Ontario alcohol producers are pressing the Ford government so that it does not allow supermarket chains to sell their own private label wine and beer, saying that it would damage local businesses.
In a letter to the prime minister obtained by CBC Toronto, several industry groups requested that the province “conclude their current consultation” and “send this concept.”
If private label alcohol products are allowed, the group, which said that it represents “almost all producers and retarding small and medium -sized alcohol that operate in Ontario”, argues that it will be put into an unfair advantage.
“Small independent producers and retailers cannot compete with the scale and purchasing power of large chains, capable of boosting their own brand products and mastering the space on the shelf,” said the group in the letter.
Date on July 22, the letter was signed by the heads of seven industry groups: Beer Canada, Spirits Canada, the Ontario Wine Producers, the Craft Ontario wineries, the Ontario Craft Craft Association, the Ontario convenience stores association and the Canadian Federation of Independent Grocers.
The letter also warns that allowing the sale of alcohol of the store’s brand “would have harmful consequences already long term for the economy, jobs and communities of Ontario.”
The private label adds competition: the retail council
Prime Minister Doug Ford and his government recently expanded the province’s alcohol market, allowing beer, wine and refrigerators to be sold in supermarkets and convenience stores.
While the province consults with the industry on making more changes in the Ontario rules on alcohol sales, large boxes of boxes and large grocery stores recently began to lobby so that the province ends its current prohibition preventing them from selling their own alcohol brands in their stores.
Convenience stores in Ontario can now sell beer, wine and premixed drinks as the province loosen alcohol sales restrictions. Hard spirits are still limited to LCBO locations and points of sale.
Costco, for example, already offers several types of wine and liquors produced by its signature Kirkland, but are not sold in Ontario.
The Canadian Retamental Council, which represents all the large supermarket and big-box chains, including Costco, Loblaws, Walmart and Sebeys, told CBC News in an email in June: “Private label increases competition, reducing customer prices, because brewers and vineyards need to compete indirectly with the lowest retail prices private “.
Gary Sands, senior vice president of the Canadian Federation of Independent Grocers, said it would be “impossible” for small supermarkets pivotar and develop their own brand products.
“There is simply no way we can compete in the price,” he said in an interview, adding that wine and beer producers will be affected in a similar way.
“They know they will end up coming out of the water too.”
Province says there are no changes that occur this year
When asked about the alcohol sales plans in the province, a spokesman for the Minister of Finance of Ontario, Peter Bethlenfalvy, sent a 2024 statement saying that the Government would continue to prohibit the sale of private label alcohol “up to at least 2026 to provide [a] Level playing for small and medium producers and provide a wide option for Ontario consumers. “
“The Government will continue to consult with other market participants on the subject, including the consideration of appropriate railings if the government presents private label products,” said Colin Black in the statement.
Joe Aversa, associate professor at the Ted Rogers Management School that investigates retail management, says that smaller alcohol producers have reasons to worry.
“There is a great economic impact when it comes to lower prices. The private label tends to undermine the names of names between 20 and 30 percent, if not more,” he said in an interview.
“It will be difficult for [smaller producers] To stay competitive in the market, especially if you are talking about a cheaper product that will now be available. “
On the other hand, Aversa says that allowing the sale of private label alcohol would give consumers cheaper options and could boost competition with the industry creating “pressure to improve” for other producers and retailers.
