These past few day I’ve seen people attack the @LCBO for a new partnership that’ll bring back delivery via an app. Critics say this is an attack on small business. They’re wrong.
The real attack on small business is the monopoly and regulatory regime maintained by the LCBO and @FordNation government.
Every restaurant and shop has to pay full retail price from the LCBO, before they then add their markup to sell to their customers.
Every winery and distillery has to pay the LCBO as a middle man for managing the system for product that never touches their warehouses or shelves.
The now defunct Toronto Distillery Co fought this arrangement in court and lost. The decision ruled the Distillery signed a contract so they had to abide by it. It does not however negate the bigger point they were trying to make about the need for reform. https://financialpost.com/entrepreneur/judge-sides-with-lcbo-in-levy-fight-with-craft-spirits-maker-toronto-distillery-co
Consumer choice and convenience should be welcomed. Small businesses would be better served by advancing broader regulatory reform and ending the government monopoly, rather than fighting convenience for customers.
Many restaurants and small businesses that became sorta restaurants so they could retail booze during the pandemic should welcome more liberalization and convenience. They’ll be better. Just imagine how much more great product @GoodCheeseTO could sell, with lower prices.
Wine and spirits agents who import niche product, still have to pay the LCBO middleman for the “privilege” of allowing it into Ontario. Why? @FordNation’s government are addicted to the crown corp’s revenues and all the big players are happy to keep their marketshare intact.
Given the SOP and licensed establishment in place, a wholesaling regiment that mandated pricing could be established to lower prices and support small businesses that are using Byzantine regulatory loopholes to become defacto small wine shops.
The CRTC already does something like this in regulating and mandating big telcos have to support 3rd party entrants to spur competition (like @TekSavvyBuzz) and dictates what that wholesale price is.
Further reforms to make it easier and less costly to import product (be in interprovincial or international) are needed. Introducing a standardized retail alcohol regime, letting small retailers in on the game the Wynne government expanded to include grocery stores is another.
You can check out @TO_DistilleryCo’s archived Twitter account for other insights on the distillery side of the equation.
You can follow @jellerton.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

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