The Privatization of the Liquor Business

Booze in Canada

[Update: In April 2019 the Ford government's first budget announced that alcohol would now be sold in Ontario in more places and be served at an earlier hour. A while back I did this related post which offers information about booze laws generally in Canada along with a bibliography.]

      Today there is an article in the London Free Press asking this question - "With Beer and Wine on Ontario Grocery Shelves, Why Not Liquor?" (see: "Distillers Seek Shelf Space in Supermarkets," Hank Daniszewski,  London Free Press, March 20, 2018.) Even though we can now walk to some grocery stores to buy some types of beer and may soon be able to purchase dope, the sale of alcoholic beverages is still tightly controlled.  For many years, throughout Canada, more ink has been spilled over this subject than booze consumed.

   I recall working on this subject over a decade ago and the somewhat dated results may be of use since the bibliography is a good one. Keep in mind that it has not been updated since c.2005. It was done at the University of Western Ontario (now Western University) as a guide for the faculty and students. It is no longer available on the University website and the University is not responsible for it. The document has been slightly edited (by me) and I have attempted to cure some of the 'link rot'.

   The pasting of the contents eliminated the italicization of titles and for that an apology is made. Keep in mind that it has not been updated since 2005. Still, the coverage is Canada-wide and the references will be useful. If you are currently working on this subject for a term paper, you will now have more time to go drinking.

Update: September 2005: [The Business Library had just received a print version of this report which is available online.] "Strategy for Transforming Ontario's Beverage Alcohol System", prepared by the Beverage Alcohol Review Panel. John Lacey, the chair of the panel has outlined the outcomes of the recommendations as being:
1) the consumer would get greater convenience and choice and would benefit from a competitive retain environment
2) the government would remove itself from investment risk while increasing its annual revenues
3) Ontario would continue to benefit from sound social responsibility practices
4) the existing commercial inequities would have been materially addressed.
The html version can be viewed here.

Update: February 2005:
     The information below was originally gathered in 2004. Early in 2005 there was again considerable interest in the subject which was prompted by Finance Minister Greg Sorbara's news conference. At the "Seinfeld News Conference" (labeled as such because it was " a show about nothing" ) it was announced that an independent panel would review the way liquor, wine and beer are distributed in Ontario. Here are some of the reactions: " Is LCBO For Sale or Not?", Guelph Mercury, Jan.14, 2005, p.A8; "Beer in Corner Stores? Ontario Floats the Idea-Province to Examine 'Archaic' Liquor Laws," Richard Brennan & Robert Benzie, Toronto Star, Jan.12, 2005, p.A01 and "Wine, Beer May Come to Corner Stores: LCBO Review Announced," CanWest News Service, Jan 12, 2005. We have worked up quite a thirst in striving to maintain some balance in presenting information about this subject and will continue to do so by pointing you to a couple of editorials for and against privatization; the National Post (which is consistently in favour or privatization) reprinted a Windsor Star editorial which concluded that the government should "get out of the booze business altogether" (see" "Liberalizing Liquor Laws," NP, Jan.14, 2005, p. A17.). The other view is expressed in "Don't Fix What Works," Mark McNeil, The Hamilton Spectator, Jan. 13, 2005, p.A17. All of these resources are available to you electronically and if you have difficulty locating them, consult with library staff.
[I am sure that is still the case].

     In recent months the issue of government control of alcohol sales has been a hotly debated topic and a factor in election campaigns. The subject has a long history and given the fact that political, economic and social factors are involved, many books and articles have been published and most of those are more partisan than disinterested. Our purpose here is to direct you quickly to some recent material that relates to the Canadian situation. Provided below are selected studies and articles held in the Western Libraries that relate to the provinces of Alberta, British Columbia, Nova Scotia and Ontario. The list is not an exhaustive one, but an attempt was made to choose articles representing different points-of-view. For assistance in locating the articles in the collections or in databases, consult with library staff. Most of the articles below were taken from databases provided by ProQuest and in many cases the articles are fully accessible electronically to members of the UWO community.
There are many books related to this topic in the Western Libraries. There are a number of good subject headings from which to choose. Here are some suggestions: Drinking of alcoholic beverages - Canada ; Liquor Laws ; and Prohibition. For an excellent reference source see: Alcoholic Beverage Taxation and Control Policies. This expensive resource is published periodically by the Brewers Association of Canada. It contains international data relating to such things as "The Government Approach to Control and Sale of Alcoholic Beverages;" "Pattern of Drinking and Beverages Consumed"; "Statistics on the Alcoholic Beverage Industries" and "Per Capita Consumption". Many countries are covered ranging from Australia to the United States (the latest edition is still the 9th from 1997 as of early 2004).
Material is also found on the web. Two union sites that take an interest in the issue are the National Union of Public and General Employees (http://www.nupge.ca ) and the [Liquor Board Employees Union (https://opseu.org/sector/liquor-board-employees ). ]At the latter site, links are provided to additional studies. The issue and related studies on privatization are often found at "Think Tanks".[link deleted]
There are two studies that are often referred to in the articles below. For your convenience they are provided here since they represent two approaches to the issue: 1) Douglas West, The Privatization of Liquor Retailing in Alberta and 2) Greg Flanagan, Sobering Result: The Alberta Liquor Retailing Industry Ten Years After Privatization.

