Liquor Industry Update --------------------------------------------------------
|
|
|
Liquor Industry Update:
June 13, 2024
|
|
|
Dear ABLE BC members and industry colleagues,
Here's the latest news for the private liquor industry:
- BC Liquor Stores Hidden SKU & Flash Sale Reporting Tool
- Inter-provincial Retailing Reporting Tool
- Over 40% of ABLE BC Members Operating at a Loss or Breaking Even
- Updated Resources for Single-Use Plastic Regulations
- City of Vancouver's Alcohol on Beaches Pilot Project Returns
- Good Night Out Workshops Available Online or In Person
What you'll find in every newsletter:
|
|
|
BC Liquor Stores Hidden SKU & Flash Sale Reporting Tool
Last month, the ABLE BC's LRS Policy Committee examined serious allegations of unfair retail practices from BC Liquor Stores. Over the past few weeks, members alerted the committee to several "hidden" SKUs -- i.e. products exclusive to BCLs but with an equivalent higher-priced SKU in the private channel. These hidden SKUs are often used in BCLs flash sales, which in some cases are sold at or below the wholesale price of the equivalent LRS product.
For example, LRS stores can purchase Red Truck Lager 15-packs (sku 501864) for $21.10 wholesale. BC Liquor Stores retail Red Truck Lager 15-packs (sku 36577, exclusive to BCL) for $25.99, but recently on flash sale for $16.99. The flash sale retail price was $4 below the LRS wholesale price of the same product in that price period.
We are seeing similar examples with 36-packs of domestic beer. For example, the Old Style Pilsner 36-pack (sku 44251) is exclusive to BC Liquor Stores, and currently retailing for $54.99, but recently on flash sale for $45.99, representing a retail price of $1.28/can.
The Old Style Pilsner 15-pack (sku 929661) is available to the LRS channel for $19.90 wholesale, which represents a wholesale price of $1.33/can. The BCL retail sale price for the same beer was $0.05 less than the LRS wholesale price in that price period.
We are deeply concerned this may be a deliberate strategy to undercut private retailers and gain market share. If so, we believe this is both unfair and counter to government's goals of encouraging responsible consumption.
We need your help to gather examples of hidden skus sold at or below the wholesale price of the equivalent LRS product. Use our new reporting tool to help ABLE BC build a file of examples we can bring to government.
Please note you can report anonymously, all information gathered will remain confidential, and supporting documents or images can be sent to david@ablebc.ca.
Please contact ABLE BC’s Executive Director, Jeff Guignard, at jeff@ablebc.ca if you have any questions.
|
Inter-Provincial Retailing Reporting Tool
Many members have recently provided us with examples of Alberta liquor retailers shipping products directly to customers in BC, which is against the law. We are also aware of Alberta liquor retailers advertising online to BC customers, encouraging illegal inter-provincial retailing.
ABLE BC's Executive Director, Jeff Guignard, has previously addressed inter-provincial retailing in media, but it appears that it is now increasing in frequency and value.
Not only is this practice offside with regulations, but it is hurting LRS profitability here in BC. Some members have reported significant lost revenue from sale of higher-priced products or bulk orders for events, with customers freely admitting they are ordering from Alberta instead. Left unchecked, this practice will also mean substantial lost tax revenue for the BC government.
To complicate the issue further, the legal drinking age in Alberta is 18 compared to 19 in BC. When shipping products across the border, Albertan retailers are not required, nor are they equipped, to ensure they are not selling to minors in BC.
While we work with our government partners to resolve this issue, you may recall that several months ago Alberta’s Gaming, Liquor and Cannabis Commission (AGLC) unfairly delisted all BC wines after allegations that some BC wineries were shipping products directly to Albertan consumers. This dispute has not yet been resolved.
To help stop illegal inter-provincial retailing, we need your help. Use our new reporting tool to document examples of Alberta retailers advertising in BC and Alberta retailers delivering orders to customers in BC.
Please note you can report anonymously, all information gathered will remain confidential, and supporting documents or images can be sent to david@ablebc.ca.
