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Ontario gov't quietly raises minimum price of beer by 6.7%

because you know us in Ontario are far less socially responsible compared to the rest of the world..

quote:

Ontario raises minimum price for beer December 21, 2008 Dean Beeby THE CANADIAN PRESS OTTAWA�Say goodbye to buck-a-bottle beer in Canada's most populous province. The Ontario government last month quietly hiked the minimum price that can be charged for beer, to $25.60 from $24 for a case of 24 bottles. That 6.7 per cent increase in the floor price of a case, bottle deposit excluded, has nothing to do with supply-and-demand, production costs, overhead or distribution expenses. Instead, the Liquor Control Board of Ontario sets minimum prices as part of its "social responsibility" mandate established in 1993. Translation: If alcohol is too cheap, you may abuse it. But documents obtained under Ontario's freedom-of-information law show that the Ministry of Finance, not the LCBO, pressed for higher beer prices � raising questions about the arm's-length relationship between the two bodies. "The Ministry of Finance recommends an increase to the minimum retail price for beer effective November 24, 2008," says a memo distributed to board members for their Oct. 15 meeting in Toronto. With only 30 minutes to approve a dozen legal issues, including the minimum price increase, the matter appears to have received limited debate. "After due deliberation and consideration of the materials and recommendations as set out in them, a motion was made, seconded and carried," say the meeting minutes. The written materials distributed to board members provide no explanation of why the new minimum was required, how it fit with the social responsibility mandate, how the increase was calculated and why it was required by Nov. 24. Instead, the documents merely set out the mechanics of the change, which also affects coolers and low-alcohol spirits, and cite the recommendation of the Ministry of Finance. The last time the minimum price for regular-strength beer was adjusted was October 2005. A spokeswoman for the LCBO insisted the board calls its own shots. "When considering such pricing resolutions, the LCBO board seeks input from staff and government officials at the line ministry (Ministry of Finance) to which it reports," Linda Hapak said in an email response to questions. "However, the final decision on such matters rests with the board." Hapak said the increase was primarily to catch up with three years of inflation. The board made no public announcement of the price change, which affects about 40 of the 400 beer brands for sale at LCBO outlets and The Beer Stores. A notice appeared a week after the Oct. 15 meeting on a section of the LCBO website directed to product suppliers. "LCBO does not issue news releases for price increases," said Hapak. Raising minimum prices for beer can help boost the bottom line at the big breweries. Hapak said the increase could also affect government revenues. "If customers purchase the same litre volume of the 40 brands directly affected by the minimum price increases, then the province could receive incremental RST (retail sales tax) revenue, if customers don't reduce other purchases that are subject to RST." A higher floor price for spirits � which the board implemented on July 21 this year � has boosted revenues at the LCBO by about $1 million a month, an internal document shows. A court document made public earlier this year showed the federal commissioner of competition was investigating whether one big brewery in the province had ever tried to influence the Ontario government's decisions on minimum prices. But no such evidence was ever produced, and the commissioner eventually lost the complicated takeover-related case in federal court. Most other provinces also set minimum prices for alcohol, whether for sale in retail outlets or in bars and taverns. Last week, for example, the Nova Scotia government set a minimum price of $2.50 for a serving of wine, beer or spirits in licensed establishments � a move it said was designed to encourage responsible drinking, especially among the young. Beer sales in Ontario are estimated to be worth $2.5 billion annually.

source:
http://www.thestar.com/news/ontario/article/557097

if people are gonna whine about an extra $1.60 on a whole case of beer then they shouldn't drink at all.

seriously... that's 13 cents per beer.

this isn't even news worthy IMO

quote:

Originally posted by activate seriously... that's 13 cents per beer. this isn't even news worthy IMO

how did you get 13 cents per beer?

$1.60 / 24 = 0.067

quote:

Originally posted by chinamon if people are gonna whine about an extra $1.60 on a whole case of beer then they shouldn't drink at all.

this new hike is a ripoff. 6.7pct now, what in 2 years from now.

Doesn't seem to have much reasoning behind the hike other than they just want more money in their pockets.

