Weekly Liquor Industry Update: March 31, 2022

Dear ABLE BC Members and Industry Colleagues,

Here's what you'll find inside today's update:

  • E-Petition Opposing Escalator Excise Tax on Alcohol

  • Temporary Receiving Delays into LDB Warehouse for Some Import Products

  • Progress on Patio Policies

  • Seeking Feedback on the Possible Elimination or Revision of the Tied House Regulation in the Liquor Control and Licensing Act

  • Mandatory Paid Sick Leave: Change from Employment Year to Calendar Year

  • BCHF Scholarship Applications Close on March 31

  • Vancouver & Victoria IVSA Buyer’s Salons

  • Hiring with EDI in Mind: A Webinar & Resources

  • BC Hospitality Foundation (BCHF) Golf Tournaments Return with One New Addition!

  • BC Employer Training Grant

  • ABLE BC in the News

Find all past updates here.

E-Petition Opposing Escalator Excise Tax on Alcohol

The escalator excise tax is an automatic increase in taxes on wine, beer, cider, and spirits set to take place on April 1, 2022. This increase will add costs to retailers, hospitality businesses, and consumers at a time when prices are already increasing due to inflation, labour costs, supply chain issues, and more.

This past Friday, federal Member of Parliament Tracy Gray (Kelowna-Lake Country), launched an e-petition calling upon the Government of Canada to freeze the automatic escalator excise tax increase.

Freezing this tax increase will help limit retail price increases by offsetting the rising costs and supply chain disruptions facing beverage alcohol producers across Canada.

We encourage all members to sign the petition here.

Temporary Receiving Delays into LDB Warehouse for Some Import Products

We have been asked to share this message from the LDB:

BC Liquor Distribution Branch (LDB) Wholesale Operations would like to remind customers of some on-going delays impacting some regular stock and non-stocked wholesale products (NSWP) coming into the LDB warehouse.

We have been informed by our agent warehouse, Container World, that they are about two days behind schedule on regular and NSWP products. In an effort to reduce the delivery delays to the LDB they are continuing to schedule overtime, but it will take some time to resolve the backlog.

This means that customers may continue to experience delays on some import products, both regular and non-stocked wholesale products (NSWP).

We apologize for this inconvenience and appreciate your patience while we continue to work with our agent warehouse partner to provide the necessary support to bring delivery timelines back to standard.

Key product shortages and supplier stock outs can be referenced here.

We will continue to keep customers updated on this situation and look forward to providing a timeline for the resolution of these issues.

This update is posted on the LDB Wholesale Operations website.

Progress on Patio Policies

With patio season fast approaching, ABLE BC has been actively working with our provincial and municipal government partners to extend temporary patio provisions so you can have a successful and profitable summer. While we are advocating with the province to extend the TESA deadline, we are also engaging with municipalities across BC to reduce red tape and cut fees associated with patio applications.

Throughout the pandemic, patios have been an essential lifeline for many of our members. We expect patios will continue to play a key role in economic recovery in the months ahead. Unfortunately, many municipal patio programs have created additional fees, red tape, and duplication of efforts for businesses looking to retain patios built during the pandemic. Earlier this month, we wrote jointly with partner associations at the BCRFA and the BC Craft Brewers Guild, and Restaurants Canada to encourage municipalities to consult directly with small businesses and industry associations on patio application processes. You can read our letter here.

We are pleased to report that our efforts have already yielded positive results. We have begun to receive positive feedback from some municipalities and are confident that they will review and update patio application processes.

Click here to read the letter from the District of Sicamous, and here to see the staff recommendation regarding patios in the City of Richmond, page 41.

Our key recommendations include:

  • Extend current patio programs without implementing new restrictions or fees;

  • Streamline approvals to ensure those small businesses who have been safely and successfully operating patios may continue to do so;

  • Increase flexibility for patio types and sizes as well as the number of patios allowed;

  • Increase the space use of existing patios or picnic areas to allow chairs to be spread out to meet distancing requirements;

  • Allow pop-up outdoor dining and manufacturer sampling spaces;

  • Allow and increase the use of parklets and public space for dining;

  • Allow any increase in patio, picnic area or outdoor space being considered a continuation of an establishment’s existing approved alcohol service area or manufacturers’ sampling area to provide samples and not require additional endorsements or authorizations; and

  • Coordinate with any relevant bodies—such as the Liquor and Cannabis Regulation Branch, Fire Department, etc.—to reduce red tape and speed approval timelines wherever possible.