Alberta:

A New Era in Liquor Administration: The Alberta Experience.
Out of Control: Paying the Price for Privatizing Alberta's Liquor Control Board
Brownsey, Keith, "Selling the Store: Privatizing Alberta's Liquor Stores," in Public Administration And Policy: Governing In Challenging Times.
David MacLean ." Union's Liquor Store Analysis Untrustworthy,"(Oct 30, 2003), Star - Phoenix (Saskatoon) p. A15
"Distilling the Facts: Flaws in Liquor Retailing Industry Don't Justify Return to Monopoly," (Jun 5, 2003). Calgary Herald p. A20.
Fred H. Smith, "Privatized Liquor Sales Pay Dividends," (Nov 4, 2003) Star - Phoenix p. A12
Kelly Cryderman . Private Liquor Stores Drink a Toast on 10th birthday: Consumers Were Skeptical in 1993," . (Dec 22, 2003) Edmonton Journal p. A1
Mairi MacLean, " Albertans Drinking More, and Better: Tastes Change, with Red Wine Overtaking White: StatsCan Review, (Aug 31, 2002). Edmonton Journal p. E1
Michelle Lang, " Study Toasts Success of Private Liquor Sales," (Mar 2, 2003). Calgary Herald p. A1 Sorcha McGinnis "Report Raps Liquor Privatization (Jun 5, 2003) Calgary Herald , p. A10
"Alberta Streamlining, Privatizing Paperwork" (Oct 15, 1999). Canadian Press Newswire p. n/a.
"No Beer with your Cheerios, But the Critics were Wrong: The Province Rejects Grocery Chain Demands for a Wide Open Private Liquor Market" (Jul 21, 1997). Alberta Report 24 (32), p. 18-19.
"Liquor Privatization Costs Albertans" (Jun 30, 1997). The Gazette, p. A7.
"Province Limiting its Revenues from Liquor Sales" (Jun 29, 1997). Canadian Press Newswire p. n/a.
"Alberta's Liquor Store Privatization: Economic and Social Impacts Policy Options" (Apr 1997). Policy Options,Vol.18, (3), p. 24-27.
"Raise a Glass to Private Liquor Retailing in Alberta - Byfield" (Aug 17/19, 1996). Financial Post , 90 (33), p. 18.
"The Privatization Hangover: Liquor Dealers are Battling for Survival" (Aug 11, 1996). Calgary Herald p. C7,C8.
"One Thumb up for Liquor Privatization: a University of Alberta Prof. says Alberta's new Booze Retail Industry is Mostly a Success (Douglas West's study)" (Jul 15, 1996). Western Report 11 (26), p. 8-9.
"Privatization Brings Mixed Results: Study (Centre for the Study of State & Market at University of Toronto and University of Alberta)" (Jun 25, 1996). Canadian Press Newswire p. n/a.
"Report on Western Canada" (Feb 19, 1996). Marketing Magazine 101 (7), p.10-16.
"Spirit of the West: Everyone's talking about Privatized Liquor Stores in Alberta: Prices are Higher, Selection is Down, Crime is Rampant. Problem is, none of what they're Saying is True" (Dec 1995). Toronto Life 29 (18), p. 71-75.
