Ila Byrne’s Post

As grocers fight for expanded alcohol sales in several states, the liquor industry has long claimed that allowing supermarkets to sell more of those products would reduce liquor store sales and even lead to closures of mom-and-pop liquor stores. But a new report from FMI- The Food Industry Association looking at Tennessee, which adopted a policy in 2016 allowing grocery stores to sell wine, indicates that liquor stores did not see a statistically significant increase in closures and that state sales tax revenues increased due to grocery store wine sales. #grocery #winesales #wine #alcohol #alcoholsales #liquor #liquorstores #FMI #report https://lnkd.in/eR7qQEKK

The way you buy alcohol in Ontario will never be the same… TL;DR This is a very interesting/complicated topic I could speak for hours about. It’s all about the MFA (Master Framework Agreement) which the government is changing in the next year or so. The current MFA is why you can really only buy booze at the LCBO, Beer Store of some grocery stores. Covid loosened up a few things which is why you can buy alcohol from restaurants, breweries and via E-Comm. Good times…. The MFA discussion you may be hearing about is really about two things: 1) who gets the money and 2) you, the customer. 1) Who gets the money? Right now its the Ontario Crown (LCBO) and 3 big foreign national beer companies like AB-InBev (The Beer Store). Then that goes to the Crown. MFA stands to open up Convenience Stores (like in the US, and frankly everywhere else in the world). For those making lots of money off Ontario alcohol, the current MFA is worth clinging on to. It’s a sweet deal. 2) You, the customer? Current MFA isn’t so good for us. Don’t get me wrong, I love shopping the LCBO to find new things, but I also love when I’m travelling and I can pop into any little corner store, bodega, gas station and buy a 6-pack or bottle of wine. Our alcohol relatively expensive and relatively tough to get relative to our peers. For us customers, out with the MFA. It’s not so sweet. LCBO: sets all pricing for any alcoholic bevy in the province. Can’t bring it in or sell it without the LCBO saying so. The Beer Store: the only place you can buy 12-packs and 24s. Its been closing locations and revenue has been declining YOY for a long time (hi Gen Z, health & wellness, not your dad’s beer). Grocery: only 450 licenses exist to sell alcohol, which is why only some Loblaws or some Metros sell booze. Then there’s local restaurants, local wineries, local breweries. I like those guys. This is a classic example of not being a this OR that discussion, it is a this AND that discussion. Here’s a good primer article if you want to get caught up. I got my hands on a much longer article I’ll post next week. https://lnkd.in/gyQ8_Pnt

Monday must read from Grocery Business Magazine : Alcohol sales in grocery & retail in ON set to launch Aug 2024 (expedited from 2026) What this means: The changes, once fully in effect will introduce up to 8,500 new locations where Ontarians can purchase alcohol. Aug 1: Grocers that currently sell beer, cider & wine can sell RTD cocktails and large-pack sizes Sep 5: Eligible convenience stores can sell beer, cider, wine & RTD cocktails Oct 31: All grocery & big-box stores permitted to sell, including large pack sizes

If you are involved in beverage alcohol in Ontario or an interested consumer, the most common three letters you are hearing these days are MFA, short for Master Framework Agreement. The MFA is the agreement that regulates how most beverage alcohol is sold at retail in the province of Ontario. There has been much written about what changes may come from the expiry of the MFA in 2025 and the backstory on how we got here – see the article below as one of the most complete summaries. What is known as of today based on publicly available information: 1.     The provincial Government has stated their desire to expand distribution at retail in Ontario for beer; 2.     Beer industry members have pointed to provincial beer taxation rates that are amongst the highest in the country and yet the efficiency (or fewer points of distribution depending on your perspective) in the current model allows for relatively competitive pricing in Ontario, while supporting tens of thousands of good paying union jobs in the process; 3.      Craft Beer industry members have been speaking out on the need for greater access to their products, they are feeling the pain like many smaller businesses post COVID and that the vast majority of jobs in the industry come from smaller breweries creating significant economic value for the province; 4.      The Wine industry has presented an economic impact study that highlights the value their industry delivers to the Ontario economy with recommendations on how to support their success in the future, specifically to focus on Niagara as a tourist destination in the province; 5.      The Spirits industry has been focused on equal access in grocery stores as the role of the LCBO as their only retail channel comes under attack with another potential 10,000+ points of retail distribution coming online; 6.      The Convenience Store Association of Ontario have been advocating for their membership to play a role in the retailing of beverage alcohol and potentially recycling; 7. Grocery stores are looking for beer availability in all stores and for all formats and sizes, not to mention better margins than the current system allows for. What will happen? The Government of Ontario must communicate their intent with respect to the MFA before Dec 31,2023 or the agreement will renew for 5 years to 2030 (from the current 2025 expiry).  Ontario consumers and beverage alcohol industry businesses should hear what direction this is heading before ringing in the new year on December 31. Some variables to consider for the future of beverage alcohol retailing in Ontario and a framework with thoughts on how to tackle this challenge to come later this week! #mfa #ontariobeer #ontariowine #ontariospirits https://lnkd.in/gnDvzNDX

New sales channels for NA brands & accessible purchasing locations for consumers is a plus for retailers, consumers and brands. Even with the existence of supermarkets & the concern that stores will eat into each other's sales, a lot of folks in NYC will keep their local stores they find enjoyable or convenient alive. There's CVS all over the place, bodegas still thrive. There's an abundance of both mass chain and small business restaurants. There are more than enough consumers in this city for multiple formats to survive. https://lnkd.in/g6ZYvSmx

