BCL Exclusives, LRS Temporary Relocation, LCBO Strike, and More! -----------------------------------------------
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Liquor Industry Update:
July 25, 2024
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Dear ABLE BC members and industry colleagues,
Here's the latest news for the private liquor industry:
- Renewal Season is Here!
- BC Liquor Store & LRS Exclusive Products
- Advocacy Win! Temporary Relocation for LRS Licences
- Recent Wins for BC Wineries
- BC Bans Plastic Shopping Bags & Foodservice Ware
- ABLE BC's Comment on LCBO Strike
- BC CADE Celebrates Win in Vancouver
What you'll find in every newsletter:
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Renewal Season is Here!
ABLE BC memberships expire on August 31, 2024. Members can renew by logging into the Member Portal and following the renewal instructions posted on the dashboard.
If you have questions about your renewal, don't know how to log into the Member Portal, or would like to discuss a payment plan, please contact David Lough, Manager of Membership Services, at david@ablebc.ca or 604-688-5560 ex. 2.
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BC Liquor Store & LRS Exclusive Products
British Columbia’s liquor retail landscape has evolved substantially since the first private liquor stores (LRSs) opened in 1988. What started as a few small, convenience-based cold beer and wine stores has today become a thriving industry of 670 LRS stores selling about $2 billion of alcohol annually and accounting for 37.8 per cent of BC’s liquor retail. By any measure, our private retail model has been a resounding success for BC’s economy and small business community.
Despite these achievements, many owners and operators are frustrated by increasingly aggressive competition from BC’s largest liquor retailer—the government-owned chain of 198 BC Liquor Stores (BCL). In the last ten years alone, BCL has implemented several changes to increase competitiveness against LRSs, including: Sunday and holiday openings, extended opening hours, refrigerated ColdZones in every store, and relocating some stores to better locations.
Most recently, members have reported a seeming increase in deeply discounted Flash Sale products—often sold at or near legal minimum retail price—and a growing inventory of exclusive "Only@BCL" SKUs. Since the wholesale prices of "Only@BCL" SKUs are not visible to the private sector, many are concerned about fairness and a lack of transparency.
On your behalf, ABLE BC has been investigating these serious allegations. Let’s start by understanding how exclusives work.
How a SKU becomes exclusive
Before a liquor product may be sold in BC it must be registered with the BC Liquor Distribution Branch (LDB) to receive a SKU number. Product registration is handled by the LDB wholesale division which is separate from the LDB retail division that operates BCL stores. Once a product has a SKU number, the vendor (i.e. import agent, domestic manufacturer, or other supplier who registered the product) must “activate” that SKU so it can be ordered by retail (LRS and BCL) or hospitality (bars, pubs, restaurants, etc) customers.
While some SKUs—such as those distributed by Brewers’ Distributor Ltd (BDL) or delivered directly from BC’s domestic suppliers (i.e. craft breweries, wineries, etc.)—do not go through LDB’s wholesale central distribution channel, for the most part products are either:
- Generally listed: distributed by LDB Wholesale and available to all wholesale customers on a first-come, first-served basis,
- Private Channel Exclusive: available to all LRSs only,
- BCL Exclusive: available to BC Liquor Stores only, or
- Customer Exclusive: available to a single licensee (hospitality or retail) or group of licensees designated by the vendor.
If a SKU is listed as exclusive, only customers authorized to purchase that SKU will be able to see details about it on LDB Wholesale’s Web Store. Non-authorized customers may see a message indicating the SKU is "unavailable to your customer type." The only way to access the price or inventory of an exclusive SKU is to contact the vendor directly.
In all cases, only the vendor who registered the SKU has the authority to determine if it is exclusive to BCL, the LRS channel, or specific retailers; or available to all customers, and for how long. Despite the private sector’s concerns about transparency and fairness, BCL has no ability or authority to designate a SKU as exclusive on its own. Additionally, LDB Wholesale does not restrict access to any SKUs unless instructed to do so by the vendor responsible for the product.
Notably, vendors are prohibited from listing the same product with different SKUs and different prices. For example, vendors are not permitted to list the same 12-pack of lager as a BCL exclusive and an LRS exclusive and then offer one channel different pricing than the other.
Why do vendors offer exclusivity?
For many vendors, exclusivity—whether for LRSs, BCL, or specific customers—is an efficient way to introduce a new product to market, manage limited inventory, offer a product as a special release, or activate time-limited offers. While all customers have the same ability to negotiate an exclusive SKU, it is easy to see that a single LRS has significantly less negotiating power than a large retail chain. For example, a phone call with a single BCL Category Manager can give vendors access to 198 BCL stores controlling 44 per cent of BC’s liquor retail market. In comparison, the largest private chain has just 31 stores.
