43% Price Hike Does Not Sound Like Happy Hour to Me

Friday afternoon the Liberals announced that BC alcohol licensees, as of the time of the announcement (read policy directive here),  are now free to have temporary drink specials, otherwise known as happy hour.

But before you run down to your local pub looking for a 2-for-1 special, know that with the new minimum
drink pricing of $0.25 per 28 ml (one ounce) that was tied to the happy hour announcement, many beer drinkers in BC will see the regular price of their pint increase significantly, especially in more rural areas of BC.

At $0.25 an ounce, a pint works out to $5 before tax. My local in Powell River, for example, charged, before yesterday, $4.50 a pint (yes a real pint), tax included, for craft beer on a regular basis. Now that price will have to increase to hit the new minimum standard.

I will now pay more for my pint at the minimum "happy hour minimum" price threshold, before tax, than I was on a regular basis, with tax included, in my local and many other establishments in my town.

Happy Hour my ass.

This situation is not atypical to my local as economies outside the Lower Mainland are completely unrelated to Vancouver and big city prices due to variety of reasons, like the lack of high paying jobs or the necessity to rely on seasonal work to make ends meet. This new minimum pricing did not take that into consideration, or the BC Liberals and their crew of civil servants and bureaucrats who wrote the policy just did not care that this price hike may mean less business for small town pubs and those establishments that cater to the less affluent here in BC and less opportunity for those with low income to get outside of the four walls of their homes to socialize over a beer at their local.

And in areas like the outrageously priced Vancouver, where a pint often can run $10 after tax and tip, those places with great daily specials, like Martini's on Broadway for instance where a pint is, excuse me, was $3.50 on Wednesdays, because the new minimum drink pricing they will have to increase their "special" prices.

Using Martini's as an example, the price hike will be 43%!

It is obvious that Justice Minister/Attorney General, Suzanne Anton, her Parliamentary Secretary, John Yap and those they charged with shaping the new BC liquor policy "modernization" caved to the pressure from special interest groups.

Certain hospitality industry associations have been pushing against happy hours from the start as increased competition from lower booze prices during happy hours means less dollars in the pockets of their members. Big chains do not want to have to compete with smaller, independent establishments which are more likely to lower their prices for happy hours in order to lure customers through their doors.

And I warned you all in the past to be wary of the fact that government were listening closely to health officials about minimum pricing for booze in BC.

Health authorities and their advocates have been pushing for higher booze prices and less access to alcohol from the start of this process using statistics from vague, unnamed studies and scare tactics to push their agenda forward. When I had the opportunity to discuss this issue on radio on CBC (scroll down to Oct 31st) head-to-head with Fraser Health Medical Officer, Dr Lawrence Loh, he ran out a stat that 37% of people who present at BC emergency departments have had a drink of alcohol within 12 hours arriving.

Sounds like a very ominous and telling stat.

My response - what percentage of people in BC who consume a drink of alcohol do not present at an emergency department within 12 hours? That is a stat I would like to see! I guarantee you it is the 99% or above range.

The good doctor had no response to that. Stats can be twisted and manipulated any which way in most cases, depending on how you pose the question.

Dr Loh, in response to me stating that alcohol in grocery stores work in many other jurisdictions, stated we have to be wary of using other jurisdictions and studies based in those jurisdictions to predict what will happen in BC because we may have different attitudes and a different culture in BC related to alcohol.

Actually, a great point, but then, to bolster his argument 5 minutes later, he started spouting off stats from studies done in other jurisdictions that supported his point of view, contradicting his warning not to look to other places where booze is viewed in a different light than conservative BC.

This happy hour-minimum pricing policy is an epic fail for consumers in many areas of BC. As with the issue of alcohol in grocery stores, John Yap and those involved in the process from the government side, have completely misunderstood or completely ignored the real wants and needs of the alcohol consumers in this province. I am not sure if they are believe their own bullshit that they are listening to consumers and giving consumers what they want because clearly, they are not.

The government has quietly backed away from their promise to tie beer prices to alcohol content and instead have just nailed everyone. At the end of the day, the BC Liberals are not modernizing anything. They are making changes that look great but really have no effect in reducing the Nanny State that exists in BC related alcohol policy.

Now, if you don't mind, I am going to head down to my local and celebrate the return of happy hour in BC by paying $1.50 or so more for my pint than I did on Thursday.

Thank you John Yap, Suzanne Anton and all of those involved in this asshattery called the return of happy hour to BC.

