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B.C. Grocery Stores to Start Selling Liquor in the Spring

Changes to B.C.'s liquor policy is expected to go over well with consumers and small to medium sized businesses in the liquor industry.

Barriers that have previously hindered and discouraged growth for small and medium businesses have been removed. With the rapid expansion of B.C. breweries and the increasing demand for craft beer, the removal of these barriers is essential to B.C.'s thriving pub and vineyard culture.

By moving to gradual increases in mark-up rates, there will be no more large financial burdens to face as soon as breweries grow into a new production category. This change will influence more job development in British Columbia, as superficial barriers have been taken down.

Photo Credit: B.C. Government Contributed

B.C.'s small and medium sized breweries make up approximately 95 per cent of the total number of breweries in the province, as well; B.C. breweries have invested over $100 million in equipment and expansion in the past two years to keep up with the growing demand for craft beers.

Photo Credit: B.C. Government Contributed

“The boom of craft breweries opening in B.C. over the last few years has been built on a shared love of good quality brewing and support from local beer enthusiasts, which has helped bring success to our industry. It is the strong ties we have to our community and our customers’ loyalty that has helped our industry grow. Now, government is building on that support, reducing the mark-up for some of our products and eliminating barriers to growth - this will hopefully lead to further benefits for our loyal customers and B.C. craft breweries,” said Micheal Tod, partner and director of sales, Parallel 49 Brewing Company.

As of April 1st, 2015, liquor sales will be allowed in grocery stores across the province through the store-within-a-store model. As well, restrictions will be lifted on B.C. Liquor Stores, allowing them to offer refrigerated items and to alter their hours of operation to stay open longer and on Sundays.

In addition, all liquor retailers, including B.C. Liquor Stores, will purchase their product from the B.C. Liquor Distribution Branch at a common, wholesale price. This change will do away with the existing complex model that offers retailers various discounts depending on the type of retailer they are.

“Underpinning many of our liquor changes - including our models for liquor in grocery stores and wholesale pricing - is the concept that government needs to get out of the way and leave more to market forces,” said Suzanne Anton, Attorney General and Minister of Justice.

Leveling the playing field, all alcohol businesses in B.C. will now have the same opportunities and advantages.

The expectation is that, by increasing competition, the market can be more responsive to the consumer. However, the B.C. government has never regulated the price of alcohol for private businesses and this process will remain in place.

“Liquor in grocery stores and wholesale pricing are a few of many changes to support a level playing field and a more competitive marketplace, while balancing the priorities of consumers, industry and health and safety advocates. We heard from many stakeholders during the Liquor Policy Review that the current, varying mark-up and discount rates were confusing to different retailers - and government is acting to address the calls for simplicity and a level playing field,” said John Yap, Parliamentary Secretary for Liquor Policy Reform.




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