rickwine, The Blog

An idea that will revolutionize wine in Ontario

Beer Store logo.

The concept is so brilliant and simple it’s shocking to me that it has’t been considered or talked about. And I say that with as much humility as I can muster — why didn’t I think of it?

I cannot tell you where I heard the idea, let’s just say it’s one of those ah-ha moments which makes such perfect sense. I’m burning through the keyboard of this laptop trying to get it out there as quickly as possible.

VQA wines in Ontario suffer from under exposure. Most Ontarians cannot buy the vast majority of wines made in any of our wine regions. The LCBO, though much improved over the last year or so, does not have the capacity, willingness or infrastructure to offer all the great wines made in Ontario.

But the LCBO is the only game in town — a monopoly that can sell what it wants and offer you only the wines they want to. Wineries have long fought hard to gain access to the LCBO, but only a small majority ever gets to the shelves where consumers can buy them.

Beer Store logo.
Beer Store logo.

Let’s face it, not a lot of people can make the drive to Niagara, Prince Edward County or Lake Erie North Shore and Pelee Island to purchase wines to bring back home. They are left to pick over the limited choices on LCBO shelves (and those choices are downright terrible when you get outside big urban centres).

Ideas to fix this injustice have been suggested and quickly rejected by the present government and all governments before that. Each one systematically sent to the graveyard of broken dreams.

There’s the private VQA store idea. The ruling McGuinty Liberal government wants nothing to do with it, the Ontario Wine Council doesn’t support it (and can’t, by the way, push for something the government has told them will never happen) and there have been suggestions private stores are in breach of free trade rules (pure BS, but that’s another story … just ask the good folks in B.C. who have some how found a way around that).

Then there’s the private store idea that would erase the trade issues and allow some international wines to be sold along with VQA wines. Don’t hold your breath. The Liberals aren’t going to move an inch on this. Tory leader Tim Hudak has shown some flexibility with VQA stores but we’ll have to wait and see what he does if he gets elected.

Here’s a simple, easy and brilliant, yes truly brilliant, solution and it’s been staring us in the face for years.

We tap into the 300 or so private stores we already have in the province and force the holders of those grandfathered and exclusive licences to open up shelf space to all Ontario wineries. I want to shout that from the rooftop. It is a revelation.

The infrastructure is in place with kiosks already operating throughout the province. These are the little wine stores, owned primarily by Vincor and Peller, that have the right, because they hold the licences that were granted and grandfathered pre-Free Trade, to sell their own wines unshackled by the monopoly that is the LCBO. Vincor has 165 stores, Peller 120 stores.

And, please, before anyone at Peller or Vincor starts sending me angry emails, this is a win-win situation for you guys. You open up shelf space, of course at a fee to the other wineries who want in, and you grow your money.

Do you see the beauty of this? Consumers have access to potentially ALL Ontario VQA wines at 130 (maybe more) locations that have proven to be ideal. The current licence holders earn money from opening up their stores and, dare I say it, will benefit from more traffic because of the larger selection of wines.

I predict that these stores will be grow in size and, depending on where they are, will be a huge draw for consumers looking for a full selection of Ontario VQA wines, not just the wines of wine winery.

Now, I would hope Vincor or Peller would do this without a gentle push from the government, but, regardless, some minor law would have to be enacted to open up at least some shelf space in each store. But it’s not the huge job it would be to change legislation to allow private VQA stores.

And the infrastructure is already there.

We could have this done by April.

And, it’s not unprecedented. The Beer Store, previously called Brewer’s Retail, operates exactly like that.

The Beer Store was established after the end of Prohibition in 1927 to distribute beer in Ontario and was originally owned by every small mom-and-pop brewer then in business.

Successive waves of industry consolidation reduced that ownership to a handful of very large players.

The Beer Store, though owned by only a few very powerful brewers, has a legislated policy of accepting any brewer or craft brewery in the world to sell its product, as long as the brewer meets the requirements set by the LCBO.

The same could be done with the stores Vincor and Peller own (there are others, and I don’t mean to pick on these two, but they own the vast majority). Sure, sell your great wines, but allow all wineries who want to sell wine privately, because they can’t sell through the LCBO, to have access to your shelves.

I love this idea.

It’s not perfect, I would rather see VQA wine stores in the hands of independent retailers, but at least it opens up new possibilities for the wineries of Ontario to get their wines into the mouths of those who want it.