RETAILERS SEE RED OVER WINE LICENCES
Independent grocers fear rules will give unfair advantage to big chains
Grocery store owner Darcey Houser says he’s worried that a government plan to auction off the right to apply for an in-store wine licence will create an unfair advantage to the bigger chain stores and leave independent supermarkets out of the liquor sales sweepstakes.
Under it’s far-reaching liquor policy changes, the province is proposing to put into play a limited number of VQA licences, which will allow grocery stores, like Houser’s East Vancouver Super Valu, to sell madein-B.C. wine.
Save-on-Foods in south Surrey last week became the first grocery store in B.C. to adopt this new model.
That licence, however, was a thirdparty partnership with the B.C. Wine Institute, which possesses only one more “dormant” VQA licence for use in a similar partnership.
Houser, who has run the Super Valu on 1st Avenue and Commercial Drive with his business partner for close to 20 years, would also like to offer his customers B.C. wine.
But he thinks it’s unlikely he will be able to compete with the deeppocketed chain stores come auction time. And even if he wins at auction, it only gives him the right to apply for a licence.
“I would like to see them have a fairer way to distribute the licences so that it doesn’t cost us an arm and a leg to compete,” he said.
“We already, as independent grocers, have a bit of a disadvantage because we don’t have the buying power of the bigger chains.
“And I think that we’ve got enough disadvantages out there without the government creating more.”
NDP opposition critic David Eby said the design of the wine-on-shelves model is inherently unfair to small businesses, especially those in Vancouver. Unlike the “store-within-store” model (full liquor sales) the government intends to introduce, the VQA licences aren’t subject to proximity rules.
“I think the way they set this up is very unfair to small business from the beginning,” said Eby. “This requires really deep pockets ... this is not likely to be an auctioning accessible to small business in any way.”
The framework for the wine licences is contained within legislation — the Special Wine Store Licence Auction Act — that remains before the legislature.
Specific details, including who can bid for a licence, and the cost mechanism of how the auction will proceed, have not been determined.
Justice Minister Suzanne Anton said independent grocery stores that have “concerns about their ability to compete” in the auction process can try partnering with the B.C. Wine Institute to move a VQA licence into their store, or by purchasing an existing private liquor licence for the store-in-store model.
“Our goal in establishing an auction framework for these limited number of licences is to develop a process that is fair and transparent for industry,” she said in a statement.
“Most likely — as many people would expect — not all participants in the auction will be successful in their bid to apply for a licence, if only because there is expected to only be a limited number of these licences available. As well, it’s also too early to speculate on what market value the auction process might establish, recognizing that these are limited and relatively rare liquor licences.”
Super Valu shopper David Ramos said he’d welcome liquor sales at the Commercial Drive location.
“I came here from Mexico 10 years ago, so I’m used to buying booze in the supermarket,” said Ramos. “It’s easier.” But Ramos couldn’t say whether the provincial auction is the right way to decide who gets to sell liquor.
“I don’t know if it’s fair, but I know I would buy it here if they sold it.”
Fellow Super Valu shopper Tiffany Jones said she would like the chance to purchase liquor along with her groceries, but said she makes her buying decisions based on the best deal.
“I would be open to it, but it comes down to price,” said Jones.
“I don’t really shop at liquor stores in this area. There are breweries around here, so I tend to shop around for the best prices.”