Liquor Industry Update: April 6th, 2023

Dear ABLE BC Members and Industry Colleagues,

Here’s what you’ll find in today’s update:

  • Minimum Wage Increase

  • Advocacy Win! Federal Government Freezes Excise Tax Increase

  • LDB Wholesale Update: 2023 Federal Excise Duty Tax Change

  • Update: Structural Change Application Requirements

  • ABLE BC Liquor Industry Meetings on Vancouver Island

  • Minors as Agents Program (MAP)

  • New Resource Available

  • BC-Wide Tourism and Hospitality DEIA Survey

  • go2HR Seeking Nominations for Board of Directors

  • April is BC Wine Month

  • Out and About with ABLE BC!

Find all past updates here.

Minimum Wage Increase

Yesterday, the Provincial NDP Government announced that minimum wage will increase to $16.75/hour on June 1, 2023, a 6.9% or $1.08 increase reflecting the average annual inflation rate in 2022. 

We are deeply frustrated and disappointing by this news. On March 1, ABLE BC, Restaurants Canada, the BCRFA, and several other business associations wrote to governmentasking that it take a balanced approach and cap this year’s increase at no more than three per cent. We also asked government to implement a minimum wage adjustment program similar to those in place in Manitoba and Newfoundland to help our industry deal with this increased cost. The Minister of Labour chose to ignore both of those industry-consensus requests. 

We all know that British Columbians are feeling the pinch of inflation, but minimum wage policy is only one of many tools government can use to help British Columbians with the increased cost of living. While this increase may help workers in some sectors, the average liquor service in BC makes over $35 per hour when factoring in gratuities, and many liquor and hospitality businesses are already increasing wages to remain competitive.

 This sudden increase ignores that minimum wage increases are paid for by businesses who must pass costs along to consumers. We estimate this wage increase will cost the average neighbourhood pub in BC an extra $1000 per week in labour costs alone.

 Such a large sudden increase on labour costs while industry is still recovering from the pandemic will have serious consequences. Already, some of you report you will have no choice but to raise prices for consumers or find ways to work with fewer staff or increase automation. 

Since 2020, our industry has already absorbed significant government-imposed increases to labour costs, such as: the employer health tax, mandatory five paid sick days, a new statutory holiday, WorkSafe BC premium increases, and significant minimum wage increases. These constant cost increases hinder our ability to create jobs and sustain economic prosperity.

While we continue to engage with government on this issue, we encourage you to express your frustration directly to the Minister of Labour, the Honourable Harry Bains, at LBR.Minister@gov.bc.ca. Please copy your local MLA and ABLE BC’s Executive Director at jeff@ablebc.ca.  

Advocacy Win! Federal Government Freezes Excise Tax Increase

Last week, the federal government released Budget 2023 -- A Made in Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future, which includes a significant win for our liquor and hospitality industries! 
In direct response to months of advocacy from ABLE BC and our industry partners, the planned 6.3 per cent increase to excise duties on alcoholic products is being capped at two per cent for the 2023-22 fiscal year. The new excise duty rates come into effect April 1, 2023. 

Excise duties are planned to be tied to inflation, without the two per cent cap, after the 2023-24 fiscal year. 
ABLE BC’s Executive Director, Jeff Guignard, says this is welcome news for an industry still struggling to recover financially from the pandemic. “Instead of the largest tax hike in over 40 years, government chose to support our industry’s small businesses exactly when we need it most. We thank our government partners for listening to our needs, doing the right thing, and ensuring we can do our part to keep prices competitive for consumers.” 
Unfortunately, wholesale liquor prices are still likely to increase on April 1 as many liquor manufacturers had already submitted new prices to LDB Wholesale in anticipation of the previously announced 6.3 per cent increase. We expect our manufacturing partners will make further adjustments in the coming price periods to reflect this new capped excise duty rate. 
The following table shows the previous legislated inflationary increase of 6.3 per cent versus the capped two per cent increase. Click here for more information on sales and excise tax measures.  

“I have never been more optimistic about the future of our country than I am today," says the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance. “Budget 2023 will deliver new, targeted inflation relief for the Canadians who need it most; stronger public health care, including dental care for millions of Canadians; and significant investments to build Canada’s clean economy.”

Other highlights from Budget 2023 include:

  • Supporting growth in tourism with a $108 million investment to support communities and small businesses. 

  • Making life more affordable by lowering credit card fees and introducing a one-time grocery rebate. 

