The Beer Store

[8] The act and the company's articles of incorporation further stipulate that Brewers Retail cannot sell "hard liquor" (spirits) or consumer goods (like groceries).

Valid Ontario and Canadian manufacturing licences are required and the brewer must not produce beer in any other jurisdiction, or else meet minimum annual capacity and production goals.

Additionally, qualifying small brewers who produce under 10,000 hectolitres a year are now provided with 2 free guaranteed product listings at 7 of their most proximate Beer Stores.

Although prohibition had proven to be unsuccessful, the provincial government still needed to placate angry temperance advocates and agreed that beer would be sold through a single network of stores.

The system does benefit remote areas in that lower-priced products are not restricted to larger outlets in urban centers, but are available at all Beer Store locations throughout the province.

A series of studies, authored or co-authored by professor Anindya Sen of the University of Waterloo, estimated that the near-monopoly the Beer Store has in Ontario allows its owners to capture between $450 and $630 million in “additional profits” each year.

Using Molson Canadian as an example, the adjusted 24 pack price from Quebec IGA and Metro flyers was found to be $26.81 versus $28.12 for Ontario TBS locations.

ODRP continues to make a meaningful contribution to Ontario's waste diversion objectives, with the return rate increasing more than 16 percentage points since its first year of operation in 2007.

“This success means we have recycling factories making new products, instead of higher piles of waste in landfills,” said Jim Bradley, Ontario Minister of the Environment, in an April 2014 statement.

In 2013–2014, the Beer Store and ODRP program combined, avoided 196,332 tonnes of GHG emissions - equivalent to taking over 41,333 cars and trucks off Ontario roads.

[35] Pierre Sadik, Senior Policy Adviser at the David Suzuki Foundation has stated, "Ontarians should be proud of The Beer Store's environmental achievements.

[citation needed] Since 2006 The Beer Store, UFCW Local 12R24 (the union representing its employees), and the Leukemia & Lymphoma Society of Canada have partnered together to help raise awareness and funds for blood cancer research through the collection of empty bottles.

)[39] The plan has led to some concern, with certain industry sources suggesting that the company will be entitled to significant damages, up to one billion dollars according to some estimates; if so, that would be costly for the taxpayer.

Finance Minister Vic Fedeli told the news media that the current monopoly on beer sales in bulk "is a bad deal for consumers and businesses and is deeply unfair to the people of Ontario".

[42] John Nock of the United Food and Commercial Workers union made this statement, "We will fight this government and this premier to keep our jobs and to save the taxpayers the billions Ford is willing to pay to put beer in corner stores".

[43] The previous government had approved the sale of beer in six packs or less in a limited number of supermarkets in 2018 but the plan to cancel the contract with TBS would provide greater "choice and convenience" according to Fedeli.

TBS Board chair Charlie Angelakos believed that negotiations could lead to a "mutually acceptable" method of increasing the availability of beer in retail locations and could prevent a "protracted legal battle and the significant damages to which the government would be exposed".

The Opposition Liberals claimed the plan would cost taxpayers in excess of $1 billion in fees, incentive payments to grocery stores, and lost tax revenue.

[47] Critics say TBS constitutes a foreign-owned monopoly over retail beer sales in Ontario, costing the consumer more in the long run in terms of convenience and price.

[48] By accounting for tax differentials and comparing the average (non-sale) 24 pack cost of beer between BC, Alberta, Quebec and Ontario, the report concludes stating that Ontarians are well served under the current regulated model.

The Beer Store has been subject to criticism following the Molson-Coors merger, whose 49% stake in TBS was the last 100% Canadian-owned share of the venture under the pre-merger Molson Breweries.

TBS representatives denied that their policies are hurting small brewers and implicitly questioned the timing of the Brick Brewing Company's statement, suggesting that in their view it is unethical for a brewery to use an electoral campaign to forward self-interests.

[50] Additionally, Brick claimed that TBS allegedly used monopolistic tactics to force the brewer to stop offering beer in "stubbies" by withholding supplies of industry standard "long-necked" bottles.

A July 2008 Toronto Star article attributed an industry analyst as estimating the three foreign entities that owned TBS earned $1 billion in profit per year in Canada.

Canada's National Brewers (the lobby group that represents the BRI shareholders) further said that in the event OCB did get to set up a competing chain, they would refuse to stock their products there.

[56] When Regg Cohn questioned the Beer Store representatives about the agreement, suggesting it is collusion, the reply from the BRI lawyer Michael A. Eizenga of Bennett Jones LLP stated the "use of the term 'collusion' which has significant legal meaning," and "This is an inaccurate and inappropriate characterization, to which my client objects.

"[60] Liberal Finance Minister Charles Sousa, in response to these revelations, says he has "got the investigation underway" and that "I'm trying to ensure that what you’re suggesting doesn’t happen any further ... You're right, there's a monopoly, a duopoly, oligopoly — call it what you will.

[62] The new regulations took effect on December 15, 2015, with 58 designated supermarkets, and additional locations to be added in the future; all products must be below 7.1% alcohol by volume, and at least 20% of a store's stock must be Ontario craft brews.

Loblaw Companies elected to go beyond the minimum quota and committed to stock 50% Ontario craft brews at its participating stores, in an effort to provide a wider array of options.

Fedeli described the MFA as a "sweetheart deal by the previous government" for "three global giants" who were "more interested in protecting profits than providing convenience or choice for average people.

A Beer Store outlet in downtown Ottawa , NCR on Rideau Street (closed since October 2018) [ 18 ]
A Beer Store outlet in Richmond Hill, Ontario in 2020
A truck for The Beer Store