Recent Craft Beer Price Hikes Nothing More Than BC Liberal Asshattery

"Let's put things in perspective: every month, some prices go up and some prices go down -- just as any other retail cost of good -- but we're talking about cents here." - Suzanne Anton as quote by Bill Tieleman in The Tyee June 9, 2015 concerning BC beer prices.

The Reality Since April 1, 2015:

• 55 beer products deceased in price;
• 19 beer products showed no change in price;
• 94 beer products increased by less than 1%;
• 219 beer products increased between 1% and 5%;
• 123 beer products increased between 5.01% and 10%; and,
• 74 beer products increased by more than 10%. ****

I know just a short month ago I stated I was packing it in as a blogger, but this latest BC Liberal move, which saw them randomly hike the prices of beers, mostly craft beers, without telling the breweries ahead of time or giving them a cut of the increase, has me foaming at the mouth and I feel compelled to vent here before I explode.

Damn you BC Liberals and your BC liquor policy reforms.

This latest price hike on June 2nd was a blatant kick in the crotch to BC craft beer consumers who have been the driving force behind the growth of the flourishing BC craft beer industry.

What an asshat move!

As a side note,  I am submitting to the Urban Slang Dictionary the following :
Asshat- (noun), definition, "BC Liberal politician".
Asshattery - (verb), definition, "actions taken by BC Liberal Party related to BC liquor reforms").

Okay, back on track now with  my rant...
Approximately 40 new breweries have opened in BC the past few years and many more are in the planning stages. Yes, BC breweries are producing world-class brews, but without consumers to purchase them these beers would most likely never be brewed commercially. As well, businesses and jobs associated directly and indirectly with the craft beer industry would not be supported or created, and local economies not spurred on in communities across the province.

I can just imagine the conversation in the BC Liberal Caucus meeting.

Question: "We need to increase government revenues folks, where can we screw the general public next?"
Response: "Well this craft beer seems to be selling well and has increased sales by about 40% over the past few years, why don't we just raise prices there? We don't need to tell anyone. Breweries are too busy making beer and consumers are too apathetic to do anything about it, not to mention, they are beer drinkers. We can just keep the difference. No one will notice..."

I wish the BC Liberals would at least buy me dinner and give me a little kiss before bending me over the table and, well, you know where I am going with that one. I'm going to let you fill in the blanks and keep this PG rated.

This price hike could finally be the move that kills the goose laying the golden eggs.

We already pay outrageous prices for craft beer in BC and this is not because of the craft breweries who produce it. There is a tipping point for prices where consumers get turned off (and pissed off) with the cost of the goods in question and begin to think long and hard about making purchases and look for other options.

In communities like mine, Powell River, craft beer is just becoming accepted in the mainstream thanks to our local brewery, Townsite, who have blazed the trail. There are many beer drinkers here just discovering craft beer and who are converting over from the mainstream lager swill that was the only choice in town for decades.

Restaurants, pubs and private liquor stores are just starting to support the industry and offer craft beer products regularly. Many businesses were previously hesitant to sell craft beer due to the fact that it was a new in this market and, more often than not, more expensive than the national brand lagers. Pricing is far more important in communities where jobs, especially higher paying jobs, are hard to come by.

Higher-priced products, due to the harsh reality of economics and family budgets, are a hard sell when there are cheaper, although inferior, options . Pricing craft beer beyond those consumer thresholds could stall out this industry in markets outside the major urban areas and tourist resorts.

This scenario is playing itself out in many communities around BC. Not every market is like Vancouver and the Lower Mainland where the consumers are used to paying ridiculously high prices. This move to increase prices yet again, just for the sake of increasing government revenue, will slow down sales in these smaller markets and could possibly confine the craft beer revolution's spread across the province.

Most of the smaller breweries operate with a slim profit margin and are trying to find the balance between making a reasonable profit and not alienating consumers due to price. Our liquor prices are artificially high in BC, boosted by our government who rake in hundreds of millions of dollars a year on booze. We are paying high prices because the government controls the final prices of booze in this province, not the manufacturers.

