Reaction to Beer Store model for Ontario wineries

Well, now, it’s been an interesting weekend.

I love how passionate consumers are about products made in their own backyard. There is a genuine, over-whelming desire to make things right in this province when it comes to Ontario wines and access to those wines.

Since a blog post on Friday, entitled An Idea That Will Revolutionize Wine In Ontario, reaction has been swift, varied and constructive.

We just may be on to something here. If it’s not the Beer Store model for gaining better access to Ontario wineries that are a) not part of Vincor or Peller, which both have their own retail outlets because of grandfathered legislation that gives them exclusive rights or b) not big enough to fit into the LCBO strategy, then what else is out there to move us forward?

For over a decade I have heard how each and every idea put out there can’t succeed when it comes to modernizing the simple sale of Ontario wines to the consumers who want it. I have watched from the sidelines as government after government has shown little interest in even weighing in on the issue of its liquor/wine monopoly in the face of constant criticism. The world has changed since Prohibition and most evolved jurisdictions have changed with the times. Ontario is well on its way to be the very last place on earth where retail wine sales are still in the hands of government agents.

But now (see previous blog post) there appears to be an opening to take a tiny step forward, which is a major step if you’ve been following this for as long as I have.

A small window of opportunity, pointed out to me very recently by a credible source who knows the system inside and out and says we can do this by April, to use existing retail infrastructure and open it up to all Ontario wineries. As pointed out in the original post, the idea would be to open up a percentage of shelf space to any winery that wanted it at any of the 300 or so private wine stores that already exist in the province. They would pay for the privilege, it would increase traffic into these stores and, I believe, we would see expansion of these stores at a rapid rate, especially those strategically placed in large urban centres.

Consumers would have a choice, it would certainly be more convenient for them, the existing store owners enjoy a new revenue stream and the government looks good — like they just made the first progressive move since alcohol was banned during Prohibition.

I fail to see the downside, though some commenters on Twitter (you can follow the conversation @rickwine) had some concerns. Most were supportive of the idea. Here’s a sampling of comments taken directly from the Twitter timeline over the past two days (unedited):

@communityconvo Liz Nield

@rickwine totally agree w your idea. private stores – their hands are tied and they need help! i love ontario wines – and want to help too!

@WineZone Konrad Ejbich

@rickwine Change comes not by our convincing the govt, but by convincing the voters. Everyone gets one vote.

@OkanaganWriting Jeannette Montgomery

@rickwine Our regs are only as good (or inclusive) as we make them. They don’t evolve in a vacuum. People do it. I’m in.

@WineZone Konrad Ejbich

@rickwine BigGuys don’t deserve the profts from competitor sales, & #LCBO (#KGBO) won’t let them go anyway.

@OkanaganWriting Jeannette Montgomery

@rickwine I remain optimistic. Increased product availability = increased $ for all stakeholders. Just have to show them how.

@RemyCharest Rémy Charest

@rickwine In principle, grt idea. Could cut to the chase. But CiC fight killed all good will. Big guys would fight to death

@OkanaganWriting Jeannette Montgomery

@rickwine How about an inter-provincial legislation review w/ collaborative recommendations? Why reinvent the wheel in each prov?

@ortdavid David Ort

@rickwine May have to be an even-footing ownership system like Brewer’s. Otherwise wouldn’t consumers pick the Peller that is $1 less?

@gisameliot Chantal Smith

@rickwine We definitely need to do all we can to give more exposure and easier access to ON Wine!

@toastwine Allison Vidug

@rickwine Great idea Rick! We’ve gotta get creative on ways to get craft wine to the people in Ontario.

@Connect4wine Connect4 Wine

@rickwine I like the way you are thinking, but it only moves us from a monopoly to an oligopoly. Look at Canadian cell phone market.

There are also comments at the end of the original blog post. Here’s a couple of brief excerpts (you can read full comments and my response at the end of the blog):

From Jeff Aubrey (Coyote’s Run):

This idea has been rejected a number of times. Number one, Vincor and APL don’t want to do it. No argument will sway them. Number two, based on the general animosity between craft brewers and the Brewers Retail, small wineries aren’t hot on it either. Believe it or not, most craft brewers prefer the LCBO.

From Alan McGinty (Wine writer)

Interesting idea Rick, but I think it would still be in breach of the GAAT/WTO agreements of 1993 (or so). Vincor and Peller both sell only their own wines. They have a lot of brands, but they own them all and I believe that’s a key clause of the “grandfathered” private wine stores’ agreements.

There have also been emails, and DMs (direct messages on Twitter that can only be seen by the sender and recipient) and I’m sure more people will post to their own blogs either in support or against the idea.

All comments — for and against — are welcome. As long as we keep talking about it, something will get done. It just has to.