Consumer Advocate? BY JOHANNE MCINNIS From our contributing editor Johanne McInnis, she weighs in on the recent media pissing match over high prices in Ontario but who is really to blame…
A quick price comparisons for a few spirits revealed:
PRODUCT
QUEBEC
ONTARIO
Absolut vodka
$28.65
$31.15
Talisker 10 scotch
$104.75
$109.95
Bacardi Spiced rum
$27.25
$32.45
On May 17th 2024, an organisation representing over 70 brands distilled for Bacardi Canada, Beam Canada, Brown- Forman Corporation, Campari Canada, Corby Spirit and Wine, Diageo Canada and Rémy Cointreau USA released a very dim outlook on the future of availability for many well known brands available at the LCBO stores in Ontario. Spirits Canada, founded in 1947, represents almost 70% of spirits purchased in the province of Ontario – that’s close to 35% of all products sold by the LCBO. Their press release stated: “Under the false pretense of seeking the best price for consumers, LCBO is unilaterally clawing back payments on products sold in 2023, based on claims that Quebec’s liquor board (the SAQ) obtained similar products for a lower price. But liquor boards, not suppliers, largely dictate pricing in their provinces. Punishing suppliers for circumstances beyond their control is unfair, provides no benefits to consumers, and puts suppliers in an impossible situation. Unable to absorb these exorbitant retroactive fees, each supplier must now consider its commitment to the Ontario marketplace, including potential changes to its investments and product offerings, and consumers may no longer get the benefit of discounts or promotions on their favourite brands”.
In reply to these allegations, the LCBO also put out their own media news release stating that Spirits Canada’s information was inaccurate and highly misleading to consumers. They pointed out a statement release from March 2024 which highlighted the fact they would be working with a small number of suppliers to recover monies owed as a result of non-compliance with their Purchase Order Terms and Conditions (which exists to protect consumers and ensure Ontarians pay the lowest possible prices). “Ontario consumers are being overcharged by some suppliers. This is compared to other jurisdictions and they should not be at an unfair disadvantage from suppliers selling beverage alcohol to other provinces at a lower price.” According to their statement, 90% of their suppliers are compliant with the Purchase Order Terms and Conditions. Their media release also maintains that this is not a “retroactive tax bill” for suppliers but rather a pricing chargebacks in accordance with contracts that have long been in place. LCBO also notes that suppliers set their own pricing and the board’s mark up structure is transparent and a matter of public record.
Remy Martin VSOP Cognac
$108.50
$117.95
Both press releases state they are doing their best to collaborate with the other yet blame one another for not acting in the best interest of the consumer. LCBO included a fact sheet with information and a link to their mark up structure whereas Spirits Canada provided a long list of their own facts. Is this a tax grab punishing the suppliers? Is it a company trying to settle a small percentage of contract compliancy? Or, do I dare quote Robert Evans: “There are three sides to every story: your side, my side, and the truth. And no one is lying. Memories serve each differently”.
So as consumers, we all are truly in charge of advocating for ourselves. Be smart and pay attention to their side of the story but in the end your truth should truly delegate what you see fit to pay for their bottles.
My memory serves me as well:
Fact = The cost of everything has gone up. Fact = Companies pass on those costs to consumers. Fact = Our paycheques are not going as far as they used to. Fact = in these big corporation’s eyes - it’s a put up and shut up world. No matter my opinion, or yours for that matter = Prices will only continue to go up, some will grumble but most will continue to walk in, grab what they came for and pay whatever the cashier tells them to, until they simply can’t anymore.
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the whisky explorer magazine
the whisky explorer magazine
SUMMER 2024
SUMMER 2024
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