Liquor Industry Update: December 14 , 2023

Dear ABLE BC members and industry colleagues,
Here’s what you’ll find in today’s update:

  • A Message from ABLE BC's Executive Director, Jeff Guignard

  • Take Action Now -- Send a Letter to Minister Freeland Asking for an Extension to the CEBA Deadline

  • Liquor Store Temporary Relocation Submission

  • BC's Securing Small Business Rebate Program Offers Financial Support for Vandalism Repairs

  • Order your 2024 ID Checking Guide Now

  • Federal Excise Tax Set to Increase 4.7% on April 1, 2024

  • Reminder: Single-Use Prohibition Takes Effect December 20, 2023

  • The Winter 2023 Issue of The Quarterly Pour is Out Now!

  • go2HR on Tap:

  • Cannabis Corner: Help Support our Advocacy Efforts

  • Out and About with ABLE BC

A Message from ABLE BC's Executive Director, Jeff Guignard

Happy holidays! While it’s the season to celebrate with family, friends, and loved ones, it is also our industry’s busiest and most profitable time of the year. 

This year, we know many of you are grappling with tough economic conditions including high inflation, softening consumer demand, and historically high household debt serving ratios. Despite this, we have heard encouraging signs that reservations are holding steady and liquor retailers are experiencing the usual holiday bump. Fingers crossed that this trend continues into the New Year.

Earlier this week, ABLE BC’s Board of Directors met to discuss our ongoing advocacy efforts and plans for the year ahead. While our industry is still struggling to recover financially from the pandemic, inflation is cooling, and we are making substantial progress on your key policy priorities. For example, we are pleased that both the Liquor and Cannabis Regulation Branch (LCRB) and Liquor Distribution Branch (LDB) are working hard to address our concerns on a range of issues, including unnecessary delays for license approvals, enforcement inconsistencies, the Minors as Agents Program, and distribution inefficiencies that are hindering your success. I anticipate being able to offer positive updates on these and other issues sometime in the New Year.

Speaking of progress, yesterday I appeared before Vancouver’s City Council to speak in support of several important municipal liquor policy changes, such as removing the moratorium on new liquor licenses for the Granville Entertainment District and eliminating unnecessary distances between liquor primary venues. For too long, Vancouver’s liquor policy framework has made it too difficult and too expensive to do business in the City. I am delighted to say that the City has approved these changes, which are a direct result of your feedback and represent industry consensus on how to improve Vancouver’s liquor policies. You can read the staff report detailing the changes here.

As this year ends, the team at ABLE BC will also be taking a break over the holidays. Please note this will be our last  Liquor Industry Update newsletter for 2023. Our next issue will be released January 11, 2024. 

Additionally, our office will be closed from December 23 to January 5. Should something urgent arise, you can still reach me at  jeff@ablebc.ca (though responses may be delayed).

Until then, best wishes for a profitable and restful holiday season!

Take Action Now – Send a Letter to Minister Freeland Asking for an Extension to the CEBA Deadline

It’s no secret that our industry is still struggling to recover financially from the pandemic. Hospitality businesses continue close at an alarming rate, and those remaining open are struggling with rising costs, tightening margins, and a shortage of staff.

The Canada Emergency Business Account (CEBA) loans were an essential lifeline to nearly 900,000 Canadian businesses during the pandemic. While the repayment deadline has been extended before (from the end of 2022 to the end of 2023, then to January 18, 2024), our most recent surveys suggest that 80 per cent of industry is unable to repay at this time. Those who cannot repay will be required to pay the full $60,000 loan, plus interest.

We are disappointed that our federal government partners failed to understand the serious financial pressure our industry is experiencing. More debt is clearly not the solution. ABLE BC—along with a broad coalition of industry partners—have requested another extension of interest-free repayment terms for another year.

You can take action now by submitting a letter to the Honourable Chrystia Freeland, Canada’s Minister of Finance, sharing why extending CEBA until the end of 2024 is the best solution for industry.