Please contact ABLE BC’s Executive Director, Jeff Guignard, at jeff@ablebc.ca if you have any questions.
|
|
|
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.
|
|
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.
|
|
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.
|
|
|
Over 40% of ABLE BC Members Operating at a Loss of Breaking Even
Preliminary results of ABLE BC's 2024 Industry Benchmark survey show that over 40% of survey respondents are operating at a loss or breaking even. We know that times are tough for industry and that all businesses, whether a retailer, pub, bar, or restaurant, are struggling to turn a profit and operate with confidence.
Throughout May 2024, we surveyed ABLE BC LP and LRS members to understand how their businesses are doing and what they expect in the coming months. Thank you to everyone who participated in this year’s benchmark survey. Your responses are vital to our advocacy work and to our understanding of the state of our industry.
Unsurprisingly, survey respondents noted the biggest challenges they are facing now are increasing labour costs, shifting consumer habits to low- and no-alcohol beverages, labour shortages, and rising food and alcohol costs. Rest assured, ABLE BC will continue to fight for our members and secure practical business and political solutions that will help BC’s private liquor industry thrive.
Fortunately, we are seeing customers return as 60% of survey respondents reported that sales volumes have remained stable or increased compared to 2022. However, given the downward pressure on profitability, it’s clear that industry is far from recovery.
A detailed report with a complete breakdown of survey responses based on license type, size of business, and region will be available in the coming months.
This report will be available for free to all ABLE BC members and survey respondents. If you are not a member of ABLE BC, you will be able to purchase the report in our online store.
If you’d like to be notified when the report is available, please contact ann@ablebc.ca.
|
Updated Resources for Single-Use Plastic Regulations
The BC government has updated its resources and information about single-use plastic regulations.
There are now additional resources specific to businesses, including printable posters, a guide to alternatives to single-use items, and a new page outlining provincial, federal, and municipal regulations.
As a reminder, the federal prohibition on plastic ring carriers comes into effect on June 20, 2024. The federal government offers this guidance in selecting alternatives to single-use plastic ring carriers:
Single-use plastic ring carriers are unique among the list of banned single-use plastic items because they are often applied to products before arriving at retail locations. Alternative products can already be found on the Canadian market, and include cardboard boxes, rigid plastic snap-on carriers or fiber-based carriers, or adhesives that hold beverage containers together.
When choosing an alternative to single-use plastic, businesses should try to avoid value recovery problematic options, like plastic film, as these can be difficult to recycle.
In Canada, the E6PRTM (Eco Six Pack Ring) is made of a non-plastic natural fiber and is available to provide the same function as single-use plastic ring carriers.
Another alternative for the plastic ring carrier is the CanCollar®, a durable, paperboard-based multipack solution for cans.
If you have questions about single-use plastics regulations, please reach out to ABLE BC’s Senior Communications Manager, Ann Brydle, at ann@ablebc.ca.
|
City of Vancouver's Alcohol on Beaches Pilot Project Returns
The City of Vancouver’s Alcohol on Beaches pilot project has returned, allowing alcohol consumption on select parks and beaches from June 1-September 30, 2024.
This project was introduced in 2021 and 2022, allowing consumption in select park sites over the summer. In 2023, the Parks Board approved the decision to make park pilot sites permanent, and the project expanded to include alcohol consumption on select Vancouver beaches.
Last year, ABLE BC joined Vancouver’s Hospitality Sector Working Group, along with our partners at Rising Tide Consultants, Restaurants Canada, BC Restaurant and Foodservices Association (BCRFA), Hospitality Vancouver Association (HVA), and the BC Craft Brewers Guild (BCCBG). This group works with city staff to modernize and streamline licensing and regulations for liquor businesses in Vancouver.
We’re grateful for Vancouver’s commitment to improvement for liquor businesses. Allowing alcohol consumption on parks and beaches is good for industry, providing responsible adults more ways to enjoy the city.
Click here to see where alcohol consumption is allowed year-round or only in the summer.
ABLE BC and Vancouver’s Hospitality Sector Working Group brought about several positive changes for nightclubs in December 2023, including harmonized closing hours, lifting the moratoria on new liquor establishments, and lifting distance requirements.
