9 August 2018
On Buck a Beer - It's not about the beer
If you're reading this, I'm going to assume you fall into one side or the other of the recent government announcement and inducement to Ontario's craft brewers to lower prices to $1. The floor price prior to this was $1.25 and despite that, no one had thought to sell at such a level. There have been many brewers who've come out about the actual costs of making their beer, the commitment to quality ingredients and paying a fair wage to their employees as solid reasons why this will not work. To sell a beer, even a 355ml can, for such a low price is not only a silly idea, it is not viable for any craft brewery to do so without incurring losses.
That the Conservative government of Doug Ford wants private business to voluntarily lose money in order to fulfill an ill thought out campaign promise would be laughable if it wasn't so real. The so called inducements of free ads and prime shelf space at the LCBO are not only small and not worth the loss of money and respect, they do take money out of taxpayers pockets through lost revenue. While larger brewers, i.e. Molson's or AB-Inbev, could absorb or even minimally profit from volume sales, there is no indication they desire losing money to help prop up this ridiculous fantasy.
Some have pointed to some recent government grants to Ontario Craft brewers as the public subsidizing the beer industry as proof that they should play along with this scheme. While it is true that many breweries have accepted grants, they have been used to modernize and expand plants, adding jobs and tax revenue which outweighs the initial investment. There are a myriad of businesses, most much larger and not Canadian owned, that have benefited from government money and intervention with less return to the public purse. We heavily subsidize or control prices in many industries, but never has a government tried to force a business to sell their product for less than they can make it in order to distract the population from the real and present consequences of their policies.
I am not an economist, just a regular guy who loves his beer and speaks with his hard earned dollars. Paying for quality is what we do when we go to our local craft brewer, pub, restaurant or any other place for a pint. Would I love to pay less? Of course I would, it's always good to see your dollar go further. I'd like to pay less for gas, food and a host of other necessities of daily life too. But this policy announcement wasn't about beer at all. It was about trying to continue the politics of separation, of dividing people and taking eyes and voices away from the other policy decisions this neophyte government has made. This is bread and circuses at its finest, distracting us away from the 350 million dollar cut to mental Health funding, the reversal on Sex education and the destruction of local democracy in Toronto to name just a few. Buck a beer is nothing more than a smokescreen and any attempt to frame it as greed or being a snob about beer is not only disingenuous but feeding into the class division that is being driven by a rich populist dressed up as a blue collar guy.
The previous government in Ontario was responsible for some truly terrible decisions, many bordering on dereliction of duty. There is no doubt that trying to cast dispersions of Kathleen Wynne fuels many of the comments and discussions around this policy. But again, this is a distraction from just what is happening in an industry that is providing jobs directly and indirectly, growing every quarter more than the last. Our Craft brewers are important parts of the places they reside in. They fund and participate in local charities and events, they work side by side with each other to promote the entire community and they are, for the most part, committed to creating lasting improvement to where they make and sell beer.
In small towns and large cities across the province, the taprooms are becoming community hubs, hosting events for everyone and promoting an inclusive and diverse place to get together. While far from perfect, the craft beer people I have met are a caring and genuine group of people who span economic, social and racial divides. We don't agree on everything but we all want our little corner of the world to be a better reflection of who we are. We want to be a big tent for everyone to feel safe and accepted for who they are and as you have seen by the response to this misguided policy, we are united in our passion for good beer and great people.
So don't be fooled or distracted by the chatter of Buck A Beer. It is politics dressed up in an aluminum can to distract from the real issues of the day. No reputable brewer will attach their names to such a poorly thought out plan and the one's that do will either produce poor beer or lose so much money selling a good product well below profitability that they will suffer the financial consequences. Your dollars matter, vote with your purchasing power and support the large portion of Ontario Craft who have said loud and clear that they are not going to be pawns in this game of musical beers.
I stand with the Boycott of anyone who makes Buck a Beer, because it is about so much more than just beer.
Cheers!
Polk
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