A prime example was just prior to the April 1st change over to the government's new alcohol pricing system. The Liquor Distribution Branch (LDB) contacted craft breweries (and I am sure all booze manufacturers in the province) and gave them a chance to adjust their wholesale prices; the price manufacturers set to sell their products to the LDB. The catch was that the government was not telling the breweries how much the government was going to mark up these prices, so the breweries had no idea what the final price on their products would be on the shelves.

The brewery folks in BC literally had to guess as to how much consumers would be paying for their beer and were hoping they guessed right on their wholesale pricing. Setting the price too high (underestimating the mark-up) meant potentially alienating customers because of price increases and setting the price too low meant a decrease in revenue for the brewery for no reason whatsover.

But at least both the industry and consumers were aware that prices were about to shift April 1st and were, although in most cases unhappy, prepared.

The June 2nd, prices went up again for some craft beers without warning or consulting the craft beer breweries or explanation to consumers that this was government driven and not a decision from the breweries themselves. I know of one brewery partner who found out about the price hike when they saw the increased price of their products on the BC Liquor Store shelves!

And not a penny of the latest increase is going to the breweries.

Suzanne Anton and her crew in charge of all things boozy in BC keep up the mantra, of "don't worry, some prices will go up by a little, some will go down. This is the reality of the consumer market. It is only a few cents here and there..."

Yes Minister Anton, let's put things in perspective.

The reality is that since April 1st (stats from CAMRA Vancouver update):

• 10% of Beer products have dropped in price.
• 3% of Beer products have shown no change
• 87% of Beer products have increased in price

If you look at which products have been increased, the majority are craft beer products made here in BC. How the Hell is that a sign that the government is supporting the BC craft beer industry and small businesses, under which category most craft beer breweries fall under?

These price hikes are stacked on top of the price hikes many BC communities endured last year when the BC Liberals reintroduced "happy hour" which they paired up with new minimum drink price scheme (click here to read) which impacted those going out to a licensed establishment for a drink.

Now we are getting nailed on our take home purchases.

I am sick and tired of the cynical and entitled nature of this government. Their liquor policy reform consultations were supposed to be held to help find out the wants and needs of British Columbians and alochol industry stakeholders. I am quite certain not one craft beer consumer put forward they wanted multiple price increases applied to their favourite beers. I am also certain not one craft brewery representative put forward the desire to have craft beer prices go up while brewery profit margins stayed the same or decreased slightly.

Wake up consumers. Start writing letters, e-mails to those in charge. Start letting your local MLA, no matter what party they are from, know this is unacceptable. If not, we are going to continue to see the BC Liberals choke off the industry until it stalls out due to decreased sales secondary to ever-increasing prices.



(****statistics from the Campaign for Real Ale of BC - Vancouver Branch)

Close But No Cigar - Draft Beer Pitchers Minimum Price Lowered But Status Quo for Everything Else

They were so close to doing the right thing but in the end the BC Liberals did little too correct their epic failure regarding new drink price minimums in BC.

In what can only be described as a knee-jerk reaction to negative feedback received concerning the controversial liquor drink price minimums announced June 20th, the BC Liberals send out a notice today that they were , "(c)reating a new category for draught beer and cider servings 50 oz. and over - with a minimum price of $0.20 per oz," to "better meet the expectations of British Columbians". 

Today's announcement stated that draught beer servings over 50 oz (1420ml), otherwise known as pitchers, will have a minimum drink price set at $0.20 per ounce/28ml but all other draught beer serving sizes will remain at new minimum of $0.25 per oz/28ml which is by far the highest in Canada.

For the record, even the new pitcher category, at $0.20 per oz/28ml is still the highest beer minimum in Canada. 

Parliamentary Secretary for Liquor Policy Reform, John Yap, was quoted in the announcement as saying, 

"The B.C. Liquor Policy Review has been centred on listening to the views of British Columbians and industry stakeholders, and best aligning any changes we make with their views. Upon reviewing B.C.’s minimum prices, we realized they weren't on par with consumers’ expectations and we took action to find a fair compromise that still upholds B.C.’s high standards for health and safety.”

I am curious how he came to the conclusion that encouraging consumers to buy the biggest serving size possible "upholds B.C.’s high standards for health and safety"?

Imagine this conversation:

Friend 1: "I see that a pitcher is cheaper by the ounce than a 16-oz sleeve! I was just going to have one sleeve but why don't we order the pitcher so we can take advantage of this great deal?"

