The Circle K store in Parliament St. in the Cabbagetown neighborhood of Toronto on May 21, 2020. Fred Lum / the Globe and Mail
Convenience stores are asking Ontario Prime Minister Doug Ford to keep his broken promise to allow them to sell beer, a commitment that derailed three years ago after failed talks with multinational brewing companies behind the chain of beer shops in the province.
Mr Ford’s promise to allow the sale of beer and wine in corner shops, never mentioned in his recent re-election campaign, was a focal point when he was first elected in 2018 and a frequent point of conversation. for much of his first year in office.
But it was soon abandoned after the government warned that the measure could cost it $ 1 billion in sanctions for denying the 10-year deal the brewery signed in 2015 with the previous Liberal government that allowed sell in grocery stores, but otherwise kept the chain. partial retail monopoly.
Now, with the progressive-conservative government in place with a larger majority over the next four years, the convenience store industry is looking at the expiration date of this agreement in 2025, which could mean the end of the dominance of the beer shop. To amend the agreement or cancel it, the government must notify it before the fall of 2023, meaning the new rules for the sale of beer are now under discussion.
Some of the convenience store businesses even expect at least the beer to be on their shelves in a year, perhaps before the brewery agreement expires, as has long been the case in neighboring Quebec. and New York State.
Kenny Shim, chairman of the board of the Ontario Convenience Store Association and chairman of the Ontario Business Association of Korea, which represents 900 members of convenience stores, said he spoke with Mr. Ford about two weeks before the election and the prime minister assured him the right to sell the beer he was selling.
“In general, they usually listen to you more a little bit before the election,” Mr. Shim, who runs the Busy Bee convenience store on King Street West in Toronto. “I was even more excited when it came to starting with local craft beer, at a convenience level.”
In 2019, after facing a $ 1 million warning in sanctions, Mr. Ford’s government passed, but never enacted, legislation that would have broken the brewery deal and sought to void any obligation to offer compensation to the multinational owners of the retailer. The U.S. Chamber of Commerce warned that the legislation would calm down doing business in Ontario.
While talks with Beer Store failed, the government announced its decision to allow more grocery stores to sell beer under the terms of the existing deal. But later, during the pandemic, the province gave sick restaurants and bars the right to sell takeaway alcohol, resulting in thousands more places to buy beer.
Emily Hogeveen, a spokeswoman for current Finance Minister Peter Bethlenfalvy, whose competition includes alcohol rules, said in an email that the government “supports a significant change in alcohol sales in Ontario.” He said this is “one of the government’s many priorities and we look forward to continuing to offer options to Ontario residents and new business opportunities.”
In a statement, Ted Moroz, president of the Beer Store, which is owned primarily by foreign-controlled breweries Molson Coors, Labatt and Sleeman, said little about the future of the deal with Queen’s Park, known as the Master Framework. Agreement (Master Framework Agreement). MFA).
“We have nothing new to share at this time regarding the MFA’s negotiations with the government, which understandably have stalled during the pandemic,” he said.
Dave Bryans, executive director of the Ontario Convenience Store Association, said allowing liquor to take away during the pandemic has led to the proliferation of “bottle shops” that offer food testimonials to act as de facto liquor stores. He also said beer sales are needed to revive his dilapidated industry, which faces a long-term decline in tobacco sales.
“I think if I were the owners of the brewery, I would find a transition and exit strategy, sooner rather than later,” Bryans said, adding that he would support a minimum requirement for selling local craft beer.
The Convenience Industry Council of Canada (CICC), a nationwide pressure group, commissioned an economic impact report that saying allowing alcohol to be sold in corner stores in Ontario would create more than 7,500 new locations of part-time and full-time work and would offer more than $ 115. million in new tax revenue for Ontario, while increasing sales of alcoholic beverages by between 3% and 5% annually in the province.
Anne Kothawala, president and executive director of the CICC, described the projected increase in sales as modest, amounting to a few consumptions per person per year.
His group, he said, remained silent during the recent provincial election campaign, but now hopes to push the issue.
“We know consumers want it. The government promised it. Ontario convenience stores are ready,” he said. “And as we say, in the words of Premier Ford, let’s do it.”
The sector has long been waiting for change. Ian White, senior vice president of Parkland Corp., which operates the On the Run chain of gas station convenience stores, says his retailers have already expanded the refrigerator space to accommodate future beer sales.
He also said the industry has shown that it can enforce age restrictions with its tobacco sales history.
“We have training, we have established processes,” Mr. White. “We’ve been doing it for decades.”
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