VEBBie Awards - VanEast Beer Blog 2012 Year in Review

The fog brought on by too many barley wines over the holidays has finally lifted and the synapses are once again firing so now is as good a time as any to look back at 2012 and hand out the first ever VEBBie Awards. The award winners have been selected by the VEBB Awards Committee, a committee made up of, well, me and like 99% of all awards given out, mean absolutely nothing in the grand scheme of things beer-related or otherwise.

The David Slays Goliath Award

The story of independent business owner Corinne Lea's battle with the LCLB in regards to the Rio Theatre and their liquor primary license set the tone for 2012. Lea applied for and was granted a liquor primary license for the Rio Theatre so they could serve alcohol at over-19, nighttime events and then was told by the LCLB she could not show movies, any time of the day or night, whether the alcohol was locked up or not, because of a decades-old, Prohibition-era law that prohibited liquor licenses in movie theatres. The ensuing public uproar at the ridiculous decision by the LCLB caused a huge backlash that saw support coming from NDP MLA Jenny Kwan, Vancouver City Council, the media, CAMRA Vancouver and thousands of angry citizens and eventually led to the provincial alcohol portfolio being passed from Shirley Bond to Rich Coleman who, after dragging his feet and screwing around with half-measure solutions, did the right thing and allowed for alcohol licenses in movie theatres but not before making Lea suffer due to having her business basically closed down for several weeks.

Things That Make You Go Hmmm Award

This award, hands down goes to the post I wrote entitled "Politics Make Strange Bedfellows" which saw VEBB break the story that the Ontario-only-based chain of liquor outlets called the Beer Store, owned by Molson (49%), Labatt (49%) & Sleeman (2%) had donated over $150,000 to the BC Liberals since 2005. I found it quite strange as to why an Ontario-only chain of beer stores would have such an interest in the BC Liberal Party but when you look at who owns The Beer Store and the fact that the big, national breweries are loosing ground quickly to the smaller, craft breweries.....hmmmm

Jackass of the Year Award

There was a lot of competition for this award but for me, in the end, there was one person who stood head and shoulders above the rest, that being restaurateur Chris Stewart, otherwise known as the Wine Snob. I encountered Mr Stewart while out for dinner with my wife and daughter and was amazed at just how arrogant, insulting and well, downright ignorant this man was. To sum things up, he stated to me, knowing full-well I was the president of CAMRA Vancouver, that craft beer drinkers were not worth enticing to his five restaurants because those who drink craft beer only order yam fries and basically had no idea what good food was all about. 

Political Friend of the Year for the Craft Beer Consumer Award

This award goes to NDP MLA Shane Simpson who, when I made contact with as a result of my CAMRA Vancouver President duties, was the official NDP alcohol critic. Mr Simpson was kind enough to take the time to meet with myself and CAMRA Van VP Dieter Friesen and actually listened to what we had to say. During that original meeting, Shane stated he liked what CAMRA was doing and asked us to produce a top-priority list of no more than three or four issues and stated if they made sense, he would take them forward to Rich Coleman, the Liberal minister responsible for the province`s alcohol portfolio.  And true to his word he did, bringing up CAMRA`s FUSS Campaign, the Bring Your Own Craft Beer campaign and the tied house and trade practice issue in the BC Provincial Legislature. Shane also wrote several letters to both Coleman and the LCLB in support of issues brought to him by CAMRA and members of the craft beer industry and also took the time to meet with myself some of the local brewers who have their breweries located in his riding of Vancouver Hastings. 

It was also Shane who, in July, put the Provincial Liberals under severe pressure in regards to their ill-fated warehouse distribution privatization plan by making public 39 pages of documents that showed the Liberals had no plans to privatize the liquor distribution warehouse system until approached by Excel Logistics personnel, who happened to be very interested in taking over BC`s alcohol distribution as they had in Alberta ans who had hired Liberal insiders to lobby for the privatization. 

Political Enemy of the Year for the Craft Beer Consumer

Rich Coleman, that man just does not give a shit about the BC craft beer industry or the BC craft consumer...enough said.

Best Supporter of BC Brewed Craft Beer Award
This past year Tap & Barrel restaurant opened up in the Olympic Village on the south side of False Creek. Besides having a killer patio that will be the envy of every other restaurant in the city next summer, they have a great 24-tap selection of craft beers all from BC breweries! I know that the Alibi Room, St Augustine's and a handful of other establishments have more taps and a better selection, but none are exclusively BC beers. I love the fact that the Tap & Barrel gang are sticking local and letting our great BC beers take centre stage...I wish more places would follow suit.

