Latest news with #OntarioCraftWineries
Yahoo
8 hours ago
- Business
- Yahoo
Big grocery wants Ontario to lift ban on 'private label' wine, beer
Premier Doug Ford's next move to reform alcohol retail in Ontario could be allowing supermarket chains to sell their own private-label wine and beer, such as Costco's Kirkland Signature brand. The government recently began consulting with the industry about making further changes to Ontario's rules on booze sales. As part of the consultations, big grocery is lobbying for Ontario to end its ban on supermarkets selling their own-brand alcohol products, CBC News has learned. Current provincial regulations prohibit grocery stores from selling any brands of beer or wine in which they have "a direct or indirect financial interest." Small wineries in the province fear the consequences of lifting that ban. "Allowing private label wine in grocery, big box and convenience stores would be a severe blow to Ontario's wine industry," said Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, which represents more than 100 wine producers. WATCH | How the LCBO makes money for the Ontario government: Wasylyshen says while craft wineries deeply value their working relationship with the grocery stores, Ontario's private-label ban needs to stay in place so that locally-produced wines are not pushed out by the big supermarket chains. "This is a black and white issue for us, backed by data and previous experience. There is no grey zone," she said in an email to CBC News. Canada's other major wine-producing province, British Columbia – where it's a $3.75 billion-a-year industry – also bans supermarkets from selling their own brands. The Retail Council of Canada, which represents all the large supermarket and big-box chains including Costco, Loblaws, Walmart and Sobeys, says its members in Ontario are interested in selling their own brands of alcohol. "Private label increases competition, lowering prices for customers, because brewers and vineyards need to indirectly compete with the lower retail prices of private label brands," said Sebastian Prins, the Retail Council's director of government relations for Ontario, in an email to CBC News. Prins says the province's wine industry would remain protected by provincial regulations requiring supermarkets to allocate certain portions of shelf-space to Ontario-made products. He also says private-label sales could benefit grape growers in Ontario because the retailers would be looking for new sources for their wine. But with cross-border trade tensions remaining high, and the LCBO currently not stocking U.S. products, a spokesperson for Ford says private-label sales are not currently planned as part of the government's modernization of alcohol retailing. "Our priority right now is supporting Ontario growers and supporting Ontario-made products," said Ford's director of media relations, Grace Lee. The push on private-label sales comes less than a year after Ford sped up the timeline for allowing convenience stores to sell beer, wine and ready-to-drink cocktails. That move is costing taxpayers at least $612 million, including $225 million of compensation paid to the mega-breweries that own The Beer Store for the expanded retail competition. In April, Ford announced a shift in pricing rules so that convenience stores now get their products supplied at a 15 per cent discount from the LCBO's retail price, giving them a potentially higher margin on wine and beer than grocery stores, whose discount remains at 10 per cent. The Retail Council and the Canadian Federation of Independent Grocers wrote a joint letter to Ford last month asking for a number of changes to the province's booze marketplace, including the ability to sell private-label alcohol. The chain and independent supermarkets also raised concerns about the mandate that all grocery stores selling beer and wine must start accepting returns of empty cans and bottles in 2026, a requirement not imposed on convenience stores.
