Liquor Industry Update: March 9, 2023

Dear ABLE BC Members and Industry Colleagues,

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

  • ABLE BC Email Issues

  • LRS & NEW LP Benchmark Surveys

  • Single Bottle Pick Service Update

  • ABLE BC’s Excise Tax FAQ

  • Minimum Wage Increase

  • BC Budget 2023

  • New Legislation to Help Close Gender Pay Gap

  • BRCCC Unlimited Retail Returns Program Survey

  • ABLE BC Member Webinar: Decriminalized Drugs in Liquor Primary Establishments – Understanding your Duty of Care

  • ABLE BC Liquor Industry Meetings on Vancouver Island

  • go2HR Launches Safer Spaces Course for Workers

  • Save the Date: Upcoming Events and Webinars

  • Benefit Highlight: Foodbuy

  • Celebrating our Industry

  • Out and About with ABLE BC!

  • Join ABLE BC Today!

Find all past updates here.

ABLE BC Email Issues 

We have been experiencing email issues for the past two weeks and have not been able to communicate over email with some members. If you have reached out to us recently but haven’t heard back, please call Ann Brydle, Manager of Membership and Communication, at 604-688-5560.  

If you haven’t seen the latest Industry Update Newsletter or other emails from us recently, please be sure to check your junk folder, save ann@ablebc.ca and jeff@ablebc.ca in your contacts, and reach out to us if you have any questions.  

Having trouble seeing images in our newsletter or other emails? Make sure to add us to your contacts or check the settings in your email provider to make sure images are downloaded or to show blocked content.

LRS & NEW LP Benchmark Surveys

Since 2018, ABLE BC in partnership with Paul Rickett of VARKeting! has conducted an annual LRS Benchmark Survey.

As BC’s private liquor industry association, ABLE works to collect data for our membership and create an economic snapshot of our industry. We survey our private liquor store members on an annual basis to help develop KPIs or benchmarks for your business.

This year, we have re-vamped our LRS Benchmark Survey. The  LRS survey now comes in two versions: one for independent storesand one for chains.

The brand new LP Benchmark surveys (one for independent establishments and one for chain establishments) are ready now! Please take some time to fill out the survey most suited to your business

To ensure we can offer you valuable insights, we kindly ask that if you own or operate an LRS or LP, you complete the appropriate survey here: 

LRS Benchmark Survey - Independent Stores: This survey is intended for independent liquor stores that do not share ownership with any other store. The information collected in this survey will be used to measure key benchmarks in our industry and how trends develop year over year. 

LRS Benchmark Survey - Chain Stores: This survey is intended for chain liquor stores that share ownership with other locations, whether under the same brand or not. The information collected in this survey will be used to measure key benchmarks specific to LRS chains and how trends develop year over year. 

LP Benchmark Survey - Independent Establishments: This survey is intended for independent Liquor Primary establishments that do not share ownership with any other store. The information collected in this survey will be used to measure key benchmarks in our industry and how trends develop year over year. 

LP Benchmark Survey - Chain Establishments: This survey is intended for chain Liquor Primary establishments that share ownership with other establishments, whether under the same brand or not. The information collected in this survey will be used to measure key benchmarks specific to LP chains and how trends develop year over year.

Single Bottle Pick Service Update

In case you missed it, effective immediately, LDB Wholesale Operations is expanding its single bottle pick service to offer a selection of year-round spirits, champagnes, fortified wines, and liqueurs in 750ml and 1.14L volume format. 

This expansion is in response to advocacy from  ABLE BC the  Rural Agency Store Advisory Society (RASAS). While we are pleased to see expanded service today, we still want to see more products added to this service. We will continue to work with our government partners on ways to improve single bottle distribution for industry. 

A complete list of skus available for single bottle pick service can be found here. The 10% bottle pick rule, applicable to  specific customer types, will continue to apply. 

Click here to read an update on single bottle pick service from LDB Wholesale Operations.  

ABLE BC’s Excise Tax FAQ

Excise duties are a federal tax applied to several products, including alcohol (wine, beer, and spirits), manufactured in Canada. This tax is set to increase by 6.3% on April 1, 2023, marking the largest federal tax increase on alcohol in 40 years. As the tax is paid by liquor manufacturers and not applied at the wholesale or retail level, it is essentially a hidden tax of which consumers are generally unaware.

We have created this FAQ after hearing several questions from members. If you have a question that isn’t answered here, please reach out to us at ann@ablebc.ca.

How are changes to excise duties calculated?

In 2017, the Government of Canada amended the Excise Act to tie excise duties on alcohol to inflation. The excise duty rates adjusted annually on April 1 based on changes to the Consumer Price Index.

How much are excise duties going up this year?

On April 1, 2023, excise duty rates will increase by 6.3% -- the largest federal tax increase on alcohol in 40 years. 

Which liquor products are affected by excise duties?