Click here to submit your letter.

We will continue to press government for this change in the weeks ahead.

Liquor Store Temporary Relocation Submission

In September, we shared information about the Liquor and Cannabis Regulation Branch’s (LCRB) engagement on temporary relocations for liquor retailers, including Licensee Retail Stores (LRS), Wine Stores, and government liquor stores.

ABLE BC consulted broadly with BC’s liquor retail industry, including our Board of Directors, our LRS Committee, our membership, and BC’s liquor retailers via an industry survey, two virtual industry meetings, and dozens of in-person interviews to better understand the needs of BC’s liquor retailers. After connecting with approximately 15% of BC’s LRS owners and operators, we submitted our recommendation to the LCRB earlier this month.

ABLE BC provided our perspective on two main issues.

First, the ability of an LRS to relocate temporarily and return to its original location. We found consensus in industry that an LRS ought to be permitted to relocate temporarily and return to its existing location, even in cases where the original location has been grandfathered into the 1 km distance rule. This is particularly necessary for licensees who do not own their building or land and may be “renovicted” by a landlord or other circumstances beyond the licensee’s control. ABLE BC therefore supports the ability of an LRS to move temporarily (i.e. during renovations) and return to their existing location, including grandfathered locations.

Second, whether the 1 km distance rule ought to apply to a temporary location. Most of industry was unequivocal that the 1 km distance rule ought to apply to all relocated licenses without exception. While some supported exempting temporary relocations from the 1 km in certain circumstances—subject to specific, time-limited restrictions and severe penalties for non-compliance—most felt strongly that any exemption to the 1 km rule would pose unacceptable risk to the operations and valuations of their business. ABLE BC therefore supports requiring temporary locations to comply with the 1 km distance rule. 

We will provide further updates once the LCRB’s has made its decision.

If you would like to discuss this issue further, please email jeff@ablebc.ca.

BC’s Securing Small Business Rebate Program Offers Financial Support for Vandalism Repairs  

The Ministry of Jobs, Economic Development, and Innovation has launched its $10.5 million Securing Small Business Rebate Program, which will provide small businesses (including liquor stores, bars, pubs, nightclubs, and other hospitality businesses) with funds for eligible commercial property crime and vandalismrepairs or to implement eligible preventative measures. 

Administered by the BC Chamber of Commerce, the program offers two rebates: 

  • Reparative (up to $2,000 per business for each of 2023 and 2024)

  • Preventative (up to $1,000 per business for either 2023 or 2024)

The application portal is open until January 31, 2025 and is retroactive to January 1, 2023. For more information and to apply, visit the program webpage here. Contact the BC Chamber of Commerce at ssbr@bcchamber.org with questions.

This rebate is offered at a first-come, first-served, basis. As such, we encourage members to apply as soon as possible.

Click here for more information.

Order Your 2024 ID Checking Guide Now

The  NEW 2024 North American ID Checking Guide and  15th Edition International ID Checking Guide are now available to order through ABLE BC.

Place your order before January 11, 2024, to secure our group buying discount

The 2024 North American guide includes additions of new licenses and ID cards and the elimination of no longer current formats. There are dozens of important changes with respect to interim licenses, enhanced licenses, terms of licenses and other details such as changes to security features.

The 15th Edition International Guide covers driver’s licenses and ID cards from 175 countries and includes more than 570 official documents. Full page coverage of each country’s IDs make it easy to check the material, the codes, and the security features of each document. 

The ID Checking Guidebooks help you and your staff make accurate, on-the-spot verification of driver's licenses and ID cards - your best protection against ID fraud. These books also help ensure you are kept updated on the latest versions of all ID formats. 

For more information on the ID Checking Guide Books download our FAQ.

Place your order  HERE by  Thursday, January 11, 2024, for the 2024 North American ID Checking Guide and 15th Edition International ID Checking Guide. 