Privately, some vendors claim they felt pressured by BCL to offer exclusivity or lower wholesale prices. So far, we have found no evidence to substantiate these concerning allegations.
If you have examples to support our investigation, please contact ABLE BC Executive Director, Jeff Guignard, directly at jeff@ablebc.ca.
For more information and further updates on this topic, subscribe to our bi-weekly Liquor Industry Update newsletter.
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BC’s Hub for Workplace Mental Health
The Canadian Mental Health Association has created a resource hub for employers and employees dealing with mental health challenges at work.
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Cannabis Industry Update Newsletter
Sign up for our Cannabis Industry Update Newsletter to learn more about our advocacy for cannabis retailers. Click here to read past cannabis newsletters.
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ABLE BC
Member Portal
The Member Portal is your hub for all resources and benefits available to ABLE BC members. Contact david@ablebc.ca if you need help logging in.
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Advocacy Win! Temporary Relocation for LRS Licences
We are pleased to bring you long-overdue good news for Licensee Retail Store (LRS) licensees who may need to temporarily relocate their store during significant renovations.
ABLE BC has worked on this issue for several years. We engaged in lengthy and in-depth consultations with members, industry stakeholders, our Board of Directors and LRS Policy Committee, senior officials at the Liquor and Cannabis Regulation Branch (LCRB), the Honourable Mike Farnworth (Minister of Public Safety and Solicitor General), and Premier David Eby. *Correction notice: we previously published an incorrect title for Minister Farnworth.*
In direct response to advocacy from ABLE BC, as well as Associate Member Rising Tide Consultants, the LCRB has announced that beginning August 20, 2024, LRS licensees can apply for a temporary relocation for up to five years while significant alterations (renovation, reconstruction) are made to their original location. A one-time request can be made to extend operations at the temporary location for another two years, if the significant alterations are not completed in five years.
We are grateful to the LCRB for understanding industry concerns and working with us to make a decision that benefits BC's LRS industry.
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Recent Wins for BC Wineries
ABLE BC is pleased to see Premier David Eby’s recent announcement that BC wineries can again ship their products directly to Alberta consumers.
After a long dispute between BC and Alberta, the two provinces have now signed a memorandum of understanding that will allow BC wineries to sell directly to customers in Alberta.
“This announcement could not come at a better time,” said Miles Prodan, President and CEO of Wine Growers BC in a media release last week. “The end of the Calgary Stampede marks the unofficial start of summer when visitors from Alberta flock to BC, with many of them including a visit to their favourite BC wineries in their travel plans to enjoy amazing winery events and savour the abundance of 100% BC wines available.”
ABLE BC’s Executive Director, Jeff Guignard, spoke with media recently about this good news. Click here to see Jeff on Global News and here to hear Jeff on CKNW’s The Jill Bennet Show.
Earlier today, the provincial government announced relief for BC wineries facing this year's devastating loss of grapes. A temporary support will allow BC wines to be made with grapes and grape juice from outside the province for the 2024 vintage, providing job security and continued availability of BC-produced wines.
“BC wine growers and wineries are an integral part of the province’s economy and this year they have been hit by devastating losses due to extreme weather events,” said Mike Farnworth, Minister of Public Safety and Solicitor General.
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BC Bans Plastic Shopping Bags & Food Service Ware
The next phase of the provincial Single-Use and Plastic Waste Prevention Regulation came into effect on July 15, 2024.
This regulation phase bans plastic shopping bags and food service ware, and introduces a required $2.00 charge for reusable shopping bags and a $0.25 charge for paper shopping bags.
Click here to learn more about BC’s plastic regulation guidelines. Click here to learn more about compliance and enfocrement.
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ABLE BC's Comment on LCBO Strike
ABLE BC is pleased to see the LCBO strike come to an end this week. This was no doubt a difficult time for the Ontario liquor industry, and we hope that all parties involved are feeling relief.
Many of you may remember a similar disruption in BC when the BC General Employees’ Union (BCGEU) went on strike in August 2022, which halted liquor and cannabis distribution across the province for two weeks and continued to impact distribution for months. During that difficult time, ABLE BC worked tirelessly to support industry and push for an end to the strike action that forced BC’s private liquor and cannabis businesses into the middle of a fight that had nothing to do with us.
On behalf of our members, during the BCGEU strike we:
- Met daily with government to explain how the strike was hurting our industry, maintained pressure for a swift end to the dispute, and provided feedback on LDB restart plans;
- Provided near-daily updates and an FAQ to keep members informed, and created free signage to explain stock outages to customers;
- Surveyed industry measure the strike’s impact and collated a list of local producers offering direct delivery;
- Hosted a free webinar with go2HR on How to Navigate Employee Layoffs; and
- Along with a coalition of industry associations, published an open letter to government and the BCGEU calling for an end to the dispute and strike action.
