One of many reasons why I virtually gave up on drinking.

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I have read that article and I am sorry to say that I don't get where is the evidence of LCBO leaving money on the table when dealing with suppliers. The auditor has said, but the auditor has presented zero evidence. Or have I missed that?

I have a hard time believing that LCBO as a company with the largest alcohol buying power in the world would be given pricing of much smaller establishments. Most sellers won't risk LCBO switching or dropping the brand.

BTW, I have worked for a company who was one of LCBO's exclusive forwarders, so I know a thing or two and at what prices they are buying their stuff. I also know what prices are similar products sold in Europe and let me tell you it would be very hard to make any case out of it.

I am just very curious to see the auditor's evidence. Don't tell me that he has called around a few winemakers in France and was pretending to be a small buyer who got quoted LCBO's rates .... LOL
 
OpenGambit said:
Sounds like a tradeoff, considering the LCBO has some of the best wine selection on the planet.
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what trade-off? The auditor's report states that the LCBO is offering to buy at a price higher than the MSRP.
They're not even using their buying clout. They don't have to browbeat the producers, but why are they offering MORE than what the vendor actually wanted in the first place?

Yes, liquor stores charge you top dollar. But to the auditor’s astonishment, the LCBO frequently gives a break to its suppliers by paying them a more generous wholesale price than winemakers expect — and more than the market dictates.
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Here’s how the bizarre policy works: The LCBO sets a price range for a particular class of wine. Suppliers bid with a proposed retail price, then work backwards from the LCBO’s fixed markup to arrive at a pre-determined wholesale price.
Absurdly, if a supplier’s suggested retail price (and therefore his wholesale price) is deemed too low, the LCBO goes back to the supplier and offers to pay a higher wholesale price so as to bump up the final selling price.
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Its fairly common knowledge that Vintages is able to get a amount of premium wine that is far greater than our population would justify.

Buying clout isn't just about pricing, its also about availability.
 
OpenGambit said:
Its fairly common knowledge that Vintages is able to get a amount of premium wine that is far greater than our population would justify.

Buying clout isn't just about pricing, its also about availability.
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but how can they justify paying MORE for wine than the vendor is even asking for?
 
I am not justifying anything I am just taking the bad with the good?

I am not so young that I get out of my chair for every "wrong" anymore.
 
OpenGambit said:
I am not justifying anything I am just taking the bad with the good?

I am not so young that I get out of my chair for every "wrong" anymore.
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not saying you're justifying it.
just saying the LCBO can't justify it.
 
I have and will continue to buy my wine and spirits cross border. I know its technically not legal as i only got for the day, but when i go(usually every 2 weeks) I buy my bottle of ciroc, my tequila( which is so insanely cheap there) and my wine!
The prices are more then half the price they here and the selection of wine is not that bad.
 
Maybe a dumb question, but does the LBCO work like the Beer Store, in that the vendors themselves have a stake in the business? Or like the CRTC, where maybe people from huge companies like InBev wind up in positions of power?

caboose483 said:
I didn't actively give up drinking, but i barely drink anymore. I like a beer now and then but I could probably count the beers I've had this year without taking my pants off.

I do know that the LCBO is a statistical outlier when it comes to profit margins and general business practices. Must be nice.
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What if you do include the beers you had with your pants off?
 
Here here! I too will stop doing something I enjoy 'cause the liquor store is charging me 1 dollar too much for my bottle of wine. Fight the power.

rablerablerable
 
and just the reason we will keep getting it up the hoop:D

Fingolfin said:
meh... I will continue to drink...

considering how i get screwed on my taxes, the 407, motorcycle insurance, car insurance I don't care to complain about $5 extra for a bottle of wine..
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There is no free market in Canada. Banking is a monopoly, liquor is a monopoly, public transit is a monopoly. All of which are losing money. Now that the FIAT money paying for all this is failing. You will see all the fraud that the governments have been commiting.
 
TwistedKestrel said:
Maybe a dumb question, but does the LBCO work like the Beer Store, in that the vendors themselves have a stake in the business? Or like the CRTC, where maybe people from huge companies like InBev wind up in positions of power?
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Not at all. Having worked for one of the big guys, I can tell you the LCBO goes out of its way to lean on the big suppliers to basically fund smaller competitor programming. It can be a really good thing (more selection, preference given to local businesses) or a really bad thing (importing New World wine and screwing big local suppliers). It honestly really depends.

BLUE_KAWI said:
There is no free market in Canada. Banking is a monopoly, liquor is a monopoly, public transit is a monopoly. All of which are losing money. Now that the FIAT money paying for all this is failing. You will see all the fraud that the governments have been commiting.
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Gravy bowl brigade ho!
 
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BLUE_KAWI said:
There is no free market in Canada. Banking is a monopoly, liquor is a monopoly, public transit is a monopoly. All of which are losing money. Now that the FIAT money paying for all this is failing. You will see all the fraud that the governments have been commiting.
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What flavor do you like your kool-aid?
 
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