Beer store monopoly collapsing | GTAMotorcycle.com

Beer store monopoly collapsing

GreyGhost

GreyGhost

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So, Douggie is killing The Beer Stores stranglehold on the market. TBS says this will result in the loss of 7000 jobs.

They continue to argue that they are the best and most efficient distribution mechanism and now say that cracking the exclusive deal means they need to fire everybody and completely close down? You have the distribution, locations, regular clients, etc, if you are as awesome as every press release says you are, you should stay as the market leader and lose a small amount of volume based on other outlets being closer or having longer hours.

The big question is can Douggie beat the giant payment that wynnebag saddled us with?
 
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I hope they do stop the monopoly. Either keep it closed and run it like the LCBO or open it up and give people the option to compete with the big guns.

Rightly said, if the Beer Store is so great they have nothing to worry about. Why would we trust a company that controls the market right now? Of course they do not want competition and they are certainly not thinking of our well being more then their pocket books. I have refused to buy from The Beer Store for some years now. I know it makes no difference but for me it is the principlel.
 
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I'm no fan of the Beer Store stranglehold on the market, that's for sure.

That said, from what I read of the contract that they had with Ontario, unless Dougie has somehow managed to find a way to weasel out of it without repercussion (which, honestly, I doubt...this will end up in court) it's likely gonna cost us all a crap ton of money in the end.

He's sure fixated on beer, isn't he?
 
FullMotoJacket said:
He doesn't drink.
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Fine, but he's still fixated on all things beer.

And calling the Beer Store a monopoly and all that other hyperbole is very ironic given the whole LCBO thing.

But one provides megabucks to the government, and the other provides megabucks to a private company, so yeah, what the real goal is here is rather evident.
 
Until I find another store that will sell 24s I will continue going to the Beer store. Cant see convenience stores carrying 24s of everything. The grocery stores are 6-packs only (is that part of the deal?...don't know). Skids of beer take up a lot of space, TBS isn't going anywhere until Dougie opens it up to allow anyone to sell beer only.
 
PrivatePilot said:
Fine, but he's still fixated on all things beer.

And calling the Beer Store a monopoly and all that other hyperbole is very ironic given the whole LCBO thing.

But one provides megabucks to the government, and the other provides megabucks to a private company, so yeah, what the real goal is here is rather evident.
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I was hesitating to call it a monopoly as there is obviously the lcbo and now grocery stores. Whatever you call it they are a private enterprise in an established field with at least another decade of government protection from serious competition.

If the government is going to protect something, they ahpuld at least keep the profits to minimize involuntary tax xollection required.
 
I still find it shocking when say in 7-11 in the USA or any store in other countries you can buy a 24, 12, pack etc almost everywhere.
Here we can't because of our nanny government tells us it is better for us, while they cash in. Hopefully they open it up.

Meh my drinking days are mostly behind me I just spend it on the bike.
 
the government managed booze outlet is light years a better experience than the beer store
will be great to see some competition against that outfit with ancient infrastructure and terrible service

but I don't go there very often, my two-four days are in the past
quality over quantity makes me prefer LCBO for beer
 
JavaFan said:
the government managed booze outlet is light years a better experience than the beer store
will be great to see some competition against that outfit with ancient infrastructure and terrible service

but I don't go there very often, my two-four days are in the past
quality over quantity makes me prefer LCBO for beer
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There will also be additional costs for an alternate bottle drop off location. I am sure that TBS will want no part of that if the contract is cancelled.
 
I say open it wide. TBS and the UFCW has self serving agendas, they want the cozy protection of a monopoly to protect their profits their jobs.

They are a specialty retailer selling commodity goods, completely redundant to the LCBO, and large scale food distributors / retailers in Ontario.

The net result is the monopoly adds about $400 million to consumer costs in Ontario - it's basically the 'beer monopoly tax'.

Imagine if we had a soft drink distribution monopoly that ran uselessly parallel to the existing distribution network but added $400million consumer cost in Ontario.
 
Beer Store president Ted Moroz said:

“The government cannot extinguish our right to damages as outlined in the Master Framework Agreement. It is critical to understand that The Beer Store has, in good faith, based on a legally-negotiated 10-year operating agreement with the Province of Ontario, invested more than $100 million to modernize its stores and to continue to upgrade the consumer experience.

I don't go in TBS often, but any I have visited don't look much different than they did 30 years ago. Did they pay themselves a 97 million dollar consulting fee to decide that 3 million dollars was required for a new POS system?

For interest:
Master Framework Agreement
 
GreyGhost said:
There will also be additional costs for an alternate bottle drop off location. I am sure that TBS will want no part of that if the contract is cancelled.
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Unless they come in line with competitive pricing from corner/grocery stores, sorting bottles will be all they'll have left.
 
sburns said:
I still find it shocking when say in 7-11 in the USA or any store in other countries you can buy a 24, 12, pack etc almost everywhere.
Here we can't because of our nanny government tells us it is better for us, while they cash in. Hopefully they open it up.

Meh my drinking days are mostly behind me I just spend it on the bike.
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The argument of government control equating to public safety is a bit flimsy (they do help control sales to underage folks better than most other stores would on average, I imagine) but the main benefit in Ontario when it comes to the LCBO is the decent jobs it creates and the amount of money the stores bring into the government coffers. I'd rather see it coming in through that avenue than either by cutting services or raising income taxes.
 
ifiddles said:
so...he's willing to spend millions to break a contract with the beer store, but there's not enough money for education, hospitals, seniors etc...his spending on the wrong things is what's going to kill Ontario...
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Small point of contention, but AFAIK it is closer to billions than millions
 
This will cost millions, there is no way around that. And its mostly Doug kicking anything union based. I dont like Unions, but kicking this is a bit silly. The price which is mostly tax wont go down, somebody has to collect empties, and TBS does an OK job of what they do, sell beer.

Running a bar, its a LOT easier to order most product from one vendor.
 
Brewers retail on the commercial side will continue to exist and do their regular business just fine.

They're just ****** they're going to have to actually compete on the retail side.
 
PrivatePilot said:
Brewers retail on the commercial side will continue to exist and do their regular business just fine.

They're just ****** they're going to have to actually compete on the retail side.
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When revenues drop corporation equity drops and leverage to fund other investments drop. The trickle down theory only works when adjustment have to be made for declining profits.
 
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