Established
in 1927, The Beer Store is the primary distribution and
sales channel for beer in Ontario. It sells beer to the
public under the authority of the Liquor Control Act and is
owned by Labatt Brewing Company Ltd., Molson Canada and
Sleeman Breweries Ltd.
Operated on a cost recovery basis with a standard service
fee schedule, The Beer Store is a unique retailer. Unlike
other retailers, including the government owned LCBO, The
Beer Store does not pick and choose the products it sells,
nor does it set the prices at which those products are sold.
These choices are made by individual brewers. The Beer Store
system is open to any brewer in the world with common rules
for users and service fees based on volumes sold.
Two provincial government agencies, the Alcohol and
Gaming Commission of Ontario (AGCO) and the Liquor Control
Board of Ontario (LCBO), oversee several aspects of The Beer
Store operations including such issues as minimum age for
purchase, hours of sale, selling price, advertising and
promotions, labeling, product integrity and approval of
store locations.
Any brewer in the world can sell their beer through The
Beer Store provided the product has been approved for sale
in Ontario by the LCBO (i.e. has met LCBO quality control,
labeling and price approval requirements). The Beer Store
does not refuse access to any LCBO approved beer product.
Brewers also select The Beer Store retail locations that
they wish to sell in. Brewers can be in one store, 50 stores
or all 440 locations of The Beer Store – it is their choice.
Brewers that wish to sell through The Beer Store can pay
a per store listing fee or a single fee for the entire
system depending on the number of stores they wish to sell
in. The per store listing fee was introduced to accommodate
brewers whose primary interest was accessing localized
markets (as opposed to the entire system).
Beer products have to meet minimum sales quotas within
each store to remain listed in that location, but unlike
other retail systems, such as grocery or department stores,
there are no category or product managers who choose what
products will end up or remain on the shelf. In larger
locations of The Beer Store, brewers are only required to
sell one 6-pack a month to meet this quota.
Since The Beer Store has been a brewery-owned corporation
from inception, it has had to adopt policies that ensure it
does not favour any particular brewer in relation to other
brewers. To achieve this objective, shelf space and elective
marketing opportunities within The Beer Store retail
locations are allocated on a market share basis.
While The Beer Store operates under the principle of
brewer neutrality exceptions are made to accommodate the
needs of smaller brewers. A number of The Beer Store
policies have been structured to benefit brewers with less
than 25,000 hl of sales. The Beer Store has lower service
fees for small brewers and in the case of shelf space and
marketing opportunities, these brewers receive allocations
that are larger than their market share would warrant.
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