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Should the LCBO be deregulated?


  • Total voters
    169
  • Poll closed .
Ontario should UP the refundable deposit on alcoholic bottles and cans. Should also include non-alcoholic containers as well. That should provide "employment" for kids.
 
While the grocers are exaggerating the challenge, particularly for larger sized stores; it is a hassle, and one they are no longer accustomed to.

I fully expect the deadline to be pushed and the government to bump the wholesale discount to 15% if you agree to the take backs.

That will get a higher participation rate, but far from universal.

The system, as proposed, is clunky.

Its not the way other provinces have handled it.

So, I expect, in the end, they will either shift another model; or they will end up at a 20% discount for wholesale to make it worthwhile.
I would put my money on the deposit program going away and just goes to the blue box. While there are questions to be answers. Will grocery have to accept spirit bottles and who pays for it? Is TBS going to want to take the cost on of having to pick up returns from these stores?

While the increase in the wholesale discount is enticing, to stay competitive in pricing beer and wine as a department its hard to make money.
 
I would put my money on the deposit program going away and just goes to the blue box.

Personally, I think deposit/return is only logical if you're doing re-use. But we don't do that at all for wine/spirits, and much less so for beer than we used to.

But I understand that blue box rates are far lower than they ought to be.

While the increase in the wholesale discount is enticing, to stay competitive in pricing beer and wine as a department its hard to make money.

Frankly, I think the wholesale discount should be 'normal' wholesale......which is to say at least a 40% discount to retail, or more or less the LCBO reselling at a modest mark-up to cost.

But that's not on the table.

15% is definitely under consideration since they've already given it to restos.

There's room for some additional changes as well.

I expect you'll see private-label wine in Ontario at some point, when that happens the grocer profit on their own lines will become much more attractive. Irresistible Wine, PC Wine, Panache Wine, Curato Wine (Longos), Kirkland Lake etc.

They may also move on minimum pricing, there are still restrictions on selling wine at less than $10.99 per 750ml. Those are some of the LCBO's best movers, volume makes up for margin.

We'll have to see.
 
While I believe Ontario should keep LCBO retail, I think the LCBO wholesale monopoly should end. Let retailers buy direct from Brewers, Wineries and Distillers, and let retailers negotiate price with the manufacturers and then add whatever mark up the retailer needs to have successful business.
 

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