We’re continuing to monitor liquor industry trends in Ontario closely. We know our members are deeply concerned about Ontario’s decision to allow convenience stores to sell liquor. Rest assured—we are working behind the scenes to stop convenience stores from selling alcohol here in BC.
With the support of our members, ABLE BC will never stop fighting for the needs of BC’s private liquor industry. Make sure to renew your membership before the end of August (or sign up for a membership!) to ensure we can continue fighting for you.
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BC CADE Celebrates Win in Vancouver
ABLE BC joined the BC Coalition for Affordable Dependable Energy (BC CADE) earlier this year. This organization aims to draw attention to the need to keep affordable, dependable energy choices available to heat homes, cook food, and run businesses. BC municipalities are increasingly banning energy options (like natural gas) for new homes and buildings, which will raise energy costs and increase dependence on a single energy source.
Yesterday, BC CADE shared good news for Vancouver hospitality businesses. Vancouver City Council voted to include natural gas and hydrogen fuel options for new build home and business heating in the near future.
"This will really make a difference for Vancouver's hospitality industry," noted Jeff Guignard, ABLE BC's Exectuvie Director, in BC CADE's press release. "Allowing natural gas will help us build an affordable and sustainable city with thriving a small business community."
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Cannabis Corner:
Cannabis Industry Samples
We are delighted to share good news about cannabis samples! In response to ABLE BC's advocacy on behalf of our cannabis retail members, the Liquor and Cannabis Regulation Branch (LCRB) now allows cannabis retailers to accept free product samples from federally-licensed cannabis producers and Cannabis Marketing licensees.
ABLE BC has been pushing to remove the nominal sample fee for several months, and we are grateful to the LCRB for allowing responsible, licensed operators better access to product sampling.
We will continue to work with the LCRB on maximum cannabis product sample sizes and will provide updates as they are available.
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Bo Chen & Cannabis Members at ABLE BC's 20th Anniversary Party
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go2HR on Tap:
2025 WorkSafeBC Preliminary Base Rate Drops 12.4%
go2HR is a regular contributor to the ABLE BC Liquor Industry Update newsletter, providing tips and guidance on current HR trends, new legislation, employee recruitment and retention, and more. To read the latest instalment, sign in to the member portal or sign up for the newsletter.
Tourism and hospitality employers can now access the WorkSafeBC 2025 preliminary base rates. These rates form the foundation for determining your insurance costs for the upcoming year. Good news for pubs, bars, and nightclubs: base rates in your classification unit have dropped a significant 12.4%!
You can earn discounts on your premiums by proactively reducing injury rates, improving health and safety programs, and maintaining effective return-to-work performance. These strategies not only enhance safety performance but also improve worker morale and help reduce your sector’s base rates in the future.
Remember, the base rates are preliminary and will be confirmed by WorkSafeBC on November 1, 2024.
You can view the base rates here and learn how to reduce your premiums with go2HR’s Health & Safety Advisory Services. The go2HR team offers complimentary personalized consultations to help you assess and improve your health and safety program before the new base rates take effect in November.
Book a 1:1 consultation today!
go2HR, the HR and health and safety association for the BC Tourism and Hospitality Industry, has a wealth of resources to support you. We invite you to connect with us to learn more about how you can support your employees with health and safety at safety@go2HR.ca.
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Out and About with ABLE BC
The ABLE BC team is planning another round of liquor industry meetings in the coming months, this time focusing on cities in the lower mainland. If you're a liquor industry professional, ABLE BC member, or just curious about membership, and you're located in the lower mainland or Fraser Valley, stay tuned for more information coming soon!
We're also spending a lot of time right now helping members access the Member Portal and renew their memberships. If you haven't logged in recently and aren't sure how, don't hesitate to reach out to our Manager of Membership Services, David Lough, at david@ablebc.ca or 604-688-5560 ex 3 for help!
ABLE BC’s Executive Director, Jeff Guignard, appeared in the following media recently:
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Minister Farnworth at ABLE BC's 20th Anniversary Party
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Save the Date: Upcoming Events and Webinars
Check out these upcoming events:
- BCHF Victoria Golf Tournament, Victoria, August 21
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Canna Golf Classic, Vancouver, August 20-21
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StratCann Kootenay Cannabis Farm Tour, Nelson, August 31
- IVSA Tasting Salon, Victoria, September 10
- IVSA Tasting Salon, Kelowna, September 17
- IVSA Tasting Salon, Kamloops, September 18
- IVSA Tasting Salon, Vancouver, October 8
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Copyright © 2024
BC's Alliance of Beverage Licensees (ABLE BC)
200 - 948 Howe Street, Vancouver, V6Z 1N9 Canada
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