For those of you as yet unaware, a great deal has been
brewing in the beer industry (sorry, the pun just could not be avoided). Early
in January, the Beer Store announced that it would be opening its doors to
Ontario craft brewers, giving them the chance to break down the barriers that
have previously hindered their growth (although one might counter this
statement by the fact that even with the Beer Store monopoly, sales of craft
beer have increased by 575%).
As the only sanctioned private outlet for beer sales, the
Beer Store opening ownership to small brewers is no small thing, especially
since this will give craft brewers a chance to grab some of the 80% of beer
sales done by the Beer Store. The agreement states that “Ontario brewers that sell more than five million
litres a year would pay $1,000, and smaller brewers $100, to become owners and
get a Class E or Class F share in the Beer Store.”
You can read more about this here: http://www.cbc.ca/news/canada/ottawa/beer-store-opens-ownership-to-all-ontario-based-brewers-1.2892251
However, the story does not end there. Following the
announcement regarding craft brewers, brewer and lawyer Michael Hassell has
informed the Ontario government that he will be taking legal action “to strike
down a section of the Liquor Control Act that makes the Beer Store monopoly
status the only private firm allowed to sell beer directly to consumers without
brewing it on the premises.”
This coincides with a separate $1.4 billion class action
suit filed against the LCBO and the Beer Store regarding the sale of beer and
an accord struck between brewers and the LCBO. Check out more about this here: http://www.thestar.com/news/queenspark/2015/01/14/charles-sousa-warns-change-brewing-for-beer-store-monopoly.html.
Clearly change is coming.
For more about the impacts of these changes, or for
strategies to compete in the competitive beer market with custom beer
packaging, please contact Packaging Technologies Inc. today by calling 1-800-303-5883.
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