STUDY: higher prices if beer sold in corner stores

The research done by the Beer Store will be released Monday

If the province allows beer to be sold at your local corner store, be prepared to pay more.

A research paper done by the Beer Store will be released on Monday, and it claims that you'll be paying an average of $10 more for a two-four if convenience stores begin selling them.

The Toronto Sun obtained a copy of the foreword of the paper.

An economist who reviewed the research says increasing the outlets for the same customer base, will raise your average cost.

The same economist, Greg Flanagan also believes that the price structure on booze set up by the government, will only see the cost of alcohol rise.

PC leader Tim Hudak has said he wants to end the monopoly on beer and liquor sales in Ontario.

The Sun spoke to the Ontario Convenience Stores Association about it, and the president pointed out that they never said it would be cheaper, but just more convenient.

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  1. Gord Campbell.. posted on 02/10/2014 04:55 AM
    Poor old Hudak. He really should get a speech writer and researcher. The Brewer's Retail aka The Beer Store, is not a monopoly.
    I repeat. NOT a monopoly. It is a privately owned co-op wholesale, warehouse, distribution, recyclers, and beer only retailer. Which by the way is probably the most efficient system in the whole of North America. Challenges have been made before. Crunch the numbers. They know how to move a bulk product fast and cheap, cheap, cheap..
    Again, it is not a monopoly. It is the provincial government that is the monopoly.
    1. HP posted on 02/10/2014 07:47 AM
      @Gord Campbell.. The Beer Store is a foreign owned monopoly that has exclusive rights to 80% of Ontario's beer sales. The LCBO sells a limited variety of domestic beer but only in higher priced 6-packs and singles, as well as a limited selection of imported beers, again, nothing larger than a 6-pack permitted.

      It also has the monopoly for deposit redemption...a huge cash cow, and it keeps the deposit on unreturned beer empties.

      The Beer Store is owned by European and a Japanese brewers, all profits are siphoned out of the province. They force consumers to buy from smelly, dirty, outlets where they put up with rude, arrogant unionized staff, have limited locations...reminds me the old LCBO days where everything was kept behind the counter and you had to line up for hours.

      I visit Wasaga Beach in the summer...they have one beer store at the busiest part of town, one store in Collingwood, and a small one in Stayner....nothing else around for serve a market of over 100,000, and they have to line up, sometimes for over a half hour because of the volume of people bringing in empties for the deposit...some homeless people that harvest the blue boxes bring in over $50.00 at a time.

      I'm surprised that beer drinkers are not in any other country they would go nuts if their beer distribution was controlled by a foreign owned monopoly. This is the only retail operation that employees a sales prevention department and has no concept of customer service. The only reason that beer drinkers put up with this is because there have no choice...there is no alternative....that's called a monopoly.
    2. Only Common Sense posted on 02/10/2014 08:16 AM
      @HP Consider this:
      Every year the Beer Store (Brewers Retail) raises an average of more than $1,000,000.00 through its Leukemia Bottle Drive in May. This bottle drive is the world's largest event of its kind.

      I'm sure the thousands of convenience stores in the province would be able and willing to band together in undertaking this amazing fund-raiser on behalf of leukemia victims in the province, wouldn't they?

      .... or not.
    3. Jim posted on 02/10/2014 08:25 AM
      @Only Common Sense So because they do 1 good thing we should let them continue to screw the public?

      Give your head a shake.
    4. HP posted on 02/10/2014 09:16 AM
      @Only Common Sense You don't understand the deposit being donated is YOUR money? It's like the government donating your tax refund to charity.

      Regardless of where the beer is sold, the deposit will still be collected and can be donated to charity...the best way to do this is have the donated bottles put in the blue box and the recycler can redeem them from the government which will now hold the deposits in trust.
    5. john posted on 02/10/2014 11:16 AM
      @HP cause we dont have no back bone .
  2. John posted on 02/10/2014 05:45 AM
    "higher prices if beer sold in corner stores"

    Of course the price would be higher, just like milk or bread or cereal or just about anything else sold in a corner, or convenience, store is higher than at a grocery store - you are paying for the convenience.

    But, $10 more for a 2-4? Beer Store propaganda?
  3. Only Common Sense posted on 02/10/2014 06:38 AM
    Tell me it isn't so !!