Whistler Blower Award
Journalist Bob Mackin, without a doubt, was the single biggest reason the province's liquor warehouse distribution system did not get sold to Excel Logistics, a company that had been lobbying and Liberals for years and who had basically, using Liberal insiders, talked the Liberals into thinking it was in the government's and public's best interests to privatize. Despite the fact almost everyone but Excel and the Liberals were against the move, Coleman and the Liberals plowed forward but with his series of posts hash tagged #Liquorleaks, Mackin led the charge of protest, went at the Liberals relentlessly with some stellar investigative journalism and exposed what NDP MLA Shane Simpson called a "tainted process".

Biggest About Face Award
Due to the above mentioned Bob Mackin, Shane Simpson along with many other journalists and special interest groups, the Liberals quietly announced they were dropping privatization plans for their liquor warehouse system while announcing having reached a tentative agreement with BCGEU in regards to a new contract.This announcement, hidden in the tentative agreement with the unionized government workers came out of the blue, just like the announcement to privatize did some seven months earlier. No real explanation was ever given as to why the plan, which had been heavily defended despite huge criticism from almost everyone, was dropped like a hot potato.

Biggest Shitstorm in the Local Craft Beer Community Award
Probably the worst kept secret in the BC craft beer community was exposed by blogger Barley Mowat in his post "The Grinch Who Stole Cascadia" when he wrote about how Steamworks owner Eli Gershkovitch was attempting to stop other craft breweries from using the descriptor Cascadian Dark Ale as he had trademarked the word Cascadia some years back. This blog post caused a shitstorm the likes that have never been seen before in the local craft beer community and resulted in a ton of negative, on-line bashing of Eli, Steamworks and the evils of corporate greed. For me, the actions of Eli and his "Steam Team" were a sign of how the local craft beer community is changing as the stakes get higher and the competition grows.


Well there you have it folks, the VEBBie Awards. It has been quite a year and there has been so much to write about. I only touched the surface of what is going on in the BC craft beer scene and now that I no longer have the responsibilities of being CAMRA Vancouver President, I hope to dedicate more time to this blog and writing. The readership of the blog has really grown and the more I write, the more I get people contacting me with great story ideas and inside tips about what is going on. Keep the flow of information coming and I will do my best to do what I do, which is offer up my rantings, ramblings, ideas and opinions in relation to the politics of the BC craft beer scene.

CAMRA BC Speaks Out on LDB Privatization - Time For Craft Beer Consumers to be Heard

Disclaimer: For those who do not know, I am the current president of CAMRA Vancouver. I write this blog as myself and the opinions voiced here on VanEast Beer Blog are mine, not those of CAMRA BC, CAMRA Vancouver or another organization

In case you missed it, last week the Campaign for Real Ale of British Columbia (CAMRA BC) spoke out publicly against the current Liberal Government plans to sell off the province's liquor distribution warehouses and warehouse distribution system to the private sector, joining groups like the Alliance of Beverage Licensees of BC, the BC Government Employees Union and The Craft Brewer's Guild of BC and the NDP Party of BC in voicing their dissent.

In an email to Rich Coleman (see below) and many other major players in the current privatization process, CAMRA BC, a craft beer consumer advocacy group, voiced displeasure about the fact the the Liberals have not been able to guarantee that the privatization plans will not negatively impact the access to locally brewed craft beer or that alcohol prices will not increase for the craft beer consumers of BC. They also point to the absence of consultation with the private and public sectors of the province and to the fact that the Liberals have not produced a business case or cost-effect analysis to support their privatization plans.

The email came one day before NDP Alcohol Critic Shane Simpson dropped a bombshell by releasing documents showing the BC Liberals had no current plans to privatize before being approached last summer by Exel Logistics, who made a pitch to take over the province's alcohol distribution which they had been pursuing for years. For excellent coverage of the whole affair check out Bob Mackins blog 2010 Goldrush #LiquorLeaks.

I hope the CAMRA BC (CAMRA Victoria, CAMRA Vancouver, CAMRA Fraser Valley) membership at large pick up on the cue that it is time to start voicing their dissent individually as well. It is all well and good when organizations speak out as a whole, but the voice becomes much louder when the individuals who make up the membership of these organizations take it upon themselves to make some noise themselves.

One email from CAMRA BC to Rich Coleman, et al, is essential. One thousand emails from CAMRA BC members will have Coleman and all involved sitting up and taking notice as each voice of dissent is a vote and in politics that is what counts.

This whole affair has the same stink to it that the HST did when the BC Liberals did another about face about face, changing their position from "no HST" prior to the 2011 election to announcing implementation of the since shot-down tax shortly after being voted back in.

Maybe it is time for an another HST-type, grassroots revolt here in BC to show the Liberals once and for all, we will not tolerate being lied to and deceived. The necessary emails are all below for anyone who feels it is important to speak out in order to try to stop this process until the government provides some evidence the move is good for British Columbians and determine that this is indeed what the citizens of BC want.

