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Happy 90th Anniversary To The Greedy Freaks At The BC Liquor Distribution Branch

The following just arrived in my inbox from the good folks at WineLaw.ca. If the text had a body, I’d give it a hug:

It is the 90th anniversary and the government monopoly Liquor Distribution Branch (LDB) still controls and sells all liquor within BC at the wholesale level and still sells a vast amount through its government retail stores which have extremely high operating costs. The LDB is a $3 billion per year business in B.C. It generates about $900 million per year for the government but costs about $300 million per year to operate.

The following are some of the legacies of prohibition which make BC look ridiculous when compared to the rest of the world:

– Today, all liquor sold within BC must be registered and listed with the government. All imports of liquor must be approved by and processed through the government wholesaler. Yet, we don’t do this for cigarettes or guns.

– Today in BC, and unlike most of the rest of the world, it is still illegal to consume alcohol in a public place such as a park. BC citizens cannot legally enjoy a glass of wine while enjoying a picnic.

– It is still illegal to carry liquor across provincial borders (a criminal offence with possible imprisonment). In Europe, you can ship alcohol between countries without a problem. While Canadians cannot legally return from a vacation in another province with any alcohol, they can bring back 2 bottles per person after a trip to another country.

– We have excessively high taxes on liquor which result in prices being about double what they should be. For example, Chateau Ste. Michelle Riesling, a Washington state wine, is commonly available for $6 south of the border. It is $15.99 in BC because the standard LDB markup on wine is 123% plus 12% HST on top of that for a grand total of 135% tax.

– Wine is good for you when used in moderation as intended. No amount of soda pop is good for you but that is taxed at only 12%.

– We have arcane regulation of restaurants and private retailers such that these independent businesses are not permitted to do things which are otherwise commonplace. For example, they cannot store liquor off-site. They cannot transfer liquor between locations of the same restaurant or retail chain (even if the LDB is out of stock). They must buy nearly all their liquor from the government, usually from a single designated government store. If they order anything other than mainstream products, they are forced to order in full case lots via a slow and inefficient delivery system. As a result, restaurants frequently run out of products or encounter storage and financial issues due to the requirement to order in such large quantities.

– Restaurants and bars are denied wholesale prices entirely. Private retailers are given wholesale prices which are fixed artificially high by their chief competitor (the government stores). As a result, there is virtually no competition in the retail liquor business and consumers are denied the sales and good deals that are common in other countries.

– It is illegal for a private person to sell a bottle of liquor to another private person. Auctions are also illegal (unless done for charity).

– Citizens cannot take their own wine into a restaurant and have the restaurant charge them a corkage fee (even if the wine was purchased from a government store). This is illegal – it’s considered to be “illicit liquor”.

Happy Anniversary LDB, but don’t expect the rest of British Columbia to be joining you to celebrate the 90th birthday of the establishment of government control over the sale of liquor within the province.

PS. You suck.

There are 7 comments

  1. pretty sure the last point is no longer correct Re: Corkage , BYOB to the restaurant

  2. The facts came straight from a lawyer that specializes in BC wine and liquor laws. BYOB has been discussed at times but unfortunately BYOB is currently not legal in BC.

    For more info about some of the ridiculous wine laws check out http://www.winelaw.ca/cms/!

  3. After visiting Vancouver last week it is a testament to the very fine folk of the F&B industry that there is such a thriving scene even with the yolk of these bureaucratic idiots placed upon them. The efforts of Mark Brand and Sean Heather along with others have done more to transform Gastown than many successive governments at both the provincial and local level. One day I was being told that the BCLDB were shutting down the special orders desk and the next I was hearing about them doing a whole lot of leg work to do orders for a “private club” importing product from the SAQ.This is a system so malignant and diseased that needs serious reform if not complete dismemberment. Happy Anniversary!

  4. Sure, there’s a lot of BS with the BCLDB, but $900 million/year funds a lot of things we take for granted: health care, schools, road building, job creation, arts & culture, ferries, green spaces, advanced education, public transit, public libraries.

    Privatization is no panacea, either –
    On the Alberta experience:
    “The private retail liquor market has evolved into one where there is considerable inefficiency in the form of excess capacity, duplication, and redundancy, particularly in urban centres. This inefficiency generates considerable higher costs of retailing, even though wages are at one-half compared to other jurisdictions. As prices are comparable to those found in British Columbia, although with considerable variation, the tax revenues returned to government are much lower in Alberta. ”
    http://parklandinstitute.ca/downloads/reports/sobering-result-report.pdf

  5. Very good points Q!. The taxes pay for a lot of what we take for granted. It’s the stupidity we hate.

    Privatization is tough to support too. For every John Clerides and the Marquis there is an Everything Wine. The North Shore store provides even worse customer service then the poorest LDB store.

    The provincial government’s selection system puts the City of Vancouver street food lottery to shame when it comes to poor selection of operators. Do we want the Donelly Group selling us liquor? I’m just not sure anyone has the answers.

  6. That $900 million doesn’t all go to us Q. Remember that much of it goes to running the entire thing. Remember also that they overpay large companies on purpose to line up “Social reference pricing”. SRP is literally them trying to control our liquor intake by both paying and making us pay artificially high prices, yet many have legitimately pointed out that this is them just making “Their opinion” part of the law – there’s no actual statistics to back this up.

    Remember that they hurt small restaraunt businesses because they don’t give price or tax breaks to them – they have to pay the same that we do.

    So, I have to absolutely agree, the liquor boards of Canada are doing much more harm than good to consumers, tourist dollars and small businesses while they’re making the salaries and average wages of their board much greater and stuffing the already-fat pockets of companies like Smirnoff.

    I’ll be buying my 1.14L of alcohol on trips to the U.S. from now on, thanks.