Effective Sept. 16, 2024, Act 86 of 2024 will expand the network of retailers allowed to sell ready-to-drink cocktails (RTDC) to go to include restaurants, hotels, supermarkets, convenience stores, beer distributors and others. The new RTDC permit will authorize permittees to sell spirits-based RTDCs ranging from 0.5% alcohol beverage by volume (ABV) to 12.5% ABV in original containers up to 16 ounces for off-premises consumption (to go). RTDC permits will be available to retail liquor licensees eligible for wine expanded permits (restaurants, hotels, supermarkets, convenience stores etc.) and to distributors and importing distributors of brewed and malt beverages, all of which must be certified in the Responsible Alcohol Management Program. Highlights of the new law include the following: Retail RTDC permit holders (not distributors/importing distributors) will be able to sell RTDC to go in quantities up to 192 fluid ounces per transaction, and that allowance is in addition to up to 192 fluid ounces of brewed or malt beverages and up to 3 liters of wine per transaction – all three can be maxed out in a single sale, but only to retail customers (not licensees). Distributors and importing distributors will be able to offer samples of RTDC and sell RTDC in any quantities to retail customers, but not to licensees. They will also remain prohibited from selling wine or other forms of spirits. The PLCB currently has a catalog of more than 100 RTDC, but RTDC permit holders are not allowed to procure RTDC through Special Order for sales for on-premises or off-premises consumption. The PLCB will also entertain permittees’ requests to bring new RTDCs into the market, if suppliers are willing to make them available through regular product listing processes. Pennsylvania licensed manufacturers producing RTDC may sell them directly to retail customers and permit holders, in any quantities, at prices equivalent to or more than what the PLCB charges, if the PLCB carries the same or substantially similar products.

The pure insanity of this should be obvious…but it is not. The Prohibitionist mindset teaches that wine is taboo, and especially in the United States, that at 21 years of age, you reach a ‘right of passage’….to then go out and find out about this ‘mysterious thing that adults do’ and head to the bars! The produce section is the perfect place to teach a balanced diet, to teach responsible consumption behaviors, and to teach, not to hide!! Don’t any of these people have children? We all know how kids respond to what has been made beautiful over millennia in the enjoyment of wine & food in moderation. We all know how making something beautiful to become ugly destroys trust and how we can drive a society right INTO irresponsible behaviors. For crying out loud, open the doors to wine and shut down once and for all the destructive legacy of Prohibitionism! Are we not mature enough in our society to teach moderation, to make healthy lifestyle with balanced consumption patterns part of our daily “walk and talk” teaching from one generation to another? Go ahead, continue to make it taboo and see where that leads…. ….remembering that the legal prohibition in America did nothing but make for unhealthy alcohol consumption patterns while those who promoted it separated “themselves” as the elite righteous of society. It’s time to grow up. (Note: Legal drinking ages are a responsible application. Creating an evil out of responsible consumption behavior of a refined and healthy beverage [consumed in moderation] is an evil within itself). #neoprohibitionism #alcoholicbeverages #winemakersforum #responsiblemarketing #ethicsandcompliance

Ontario's liquor landscape is undergoing a significant transformation as the Liquor Control Board of Ontario (LCBO) will relinquish its monopoly on wine and beer sales, while still maintaining control over spirits. This move, announced by the Ontario government in mid-December 2023, marks the largest expansion of consumer choice and convenience since the end of prohibition almost a century ago. With the LCBO being among the largest single buyers of wines and spirits globally, the implications of this shift are far-reaching, affecting consumer preferences, industry dynamics, and the broader cultural aspects of wine consumption.

As someone who fell into the wine world through a love of dry martinis, I can’t claim to have any great preference for whether my glass of wine is 11.5% or 12.5%. When you’re basically drinking neat gin in a glass, a few percentage points here or there don’t much matter. Yet many wine drinkers care about alcohol levels, even if they seem to think that nearly all wine is about 12%. Now we’ll all need to pay closer attention to abv, thanks to the government’s duty reform. While there have been increases across beer, wine and spirits, wine has seen the basis of its duty calculations fundamentally transformed with the introduction of the sliding scale of tax by alcoholic strength. Read the full article:

Ontario is introducing sales of beer, wine and ready-made cocktails into corner stores and additional supermarkets 16 months ahead of schedule, a move that will see the province pay up to $225 million to The Beer Store. Retailers, including convenience stores and gas stations, will be able to start selling the low-alcohol beverages as of Sept. 4. The process for applying for a licence from the Alcohol and Gaming Commission of Ontario (AGCO) will open on June 17, the province says. Similarly, the 450 grocery stores provincewide that already have licences for beer and wine will be allowed to sell ready-to-drink cocktails on Aug. 1. All other supermarkets and grocers will then be able to sell beer, wine, cider and canned spirit drinks as of Oct. 31. Ontario Government | Gouvernement de l’Ontario The Alcohol and Gaming Commission of Ontario 7-Eleven ONroute Parkland Corporation LCBO Brewers Retail, Inc. #convenientstores #alcohol #Beer #spirits https://lnkd.in/g43uyGUF #retaisales