Democracy only works if there is participation from the masses.

From: CAMRA President <pres@camravancouver.ca> Date: Wed, Jul 11, 2012 at 5:38 PM  Subject: Campaign for Real Ale of British Columbia position LDB Distribution Warehouse Privatization
To: rich.coleman.mla@leg.bc.ca 

Cc: <Shane.Simpson.MLA@leg.bc.ca>, kevin.falcon.mla@leg.bc.ca, margaret.macdiarmid.mla@leg.bc.ca, Roger.Bissoondatt@bcldb.com, office@macauley.ca, <Karen.Ayers@gov.bc.ca> 

Dear Mr Coleman   

I am writing you this letter on behalf of the Campaign for Real Ale of British Columbia (CAMRA BC), a craft beer consumer advocacy group who represent more than 1000 individual and 100 corporate members here in British Columbia and of which I am the Vancouver Branch President and member of the BC Executive.  

Since the announcement of the BC Liberal Government’s plan to sell off the Liquor Distribution Branch’s warehouses and with them the province’s warehouse distribution system, many groups have come out against the plan, including the opposition NDP Party, Alliance of Beverage Licensees of BC, the BC Government Employee’s Union and the Craft Brewer’s Guild of BC.   

There have been complaints of the complete absence of consultation with BC’s liquor industry or the general public, and the lack of guarantees that this privatization plan will not negatively impact the alcohol industry and alcohol consumers of this province.   

It is now our turn, the craft beer consumers of BC, to voice our dissent due in large part to  the lack of information as to how this privatization will affect the craft beer industry and craft beer consumers and because the current government cannot guarantee 100 percent that this privatization deal, when completed and implemented, will not have a negative impact on the craft beer consumers of BC.   

No business case has been presented. A clear cost-effect analysis should be completed and presented to both the liquor industry and general public in order to clarify exactly how privatization will affect liquor prices before this process goes any further.   

No study has been done and no guarantees have been made as to whether privatization will affect access to BC-brewed beers from local, craft breweries.  

At the moment, the Provincial Government has a mandate to make these beers accessible, but will this continue after privatization?   

In short, CAMRA BC cannot currently support this privatization plan and will continue to voice dissent until the following steps are taken:

1. Conduct a study to provide objective data showing how this move will impact the craft beer consumers of BC  

1. Make public a business case and/or cost-effect analysis

1. Have a full and meaningful consultation with both the private and public sectors of the province in regards to the planned sale and privatization of the Liquor Distribution Branch's warehouses and warehouse distribution system  

If, after those steps have been taken and it is shown that this privatization plan will not negatively impact the craft beer consumers of BC, CAMRA BC will be willing to support this move publicly on behalf of our membership. 

Thank you for your time. 

Paddy Treavor  

President, Vancouver Branch - CAMRA BC

The Sh*t Has Hit the Fan

The shit really hit the fan Thursday, splattering all over the BC Liberals and their plans to fast-track the sale of the LDB warehouses and warehouse distribution system.

NDP MLA, and my favourite BC politician at the moment, Shane Simpson, flung the poop when he dropped a bombshell, producing 39 pages of documents that show that the BC Liberals, as far along as June 2011, had no plans to privatize liquor distribution, yet weeks later, after then Solicitor General Shirley Bond was approached by Exel Logistics VP Scott Lyons, the government had a change of heart and forged ahead with the privatization plan, despite having no business case.

After Simpson released the documents, accessed through Freedom of Information, there was a media frenzy. I especially enjoyed Vaughn Palmer's grilling of Labour Minister Margaret MacDiarmid on CKNW shortly after Simpson's announcement. MacDiarmid's comment that, "governments do change their minds" is ridiculous under the circumstances when you consider that in June/11 LDB privatization was not on the table, yet after the meeting with Lyons August 25th/11, the privatization proposal was alive and moving forward. It reeks of the BC Liberal claims that the HST "was not on their radar" prior to the 2011 election, yet weeks after being voted back into government, Gordon Campbell and his Liberal Government were ramming the hated tax down tax payers throats. 

At least one respected political pundit, retired political journalist, Havery Overfeld, believes that current government cabinet ministers could be charged criminally if they go through with the sale and privatization.  

Do the Liberal government really think the general public are that stupid?

