Ontario directs LCBO to increase promotion of local products amid strike

Ontario’s finance minister is directing the Liquor Control Board of Ontario to increase the promotion of local beer, wine, spirit and cider products as the province expands alcohol availability and workers are striking to protest the decision.

Finance Minister Peter Bethlenfalvy, in a letter sent to LCBO chair Carmine Nigro on Tuesday, said he is directing the LCBO under section 9 of the Liquor Control Board of Ontario Act “to create more opportunities to promote these products in LCBO’s retail and wholesale operations” as the expansion begins later this summer.

The Ontario government is embroiled in a labour dispute with the Ontario Public Service Employees Union, whose 9,000 workers walked off the job last week to protest the province’s plan to expand alcohol sales into smaller markets. The key issue, the union said, is the expansion of ready-to-drink, spirit-based beverages such as coolers into convenience stores, which it says will threaten the LCBO’s long-term viability as a retailer. The union has accused the government of attempting to privatize liquor sales in the province and turn the LCBO’s operation into a wholesaler.

Mr. Bethlenfalvy, in an interview this week, said the government will not back down on its plan to expand alcohol sales to increase consumer choice and said there will still be a place for the LCBO in the marketplace.

Ontario plan to expand alcohol sales is irreversible, Finance Minister says, as LCBO strike continues

In his letter, the minister said the Crown corporation should name a point-person to lead the LCBO’s efforts to respond to consumer demand for local products and to provide prominent merchandising space, signage and promotional opportunities for small and large Ontario producers “that reflect consumer trends and demands.” The minister said he also expects the LCBO to separate out and highlight the successes of small alcohol producers and to develop a plan to measure progress and targets in supporting the initiatives.

“Again, while some take a more short-sighted view that opposes change, as a best in class wholesaler and retailer of alcohol, LCBO will continue to make meaningful financial contributions to provincial coffers,” Mr. Bethlenfalvy wrote.

The minister said the LCBO revenue and dividends, estimated at $2.5-billion a year, have continued to grow even as governments expanded alcohol sale to new retail stores and allowed bars and restaurants to sell alcohol with take-out and delivery.

“The evidence is clear: you can provide more choice while still generating revenue to invest in front line government services. LCBO will continue to innovate and compete in this new marketplace as a valuable public asset,” he said.

The union did not immediately respond to a request about Mr. Bethlenfalvy’s letter.

Colleen MacLeod, chair of OPSEU’s Liquor Board Employees Division, told the Globe this week the government’s model isn’t to benefit small stores or breweries and distilleries, but will hand the market over to big-box grocers and chief executive officers.

“The intention here is to reduce the footprint of the retail aspect of the LCBO,” she said in an interview Monday. “It’s about moving the public revenue to private CEOs, big corporations, and having them do this work, where they hold the profits.”

Ms. MacLeod said the issue isn’t just about LCBO jobs, but: “What kind of Ontario do you want going forward?”