"Beer Sales Fall Despite Liquor Privatization (1994 data)" (Aug 6, 1995). Canadian Press Newswire p. n/a.
"Reports Show Two Faces of Liquor Privatization (Debate over Alberta's decision to privatize liquor retailing)" (Mar/Apr 1995). Addiction Research Foundation 24 (2), p. 3.
"A Crash Course in Security: Private Liquor Store Owners Cope with Drive-in Break-Ins" (Mar 27, 1995). Western Report 10 (9), p. 20-21.
"Crisp, with a Hint of Profits: Three Microbreweries Open in Alberta" (Mar 6, 1995). Western Report 10 (6), p. 20-21. "Klein's Free Market Utopia," Canadian Dimension" (Feb 1995) 29 (1), p.20
"Learning from Canada's Reagan," Wall Street Journal (Feb 23, 1995). p. A14.
"West Raises his Glass to Liquor Privatization: His One-Year-Later Report says the Nay-Sayers were all Wet " (Jan 9, 1995). Western Report 9 (50), p. 12-13.
"Alberta, Public Enemy #1: Another Left-Wing Lobby Arrives to Hunt for Hard-Luck Victims of Ralphonomics" (Sep 26, 1994). Western Report 9 (35), p. 16.
"Academic Studies come Cheap these days: a Liquor Privatization Report tells its Sponsors what they want to Hear" (Sep 19, 1994). Western Report 9 (34), p. 20-21.
"Liquor Privatization Leaves Hangover, Study Finds" (Alberta) (Sep 1, 1994). Canadian Press Newswire p. n/a.
"Montana Just Keeps Getting Closer: Alberta too may soon let Grocery Chains Sell Beer, Wine and Spirits" (Jul 25, 1994). Western Report 9 (26), p. 14-15.
"A Vintage Deal for Wine Merchants: ALCB Subsidies to Wine Stores Smack of Getty-style Cronyism (Alberta Liquor Control Board)". (Jul 11, 1994). Western Report 9 (24), p. 14-15.
"Any Benefits for Grocers Rest with Patience and Time: a Toast to Alberta for its Move to Privatize Liquor Sales" (Nov 1993). Canadian Grocer 107 (11), p. 5.
"Brewing Up a Storm: Alberta's Beer Industry Bubbles Despite a Flat Market " (Nov 1, 1993). Western Report 8 (40), p.15.
"Alberta Leaves Grocers Out of Liquor Store Privatization" (Oct 1993). Canadian Grocer 107 (10), p. 7.
"Union to Sue Province Over Privatization (of liquor stores)" (Oct 12, 1993). Calgary Herald (index-only) p. A2.
"West's ALCB master stroke (Alberta Liquor Control Board): the Historic Semi-Privatization of Liquor Sales has one Motive, Money" (Sep 20, 1993). Western Report 8 (34), p. 6-9.
"Liquor Privatization Assailed" (Sep 16, 1993). Financial Post (index-only) 6 (130), p. 50.
"Privatizing the Booze Trade: Taxpayers could Benefit if the ALCB Sold off its Retail Outlets" (Aug 23, 1993). Western Report 8 (30), p. 8-9.
"Aid for Roughriders Angers Social Critics: Liquor Plan Raises Privatization Fears" (Feb 9, 1990). The Globe And Mail p. A1,A4.

