Liquor Industry Update --------------------------------------------------------
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Liquor Industry Update:
June 27, 2024
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Dear ABLE BC members and industry colleagues,
Here's the latest news for the private liquor industry:
- Take the ABLE BC Wage Survey
- 2024 Liquor Industry Benchmark Report
- Reminder: Flash Sale & Inter-Provincial Retail Reporting Tools
- New Regulations for Gig Workers
- Gastown's Water Street Pedestrian Zone
- WORTH Association's Call for Directors
- BCHF Vancouver Golf Tournament July 5
- ABLE Experts: Share your Thoughts with Foodbuy for $25
What you'll find in every newsletter:
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Take the ABLE BC Wage Survey
ABLE BC seeks to understand how the June 1 minimum wage increase has affected members’ businesses, what industry standards are for starting wages, and what our members include in employee benefits packages.
This survey is for all Cannabis Retail Store (CRS), Licensee Retail Store (LRS), and Liquor Primary (LP) licensees in BC.
Your replies are vital to our research and advocacy work and will help us better advance the needs of our members.
This survey should take less than 5 minutes to complete and will remain open until July 19, 2024.
The information you provide in this survey will be kept strictly private and confidential. Your responses will not be viewed on an individual basis but analyzed in aggregate form.
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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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2024 Liquor Industry Benchmark Report
Thank you to everyone who participated in ABLE BC's 2024 Industry Benchmark Survey. Your feedback is crucial to our understanding of the state of the industry and helps us advocate for your needs and ensure the financial health and recovery of private liquor businesses.
The detailed report of this year's Industry Benchmark Survey findings is now available. Members can access this report for free in the member portal.
If you are not an ABLE BC member, you can purchase the report for $50 in our online store.
For the second year, the Industry Benchmark Survey includes responses from Licensee Retail Store (LRS) and Liquor Primary (LP) members. The 2024 survey was simplified to improve response rates and focus on key business indicators across the private liquor industry. The survey was open throughout May 2024 and captured responses from nearly 10% of ABLE BC members.
This year's survey shows that over 40% of all respondents are operating at a loss or breaking even. We know times are tough for industry. All businesses, whether retailer, pub, bar, or restaurant, are struggling to turn a profit and operate with confidence.
Fortunately, customers are returning as 60% of survey respondents report that 2023 sales volumes increased or remained stable compared to 2022. However, given the downward pressure on profitability, it's clear that industry is far from recovery.
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Interested in signing up with ABLE BC to view the report for free and gain access to our full suite of benefits and resources?
Sign up here or contact David Lough, Manager of Membership Services, at david@ablebc.ca.
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Reminder: Flash Sale & Inter-provincial Retail Reporting Tools
BC Liquor Stores Hidden SKU & Flash Sale Reporting Tool
ABLE BC's LRS Policy Committee is examining serious allegations of unfair retail practices from BC Liquor Stores. Members have 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 BCL flash sales, which in some cases are sold at or below the wholesale price of the equivalent LRS product.
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 equivalent LRS products. Use our new reporting tool to help ABLE BC build a file of examples we can bring to government.
Inter-Provincial Retailing Reporting Tool
Many members have provided 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.
Not only is this practice offside with regulations, it is also 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.
We need your help to stop illegal inter-provincial retailing. Use our new reporting tool to document examples of Alberta retailers advertising in BC and Alberta retailers delivering orders to customers in BC.
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New Regulations for Gig Workers
The provincial government has approved regulations that will provide minimum-wage measures and basic protections for app-based ride-hailing and delivery workers in BC.
The regulations come into effect on September 3, 2024.
The regulations address top concerns raised by workers, including a minimum wage of $20.88/hour for engaged time.
Engaged time begins when a worker accepts an assignment through to completion. It does not include time spent waiting between assignments.
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Gastown's Water Street Pedestrian Zone
As part of Vancouver’s Hospitality Sector Working Group, ABLE BC and our partners at Rising Tide Consultants and BC Restaurant and Foodservices Association (BCRFA) have been working with City staff on ways to modernize and streamline business opportunities for liquor establishments in Vancouver.
In July and August 2024, the City of Vancouver will transform Gastown’s Water Street into a pedestrian zone for walking, expanded patios, community-building, biking, and more. This pilot project is part of City investments and efforts to make Gastown a more vibrant, clean, safe, and people-friendly destination for everyone.
City crews have begun on-site preparations with additional traffic management and installation of signage, furniture, patios, and other features.
During the pedestrian zone pilot, sections of Water Street will be closed to vehicles to allow for public seating, community activations, expanded patios, merchandise displays, art installations, special events, and active transportation.
“We’re committed to revitalizing Gastown and taking bold steps to make this iconic neighbourhood a people-friendly, safe and clean destination,” says Mayor Ken Sim. “Transforming Water Street into an activated pedestrian zone this summer presents an exciting opportunity to showcase the vibrant businesses and attractions that Gastown has to offer.”
To ensure businesses can easily and creatively use the additional street space, the City is offering flexible design options and simplified permitting processes for expanded patios, merchandise displays, and other potential business uses.
