Page 45 - Beverage MasterFebMarch 2021_Update
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International News
product on the shelves once a year, at the suppli- allowing restaurants and bars to sell sealed alco-
ers’ expense, to ensure quality. Once approved, the holic beverages for takeaway. They also amended a
product then has to go through label and packaging law prohibiting alcohol delivery to private residenc-
reviews. es, allowing third-party services such as Uber Eats
to deliver liquor from restaurants without a special
The LCBO also has extremely specific require- license. These laws, originally considered tempo-
ments surrounding the labeling of not only the rary, have become a permanent amendment to the
packaging of alcoholic beverages but also on ship- Liquor Licence Act as they encourage consumers to
ping containers and cases. While many provinces support local sources when purchasing alcohol for
follow general Canadian guidelines for packaging their homes.
requirements, Ontario has developed its own
set of rules. A 64-page document entitled LCBO For a brief moment, on December 4, 2020, the
Product Packaging Standards dictates not only LCBO attempted to offer this same delivery service
what information is present on the bottle but also from its stores by pairing with SkipTheDishes but
gives incredibly detailed guidelines on everything was met with serious backlash from local restau-
from the size and placement of this information to rants who are now relying on alcohol takeout and
the “print contrast standard.” If a product doesn’t delivery to pay their bills. As a result, on December
adhere to these standards, a producer must go 6, 2020, the LCBO paused this initiative.
back and have the label or shipping package rede-
signed. As the COVID-19 pandemic rages on and the
entire province of Ontario remains in lockdown
Once the product makes it to Ontario liquor store until at least January 23, 2021, the Government of
shelves, the LCBO must adhere to the LCA stan- Ontario will have to continue making adjustments
dards for minimum pricing. This means, according to its rules and restrictions to allow businesses in
to the LCBO Pricing Standards Guide, updated in the province to continue to operate. The hospitality
April 2020, a 750mL bottle of Canadian whisky sold industry has been one of the hardest hit by pan-
by a supplier to the LCBO for $6.16 and charged a demic restrictions, with most indoor dining in the
federal excise duty of $3.71 ($12.61/LAA) would province’s major cities suspended for most of the
end up on retail shelves for $27.50 after being year. Those allowed to operate have been limited
marked up a standard rate of 139.7%. Of that total to 50% capacity and forced to close by 9:00 p.m.
revenue, $16.17 goes to the Ontario government each night. This means the licensee sale of alcohol
and $4.92 to the Canadian federal government, dramatically decreased in 2020. There are many
with only $6.21 making it to the supplier after businesses in Ontario that are depending on gov-
a $0.20 container deposit. Manufacturers must ernment subsidizing to stay in operation.
adhere to this uniform pricing even when selling
from their own bottle shops, with most of the reve- As the AGCO and the federal government con-
nue going to government bodies. tinue to collect from the soaring sale of alcohol
in Ontario, while manufacturers, suppliers and
These taxes and guidelines mean the selection licensees in the liquor industry continue to suffer,
and quality of products on the shelves at the LCBO the province’s small businesses rely on the pro-
are not always impressive. Many international pro- vincial government’s aid. It is the hope that as the
ducers will not bother applying at all. Many of the world evolves with the COVID-19 pandemic, so too
province’s most talented producers are too small will the laws surrounding liquor in the province of
and cannot afford to. As a result, the representa- Ontario.
tion of Ontario beer, wine and spirits in the LCBO
doesn’t always showcase the incredible quality of
the local industry.
However, the Ontario government has made some
changes to its liquor laws this past year to aid busi-
nesses in the food and beverage industry that have
struggled with closures and other factors related to
the COVID-19 pandemic. The government started
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