Reporter Bob Mackin has been exposing the whole sordid LDB privatization mess with his series of blog posts hash tagged #liquorleaks on his blog 2010 Gold Rush. In a post from May, Mackin released a document that shows that although the BC Provincial Government did not have a plan to privatize the LDB, Exel Logistics did and they were actively trying to sell it to the Campbell era Liberals in 2010. There is now proof that the lobbying of the Liberals by Exel goes back as far as 2005 and that Exel were attempting to help shape the government's Request For Proposals (RFP), using Progressive Group lobbyists Patrick Kinsella and Mark Jiles, both of whom have strong Liberal connections, so that Exel would have an advantage.

I can't keep track of all that is happening now as the story is so convoluted but here is a good summing up from Vancouver Sun reporter Jeff Lee. There are just too many of the same characters showing up with the same connections for this whole affair to be on the up-and-up.

Here are some of the major players and how they are connected:

1. Exel Logistics VP Scott Lyons, who approached the BC Liberals to present this privatization plan is the same Scott Lyons who was high up in the food chain in The Beer Store organization, a chain of beer retail outlets that dominates the Ontario beer market with an 85% share and who are owned by Labbat Brewing Company, Molson Coors Canada and Sleemans Breweries.
2. The Beer Store funneled well over 100,000 in political contributions into BC Liberal coffers since 2005, despite having no retail outlets here in BC, which you can read about here and here.
3. Exel Logistics hired the Progressive Group to help lobby the government in regards to privatization of the LDB.
4. Progressive Group is owned by Pat Kinsella, who has strong Liberal connections having been an adviser to Christie Clark during her successful bid to become premier last year. Kinsella was also former Premier Gordon Campbell's campaign manager during the 2001 and 2005 elections and who was involved in the whole BC Rail debacle .
5. Mark Jiles, a Progressive Group consultant, registered in 2010, along with Kinsella, to lobby Liberal cabinet ministers including Rich Coleman, Shirley Bond and Pat Bell, on behalf of Exel Logistics, "to develop a new liquor distribution system for the Province of BC".   
6. Mark Jiles, according to his LinkIn profile was a sales consultant for Labbat Breweries of BC. Mr Jiles is also no stranger to controversy when it comes to suspicious lobbying.
7. Exel Logistics has run Alberta's liquor distribution since 1994. A recent post on onbeer.org highlights many problems associated with having a private monopoly running a provincial distribution system.

I hope that these latest developments peaks the public ire and motivates the people of BC to demand a halt to this process until the Liberals can produce evidence they are not just selling off public assets to appease big business and reward long-time supporters and friends. If they can produce a business case and a cost-benefit analysis that supports that this move is in the best interest of British Colombians, then I say let them put those forth for the public and private sectors to assess and then hold a referendum during the next election so that we have an actual say in what goes on in this province.

Until that time, I hope the likes of Shane Simpson and Bob Mackin keep putting Liberal feet to the fire.

You would think that after the HST disaster, the Liberals would have learned. 

Meet the New Boss, Just the Same as the Old Boss - Will Privatization of LDB Distribution Centres Actually Result in Any Changes?

Last Tuesday's announcement by Liberal Finance Minister Kevin Falcon that the government were looking to sell off the BC Liquor Distribution Board's (LDB) two distribution warehouses and hand over operations by 2015, had many craft beer enthusiasts grinning from ear to ear as this seemed to hint that the cumbersome and much maligned BC liquor distribution system was about to be updated and streamlined.

But the more light that gets shed the government's plans to privatize and on on who may be angling to buy the warehouses, the darker the future looks for those of us that were hoping the privatization of the warehouses may trigger an overhaul to the current BC liquor distribution system which controls either directly, or indirectly all liquor distribution in the province.

It did not take long for many of us to turn those giddy grins to cynical frowns as we examined the situation and put the pieces together. As written in blogs Brewed Awakening, the Small Beer Blog, the sale and privatization may be signalling the possibility that something wicked this way comes instead the possibility of a fresh new start.

The price for buying the two distribution centres will be beyond the scope of possibility for all but a handful of potential buyers who have a money bags full enough to be taken seriously and that short list does not look too craft beer friendly at this time. And it appears this "sudden announcement" may not have been so sudden and that lobbying and vying for position to buy the distribution centres may have been taking place for some time.

Progressive Strategies, whose chairman is long time Liberal supporter and big business lobbyist Pat Kinsella, no stranger to controversary, or being involved in major privatization deals in BC, registered as an official lobby group for Excel Logistics in 2010 and they have targeted key Liberal personnel since that time. This is the same Kinsella who was the co-chair of the BC Liberal campaign in 2001, the election that shot Gordon Campbell into power and who more recently back Christy Clark in her successful bid to win the BC Liberal leadership.

