Time to privatize LCBO?

[huckfinn]

I have recently been frequenting more of the small franchises for my wine purchases, because I find LCBO's hours are too short, and inconsistent from store to store.

I am also curious how the smaller stores are selling the booze for the same price as the LCBO. I suspect they pay more for their spirits, so they can't compete with LCBO on price.

Personally, I think LCBO employees are highly overpaid for what they do, and it is reflected in the cost to buy things. I believe it high time to privatize it, bring more competition into the market, and go from there. The government will still get their taxes.

How does anyone else feel about this?

 

[geeky]

Don't privatize - dismantle it. Let regular merchants sell beer, wine and liquor. No reason we can't get it from the grocery stores.

 

[wpgguy]

I have recently been frequenting more of the small franchises for my wine purchases, because I find LCBO's hours are too short, and inconsistent from store to store.

I am also curious how the smaller stores are selling the booze for the same price as the LCBO. I suspect they pay more for their spirits, so they can't compete with LCBO on price.

Personally, I think LCBO employees are highly overpaid for what they do, and it is reflected in the cost to buy things. I believe it high time to privatize it, bring more competition into the market, and go from there. The government will still get their taxes.

How does anyone else feel about this?

I'm not from Ontario but we have the same Govt. booze scam here in Manitoba and I couldn't agree with you more.

We do have a few private beer vendors that are open until 1:00 am in the bigger centers so at least that's something.

 

[Peegies]

If I recall correctly, the beer store issued a propaganda campaign last year arguing that competition would actually increase prices. Basically, expect the average joe to think that retailers would gouge you and expect to reap profits.


http://www.ontariobeerfacts.ca/site...an_v01/css/i/infographic-pricing-20130904.jpg

 

[herbnessman]

I agree their hours suck (nowhere to buy wine after 6 on a Sunday?) and it would be nice to see some competitive pricing and more selection. But that has little to do with how they run their retail outlets and more on our excessive government oversight and taxation on booze. Not likely to change unfortunately.

I do think they should cut costs but more on their marketing and merchandising than labour. For example why do they opt for such extravagant real estate (Summerhill?) and print the glossy Food and Drink magazine? People are buying from them regardless.

As for their labour force yes they are paid higher than most retail jobs but I see that as a good thing. We are a primarily service sector economy these days so having people earn a livable wage in a retail job sets the bar higher for the WalMarts out there who otherwise wouldn't give a shit. Plus their staff is more than competent and helpful when I have dealt with them.

 

[Ceiling Cat]

I heard that they were planning on putting liquor stores in Loblaws in Quebec. I do not know if they plan to do this in other provinces. My guess is that they want to make booze more accessible to the public at later hours.

 

[red]

Hard to privatize- do you sell the monopoly? I think better to let the free market reign- maybe let them be the wholesaler

 

[JohnHenry]

The LCBO is the largest wholesale purchaser of alcohol in the world. The selection of wine in Zehrs is pitiful compared to even the smallest LCBO stores.

In 2013-14, LCBO sales exceeded $4.997 billion and delivered a $1.74 billion dividend to the Ontario government, not including taxes. This revenue helps pay for health care, education, infrastructure and other important government services.

What do you think the selling price should be?

 

[nobody123]

Right. Privatize it. Cause God forbid the government ever be involved in a profitable venture, or that any hourly employees in Canada be paid a decent wage. Fuck that. Sell it off for peanuts like most everything else lately. Brilliant.

 

[Peegies]

it baffles me when you guys support more government regulations, when said government directly impedes your hobbying. I guess the idea that competition in service and wage / prices improves a product only apples to SPs?

 

[Occasionally]

The LCBO is the largest wholesale purchaser of alcohol in the world. The selection of wine in Zehrs is pitiful compared to even the smallest LCBO stores.

What do you think the selling price should be?

About $5 billion sales and $1.75 billion profit. That's insane. That's a 35% net profit. And not even including tax? Wow. We're talking margins similar to Microsoft which is a high margin software based company.

In consumer food and beverage companies, a company making a 10% profit at the end of the day is considered solid. And any retailer that can squeak out 5% after all costs paid for is doing well.

Goes to show how absurdly marked up prices are. Even excluding the tax part in the quote, prices are marked up about 25% beyond what normal manufacturers and retailers make.

 

[geeky]

The LCBO is the largest wholesale purchaser of alcohol in the world. The selection of wine in Zehrs is pitiful compared to even the smallest LCBO stores.

What do you think the selling price should be?

Just shows how badly we are being ripped off for alcohol in Ontario. Nothing like a government supported monopoly.

