of sales.
Now that Wine, Beer and RTD are in more places than the LCBO stores, Agency Outlets I hope this is not the end of the conversation. It should, in fact, be a starting off point if we truly want choice in our marketplace. Until then, at least there are still many Wine Agencies like Katy Moore Wines bringing in great wine and products for you to enjoy.