Excise duties are imposed on beer, wine, and spirits produced in Canada. Mead and cider made from 100% Canadian honey or apples are exempt from excise duties.

Do retailers apply this tax to products when customers make a purchase, similar to GST?

No. Excise duties are applied to manufacturers. This means the tax is embedded in the wholesale price of liquor products.

 As the rates go up for manufacturers, you can expect to see wholesale prices increase after April 1. While the increases won’t be significant on any individual SKU, in total the new tax increase will net $45 million of additional revenue for the federal government off the backs of our industry and our customers.

How do excise duties affect the wholesale price of liquor products?

Click here to see the excise rates applied to beer, wine, and spirits.

 Beer Canada has created the below example of how excise duties affect the cost an 8-pack of beer:

What is ABLE BC doing about excise duties?

ABLE BC's Executive Director Jeff Guignard calls the automatic increase " fundamentally stupid" for coming at a time when industry is still recovering from the pandemic. ABLE BC has joined Beer Canada, Restaurants Canada, and other industry partners in fighting against the increase to excise duty rates. We were recently in Ottawa to press for "logical, sensible reform" from the federal government.

Click here to see Jeff’s recent comments in the media on this issue.

We recognize that excise duties are a normal part of the taxation system, and that indexing these duties to inflation made sense in 2017 when no one, including policy-makers and parliamentarians, anticipated an increase of this magnitude. The 6.3% increase coming on April 1, 2023, is the largest increase to excise duties in four decades. Given that Canada’s liquor and hospitality businesses are is still struggling to recover from the financial damage of the pandemic, this is absolutely the wrong time to increase taxes.

We have asked the federal government to cap the current increase at no more than two per cent per year.

We will provide further updates as they are available.

Where can I find more information?

We encourage you to visit www.hereforbeer.ca to learn more. If you have any questions not answered here, please out to us at ann@ablebc.ca

Minimum Wage Increase

As you know, BC’s minimum wage was tied to inflation in 2022 and, on June 1, 2022, was raised to $15.65 per hour as part of the NDP government’s four-year plan to reach at least $15/hour. This year’s increase to minimum wage has not been announced yet, but with inflation soaring to record highs, we know that the upcoming increase will be expensive for our industry.

Tying minimum wage to inflation is a common sense policy that enables industry to plan for the future. However, with inflation at a 40-year high, we are increasingly concerned that government will contemplate a large cost-of-living increase of perhaps six to seven per cent—which would translate to about an additional dollar per hour.

We know that industry cannot afford this massive increase to labour expenses at this time. We have been clear with government that, since 2020, our industry has already experienced 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.

Last week, we joined Restaurants Canada and ten other business associations calling on government to cap the 2023 minimum wage increase at three per cent and to implement a minimum wage adjustment program similar to those in place in Manitoba and Newfoundland.

This is not the time to add a wage hike to businesses still struggling to recover from the financial damage of the pandemic.

Click here to see the letter sent to Premier Eby on March 1, 2023.

We will provide updates as they are available.

BC Budget 2023

Last week, BC’s Minister of Finance, the Honourable Katrine Conroy, introduced the BC Budget and Fiscal Plan for fiscal year 2023-24.

“This year’s budget helps protect people who can’t afford today’s high prices and takes action on the issues people care about, like finding affordable housing and accessing health care,” says Minister Conroy.

While we are pleased to see a focus on affordability for British Columbians, we are disappointed that the budget does not directly address the current challenges of our liquor and hospitality industries. For example, the budget offers no support for skyrocketing business costs or our industry’s ongoing labour challenges.

The BC Chamber of Commerce has noted that, while the “2023 budget prioritizes spending for important social and community initiatives,” this comes “at the expense of addressing increasing costs facing BC’s businesses and the province’s competitiveness.”

Despite the lack of specific support in the Budget, we will continue to push for our industry’s needs in the months ahead.

Click here to read more about Budget 2023. 

New Legislation to Help Close Gender Pay Gap

The BC government has introduced new pay transparency legislation to help close the gender pay gap, the next step on the path to pay equity.

Once passed, the legislation will require employers to include wage or salary ranges on all publicly advertised jobs. Employers will also be prohibited from asking prospective employees for pay history information or from punishing employees who disclose their pay to co-workers or potential job applicants.

Starting in November 2023, BC employers will gradually be required to publicly post reports on their gender pay gap. This requirement is being introduced in stages, by number of employees:

  • Nov. 1, 2023: BC Public Service Agency and Crown corporations with more than 1,000 employees (ICBC, BC Hydro, WorkSafeBC, BC Housing, BC Lottery Corporation and BC Transit).

  • Nov. 1, 2024: all employers with 1,000 employees or more

  • Nov. 1, 2025: all employers with 300 employees or more

  • Nov. 1, 2026: all employers with 50 employees or more

Each year by June 1, the Ministry of Finance will publish an annual report that will serve as centralized reporting of gender pay in British Columbia.