Anticipated 2024 Prices:

  • North American Guide Book - $16.60

  • International Guide Book - $37.00

  • Please note these prices do not include shipping and handling or reflect the US-Canadian conversion rate

  • Non-members will be charged a $15.00 administration fee

If you have any other questions or concerns, please contact ABLE BC at 604-688-5560 or david@ablebc.ca.

Federal Excise Tax Set to Increase 4.7% on April 1, 2024

As you know, excise duties are a federal tax applied to several products, including alcohol (wine, beer, cider, and spirits), manufactured in Canada. This tax was tied to inflation in 2017 and increases every year on April 1.

Last year, this tax was expected to increase by 6.3% for alcohol products, which would have been the largest federal tax increase on alcohol in 40 years. Thanks to advocacy from ABLE BC and our industry partners, we successfully capped last year's excise tax increase on alcohol products at 2%.

The expected excise tax increase on alcohol products for April 1, 2024, is 4.7%. ABLE BC is joining Beer Canada other industry associations in calling for the federal government to freeze the tax increase, or continue the 2% cap until the Consumer Price Index returns to the Bank of Canada’s target.

Hospitality and retail businesses are struggling to recover from the pandemic and are faced with rising inflation, rising staff costs, and CEBA loan repayments. This is not the time to increase costs.

We will continue to continue to press the federal government for a logical and sensible reform to excise tax.

Reminder: Single-Use Plastic Prohibition Takes Effect December 20, 2023

The federal Single-Use Plastics Prohibition and provincial Single-Use & Plastic Waste Prevention Regulation are coming into effect on December 20, 2023. Under these regulations, several single-use plastic items will be banned, including:

  • Checkout bags

  • Cutlery

  • Foodservice ware

  • And more

Plastic ring carriers will also be banned beginning June 20, 2024.
To learn more about how these regulations will affect your business, read our FAQ here.

Last week, the province announced an adjusted timeline for some additional regulations. To be clear, plastic items such as checkout bags, cutlery, and other foodservice ware are banned as of December 20, 2023. Some additional requirements, such as charging a fee for new reusable or paper bags, have been extended to July 15, 2024.

Click here for more information on which additional requirements have been extended.

The Winter 2023 Issue of The Quarterly Pour is Out Now!

Click here to download the winter 2023 issue of  The Quarterly Pour

Featured articles in this issue:

go2HR on Tap:  Reflections & Planning - Workplace Psychological Health & Safety for ABLE Members

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.

Cannabis Corner: Help Support Our Advocacy Efforts 

As ABLE BC works to support BC’s private cannabis retailers, we meet regularly with various officials at the LDB, LCRB, and with elected officials in the federal, provincial, and municipal governments.

To support your businesses, ABLE BC is advocating on behalf of members with the provincial government and municipalities to implement mandatory distance rules between new cannabis stores (including government stores). ABLE BC has a proven track record of success in the  liquor stores and pub industry. We have seen the value and positive impact on protecting existing licensed businesses by rolling out and upholding a door-to-door distance criteria, such as protected revenues, accessible banking, and increased value in your licensed asset.

Want to get involved in our cannabis advocacy? To join our Cannabis Committee, contact our Head of Cannabis Membership Bo Chen at  bo@ablebc.ca. 

Do you own a cannabis retail store?  Sign up now for an ABLE BC cannabis membership to support the work we do on your behalf.

Out and About with ABLE BC

Last week, ABLE BC’s Executive Director Jeff Guignard, President Yvan Charette, Cannabis Chair Steve Dowsley, and Head of Cannabis Bo Chen met with Solicitor General and Deputy Premier Mike Farnworth at a fundraising event at Tinhouse Brewing in Coquitlam. They discussed several issues impacting BC’s liquor and cannabis industries, current economic conditions, and made plans to host an event with Minister Farnworth in the New Year. (We’ll circulate details of the event in early January.)

ABLE BC’s Executive Director Jeff Guignard appeared in the following media recently:

Ann Brydle