‘It’s like Prohibition’

Union Club, other sites raided ‘Al Capone-style’ over private purchases of vintage whisky

Bars at a private club, a hotel and two restaurants were visited by government agents looking for a certain type of whisky in what one of the targets called “Al Capone-style” raids.

Susie Sirri, director of operations at the Grand Hotel Nanaimo, said agents visited her hotel, the Union Club in Victoria, Little Jumbo Restaurant and Bar in Victoria, and Fets Whisky Kitchen in Vancouver.

“It’s like the Prohibition, 1930s,” she said. “They came in on a mission.”

It turns out the provincial government has issues with how certain businesses obtain liquor, Sirri said. “The problem is, apparently, they don’t want licensed businesses to buy from private liquor stores,” she said. “They want us to only buy from the government stores.”

The government concern is largely around products from the Scotch Malt Whisky Society, a private bottler based in Scotland.

“They bottle special vintages of whisky,” Sirri said, adding that the four sites that were raided are all “partner bars” with the society. “So what I said to [the government agents] is the private stores are purchasing the bottles from the liquor board and then they are reselling it for them.”

Sirri said the government maintains it is losing revenue from such transactions. But, she said, there is no other way to get the whisky in question.

Union Club general manager David Hammonds said the club is a private operation so he wouldn’t comment, but confirmed that authorities were there on Thursday.

Sirri said she considers the government approach to be “heavy-handed.”

“Why can’t we just have an adult-to-adult conversation?” she asked. “They can say: ‘Look, we don’t like this’ or whatever their issue is.”

The Liquor Control and Licensing Branch can’t comment on compliance measures taken against establishments, the B.C. Ministry of Attorney General said in a statement.

“All liquor products sold by a hospitality customer [bars and restaurants] must be purchased through the Liquor Distribution Branch and must be documented in the establishment’s liquor register,” the statement said. “This includes liquor transfers. Hospitality customers must make all their purchases through either the LDB’s Wholesale Customer Centre, in a B.C. liquor store or via direct delivery by an authorized manufacturer.

“Where products are sold via direct delivery, the manufacturer acts as the LDB’s agent in selling the product.”

The ministry said that the Liquor Control and Licensing Branch operates independently, and that the ministry can’t direct decisions about enforcement.

“The government has appointed Mark Hicken as a liquor policy adviser, to reach out to B.C.’s beer, wine and spirits stakeholders, including the manufacturing, retail and hospitality industry.

“Mr. Hicken is meeting with these stakeholders to gather input and will be putting forward recommendations to an industry panel for policy advice to government, to continue supporting this important sector.”