Click here to read the government press release.

BRCCC Unlimited Retail Returns Program Survey

ABLE BC has partnered with the Brewers’ Recycled Container Collection Council (BRCCC) to bring our retail members the Unlimited Retail Returns Program.

We understand that accepting empty container returns can pose challenges to LRS operators, including labour constraints, space issues, and health concerns. We have heard that some LRS businesses have not begun accepting empty container returns again after pausing this service during the pandemic. We encourage all LRS businesses to begin accepting empty container returns immediately. According to the Recycling Regulation (Schedule 1, section 6),  all LRS businesses are obliged to accept up to 24 empty containers per customer per day.

ABLE and the BRCCC are seeking to make accepting empty container returns easier for LRS businesses. To help us better understand your needs, please fill out this survey before Friday, March 24, 2023.

Your participation is greatly appreciated. We will provide updates as they are available.

Fill out the survey NOW!

ABLE BC Member Webinar: Decriminalized Drugs in Liquor Primary Establishments – Understanding your Duty of Care

As you know, BC decriminalized small amounts of certain drugs on January 31, 2023. Adults will no longer face criminal charges for the personal possession of 2.5 grams or less of opioids, crack and powder cocaine, MDMA, and meth, but does that mean they can bring these drugs into your establishment? What happens if your staff become aware of patrons consuming drugs – what should you do? 

Join ABLE BC and Lorne Folick, Partner at  Dolden Wallace Folick LLP, on March 23, 2023 at 10:00 am to learn about the risks associated with decriminalized drugs and your duty of care as a Liquor Primary establishment. Lorne will discuss various examples and scenarios that will assist with the adoption of the appropriate policies and procedures as well as employee training.

This webinar is free for ABLE BC Members! Non-members can register for $10.

Do you have questions about decriminalized drugs? Send your questions to ann@ablebc.ca so we can address them in the webinar.

Webinar details:

  • When: Thursday, March 23rd, 2023

  • Time: 10:00 am

  • Location: Zoom

  • Register: here

 ABLE BC Liquor Industry Meetings on Vancouver Island

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

The first leg of Jeff’s tour will take place in April across Vancouver Island. Come see Jeff in Langford, Nanaimo, Tofino, Courtenay, or Campbell River. More details will be released in our next newsletter! 

These meetings are open to owners, managers, and staff members from pubs, bars, nightclubs, hotels, and liquor stores. Not a member? Not a problem! Attending a liquor industry meeting is the best way to learn about the benefits available to you when you sign up. 

Join Jeff to learn about:

  • What is ABLE BC and how do we work?

  • Update on current liquor industry issues

  • Current issues ABLE BC is advocating for and our progress on key policy priorities

  • ABLE BC benefit programs

  • Connect with other licensees and ABLE BC members in your area

  • Question and answer period with ABLE BC Executive Director, Jeff Guignard

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

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

go2HR Launches Safer Spaces Course for Workers

Take the important step in helping to create respectful workplaces that are free from sexual harassment by taking the Safer Spaces training course. The second in a series of trainings from go2HR, this FREE course focuses primarily on how to understand, determine and report sexual harassment should it occur,  from your perspective as a worker.

The course covers the following learning topics:

  • Defining sexual harassment

  • Learn how to identify situations in the tourism and hospitality industry where sexual harassment might occur

  • Better understand the options available to a worker if they decide to either disclose or report an incident of sexual harassment

  • Learn what consent is and what it means

  • Teach ways one can become an active bystander

  • Educate on how to best contribute to a respectful, equitable, diverse and inclusive workplace

Trigger Warning:

Safer Spaces Worker training course deals with a serious subject matter. The content can invoke a trigger response in those who have previously experienced trauma. Think of a trigger warning as a consent button for content. It puts choice back in the hands of the survivors. We aim to be sensitive and have several trigger warnings in all of our online content. Within our Safer Spaces training, we will also direct people to supportive resources whenever appropriate.

What You Will Learn:

  • Understand and know how to determine acceptable and unacceptable behavior in the workplace

  • Become better informed of what to do in a variety of situations and empowering them with the right information to stand up for themselves or others in the workplace

  • Increase overall safety in the workplace

  • Training strengthens and develops positive professional relationships among employees and can also reduce stress and burnout

  • Providing a safe and respectful workplace which may positively impact employee retention

  • Reduce risk of legal liability

How Your Workplace Benefits: 

  • Training strengthens and develops positive professional relationships among employees and can also reduce stress and burnout

  • Providing a safe and respectful workplace which may positively impact employee retention

  • Reduce risk of legal liability

Technical requirements: this course requires a high-speed internet connection (minimum 25Mbps) and a modern, standards-compliant web browser to view animations and HD video (Google Chrome is recommended).

Take the FREE course now!

ABLE BC in the media:

Ann Brydle