Coming from Quebec, I find beer prices already EXTREMELY overpriced.

In quebec, I can get a 24 of Molson/Bud for $26...here that wont get u a case of lakeport....Molson/Bud cases are going to be at almost $40 now?

And then, you look at the states, you can get a 24 for like $12.....talk about a price diff and the gov. laughing at us!


its been a long time since ive bought a case of beer! just because of the stupid prices. Sticking to liquor n wine instead (homemade) and bringing booze from the states at every chance i have

Keep raising the price....thats what I say.

quote:

Originally posted by chinamon how did you get 13 cents per beer? $1.60 / 24 = 0.067

for some reason I was thinking a 24 was 12 beers. LMAO

quote:

Originally posted by devnull ....Molson/Bud cases are going to be at almost $40 now?

they changed the minimum price for a a case. Only brands that were charging the minimum will go up %6.7.

And if you're drinking molson and bud, you might as well save your money and get lakeport. They all taste like dirty bath water anyways.

quote:

Originally posted by activate for some reason I was thinking a 24 was 12 beers. LMAO

so how was your weekend? lol.

oh wait... i can tell from this pic..

heineken ftw.

The dollar increase is not the issue really. It's the fact that they set a minimum price in the first place that is retarded. The supplier and market should determine the minimum price. This just hurts students and poor folks.

quote:

Originally posted by Orko The dollar increase is not the issue really. It's the fact that they set a minimum price in the first place that is retarded. The supplier and market should determine the minimum price. This just hurts students and poor folks.

agreed (except for the last sentence...booze shouldn't necessarily be "affordable").

why the gov't has it's hands in setting pricing is beyond me. if gov't wants to play with the tax, fine...but setting ("recommending" as the LCBO calls it, haha) actual pricing? that makes no sense to me at all...

quote:

Originally posted by Orko The dollar increase is not the issue really. It's the fact that they set a minimum price in the first place that is retarded.

exactly, its really stupid.

btw minimum price for beer over here is 22.83$ for a 24 of strong beer (6.1%+ alcohol) and 20.84$ for 4-5% alcohol.

hmmm, i wonder if one of the competing brands had a play in lobbying for this law?? LOL

BS

quote:

Originally posted by chinamon so how was your weekend? lol. oh wait... i can tell from this pic..

look on fab's face, while spectator dangles a can of heni over $1500 of MKIII goodness, priceless.

quote:

Originally posted by chinamon $1.60 / 24 = 0.067

an increase of 0.067/beer by the government = an increase of $2.50/beer at clubs = more predrinking at home for me...

Socially responsible my ass. It's like a crack dealer raising his prices and saying he's trying to help his customers stop using.

beer is much cheaper in europe ... and they are far more socially responsible with it

quote:

Originally posted by 1dawoman an increase of 0.067/beer by the government = an increase of $2.50/beer at clubs = more predrinking at home for me...

How does that work out? I thought that this price increase only affects the 10 cheapest brands, which to my knowledge aren't even sold in clubs. If this price increase causes that much of an increase at bars, a lot of people are going to be pissed off.

Regardless if this affects bar prices or not, this smells of a straight-up cash grab to me.

quote:

Originally posted by chinamon if people are gonna whine about an extra $1.60 on a whole case of beer then they shouldn't drink at all.

the extra $1.60 isn't the issue .. what's messed up is the fact that the gov't is even involved in setting the base price to begin with

I don't really see the big deal here. The liquor/beer sales are government run in Ontario. It's the same thing as a company elsewhere deciding to increase beer prices.

quote:

Originally posted by dEsidEL the extra $1.60 isn't the issue .. what's messed up is the fact that the gov't is even involved in setting the base price to begin with

Exactly. Didn't they say in that article it's some committee? Bah.

It's a price increase on the shittiest beers on the shelves anyways.

quote:

Originally posted by Abercrombie It's a price increase on the shittiest beers on the shelves anyways.

True enough, I just hope they don't decide to 'change over' to the better beers. Damned shady Gov.

30 packs of any kind of beer for $20 here in the states!

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