Canada: An opposition MPP blames high beer prices in Ontario on a “Soviet style” retail network

MPP Ted Chudleigh, opposition critic to the Ministry of Economic Development and Trade, publicly called for an end to Ontario’s Soviet style beer retailing monopoly, Oakville Today posted on August 21.

“It’s time to join the 21st century and allow beer to be sold through a wider retail network,” said Mr. Chudleigh. “Every other jurisdiction does it. Why can’t we?”

Mr. Chudleigh said that beer in Ontario is expensive because sales of major brands are subsidizing the huge variety of beers carried by The Beer Store.

The Beer Stores were designed by Ontario’s brewers as their marketing arm. However, due to recent mergers those breweries are now foreign owned. Among foreign participants are Belgium, Japan and the US.

“Ending the Soviet style marketing approach would lower prices, increase convenience of both purchase and bottle return, increase accessibility to the market for small brewers especially in local markets, and would bring Ontario into the 21st century,” said Mr. Chudleigh.

“Burlington resident Derek Forward is spearheading this and I am committed to working with him to collect signatures in support of a change and to bringing the issue to the Ontario Legislature,” said Mr. Chudleigh. “It’s time consumers had the advantage of a market economy when it comes to beer.”

Mr. Chudleigh added that various business associations were supportive of the modernization of beer retailing and were becoming involved in a grassroots effort to have the provincial government change current legislation governing beer retailing.

22 August, 2008