Last month Doug Ford announced a new promise to expand beer and wine sales into corner stores, and many Ontarians seemed to be happy about the news. The convenience of purchasing a six pack in the corner store near you has been anticipated by many since the announcement. Yet, the good news may be coming to an end as the Beer Store announces that these new changes of selling alcohol in Ontario corner stores will actually increase the price of beer.
When Doug Ford made the promise of expanding alcohol sales into corner stores last month, Ford reported that this would actually reduce the price of alcohol and stop the LCBO from becoming privatized.
The Beer Store, however, says this is not the case. While the convenience that these changes will bring to Canadians is seen across the province, the Beer Store has taken a stand against Ford's promise of lower prices, stating that these facts are not correct.
In a letter to Finance Minister Vic Fedeli, the Chair of the Beer Store's board, Charlie Angelakos highlighted how Ford's changes will affect Canadians. One of the biggest concerns being higher prices.
Angelakos states in his letter that adding multiple new vendors around the province would affect the low-cost distribution system that is currently in place throughout all Beer Stores.
This means that if beer was to be sold at local grocery stores and corner stores it would result in "significantly higher costs" of the beer that Canadians are wishing to purchase.
In the letter, The Beer Store also claims that Ontario has lower beer prices than Quebec and Alberta before tax, and it is the Government taxes that contribute to the current higher prices in Ontario. This change in alcohol sales will result in the price before taxes to rise, causing a spike in beer prices throughout the province.
This isn't the only thing that the Beer Store is worried about if Ford goes through with these new alcohol policies.
The Beer Store also states that if the allowance of alcohol sales in grocery stores and corner stores occur it can also put the 7,000 employees who currently work at the Beer Store at risk of losing their jobs.
It's fair to say that Canadians are eagerly awaiting Ford's response. Meanwhile, a possible timeline for when this expansion would take place has not be revealed by the Ontario Government.