Amidst the Canadian conflict surrounding canned cocktails

Daily News Latest
6 min readJul 20, 2024

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The previous week, a video was shared online by Ontario’s Prime Minister Doug Ford, conveying a message to the residents of his province in Canada.

The political ad appeared to be ordinary and harmless — Mr. Ford was dressed in a relaxed black polo shirt and a blue apron, grilling burgers at a barbecue with cans of beer nearby.

“Ontario is currently basking in the glow of summer,” declared the premier with a radiant smile directed at the camera.

On the contrary, the video served as a bold introduction, as the leader unveiled an engaging map showcasing nearby breweries, vineyards, and distilleries.

Amid a labor dispute affecting summer alcohol sales in Canada’s most populous province, a clever and calculated decision was made.

Ontario’s liquor retailer is experiencing a strike for the very first time in its existence. The conflict has brought attention to the province’s unique and, according to some, antiquated alcohol regulation system.

The 5th of July saw over 9,000 workers from the provincially-owned Liquor Board of Ontario (LCBO) go on strike when talks for a new collective agreement with their union and Mr. Ford’s government broke down. Following that, the LCBO closed down all of its 650 stores for a minimum of two weeks.

This week, the Ontario Public Services Employees Union (OPSEU) came back to negotiate with the province. However, discussions continued after Mr. Ford made another strong statement: the premier has committed to expediting the implementation of selling pre-packaged cocktails in privately-operated stores, which is the main issue causing disagreement with the union.

On Friday, there was a fleeting moment when it appeared that the conflict had come to an end, as the labor union for LCBO employees declared that a preliminary agreement had been made to allow the reopening of liquor stores in a couple of days.

However, it quickly changed course in a brief press conference that lasted only two minutes, where they alleged that Mr. Ford’s administration had declined to endorse their directive for employees to return to work.

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“We were all set to arrive here with the intention of revealing an agreement,” expressed Katie Arnup, the representative of the union. A deal is not something we currently possess. The protest persists.

Shortly after, the LCBO presented its perspective: It alleged that the workers’ union had negotiated in a manner lacking honesty, claiming that they had brought up new financial requests that should have been discussed during the negotiations. It also promised to lodge a complaint of unfair labor practices against the union, indicating that the battle is far from finished.

The gradual development of liquor regulations in Ontario

The LCBO stores spread across Ontario nowadays — often described as having a wide selection, being tidy, and some customers may say, a bit expensive — are the result of a decision made almost a hundred years ago, granting the government agency authority over the distribution and retail of alcohol in the region.

Throughout many years, the entire system retained unique remnants of the policies from the temperance era.

Before making a purchase, clients had to acquire a special permit for alcohol and then interact with a salesperson who had the authority to refuse any request deemed excessive. The presence of alcohol was not visibly showcased. The shops were tucked into hidden corners, and items bought were carefully concealed in inconspicuous paper packages.

Gradually, from the 1950s and 1960s onwards, the LCBO transformed into a more customer-oriented establishment, currently offering wine tastings, complimentary beverage samples, and a stylish LCBO-branded culinary and beverage publication. Even though self-service, where customers can choose their favorite alcohol directly from the shelves, was not fully implemented until the late 1980s.

In the past, residents of Ontario had the option of purchasing beer from The Beer Store, which was owned by a consortium of brewers, and in the 1990s, they could also enjoy wine made in Ontario from The Wine Rack, which was under the ownership of the Ontario Teachers’ Pension Plan.

However, the LCBO has mostly held a strong and unbreakable monopoly over alcohol sales in Ontario.

While provinces such as Alberta, British Columbia, and Prince Edward Island embraced changes to their liquor sales regulations by permitting privately-owned stores, Ontario remained largely unchanged in this regard.

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The year 2015 marked the beginning of a change in the air. The initial supermarkets in Ontario were given permission to offer six-packs of beer — a modification that was considered the most significant transformation in alcohol distribution since the Prohibition era.

According to a Toronto Star article, the initial beer purchase made by former Premier Kathleen Wynne at a grocery store was described as a minor transaction for a politician but a significant advancement for beer enthusiasts in Ontario.

