Industry

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.

For example, LRS stores can purchase a lager 15-pack (sku 501864) for $21.10 wholesale. BC Liquor Stores retail the same producer’s lager 15-pack (sku 36577, exclusive to BCL) for $25.99, but recently on flash sale for $16.99. The flash sale retail price was $4 below the LRS wholesale price of the same product in that price period.

We are seeing similar examples with 36-packs of domestic beer. For example, the Old Style Pilsner 36-pack (sku 44251) is exclusive to BC Liquor Stores, and currently retailing for $54.99, but recently on flash sale for $45.99, representing a retail price of $1.28/can.

The Old Style Pilsner 15-pack (sku 929661) is available to the LRS channel for $19.90 wholesale, which represents a wholesale price of $1.33/can. The BCL retail sale price for the same beer was $0.05 less than the LRS wholesale price in that price period.

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 the equivalent LRS product. Use our new reporting tool to help ABLE BC build a file of examples we can bring to government.

Please note you can report anonymously, all information gathered will remain confidential, and supporting documents or images can be sent to jeff@ablebc.ca.

Please contact ABLE BC’s Executive Director, Jeff Guignard, at jeff@ablebc.ca if you have any questions.

REPORT HERE

Inter-Provincial Retailing Reporting Tool

Many members have provided us 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.

ABLE BC's Executive Director, Jeff Guignard, has previously addressed inter-provincial retailing in media, but it appears that it is now increasing in frequency and value.

Not only is this practice offside with regulations, but it is 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.

To help stop illegal inter-provincial retailing, we need your help. Use our new reporting tool to document examples of Alberta retailers advertising in BC and Alberta retailers delivering orders to customers in BC.