    Tim Hudak on the wrong side of the argument ... again?
  4. Jim posted on 02/10/2014 08:21 AM
    Firstly, given the source of the "research" you need to take the results with a grain of salt. The Beer Store does have a vested interest in maintaining the status quo. Second, Gord, I suggest some business courses. When you have a system where the only legitimate source of a production is one seller it's a monopoly situation. Third, the market will set the price. At $10 extra per 24 the corner stores won't sell enough to justify the space. Finally, how is it that this corner store system works so well elsewhere? Are we in Ontario too stupid to make it work? I don't think so.
    1. Facts are Better posted on 02/10/2014 08:30 AM
      @Jim If the system of selling beer in convenience stores works so well for the consumer, then why are the prices so much higher in Alberta ?
    2. HP posted on 02/10/2014 08:55 AM
      @Facts are Better Taxes...and The Beer Store needs to stop using "convenience stores" as the retail boogey man to scare people. Grocery stores, drug stores, even Canadian Tire will be able to sell beer (maybe wine?) in a competitive free market. Today, there is no competition.

      I was in Florida last year, able to buy a 2-4 for $15.00, Heineken for $ at Walmart sells for $2.97 (not bad wine, too)...the Publix grocery chain has weekly BOGO on wine and beer. And Florida taxes the stuff as well (no state income tax in Florida and provincial income tax Alberta as well).

      The CVS drugstore chain (America's Shopper's Drug Mart) sells beer at about $2.00 more than Walmart. In Canada, you know that the louder a monopoly screams and the more it lobbies government (read campaign contributions) the more it stands to lose. The Beer Store is a cash cow for foreign brewers, they do not want it changed. Their worst fear is having to honour their labour agreements is they lose the monopoly, but will make billions selling their real estate. Ontario has been screwed on beer pricing since day one, perhaps it's time for a god change that actually works for the consumer.
    3. Jim posted on 02/10/2014 09:05 AM
      @Facts are Better Without knowing the tax structure that isn't a fair comparison.
    4. HP posted on 02/10/2014 09:12 AM
      @Jim Let Google be your's all there. Taxes are higher in Ontario but the mark-up is stupid high. Ontario is the only retail outlet in the world that allows foreign brewers to brew, package, distribute, and sell their beer in a protected, totally vertical monopoly. They make money at every step, the Ontario consumer pays a markup every time beer is handled, and, apparently, based on your defense of this corporate octopus, they love being taken to the cleaners.
  5. gheller posted on 02/10/2014 08:59 AM
    Recently purchased 20 cans of Canadian in a corner store in Quebec City for $6 less than at the beer store. If provincial taxes are the same from province to province we should expect the same.
  6. Starchild posted on 02/10/2014 09:36 AM
    Typical monopolist propaganda to keep monopoly. The reason the beer is expensive because the government puts way too much tax on it. We pay about twice as much like any other normal country except Sweden. Few things:
    -Beer is not alcohol, it is food just as wine.
    -Beer and wine should be sold everywhere since it is part of the diet in many cultures
    -It is not the wast majorities fault to pay the price for the insignificant minorities idiocy and alcohol abuse
    -Abolishing monopoly will help to open local breweries and wineries to provide good quality drinks. Good business opportunity,more jobs, more revenue.
    However we have a corrupt communist dictatorship and whatever would make sense will not happen. The communist government is only interested in tyrannical nanny state and financial vampiring.
  7. Angry Bill posted on 02/10/2014 10:03 AM
    I haven't darkened the doorway of a Brewer's Retail outlet in years. And I have zero intention of changing that, as long as the monopolistic status quo exists.

    If more people did that, then that would force change. But rednecks gotta have their Bud Lite.
  8. john posted on 02/10/2014 11:02 AM
    man what a load of crap . higher prices my ass . all businessmen knows thats BS . yet more nonsence form a monopoly . the same bs that came out of LCBO when thay whan the sell them in stores . bunch of yellow belly pusseys . afraid of complication .
  9. Wilbur Force posted on 02/10/2014 11:31 AM
    So, a free and open, competitive marketplace gives rise to higher pricing versus a monopoly? Have I missed something? Well, first of all, the Beer Store and LCBO are not quite monopolies....there are other sources you can purchase from, in certain markets. Remote northern regions, for example.

    But, lets look closer to the GTA for an example....rural Co-op Stores sell liquor, beer and wine within the GTA....Claremont, for example....just 5 minutes north of the eastern terminus of Hwy 407. A quaint combination of old rural and new "bedroom" communities 5 minutes east of Stouffville, and 15 mnutes south of Uxbridge adjacent to the infamous expropriated Pickering Airport Lands.

    Here, at the friendly, neighbourhood Claremont Co-op Store locals can, and do, choose to buy their libations at pricing that is comparative* to any government controlled outlet! So, HOW on Earth can anyone believe that a further opening of this market will lead to higher prices???

    *Price Check: 24 Bottles Molson Canadian: The Beer Store: $34.95
    The Claremont Co-Op Store: $34.95
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