According to a Globe and Mail article by Sunny Dhillon and Justin Hunter, Kinsella is also a registered lobbyist for Pacific Western Brewing, BC's largest independent brewery who are decidedly not craft beer focused and the Mark Anthony Group, who describe themselves as " the leading privately-owned importer and distributor of fine wine, premium beer, and specialty beverages in Canada" and whose beer products are Hell's Gate and Stanley Park Amber Ale, not exactly craft beer friendly either. 

But those two groups are not the worst options to groups being linked to possibly take over the distribution warehouses and, at least in the case of Pacific Western, not likely candidates. The more disturbing information being uncovered is the link between Kinsella's Progressive Strategies, Excel Logistics and Canada's two biggest Breweries, namely Molson Canadian and Labatt's. That connection, according to a story posted in a story by Business in Vancouver (BIV), is that that Scott Lyons, who is named on the lobby registration by Kinsella's group as the contact for Excel,  is the former director of distribution operations for The Beer Store, the Ontario-only based chain of retail beer sales outlets that has contributed close to $150,000 to the BC Liberal Party since 2005 and who are owned by Molson (49%) and Labatt's (49%), with the other two percent of ownership lying with Sleeman Breweries.

No one knows exactly what has transpired or if backroom meetings/negotiations have taken place but if Kinsella and the Liberals have been meeting to broker a deal I hope they have been forced to swill Bud Lime and Molson Ex and not single malt scotch and quality BC craft beer. All indicators at this time point to the government just replacing themselves with a big business group, possibly a group sympathetic with our big national breweries, bent on getting in on the projected 900 million-plus dollars in profit the LDB is projecting for the upcoming years in their most current strategy plan and not on reforming the LDB distribution system.

If those administering the system change but the system remains the same, this is bad news for the craft beer industry and we will see the status quo being maintained. In the words of Pete Townsend and The Who, it may be a case of  "meet the new boss, just the same as the old boss," once the ink has dried on the contracts selling off BC's liquor distribution warehouses.

It is the system that needs replacing, not the people writing the cheques for the employees of the distribution centres. It is my opinion that we need a more open market system of distribution, with the government overseeing and enforcing laws from a distance, not while they are acting as distributor and retailer at the same time. It would great great to see the government actually trash this whole broken system and create a new, functional and fair system even if it means they get rid of the LDB as it exists now.


The craft beer industry would benefit greatly from having a system that helps promote and feature their products which have increased sales, since 2007, in litres sold by 47% while the bigger domestic breweries, who produce more than 150,000 HL/year, have seen their sales drop by 13.5% during the same time period. The craft beer market now enjoys  a 15.7% market share, up from 7.8% in 2007 yet they fight for shelf space and are barely promoted by the LDB or in the government run BC Liquor Stores while their products are fully being represented in many private liquor stores and are flying off the shelves.

Why do craft breweries, many of whom deliver their own products to ensure good customer service and proper treatment of their beer by licensees, have to collect the money for their products, then send that money and accompanying paperwork in to the LDB, wait several weeks for the LDB to process the paperwork before receiving their cut of monies collected by them upon delivery in the first place? For small businesses, this wait for cash to flow back to them could be critical to their operations. It makes more sense that if a craft brewery wants to look after its own distribution, that it collects the money and then sends the LDB their cut, meaning no delay in cash flow for the breweries looking after their own distribution and delivery.


There are many other things that need to be addressed with the current distribution system, such as why do private Retail Liquor Stores (LRS) have to compete on an uneven playing field with the government-run BC Liquor Stores? LRS's have to buy their products through the LDB at a price marked up higher than the LDB-run stores buy the product. That is why, despite having lower overhead, the private stores have higher prices than the government stores. Why can restaurants and bars not buy directly from producers, cutting out the LDB as middleman? Why are there restrictions on cross-provincial border transport of alcohol? Why does the LDB mark up products well over 100% before selling it to retailers who again mark up the price before moving it to the consumer? Why can't importers import the products their clients want without having to wade through a mountain of paperwork with the LDB and and then have these products, if approved and listed, moved through warehouses where they may sit for weeks.

These are the things that need to be addressed by the LDB, not who runs their warehouses. It will be interesting to see how the deal takes shape and what it looks like. You have to know that the government is not going to give up their piece of the 900 million dollar profit pie, so how will the new owners of the distribution centre make their cut?

I have already seen emails sent out by LDB General Manager Jay Chambers stating that the price structure for products will stay the same and that the privatization will not effect the government liquor stores so what really will change other than the Liberals can claim the money from the sales of the distribution centres on the plus side of their budget ledger. So many questions with no real answers.

It will be interesting to see what transpires and I, for one, will be keeping a close eye on things.