  • Growing a green economy with tax credits for clean electricity investments, clean tech manufacturing, clean hydrogen, and zero emission manufacturing. 

Click here to view the full budget.  

LDB Wholesale Update: 2023 Federal Excise Duty Tax Change

Last week, we shared this message from LDB Wholesale Operations. Yesterday, they shared the following update:

As noted in the federal excise duty tax change memo shared on March 30, 2023, the BC Liquor Distribution Branch (LDB) is working as quickly as possible to adjust its systems and processes so that wholesale prices reflect the two per cent excise duty increase, as opposed to 6.3 per cent.

It is expected that this change will be completed and effective as of Friday, April 7, 2023, and that updated wholesale and hospitality price lists will be made available at that time.

Refunds for impacted customers

 We recognize that, between April 1 and April 6, 2023, some wholesale and hospitality customers may have paid excess excise tax to the LDB for products that the LDB pays excise tax for (including all imported products, domestic spirits and/or domestic, spirit-based refreshment beverages). The amount of excess excise tax paid would be the difference between two per cent (current excise rate) and 6.3 per cent (previous excise rate).

To compensate any wholesale or hospitality customers for paying this excess excise tax, the LDB will be issuing refunds. Further details will be provided to those impacted customers in the coming weeks.

More information about the recently proposed adjusted excise rates is available on the Canada Revenue Agency (CRA) website.

 Please click here to read this memo on the LDB Wholesale website.

Update: Structural Change Application Requirements

 In response to advocacy from ABLE BC and our industry partners, the Liquor and Cannabis Regulation Branch (LCRB) has updated the structural change application requirements for Liquor Primary, Liquor Primary Club, and Food Primary businesses.  

Last week the LCRB released Bulletin 23-03: Structural change application requirements, updating which changes require an application for approval. This change eases red-tape and shortens wait times for hospitality businesses. 

A licensee must apply for approval from the LCRB if they are planning a structural change that impacts the: 

  • Capacity

  • Occupancy load

  • Size of the liquor service area

If you are planning to make your Temporary Expanded Service Area (TESA)permanent, you must apply for a structural change. While the TESA authorization has been extended to December 31, 2024, we urge you to make your structural change application now as these can take up to 10 months to process. 

A licensee no longer needs an application for approval for these changes:

  • Adding or changing the position or height of a wall, partial height divider (pony wall) or fixed planters that does not change the size or location of a service area

  • Changes to the position of interior access/exit points leading to or from a licensed service area (changes to exterior access/exits points still require application for approval)

  • Adding or removing permanent display cabinets, booth seating, stages, or dance floors

  • Any other construction or changes where the only impact to liquor service is on patron routing or line of sight between a staff control point and the service area of the establishment, if they do not impact the ability to maintain control of the establishment 

The updates will be published in the Liquor Policy Manual and the Liquor Primary and Food Primary terms and conditions handbooks. 

Licensing staff will review structural change applications according to the new criteria and will contact licensees who have applied for a structural change that no longer needs approval.

Please reach out to LCRBLiquorPolicy@gov.bc.ca if you have any questions.  

ABLE BC Liquor Industry Meetings on Vancouver Island

Now that spring is here, it’s time for ABLE BC’s Executive Director Jeff Guignard to start his annual tour of BC! Join us for a liquor industry meeting in your community throughout the spring and summer and meet with ABLE members and industry colleagues.

The first leg of Jeff’s tour starts on Vancouver Island this month! Join Jeff at any of our liquor industry meetings and ask your questions:

  • Have you had issues placing or receiving orders from LDB?

  • Have you read the Terms and Conditions handbook for your license type?

  • Do you have questions about excise tax or risks associated with decriminalized drugs?

  • Do you have concerns about your liquor license?

  • Have you had a visit from a liquor inspector recently?

  • Do you want to learn more about ABLE BC and how we work?

  • Are you aware of the current benefit programs available from ABLE BC?

Jeff will be in Langford, Nanaimo, Comox, Campbell River, and Tofino to meet with industry members, answer your questions, and hear your concerns. These meetings are a great way to learn more about ABLE BC and network with your industry colleagues. 

All attendees will get access to exclusive sign-up pricing only available at a liquor industry meeting. 

Langford Liquor Industry Meeting

Date: Monday, April 17, 2023

Time: 10:00 am to 12:00 pm

Venue: Liquor Planet, 2317 Millstream Road 

RSVP HERE

We have invited a representative  from the Liquor and Cannabis Regulation Branch (LCRB) to this meeting. 