We look forward to bringing you more updates and positive changes in the coming months. If you have questions or concerns, please contact ABLE BC’s Executive Director, Jeff Guignard, at jeff@ablebc.ca.
|
Good Night Out Workshops Available Online or In Person
Good Night Out is a non-profit organization committed to sexual violence prevention in bars, pubs, restaurants, festivals, art spaces, and more.
Good Night Out was founded out of an awareness of the link between alcohol consumption and sexual aggression, and initiated from community concerns that staff and patrons in the nightlife, music, and hospitality sectors benefit from education and training to recognize, interrupt, and prevent sexual harassment and assault.
Good Night Out offers workshops to support businesses’ efforts to improve prevention and response capacities. Workshops are available both online and in-person and will give you essential tools to keep patrons and employees safe.
Contact Stacey Forrester at education@goodnightoutvancouver.com to book a workshop now.
|
|
|
Cannabis Corner:
Hello from Kelowna!
Hello canna-folks & friends,
With summer right around the corner, industry is bustling with plenty of events, engagements, and advocacy work.
I'm in Kelowna this week to speak at StratCann's Growing Relationships event that brought out many of our industry partners and members. While in town, I'm meeting with local cannabis retail owners, operators, and budtenders to learn more about the specific challenges in this region. Thank you to everyone who has taken time out of their busy schedules to meet with me.
Kelowna is gorgeous in June, and the local canna-hospitality has been awesome. I’m looking forward to visiting again!
Bo Chen
Head of Cannabis Membership
ABLE BC
|
Bo Chen at StratCann's Growing Relationships
Photo courtesy of Jeff Curtis of Boro & Beyond
|
go2HR on Tap:
New Return-to-Work Requirements in Effect
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.
On January 1, 2024, WorkSafeBC’s new amendments to the Workers Compensation Act came into effect. The amendments pertain to the duty to cooperate and the duty to maintain employment.
In the Act, Bill 41 outlines the responsibilities of employers and workers to collaborate and maintain communication to ensure an injured worker safely returns to work when they are able. This new regulation requires tourism and hospitality employers to support injured workers in their recovery and minimize the impact of workplace injuries.
On February 21, go2HR and WorkSafeBC joined forces to host an information session for employers to help them understand and comply with the new regulatory changes. The session saw active participation and a Q&A as participants discussed how the regulatory changes affect their businesses.
Missed the workshop? Employers can view the recording here and visit go2HR’s website for additional resources about injury and claims management.
Questions about Health & Safety? Contact the go2HR Health & Safety Team online or call 604-633-9787.
go2HR, the HR and health and safety association for the BC Tourism and Hospitality Industry, has a wealth of free resources to support you. We invite you to connect with us to learn more about how you can support your employees at hr@go2HR.ca.
|
Out and About with ABLE BC
Last week, ABLE BC celebrated 20 years of successful advocacy with a party in Vancouver that brought together government officials, liquor industry members, and cannabis retail members.
This was an evening of connection and celebration, with speeches from Minister Farnworth, Kim Hakstaad (former ABLE BC Executive Director), Al Deacon (Director), Yvan Charette (President), and Jeff Guignard (Executive Director). We were delighted to see so many of our industry colleagues attend!
We’d like to especially thank Minister Farnworth, Minister Bailey, David Hume (LCRB), and Ian Brown (LCRB) for coming out to support ABLE BC.
We would also like to thank our event sponsors: Foodbuy Canada, SONA, Beer Canada, and Labatt. This event wouldn't have possible without the support of these companies.
We were honoured to celebrate this important milestone with our friends and colleagues in both liquor and cannabis.
Click the button below and enter password junction to download photos from Brad Kasselman. Make sure to tag @ablebc and @kasselmancreative when you share online!
|
|
|
|
|
Yvan Charette & Jeff Guignard
|
|
|
Bo Chen & cannabis members
|
|
David Hume, LCRB General Manager, & cannabis members
|
|
|
Save the Date: Upcoming Events and Webinars
Check out these upcoming events:
|
|
|
Copyright © 2024
BC's Alliance of Beverage Licensees (ABLE BC)
200 - 948 Howe Street, Vancouver, V6Z 1N9 Canada
|
|
|
|
