Retailers can exceed booze quota, sources say

Queen’s Park is putting in measures to ensure supermarket shelves will be stocked with beer despite quotas being imposed on grocery chains.

As reported by the Star on Friday, guidelines will limit grocers to selling the equivalent of 46 million sixpacks a year in the 450 supermarkets that will eventually be licensed in the province. But sources say retailers will be allowed to exceed the daily cap, which is equal to 279 six-packs, if they pay the government a penalty worth 1 per cent of the cost of the beer. The details of that loophole are part of a revised “beer framework agreement” to be announced within the next two weeks.

Finance Minister Charles Sousa emphasized Friday that the province does not want to see grocers run dry if they reach their quota.

“There won’t be any limitation that’s going to hamper the distribution of beer,” he insisted, defending the move, saying “some degree of controls” is necessary when modernizing an archaic system.

“The rationale is (for) almost 90 years we’ve had limitations and restrictions in the way distribution of beer is sold in the province of Ontario and this is the biggest change that we’ve done since Prohibition,” Sousa said.

“We’re trying to navigate through this thing,” the treasurer said, explaining why the government did not embrace a free market.

“What you’ve seen in other provinces where the distribution is fully open: one, it’s become much more difficult for craft brewers to get distribution into the system; secondly, the price of beer has gone up in those locations,” he said, apparently referring to Alberta. “We want to take advantage of the efficiencies of our distribution system.”

Indeed, supermarket sales will complement products sold in 651 publicly owned LCBO outlets and 448 private Beer Stores.

Beer Store officials declined comment Friday on the looming changes.