Nanaimo Liquor Industry Meeting

Date: Monday, April 17, 2023

Time: 3:00pm to 5:00pm 

Venue: The Quarterway Pub, 1431 Bowen Road 

RSVP HERE

We have invited a representative  from the Liquor and Cannabis Regulation Branch (LCRB) to this meeting. 

Comox Liquor Industry Meeting

 Date: Tuesday, April 18, 2023

Time: 10:00 am to 12:00 pm

Venue: 40 Knots Winery, 2400 Anderton Road 

RSVP HERE

Stick around after the meeting to enjoy a complimentary tasting of 40 Knots Wines!

Campbell River Liquor Industry Meeting

Date: Wednesday, April 19, 2023

Time: 10:00 am to 12:00 pm

Venue: Anchor Inn, 261 Island Highway 

RSVP HERE

Tofino Liquor Industry Meeting

Date: Thursday, April 20, 2023

Time: 10:00 am to 12:00 pm

Venue: Long Beach Lodge Resort, 1141 Pacific Rim Highway 

RSVP HERE

These meetings are open to owners, managers, and staff members from pubs, bars, nightclubs, hotels, and liquor stores. Pass this invitation along to your hospitality and retail colleagues - all are welcome!

Not an ABLE BC Member? There's no better time to attend a liquor industry meeting!

Non-members will receive an exclusive promo code giving you access to free membership for the remainder of the 2022/23 year.  

Stay tuned for more information on meetings taking place in the Okanagan, Kootenays, Northern BC, and Lower Mainland.

Want to host a liquor industry meeting? Reach out to Ann Brydle, Manager of Membership and Communication at ann@ablebc.ca.  

Minors as Agents Program (MAP)

 ABLE BC has recently been informed that licensees are failing compliance checks for the Minors as Agents Program (MAP) at an alarming rate – between 20 to 30 per cent in both Liquor Primary and Licensee Retail Store businesses. 

This is seriously concerning.

We know members are committed to ensuring minors are restricted from accessing alcohol at your establishment. It is a core requirement for all liquor licensees, and an important goal for government. Failing to meet this requirement not only puts your business at risk of serious fines or temporary closure, it also undermines our association’s ability to advocate for your interests. 

We urge all licensees to review and update your ID checking policies and ensure all employees understand their responsibility to ID patrons and refuse service to anyone who cannot produce two pieces of valid ID. 

As the summer approaches, you should also consider having all staff review the Serving It Right course.  

MAP is one of the Liquor Control and Regulation Branch’s (LCRB) most effective programs to prevent underage alcohol and cannabis use. Given the potentially severe consequences of underage consumption, preventing the sale of liquor and cannabis to minors is one of the LCRB’s key priorities.

The program was started in 2010 and, according to section 78 of the Liquor Control and Licensing Act, allows minors who are “employed or contracted by a municipal police board, the provincial police force or the general manager to test the compliance of a licensee” to purchase liquor or cannabis. Under MAP, one to three undercover agents, including a minor, will enter a licensed establishment and attempt to purchase liquor to test the establishment’s compliance.  

MAP does not allow the undercover agent to lie, an important distinction from entrapment. Minor agents work under supervision of inspectors and will answer any questions (such as their age) honestly.

If you sell liquor or cannabis to a minor agent, you have the option to:

  • admit to the contravention and accept the proposed penalty;

  • admit to the contravention and dispute the penalty; or 

  • dispute that the contravention occurred.

If you have questions about MAP, please reach out to lcrbliquorpolicy@gov.bc.ca.

ABLE BC has due diligence materials available online for members as well as signage in our online store. If you are interested in these materials, please get in touch with Ann Brydle, Manager of Membership and Communication, about becoming an ABLE member. You can reach Ann at 604-688-5560 or ann@ablebc.ca.  

ABLE members receive a discount with Sting Investigations on due diligence and compliance services.

New Resource Available

In February 2023, we published this FAQ on decriminalized drugs for licensed establishment. In response to member feedback, we have added an additional resource to help communicate your house policy on drugs to your patrons.

We now have a poster stating that drugs are prohibited in an establishment available in our online store as a free pdf download or laminated sign for just $5.00.

We also hosted a webinar on this topic last month with Lorne Folick. If you would like to view the recording, simply log in to the Member Portal and head to the video library.

If you haven’t logged into the Member Portal recently, we encourage you to do so soon! Once you log in, you will be able to update your profile, add employees to your account, review your email preferences, ensure your business information is listed as you like it in the member directory, upload your business logo and link to your social media channels, and more!