CBC
8 hours ago
- Business
- CBC
Big grocery wants Ontario to lift ban on 'private label' wine, beer
Social Sharing Premier Doug Ford's next move to reform alcohol retail in Ontario could be allowing supermarket chains to sell their own private-label wine and beer, such as Costco's Kirkland Signature brand. The government recently began consulting with the industry about making further changes to Ontario's rules on booze sales. As part of the consultations, big grocery is lobbying for Ontario to end its ban on supermarkets selling their own-brand alcohol products, CBC News has learned. Current provincial regulations prohibit grocery stores from selling any brands of beer or wine in which they have "a direct or indirect financial interest." Small wineries in the province fear the consequences of lifting that ban. "Allowing private label wine in grocery, big box and convenience stores would be a severe blow to Ontario's wine industry," said Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, which represents more than 100 wine producers. WATCH | How the LCBO makes money for the Ontario government: Here's how the LCBO brings in $2.5 billion for Ontario annually 11 months ago Duration 3:40 The LCBO earns nearly 80 per cent of its revenue from its retail outlets, all currently closed by strike, the corporation's latest annual report shows. CBC's Mike Crawley breaks down how the LCBO currently turns a profit and how things are expected to change with the Ford government's reforms — including the premier's plan to sell select alcohol in Ontario convenience and grocery stores. Wasylyshen says while craft wineries deeply value their working relationship with the grocery stores, Ontario's private-label ban needs to stay in place so that locally-produced wines are not pushed out by the big supermarket chains. "This is a black and white issue for us, backed by data and previous experience. There is no grey zone," she said in an email to CBC News. B.C. also bans private-label sales Canada's other major wine-producing province, British Columbia – where it's a $3.75 billion-a-year industry – also bans supermarkets from selling their own brands. The Retail Council of Canada, which represents all the large supermarket and big-box chains including Costco, Loblaws, Walmart and Sobeys, says its members in Ontario are interested in selling their own brands of alcohol. "Private label increases competition, lowering prices for customers, because brewers and vineyards need to indirectly compete with the lower retail prices of private label brands," said Sebastian Prins, the Retail Council's director of government relations for Ontario, in an email to CBC News. Prins says the province's wine industry would remain protected by provincial regulations requiring supermarkets to allocate certain portions of shelf-space to Ontario-made products. He also says private-label sales could benefit grape growers in Ontario because the retailers would be looking for new sources for their wine. But with cross-border trade tensions remaining high, and the LCBO currently not stocking U.S. products, a spokesperson for Ford says private-label sales are not currently planned as part of the government's modernization of alcohol retailing. 'Supporting Ontario growers' is Ford's priority "Our priority right now is supporting Ontario growers and supporting Ontario-made products," said Ford's director of media relations, Grace Lee. The push on private-label sales comes less than a year after Ford sped up the timeline for allowing convenience stores to sell beer, wine and ready-to-drink cocktails. That move is costing taxpayers at least $612 million, including $225 million of compensation paid to the mega-breweries that own The Beer Store for the expanded retail competition. In April, Ford announced a shift in pricing rules so that convenience stores now get their products supplied at a 15 per cent discount from the LCBO's retail price, giving them a potentially higher margin on wine and beer than grocery stores, whose discount remains at 10 per cent. The Retail Council and the Canadian Federation of Independent Grocers wrote a joint letter to Ford last month asking for a number of changes to the province's booze marketplace, including the ability to sell private-label alcohol. The chain and independent supermarkets also raised concerns about the mandate that all grocery stores selling beer and wine must start accepting returns of empty cans and bottles in 2026, a requirement not imposed on convenience stores.
Global News
07-05-2025
- Business
- Global News
No interprovincial trade barriers by Canada Day? Why Carney faces uphill battle
The clock is ticking on one of Prime Minister Mark Carney's signature promises — removing interprovincial trade barriers and making it easier for Canadians to trade with each other. In his first post-election press conference on Friday, Carney reiterated his commitment to dismantle trade barriers by Canada Day. On Wednesday, Carney met with Canada's premiers to brief them on his meeting with U.S. President Donald Trump and discuss ending interprovincial trade restrictions. But experts say Carney is facing a tall order. 'The rules and regulations that are those interprovincial barriers that he wants to remove are not entirely within his control. He can't compel provinces to remove their barriers,' Moshe Lander, economist at Concordia University, said. 2:11 MOUs signed to eliminate Canada's interprovincial trade barriers Roadblocks The 2024 fall economic statement said Canada could increase its GDP per capita by as much as 4 per cent — or $2,900 per capita — if it knocked down internal trade barriers. Story continues below advertisement 'He (Carney) intends to introduce legislation by July 1. That legislation will look at everything from recognition of credentials (across provinces), trying to reduce those barriers, and even the idea of impact assessments (for large projects),' Darby said. For some sectors, like alcohol, overcoming trade barriers will take more than just federal legislation. Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, said some of her organization's members find it easier to sell Ontario wine to international markets like Japan compared to selling across the Ottawa River in Quebec. And it all comes down to what rules the provinces have. 'Federal restrictions can come down in a heartbeat. It's the provincial beverage alcohol regulations that need to change in order to create a more conducive cross border dynamic. Specifically, technical barriers and mark-up structures make it difficult to sell wines into other provinces,' she said. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'For example, if my member wishes to sell into Nova Scotia, their mark-up structure is so high that there is no incentive to do so. Ditto for other provincial markets. For example, the SAQ's mark-up structure is 25 per cent higher than the LCBO's,' Wasylyshen added. She said some provinces, like B.C., see Ontario wine makers as competitors. Lander said this kind of protectionist push is what gave rise to trade barriers. Story continues below advertisement 'When those interprovincial barriers were created, there were vested interests that were arguing for them to be put in place. There are going to be people who jump up and make the news cycle, saying the removal of this barrier has cost me my job or has cost me my way of life,' he said. 2:04 Carney praised as 'serious person' by Trump administration ahead of White House visit What are internal trade barriers? A product made in one Canadian province faces several hurdles before it can be sold in another province. This net of rules that regulates this trade across provincial lines is collectively referred to as interprovincial trade barriers. Story continues below advertisement It's not just goods and services. It also applies to a person who works in a regulated profession that needs a licence, like a person who works in the trades or as a massage therapist or even a hairdresser. If such a person wants to move to work in another province, they would have to go through the entire process of getting their licence. Most trade barriers have to do with red tape and regulations, which probably means you'd have to pay a higher mark-up on a bottle of wine from another province or your provincial liquor board may not even stock alcohol from provinces it considers a threat to its own industry. Canada's uneven transportation policy can also come in the way of trading with other provinces. Different provinces have different maximum weight requirements or safety requirements for trucks, which makes it difficult to transport goods across the country by road. 'Each of the provinces has rules regarding when trucks can be on the road, what kind of tires they have or what kind safety kits they have,' Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, said. Momentum building? Darby said the last four months have seen unprecedented momentum in the move to end trade barriers within Canada, which might be the push the provinces need to get on board. And he says the consensus seems to be building because of one crisis alone — Donald Trump's trade war against Canada. Story continues below advertisement 'With that existential threat of the U.S. and the threat to our ability to trade, what better time to look at ways to be able to move all those things and all those people and all the products across Canada?' he said. Some provinces have already started moving. In February, Nova Scotia introduced a bill to remove barriers to trading with other provinces. In April, Ontario and Prince Edward Island followed suit. Wineries in B.C. can now directly ship wine to customers in Alberta, the result of an interprovincial deal that was agreed to last year. The process allows Albertans to order wine from more than 300 B.C. wineries in exchange for the Alberta government getting its share of applicable taxes. Wasylyshen said the next step should be to go beyond direct-to-customer sales and allow wine makers to sell to businesses as well. 'Restaurants are now looking to get Ontario (wine) products onto their menus. Because consumers are asking for them,' she said. Lander said while changing regulations in all 10 provinces and three territories will be a long process, the federal government could get them all to agree to something called a 'mutual recognition' program. Mutual recognition means while provinces will continue to have their own set of rules, they will recognize and respect each other's standards. Story continues below advertisement 'So, if a truck was approved in B.C. as being able to drive on its highways, then Alberta should maybe recognize that (and say) OK, it's safe to drive on our highways,' he said. Darby said a good analogy for a mutual recognition was drivers' licences. Every province issues its own, but you can use an Ontario licence to drive in the United States. He said a federal mutual recognition program could also work for people in the licensed trades who want to work in another province. 'If you're qualified to repair a compressor or to do welding on a high-pressure vessel in Quebec or Ontario, that should suffice in Alberta or Saskatchewan,' he said. Lander said removing internal trade barriers will not offset the losses from protracted tariffs from the U.S. tariffs. 'There is no substitute for having unfettered access to the U.S. economy,' he said. 'What it allows us to do is withstand the tariff war a little longer than we otherwise would. If that buys us an extra six months, if it buys us an extra year because we have a little bit more of a cushion, then that's great. In terms of negotiation, we're not as weak as we otherwise would be.'