Friend 2: "Yeah, I was just going to have one as well, but to Hell with it, lets get the pitcher. One or two extra beers never caused anyone any harm...by the way, are you driving home?"

As craft beer drinkers, this change will impact us in a very limited way. Very few craft-beer-friendly places serve pitchers as most craft beers are stronger in alcohol so licensees do not feel it is appropriate to offer the bigger serving sizes. In fact, fewer and fewer licensees are even offering pitchers any more as, more often than not, draught beer serving sizes are being reduced to the ever-shrinking "sleeve" glass.

This change will give some slight relief to those who enjoy the mainstream lagers that have dominated the Canadian market for decades but, as mentioned, they will still be paying far more for their happy hour pitchers than in other provinces in Canada.

This is a bizarre move by Justice Minister-Attorney General, Suzanne Anton and Yap and I really wonder if they do think they are "listening" to British Columbians and that this change will placate the masses who are seriously pissed off about the June 20th minimum drink price-happy hour announcement. Don't get me wrong, today's announcement is a baby step in the right direction, but at the end of the day, I would have to say that the BC Liberals and those dealing with the liquor policy reforms have shit the bed once again.

They cannot really believe we are that stupid to believe this small, token change fixes the EPIC FAIL that is our new minimum drink price standards.

I will be writing more on this subject over the weekend but just wanted to get a quick post out there to let everyone know what was going on.

More Price Increases to Come for BC Craft Beer Drinkers?

Many in BC find themselves paying more for their beer this week than they did last week due to the BC Liberal Party's announcement of new minimum drink prices, which are now the highest in the country, but this may not be the last beer drinkers see for price hikes.

I have heard, though the grapevine, that the government is still planning on tying beer prices to alcohol content (ABV), in the name of public health and safety, because apparently us alcohol consumers just can't stop ourselves from over-consuming and we are all incapable of self-regulating.

Recommendation #18, in Parliamentary Secretary John Yap's BC Liquor Policy Review Final Report, submitted to Justice Minister and Attorney General, Suzanne Anton, states:

"LDB should consider tying minimum prices to the amount of alcohol (e.g., a beer with seven per cent alcohol would have a higher minimum price than a beer with four per cent alcohol)" 

When the new minimum price structure was announced last week, I thought maybe the Liberals were backing away from this recommendation, as I had heard from some reliable sources that Christy Clark and her crew were afraid of the public backlash related to increased liquor pricing, but that is obviously not true as the new minimum is taking its toll in those less affluent areas outside the Lower Mainland.

But if the info I received the other day is true, then those who enjoy some of the stronger beers out there on the market, which are usually craft beers, may be digging even deeper into their pockets to purchase those beers and not just in pubs and restaurants. If this recommendation is converted into policy, it will impact all beer, whether bought to be consumed in a licensed establishment or packaged product purchased to be consumed elsewhere,

It means growlers, which have escaped the new minimum drink price, will be impacted and depending on the policy and what it dictates some growler fills will increase.

Keep in mind this is 3rd-hand information and I have not had confirmed by the LCLB or LDB so this may not in fact be true. But if the government keeps caving to health advocates and anti-alcohol lobby groups, who are using scare tactics and meaningless statistics to try to get what they want, which is higher priced booze which is harder to access, I think this change to increase the price of stronger beers will become a reality.

No one knows exactly what is going to happen and when but after last Friday's happy-hour-minimum-price fiasco, I am very afraid of what what may coming down the pipe. The Liberals seem to like to pull these announcements out of a hat and the policies do not seem to be very well thought through in some cases, read booze in supermarkets.

CAMRA Vancouver has posted about beer-ABV issue and let their stance be known, which has shifted significantly sine the drink minimum announcement. Read what they have to say here.

I would recommend consumers get ahead of this. At the bottom of the CAMRA Vancouver post is all the contact information for government and the Liquor Control and Licensing Branch. If you want to let the Liberals know how pissed off you are with how they rolled out happy hour - and be clear that I am not against happy hour but with the minimum drink prices that were imposed - and want to head off any further price increases by letting them know enough is enough by e-mailing, tweeting.

If the beer consumers of BC do stand up and shout loudly, maybe we can make a difference.

One thing is clear, if we do not, we have no chance...

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.