 

[jcpro]

Not being a drinker, a bottle of Scotch lasts me a year, I don't really give a crap. As a matter of principle, I think the LCBO should have never been created in the first place. Alcohol should be in regular stores on a shelf beside weed and coke, so the adults can enjoy them and the criminals cannot profit from them.

 

[GPIDEAL]

Right. Privatize it. Cause God forbid the government ever be involved in a profitable venture, or that any hourly employees in Canada be paid a decent wage. Fuck that. Sell it off for peanuts like most everything else lately. Brilliant.

The simple argument is that we pay too much. Although I don't have a particular beef with the LCBO which has many locations, clean stores, well laid out, and helpful staff.

 

[GPIDEAL]

About $5 billion sales and $1.75 billion profit. That's insane. That's a 35% net profit. And not even including tax? Wow. We're talking margins similar to Microsoft which is a high margin software based company.

In consumer food and beverage companies, a company making a 10% profit at the end of the day is considered solid. And any retailer that can squeak out 5% after all costs paid for is doing well.

Goes to show how absurdly marked up prices are. Even excluding the tax part in the quote, prices are marked up about 25% beyond what normal manufacturers and retailers make.

It's okay if those profits are invested wisely in healthcare, education and infrastructure, but the problem is, governments waste those profits from their cash cow, which is tragic.

 

[gdurham]

the profit could be a lot higher if the lcbo wouldn't squander so much on marketing. have a look at thier financial statements - it is quite amazing how much a monolopy player spends on adversiting and marketing.

it is just pathetic that our neighbours to the south and east pay less than half of what we do for alcohol. I understand that the gov't wants thier share but surely a price differential of 20% is more reasonable in the name of 'sin taxes'?

 

[james t kirk]

I like the LCBO just fine the way it is.

1. The stores are all clean, well managed, well stocked.

2. It makes a large profit that goes to the province of Ontario to pay for government services. You know - like health care, education, infrastructure, environment, etc. I see this as an excellent use of the money. Eliminate the LCBO and you will lose (I've heard) about 1.5 billion in revenue to the government every year. I don't think that that is a good idea.

3. They control the age of consumption very well. There is no issue when it comes to a sale, if a minor tries to buy alcohol, it's not going to happen. Now contrast this to all the Chinese / Asian run variety stores in my area. (I'm going to be a racist now.) I've regularly seen the guys running these stores sell cigarettes to 13 year old kids without even batting an eye. (And they don't even ring in the sale, just pocket the money.) I've even called these guys out on it, "hey do you really think that kid is 19?" and I just get a dirty look. Please don't tell me that selling booze in the local variety store (The same stores) would be any different. We have enough problems with teenagers getting liquored up, we don't need to make it any easier.

4. So they pay a decent wage. Good for them. No-one working at the LCBO is making a fortune, but they're making a decent wage. Good. Not everything should be a race to the bottom.

So bottom line, if you want your sauce, plan ahead and make it on time. I don't care if it costs you a buck or two (or 20) more. Society benefits from it.

End of story.

 

[james t kirk]

.

it is just pathetic that our neighbours to the south and east pay less than half of what we do for alcohol. I understand that the gov't wants thier share but surely a price differential of 20% is more reasonable in the name of 'sin taxes'?

Ok, so say we reduce the price of booze to a level you think is correct.

How are you planning to make up the lost revenue to the government? (Revenue that is used to pay for your health care, roads, bridges, water treatment, education, sanitation, public health, you name it?)

It's not like the government distributes the profit to a few owners, or shareholders. It gets put right back into the public system.

 

[JackBurton]

Not being a drinker, a bottle of Scotch lasts me a year, I don't really give a crap. As a matter of principle, I think the LCBO should have never been created in the first place. Alcohol should be in regular stores on a shelf beside weed and coke, so the adults can enjoy them and the criminals cannot profit from them.

+1

I'm not a big drinker either but the average consumer is being screwed. As Canadians we are taxed very high on personal income tax, then the gov't hits everyone with gas tax, booze tax, sales tax etc. I don't give a crap if they are the world's largest purchaser of booze in the world - to me that says "hey I'm sure we have over priced consultants and pay too much for our infrastructure". Anybody ever see the summer magazines they put out with recipes and wine pairings? I'm sure that costs a ton.

I say dismantle it, let the people decide with their wallets. I was in Europe a little while ago and the best wine this terrific winery had was $12 EU. That was their top end wine. The average is 3EU. Compare that to a decent bottle at the LCBO which will start around $25 and go up from there

If people want to drink, let them vote with their wallets. What they should be taxing is pot. Set a new system up to stick it to weed smokers and fill the gov't coffers already.

 

[JohnHenry]

It's a lot easier to grow your own pot than brew your own drink of choice.