While we will continue to work on having the TESA deadline extended, we strongly encourage you to get your application in now.

You can find more information on how to apply via the LCRB’s website.

Please note, not all TESA authorizations will be viable permanent patios. Before you apply and pay the fee, it is your responsibility to work with your local government and authorities to make sure the TESA you want to make permanent complies with all local permits, guidelines, bylaws and requirements.

To apply you will need:

  • An updated floor plan that clearly shows the structural change

  • These plans generally require an occupancy load

  • If you are a Liquor Primary or Manufacturer licensee, your structural change application will be sent to your local government for their comments.

To apply as a Liquor Primary or Food Primary licensee:

  1. Log in to the liquor and cannabis licensing portal with a BCeID

  2. Go to the "Licences and Authorizations" dashboard and find the licence you want to change.

  3. Select:

  • "New Outdoor Patio" for an outdoor TESA or

  • "Structural Change Application" for an indoor TESA

  • Complete the application.

You can find more information here.

If you have questions about your expiring TESA or applying for a permanent structural change, we encourage you to contact a liquor licensing consultant. Check out the ABLE BC Buyer’s Guide for recommended consultants.

Seeking Feedback on the Possible Elimination or Revision of the Tied House Regulation in the Liquor Control and Licensing Act

The Liquor Control and Licensing Act currently permits a Tied House arrangement between a liquor manufacturer – brewery, winery, or distillery – and a maximum of three of its own offsite establishments. For example: A brewery can sell its products in a maximum of three licensed establishments that are under the same ownership as the brewery.

Several years ago the exception to allow sales in a maximum of three offsite establishments was introduced. The intent of this policy was to restrict manufacturers from giving themselves an unfair advantage. But it was designed before the emergence of craft manufacturing here in BC and has mainly inhibited smaller producers from gaining the same foothold in the market as larger manufacturers.

This policy is currently being discussed and many licensees are of the opinion that the government should eliminate restrictions. This opinion is based on consumer choice and the necessity to provide a selection of product options (ie no pub or restaurant is only going to sell just one alcohol product given today’s competitive market).

We feel that this is an issue the government should revisit. We believe they should remove the current maximum of three establishments, as it is unlikely any on-premise consumption establishments would want to sell product from only one manufacturer. But we want to hear from you.

Is this a policy you would like to see changed?

Click here to fill out a short survey and share your opinions on Tied House regulations. The survey will close on Friday, April 8th.

If you would like more information about Tied House and the implications of the current restrictions, contact Carmen MacKeage of Rising Tide Consultants at carmen@risingtideconsultants.ca or 604-669-2928.

Mandatory Paid Sick Leave: Change from Employment Year to Calendar Year

We know that new paid sick leave provisions continue to be a significant concern for our liquor retail and hospitality members. As a step to lessen the burden on your businesses, ABLE BC and several partner associations engaged with government to ensure they heard your concerns. Please see this letter we sent to Minister of Labour Harry Bains addressing a few of our specific concerns. In response to our joint advocacy, last week Minister Harry Bains introduced two significant changes to the paid sick leave entitlement.

First, an employee's annual paid sick leave will no longer be tied to 'employment year.' The entitlement period will now be based on 'calendar year,' a change that ABLE BC, along with a coalition of industry associations, has been pushing for.

Second, the clause relating to collective agreements is being amended to ensure government's intent that the paid sick leave entitlement is applied to all employees in BC.

We understand that there are still significant concerns and costs associated with the paid sick leave entitlement, but we are happy to see this change come through as we continue to advocate on your behalf.

You can read our letter here.

You can read the government press release here.

BCHF Scholarship Applications Close March 31

The BC Hospitality Foundation (BCHF) will be closing applications for the scholarships it administers today.

The deadline for most scholarship submissions is March 31, 2022.