Open Letter to Honourable Minister Rich Coleman

Dear Mr Coleman

As a person who has been advocating long and hard for the review and reform of BC liquor laws and the way alcohol is controlled and distributed in this province, I would like to thank you for finally taking notice of the loud and persistent calls for changes.

For a while there I was wondering if the government's strategy was to allow us liquor-law naysayers to scream ourselves hoarse and fall silent due to sheer exhaustion, but your quick call to action after being put in charge of both the Liquor Control and Licensing Branch (LCLB) and Liquor Distribution Board (LDB)  has me thinking there is a glimmer of hope that BC can begin to treat those who can legally consume and those who distribute and sell alcohol in BC like the adults that they are.

For as long as I have been aware of alcohol and liquor laws, I have been aware of BC residents and alcohol-related businesses crying out for changes to our out-dated and over-bearing liquor laws and system of alcohol distribution. The way in which these laws restrict the freedoms of those who choose to partake in downing a few adult beverages here in BC and the seemingly arbitrary way the LCLB enforce these laws, may have made perfect sense in post-Prohibition British Columbia, circa 1925, but sir it is now 2012 and if those who believe the Mayan calendar may indeed be predicting the Apocalypse on Dec 21, of this year, would like you to hurry along with these promised reforms.

By announcing that the BC Liberals are finally looking at "a number of issues on liquor", so that changes can be made, has many of us advocating for changes collectively holding our breath. Can real change and the end to the Orwellian, Big Brother style of controlling the liquor industry and liquor consumption in BC be just around the corner?

You seem to be a man of action and I am sure it is no coincidence that the shift of responsibility for all things alcohol in BC to you, from the Ministry of the Solicitor General, came at a time when a grassroots movement and a groundswell of support calling for reforms to liquor laws was growing, rallied by the ridiculous and short-sighted decision by the LCLB and General Manager Karen Ayers to cripple The Rio Theatre's ability to show movies even when alcohol was not being served.

My only fear is that this promise to review and "fix" liquor law problems is motivated by the Liberal government's fear of populist, grassroots' movements, as you are still stinging from the whole HST debacle and the Bill Vander Zalm-lead campaign that resulted in the hated tax being repealed and not by truly recognizing that there is a need for change. There will be huge disappointment and a further decline in Liberal popularity with BC voters, if this review and reform turns out to be nothing more than a few superficial changes, made to give the appearance of listening to voters and acting on their concerns, to quell voter unrest, when in fact nothing really changes.

A few band-aids slapped on as a quick fix  will not suffice when total reconstructive surgery is required.

It will take more than allowing us to enjoy a beer while watching a movie in a theatre to "fix" and "reform BC liquor laws.

For instance, why does the LDB have complete control over what alcohol is sold in this province, for what price and how it is distributed? Why must private liquor stores complete on an uneven playing field, having to buy all their liquor from the LDB who mark up the price so that these private stores must sell their alcohol at a higher price than the government run BC Liquor Stores? Why, for that matter, does the LDB mark-up booze well over 100% before selling it off to bars and restaurants who must again mark up the price to make a profit and cover their operating costs? Why does the LDB, not consumer demand, get to dictate what products the general public and the hospitality industry can and cannot buy? Why is it illegal for freedom of movement in regards to alcohol across provincial borders? Why can consumers not BYOB to restaurants like in other provinces like Alberta, Manitoba and Quebec? Why, in the name of public safety can there not be dancing and plugged in, live music in restaurants? Why can I bring my daughter into a restaurant with a wine and beer list ten pages long, with those wines and beers being consumed on all sides of us, yet I cannot take her into a small, quiet, local neighbourhood pub which may feature a tenth of the alcohol selection and offer a great food menu? Why is it so difficult to open small, local microbreweries and brew pubs?

I could go on and on, but I think you get the idea.

I really hope you have taken the time to read this letter Mr Coleman as I am one of a legion of voters who feel the same way. We are fed up and we are tired of having our enjoyment restricted because a few out there may abuse the system and serve/consume alcohol irresponsibly. Let those of us who are responsible sell and consume responsibly, without government interference and punish those who do serve to minors, over-crowd their licensed establishments over-serve and over-consume. I hope during your "review" of liquor laws you take the time to consult with the hospitality industry, to listen to people like myself and include consumer advocacy groups such as CAMRA Vancouver and CAMRA BC who promote and educate about responsible consumption of alcohol.



Yours Truly
Paddy Treavor
Cautiously Optimistic Citizen of BC
President, CAMRA Vancouver
Authour of VanEast Beer Blog

Politics Make Strange Bedfellows

Does anyone out there know what the BC Liberal Party and a chain of alcohol retailers in Ontario called The Beer Store have in common?

