Wednesday, 24 October, 2018

Ford's buck-a-beer plan likely to cost LCBO revenue

Buck-a-beer details confirmed, Ontario brewery announces participation Ford Announces Buck-a-Beer Plan
Elsie Buchanan | 08 August, 2018, 20:24

Brewers would not be required to charge less, however, and the lower minimum price would not apply to draft beer, nor would it include the bottle deposit. "My friends we're going to do our part because a buck a beer is coming to a shelf near you".

"We promised buck-a-beer and we're delivering on our campaign promise", he added.

Barley Days Brewery General Manager Kyle Baldwin says they hope to be offering a case of 24 beers for $24 soon.

That will be in place by the Labour Day weekend, said a source. "This included a promise to bring "Buck-a-Beer" back to Ontario".

"I want people to have a fair price but you can't keep raising the taxes provincially and federally on our product", Ladell said.

In order to encourage producers to lower their prices, Ford said his government would launch the buck-a-beer challenge, which would offer promotional programs, in-store displays and advertising to those who sell their beer at the minimum price.

The Progressive Conservative plan will lower the minimum price of a bottle or can of beer to $1.00 from $1.25 starting August 27.

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The PC government is calling the move the "buck-a-beer challenge" and said the move is aimed at creating more competition in the market among brewers.

The province previously had buck-a-beer, but that was changed by the former Liberal government in 2008.

For example: now, with the minimum price for beer set at $1.25 for 5.6 per cent alcohol or less, a 24-pack of Molson Canadian will cost about $40 at the Beer Store.

"It's basically a discriminatory promotion, in that it's only going to be leveraged by brands that are sufficiently close to that price-point. It was hard for us to make beer anywhere less than $2 per short can in costs alone", he said in an open letter to the government.

Meek says Kitchesippi contributes to the community through a variety of charitable events and supports a staff that is well-paid with good benefits, both of which would have to be cut if he were to cut the price of a bottle of beer to a dollar.

A number of other breweries, including Great Lakes Brewery, Muskoka Brewery and The Napanee Beer Co., voiced frustration with the initiative and vowed that they wouldn't participate.

"The problem is the cost for craft breweries are the tariffs on aluminum cans, the cost of barley and the taxes make it really hard for the small player to compete in such an idea", said co-owner Damion Orsi, whose sells his beer in the more-expensive tallboy cans.

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