Applications accepted for the following:

  • More than 15 x Culinary Scholarships for students starting or currently enrolled in culinary courses. Support by the Chefs’ Table Society of BC. Closes March 31. APPLY NOW

  • 10 x Wine Business Professional Scholarships for hospitality workers expanding their wine knowledge. Previously named Sommelier Scholarship, we hope this will attract more retail workers to apply as well as frontline staff. Closes March 31. APPLY NOW

  • 8 X BC WISE (Wine Industry Scholarship and Education Fund) Scholarships for students enrolled in programs such as winemaking, viticulture, or wine business executive. Closes March 31. APPLY NOW

  • 2 x Food & Beverage Professional Scholarships for students enrolled in or applying for food and beverage courses. Closes March 31. APPLY NOW

  • 1 each of Indigenous and LGBT2Q+ Scholarships for Indigenous - APPLY NOW- and LGBT2Q+ - APPLY NOW - hospitality workers who want to increase their knowledge of the food and beverage, hospitality and/or tourism field through education. Application deadline extended to April 30.

Click here for more information

Vancouver & Victoria IVSA Buyer’s Salons

The Vancouver & Victoria IVSA Buyer’s Salons are coming up soon! RSVP to admin@ivsa.ca now to sample products from 30+ liquor agents.

Vancouver Salon

When: Monday, April 4th, 2022, 12:30-4:00 pm

Where: The Vancouver Club, 915 W Hastings Street

Victoria Salon

When: Wednesday, April 6th, 2022, 12:30-4:00 pm

Where: Rock Bay Powerhouse, 2110 Store Street

Please note, proof of vaccination will be required. Attendance may be restricted to the following: licensee buyers, proprietors, sommeliers, managers, chefs, media, and BCLS product consultants only.

RSVP to admin@ivsa.ca.

Hiring with EDI in Mind: A Webinar & Resources

Is your organization striving for a broader understanding of equity, diversity, and inclusion (EDI)? Wondering how hiring students and hiring in general can support your goals? Have you considered the barriers students and staff from equity seeking groups encounter during the job hunting, interviewing, and on-boarding process—and how your organization can make adjustments?

Join Talent MATCH and Talent 4 Non-Profits as they welcome Akanksha Thakur (she/her), the Project Lead for ACE-WIL’s EDI Resource Hub and the EDI Program Manager at TransLink. Akanksha will present an overview of the EDI Hub, highlighting the barriers that employers and student-employees face, and the resources that were built in response—including tips on inclusive job postings and interviewing, information on accessibility, power dynamics, and much more.

Date: Tuesday, April 26th at 3:00 pm (PT)

Register for this FREE session here.

BC Hospitality Foundation (BCHF) Golf Tournaments Return with One New Addition!

The BCHF is excited to announce the launch of our new Okanagan tournament. The inaugural Okanagan tournament kicks off the golf season on May 10, 2022, followed by legacy tournaments in Vancouver and Victoria this summer. Registration is now open for all three tournaments.

Annual Golf Tournaments are important fundraising events for the foundation. Funds raised help hospitality workers across BC each year that are in a financial crisis due to a medical condition.

BCHF Tournaments attract over 130 golfers in each city and are known to be a fun-filled networking event for owners, managers, and suppliers. These events are a great opportunity for team building initiatives and to celebrate your partners and suppliers.

Food and drinks will be provided at several holes throughout the course. The day of golf finishes with a networking reception, grazing dinner and silent auction. Thanks to our industry partners there are many great prizes to be won!

Important Dates:

BC Employer Training Grant

The BC Employer Training Grant (ETG) program supports skills training to address provincial labour market needs. The program is delivered by the Province of British Columbia and is funded by the Government of Canada through the Workforce Development Agreement (WDA).

The goal of the ETG is to help British Columbians access the skills training needed to adapt to the changing requirements of jobs and the labour market while encouraging employer involvement in the training of their employees.

Employers are eligible to receive up to $300,000 per fiscal year (April 1 – March 31). Reimbursement amounts vary between 60% and 100% depending on the training stream. If approved, employers are to pay for all costs in full and, after training has started, submit a reimbursement claim.

Apply for the Employe Training Grant here.

ABLE BC in the News

In case you missed it, ABLE BCs Executive Director, Jeff Guignard, has been named one of 40 finalists for Western Living's 2022 Foodies of the Year!

"I am surprised and delighted to see my name among so many impressive foodies from BC and Canada,” said Guignard, who is number 26 on the list. "The work that ABLE BC does for BC's liquor industry wouldn't be possible without the help and support of our industry partners and the tireless efforts of hospitality experts across the province."

Owen Coomer, Director, was recently interviewed for BIV: Hardest-hit B.C. sectors keep fingers crossed for a real reopening.

Ann Brydle