Tens-of-thousands of dollars in donations, that's what.

Recently a friend of mine sent me a link that is basically a search engine that allows you to see who has contributed what to whom, since 2005, in regards to political donations in BC and it seems that The Beer Store, a chain of retail stores that sells beer found in exclusively in Ontario, loves the BC Liberals, something that made me very curious.

Why the Hell would a chain of Ontario-based, retail beer stores feel the need to contribute to the BC Liberals, the same Liberals who control the Liquor Control and Licensing Branch who, in turn, control how alcohol is regulated and distributed in this province, but who have zero influence out east in the Centre of the Universe?

It seems, on the surface, an odd alliance.

After about 25 seconds of intense investigative journalism of the highest quality, I broke the case and figured it all out -The Beer Store (TBS) is owned by Molson Brewery (49%), Labatt Brewery (49%) and Sleeman Brewery (2%) all of whom have a very vested interest in being in the good books of those who control all liquor distribution and who run the largest chain of liquor stores in BC, namely the BC Liquor Stores.

The Beer Store has a virtual monopoly on retail beer sales in Ontario, about 85% of the market and has been accused by the Ontario Craft Brewers Association (OCB) of not playing fair with Ontario's craft breweries. According to OCB president John Hay and chairman Gary McMullen, in an article that appeared in the Toronto Star in July 2011, TBS is making it very difficult for the smaller breweries, with smaller operating budgets and shallower pockets, to get their products listed and properly represented in TBS's 440 locations which dominate the beer retail business in Ontario.

Not surprising, since TBS are owned by the OCB's competition.

Here in BC, despite the fact that, according to the BC Liquor Distribution Branch's (LDB) latest Quarterly Market Review,  domestic beer sales by the large (over 150,000 HL of production) domestic breweries are plummeting while the smaller (under 150,000 HL production) domestic breweries' sales are increasing significantly, the BC Liquor Stores, which are government run, continue to give the lion's share of their shelf and promotional space dedicated to beer to the large, national breweries. Local craft breweries, if they are lucky enough to get their beer listed with the LDB, have to fight over the limited space left, often hidden behind the mountains of cases of industrial swill and their related promotional displays that dominate the beer sections of these stores.

Calling again on my superior investigative reporter skills, I plugged in a few other names into the search engine and found that The Canadian National Brewers, a lobby group that works on behalf of Molson Breweries, Labatt Breweries and Sleeman Breweries, have also contributed equally significant amounts of money to the local Liberals since 2005.

Labatt Breweries, Molson Breweries and Sleeman Breweries have contributed directly to the BC Liberals but the totals that are easily identified as coming from them are significantly less. It is curious to me that these big breweries are funnelling dollars to the BC Liberals through channels that at first glance do not appear to be connected to them.

The contributions to the BC NDP party by all the groups mentioned in this post were drastically less, all totaled less than $5,000, at least from what I could find.

Now I am not insinuating that these political contributions to the BC Liberals are greasing the wheels for the big breweries to maintain the status quo and keep the prime real estate in the government run liquor stores, but it certainly isn't hurting.

Maybe The Beer Store chain were just in need of tax write-offs and they really dig what our BC Liberals are all about? Who knows, but the cynic in me has me thinking that there is some other motivation for these gratuitous political contributions, namely, maintaining the system as it is.

Where there is money like that being donated, there are expectations from those who are providing the donations. That kind of cake creates influence and gives the contributors a much better chance of catching the attention of the law and policy makers. I am curious to know if these contributions would have been directed the way of the NDP if they held the reins of power in BC over the same time period. We may soon know if the political polls showing the NDP to be leading in popularity with BC voters are correct and they get elected into power.

I found all this out in about five minutes. I wonder what is going on behind the scenes and how else Canada's big national breweries are reaching out to governments across the country to gain favour and influence. Maybe I am wrong and this whole post is based on nothing but my ever-increasing paranoia related to national and multi-national corporations acting as puppet masters for politicians around the world.

In the grand scheme of things I am sure that Belgium-based Anheuser-Busch InBev, who own Labatt Breweries, American-based Molson Coors Brewing Company, who own Molson Breweries and Japan-based Sapporo, who own Sleeman Breweries are not too concerned about what transpires in our little corner of the world, but you can be sure that the Canadian national breweries are getting just a little worried about the growing market share of the craft breweries on BC.  With hundreds of millions of dollars in beer sales in BC at stake, each percentage point of the market is huge dollars in sales, the big boys will do everything they can to protect their turf.
I am curious to see just how far the national breweries will go to tilt the playing field in their favour and maintain their stronghold in the government run liquor stores.