British Columbia

Demon Rum or Easy Money: Government Control of Liquor in British Columbia from Prohibition to Privatization
Liquor Policies for British Columbians
Liquor Policy Review: Background Information for a Consultative Process
"Tax cuts, Government Reform Largely imaginary in B.C.", Niels Veldhuis and Todd Gabel. National Post, Dec 29, 2003. p.FP09
"Flip-flop on Liquor is a Policy Mistake," Mark Milke. Times - Colonist Victoria,Oct 27, 2003. p. A6
Setting liquor free: B.C. Unions have quasi-monopolistic grip on Liquor Sales," Mark Milke. National Post, Oct 22, 2003. p. FP17
"Alberta can Toast our Stupidity -- Cheaply," Mark Milke. The Province ,Oct 16, 2003. p. A22
"Consumers' Association Commends British Columbia Government For Rejecting Alberta-Style Liquor Stores and Calls For Major Updating of BC Liquor Stores," Canada Newswire, Oct 13, 2003. p. 1
"Consumers the Losers in Gov't Backdown on Liquor Privatization," (Oct 14, 2003). The Province p. A20
"Privatization won't mean a jump in liquor prices," Anthony Gismondi. The Vancouver Sun , Jul 30, 2003. p. C.3
"B.C. government ponders best route for privatization of liquor business" Joyce, Greg. Canadian Press Newswire Jun 1, 2003. p.n/a
"Nanaimo liquor store among first to close," Judith Lavoie. Times - Colonist Victoria, Feb 21, 2003. p. A1
"Much to learn from Alberta's liquor privatization: Nine years on, the result is generally positive, Maurice Bridge finds," Maurice Bridge.The Vancouver Sun , Nov 6, 2002. p. D1
"B.C.'s Liquor Privatization Plan puts grocers at odds," Condon, George H. Canadian Grocer, Nov 2002. Vol. 116,Iss. 9, p. 80
"Pseudo-privatization: The BC government isn't going as far as Alberta in getting out of the booze business,"O'Neill, Terry. Report Newsmagazine, Sep 2, 2002. Vol. 29, Iss. 17, p. 19-20
"B.C. following same agenda as Ontario ; Huge cuts in ministry budgets can be accomplished with a simple sweep of the pen, but the cuts come at a cost," Ernie S. Lightman. Toronto Star, Jan 21, 2002. p. A17
"Setting Liquor Free: B.C. Unions have Quasi-Monopolistic Grip on Liquor Sales", National Post
Oct 22, 2003. p. FP.17.
"How to bring Cheap Liquor to BC: a Fraser Institute Conference says Privatization is the Key" (Jul 14, 1997). British Columbia Report 8 (46), p. 16.
"Crushed by High Taxes: Despite Subsidies, BC Wines Lose Ground to the Imports" (Sep 23, 1996). British Columbia Report 8 (4), p. 28-30.
"Scaled Back, Downsized or Sold Off: Privatization of some Provincial Assets seems Inevitable if the NDP is Removed from Office" (Jan 1, 1996). British Columbia Report 7 (18), p. 7.

Nova Scotia

"Government Workers Storm NS Legislature to Protest Privatization " (May 4, 2001). Canadian Press News Wire p. n/a.
"Hamm's Christmas Wish List Includes more Federal Money for Nova Scotia" (Dec 22, 2000). Canadian Press News Wire p. n/a.
"Nova Scotia Legislature Passes Bill to End 33-Year Involvement in Steel Business" (Nov 30, 2000). Canadian Press News Wire p. n/a.
"Privatization Fight Rages in Nova Scotia" (Jul 29, 2000). National Post (index-only) p. D11.
"Forgotten Promises: Joan Jessome on Nova Scotia's Tories" (Apr/May 2000). Our Times 19 (2),
p. 28.
"Nova Scotia Considering Privatizing Liquor Business" (Apr 11, 2000). Canadian Press Newswire p. n/a.

Ontario

The Social Consequences of Privatizing Liquor and Beer Stores, Ted Glenn, Ontario Legislative Library.
"The Deficit; Looking at the LCBO," The Windsor Star, Jan 12, 2004. p. A6
Privatization Would Ruin Ontario's Liquor Business: LCBO boss," The Ottawa Citizen, Mar 19, 2003. p. B5
"Let the Private Sector Take Over," Kingston Whig - Standard, Aug 24, 2002. p. 7
"Privatizing Liquor Sales Makes Sense," Sudbury Star, Aug 11, 2002. p. A8
"Ontario to Grant Rural Liquor Franchises: Form of Privatization, Minister Says" (Sep 22, 2001). National Post,
p. A12.
"Cities Lining Up to Support LCBO" (Jul/Aug 1996). Addiction Research Foundation 25 (4), p. 3 .
"Ontario Gives Thumbs Up to Alberta's Liquor Privatization" (Jul 26, 1996). Canadian Press Newswire p. n/a.
"Liquor Stores Top Privatization List" (Jul 20, 1996). The Globe And Mail p. B2.
"The Harris Revolution" (Jun 10, 1996). Maclean's 109 (24), (6 pp.).
"Molson Opposes Sell-off of LCBO" (Mar 08, 1996). Toronto Star.
"Liquor Privatization: Liquor Union Preparing Ad Blitz, (Addiction & Research Foundation Letter)" (Aug 3, 1995). The Globe And Mail p. A14.
"Liquor Store Union Financing Fight Against Privatization" (Jul 18, 1995). Canadian Press Newswire p. n/a .
"Tories nursing Decision on Liquor Reform: Privatization or Overhaul of LCBO will be studied for at Least Six Months"
(July, 12, 1995). The Globe And Mail p. A3.
"Privatizing the LCBO would put Union's Claims to the Test"- Forum" (Feb 8, 1995). Financial Post (index-only) 8 (4), p. 13.