Currently, there are 450 supermarkets throughout the region authorized to offer beer, wine, and cider for sale.

In the midst of the strike, residents of Ontario are not experiencing a completely parched summer. It is still possible to place restricted LCBO delivery requests online and buy wine, beer, and cider from certain stores.

Cocktails pre-prepared are the definitive boundary.
A significant transformation is on the horizon.

As of this month, convenience stores, large retail stores, and supermarkets will now have the opportunity to offer wine, beer, cider, and pre-made cocktails such as hard seltzers for sale.

OPSEU warns that their business is facing an existential threat due to the presence of pre-made cocktails.

“On this first day of the strike, President JP Hornick declared, ‘This marks our decisive stance, a moment that will go down in history.’”

Today we gather due to the Ford administration’s intention to broaden the privatization of alcohol sales… This endangers every person in Ontario.

According to OPSEU, the modification puts at risk the provincial coffers’ C$2.5 billion ($1.83 billion; £1.42 billion) revenue from LCBO sales.

Mr. Ford contends that the proposal will provide small businesses with an opportunity to enter the market, all the while ensuring that the LCBO maintains a significant edge over its competitors.

According to the new strategy, the LCBO continues to be the exclusive seller of potent spirits such as gin and whisky, and also holds the monopoly as the main distributor and wholesaler of alcohol in Ontario.

“Remember, as the distributor, that’s the prime opportunity to generate profit,” stated the premier during the previous week.

The proposal also offers Mr. Ford an opportunity to fulfill a promise before the upcoming election, set to take place in 2026.

“At the Rotman School of Management at the University of Toronto, Walid Hejazi pointed out that this was a key focus of his campaign.”

“Mr. Hejazi, who mentioned his past work as a consultant for the LCBO around 15 years ago, stated that this is a favorable topic for the Conservatives.”

The province is suggesting a plan that would reduce the cost I need to cover and enhance its convenience… Who wouldn’t be interested in more affordable alcohol and increased convenience?

‘The vessel has embarked on its journey.’
The LCBO faces an additional challenge as the impact of their strike has been significantly lessened by the limited extent of alcohol liberalization already present in the province.

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The majority of Ontarians are not overly concerned, as they have the opportunity to enjoy alcohol at numerous wineries, supermarkets, and beer shops that are still operating.

Imagine if you decided to go on strike and barely anyone even realized it was happening.Peruse the opening sentence of an editorial in The Globe and Mail.

The public opinion surveys appear to show uncertainty, as only 15% of people in Ontario claim to have experienced any impact from the strike.

According to a tourism association, 35% of survey participants in the industry are being impacted by the strike, as it is causing a shortage of products and delays in service.

However, they are not definitively aligned with Team Ford.A survey conducted within Mr. Ford’s administration reveals that although there is considerable support for loosening liquor regulations, just over half of the respondents are in favor of the strike.

Nevertheless, a considerable number of Ontarians paid attention to the interactive alcohol retail map created by the Conservative premier, potentially causing more irritation among voters than the closed stores.

The province’s quick action to introduce an alcohol locator following the strike sparked concerns about the government’s focus, as a local resident proposed that a more valuable resource would be a directory of available family physicians.

Dr. Adil Shamji, a Liberal politician at the provincial level, mentioned that he frequently receives requests from residents seeking assistance in locating doctors, childcare services, or affordable housing.

“Never before, not even after this incident, have individuals contacted my office seeking assistance in locating alcohol,” he stated.

Dr. Shamji expressed his desire for both parties to come together and reach an agreement that includes safeguards for the LCBO.

Regarding this matter, Mr. Ford expresses his willingness to continue discussions; however, he remains firm on not making any concessions when it comes to canned cocktails.

Should they wish to discuss [beverages that are ready to be consumed], the agreement will be canceled. “I will reiterate: that opportunity has passed,” he stated.

https://dailybusinesspost.com/the-struggle-in-canada-over-ready-to-drink-canned-cocktails/
https://network.propertyweek.com/articles/the-struggle-in-canada-over-canned-cocktails

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