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HISTORY OF THE BEER STORE
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.
| THE BEER STORE QUICK FACTS (2008)
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Full Time Employees
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2,025 |
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Part Time Employees
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5,331 |
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Total Employees
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7,356 |
| RETAIL OPERATIONS
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Number of Stores
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438 |
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Number of Brewers
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89 |
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Number of Brands
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346 |
| WHOLESALE OPERATIONS
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Distribution Centres
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8 |
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Cross-Dock Facilities
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8 |
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Distribution Fleet
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291 |
| PROVIDING SERVICE TO
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Licensees (bars and restaurants)
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16,223 |
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LCBO Stores
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604 |
TBS Retail Partner Stores
(Southern Ontario)
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141 |
LCBO Agency Stores
(Northern Ontario)
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75 |
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