 If you aren’t sure how to log in to the Member Portal or if you’re not yet an ABLE BC member, please contact Ann Brydle, Manager of Membership and Communication at ann@ablebc.ca or 604-688-5560.

BC-Wide Tourism and Hospitality DEIA Survey

Tourism and hospitality partners in British Columbia, including the  Tourism Industry Association of BC (TIABC),  go2HR, and Destination BC, have partnered to conduct a  survey about the status of Diversity, Equity, Inclusion, and Accessibility (DEIA) efforts of tourism and hospitality businesses around the province.   

Take the  anonymous DEIA survey  (available from March 27, 2023 – April 28, 2023) to help inform DEIA needs, areas of focus, and our collective path forward. This survey provides an opportunity for meaningful DEIA engagement and open feedback, to gain a better understanding of DEIA efforts that will help lead us to a better future, together. 

This survey should only be completed by one person per business/association/organisation, by an employee with the title of, or similar to: Owner, Vice President, General Manager, HR Manager, CEO, COO, or DEIA Specialist.

go2HR Seeking Nominations for Board of Directors

Are you interested in joining go2HR’s Board of Directors? Go2HR nees your expertise and leadership to help continue their strategic journey to realize strong workforces and safe workplaces that deliver world-class tourism and hospitality experiences in BC.

go2HR is currently seeking nominations for  two director positions (2 year term). We are committed to renewing our board with diversified representation and keen to receive nominations from women, indigenous operators and we are seeking representation from the Vancouver, Coast & Mountains region. go2HR values diversity, equity, and inclusion - we welcome submissions from all qualified board candidates.

All completed nominations forms must be submitted to go2HR by 5:00 pm on Wednesday, April 26, 2023. Email Director, Finance and Operations, Alla Fedorets at  afedorets@go2hr.ca.  

Nominations must be made by a Voting Member, signed by both the nominator and the nominee.  Once all submissions are received, the Governance Committee will review the nominations against the qualifications and our policies representation.  A slate of recommended candidates will be determined and circulated to the Membership prior to the AGM.  All Director appointments are two-year terms.  

Election will be held at go2HR’s AGM on Friday, June 9, 2023. Nominations will not be accepted from the floor at the AGM. 

go2HR’s Director nominations process is overseen by our Governance Committee, comprised of:

  • Ian Powell, Past Chair 

  • Heidi Romich, Chair, The Heid Out Restaurant and Brewhouse

  • Craig Blize, Vice Chair, Earls Kitchen + Bar Restaurants

  • David MacKenzie, Pemberton Valley Lodge

  • Eda Koot, Inn at Laurel Point 

To learn more about our nominations process, please contact Krista Bax (CEO, go2HR) at 778-836-8745 or  kbax@go2hr.ca

April is BC Wine Month 

Spring is a thrilling time in wine country, signifying warm temperatures, awakening of the vineyards and the release of new wines from the 2021 harvest. During this exciting time, the BC government has once again officially proclaimed April as BC Wine Month and Wine Growers British Columbia (WGBC) is inviting British Columbians to celebrate the homegrown craftsmanship in every bottle of 100% BC wine. 

“Many of our local wineries and vineyards are family-run businesses that have chosen farming and winemaking as their passion and their profession. This proclamation is a well-deserved recognition of the hard work and dedication of BC’s winemakers and grapegrowers.” says Miles Prodan, President and CEO, Wine Growers British Columbia. For this year’s BC Wine Month, WGBC has launched multiple campaigns and programs aimed at encouraging British Columbians to raise a glass of BC wine.  

Visit www.winebc.com to learn more about BC wine and find events or education opportunities near you.

Out and About with ABLE BC!

Wrapping up March at ABLE BC brought some good news! Last week, Jeff spoke to several media outlets. Jeff also had the pleasure chatting with Walt Judas on TIABC's Voice of Tourism podcast. The episode hasn't been released yet, but we’re excited to share when available in a future newsletter. 
On Tuesday, the ABLE team attended the IVSA Buyers Salon at the Vancouver Club. We spent the afternoon delicious wines and spirits and connecting with members and industry friends. 

Planning for this year's SPARK conference is well underway! Hosted by ABLE BC & BCHA this conference is for liquor retailers, hospitality owners and managers, and hoteliers. If you or anyone in your organization has suggestions for session topics or would like to apply to be a speaker, please email ann@ablebc.ca.

ABLE BC in the media: 

Ann Brydle