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WORTH Association's Call for Directors
The Women of Recreation, Tourism & Hospitality (WORTH) Association seeks dynamic leaders to join their 2024/25 Board of Directors. Board terms start September 2024, with a two-year commitment.
Candidates with expertise in the following areas are encouraged to apply: nonprofit governance, fund development, strategic communications, event management, or diversity, equity, inclusion, and reconciliation.
This role is for you if you are:
- Passionate about advancing women in recreation, tourism, and hospitality
- Committed to advancing WORTH’s mission, vision, values and strategic plan
- A collaborative and respectful communicator
- Familiar with non-profit governance or the ability and commitment to learn
- Familiar with events and programs offered through WORTH
Applications close June 30th, 2024.
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BCHF Vancouver Golf Tournament July 5
Have you registered for the BC Hospitality Foundation (BCHF) Vancouver golf tournament yet? With just over two weeks to go, you'll want to get your tickets before they are gone!
Get ready for a fantastic day of golf and giving back at this year's BCHF Vancouver Golf Tournament, taking place in beautiful Tsawwassen. This event promises an unforgettable experience with local food and beverage vendors, contests, and the chance to network with industry professionals. It's the perfect opportunity to reward your team members, treat your clients, or simply enjoy a great day of golf and fundraising.
Highlights:
- Shortened Game of Play: Enjoy a more relaxed pace with our newly shortened format.
- Local Food and Beverage Companies: Savour delicious offerings from local vendors scattered throughout the course.
- Contests and Prizes: Participate in fun contests and have a chance to win fabulous prizes.
- Friendly Putting Contest: Join the putting contest at 11:30 am for a chance to showcase your skills.
Event Details:
- Date: Friday, July 5, 2024
- Location: Tsawwassen Springs Golf, 5133 Springs Blvd, Tsawwassen
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ABLE Experts: Share your Thoughts with Foodbuy for $25
Foodbuy Canada wants your feedback on purchasing behaviours and decisions in the context of Liquor Primary businesses. Your input is incredibly valuable and will help drive Foodbuy’s innovation.
As a thank you for your time, you will be eligible for a $25 gift card of your choice! Eligibility will be determined with a few questions in the survey.
Before you start the survey, there are a few important items to note:
- It’s confidential. Foodbuy does not release individual data to anyone.
- It’s quick. The survey should take less than seven minutes to complete.
- If you qualify, you will receive a $25 gift card for your time. Please allow 10-14 days to receive your gift card from gifted.co.
If you have any questions about the survey process, email eruddy@e15group.com.
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Cannabis Corner:
Submit Feedback on Proposed Cannabis Regulation Changes
Last month, Health Canada proposed several changes to federal cannabis regulations. Industry has been waiting on the ongoing review of cannabis regulations, and we are pleased to see movement in the right direction.
ABLE BC will submit feedback to government on the proposed changes, and we want to include your perspective.
If you would like your comments included in ABLE BC's feedback, please contact Bo Chen, Head of Cannabis Membership, at bo@ablebc.ca.
The proposed changes reflect the needs of a maturing cannabis industry and evolving marketplace. ABLE BC strongly supports many of these long overdue changes, which will have a positive impact on product packaging and labelling, production capacity, and will allow certain cannabis products to come to market faster.
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Bo Chen & Feven Berhane (KushKlub) at the Liquor Distribution Branch (LDB)
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go2HR on Tap:
Supporting Employees Through Traumatic Events
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.
All workers in BC deserve a safe workplace. BC employers are legally responsible for protecting the health and safety of employees and complying with the Workers Compensation Act and Occupational Health & Safety Regulation.
Unexpected events, such as robberies or incidents involving violent customers, can occur in the tourism and hospitality industry and may have psychological impacts on affected employees, including PTSD.
Employers must take necessary steps to mitigate risks and ensure the safety of all employees and customers. Preventive measures and clear procedures before such events occur are crucial. It is essential to train leaders and employees on necessary steps and available resources beforehand.
Get started by contacting our Health & Safety Specialists or Mental Health & Psychological Safety Consultants. Explore go2HR's training courses on this topic at go2hr.ca/training/health-safety.
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.
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Out and About with ABLE BC
ABLE BC's LRS Policy Committee met yesterday to continue discussions on 'hidden' SKUs and BC Liquor Store exclusives and flash sales. The committee is working with suppliers and government partners to better understand BCL retail practices that may be hurting LRS businesses and what solutions are available to industry. If you want to help our efforts, learn more here.
Earlier this week, ABLE's Executive Director, Jeff Guignard, and Head of Cannabis Membership, Bo Chen, attended a meeting with the BC Cannabis Secretariat and other cannabis stakeholders. We will provide a complete update on this meeting in the next Cannabis Industry Update, so make sure to sign up for that newsletter to stay in the loop!
Last week, Jeff and Bo attended the US Consulate General Vancouver's reception to celebrate Indigenous agriculture and agribusinesses.
Jeff was also a guest on SportsNet 650's Cider, Sodas & Cocktails podcast, with hosts Darryl Lamb (Legacy Liquor) and Joe Leary. The episode will be available soon!
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Jeff Guignard & Bo Chen at the US Consulate General Vancouver reception
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Save the Date: Upcoming Events and Webinars
Check out these upcoming events:
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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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