The Beer Store - Another Look

 

Artsy Beer Store Beer

 I come here not to bury The Beer Store, nor to praise it. I come here today to talk about what most folks who aren't me, or beer drinkers like me, think about the it and the impending changes coming to the selling and distribution of beer in this province.

  Short answer...most people don't give a shit.

  Longer short answer...they just want to get their 24's, return their empties and get on with their day. 

Beer Fridge, 2014ish

  Until about ten years ago, I so rarely bought beer at the LCBO that it wouldn't register on my radar as an option. It didn't cross my mind to get my beer anywhere else but the Beer Store, bring back my empties, grab another 24 and away I went. A simple, singular transaction that took place in a building filled with olfactory nostalgia that hits me with memories of summer afternoons getting to go with my Pop as he was picking up a pack for the weekend. It never occurred to me that there were small breweries in Ontario to buy beer at or that I would ever bother going to them and paying a little more for the drunken satisfaction I sought every time I grabbed a case. I cared not for variety, only the best price and quickest in and out I could get. Convenience sold then and it still does now.

I did so love the Beer of Summer, circa 2013

  The change in the beer drinking landscape in the last decade or so has been tremendous no doubt, but the craft beer segment of consumers still makes up a relatively small percentage of overall beer sales, despite what those of us who have become so immersed and invested emotionally in believing in what we see as better beer and a better way to make and sell it. To say we can't see the forest for the trees wants me to admit we look any further than our own beer glasses and as someone who spends most of his time with people who see craft beer as a novelty, somewhat expensive and out of their comfort zone, I know what I think of The Beer Store isn't in the majority. 

  I understand the monopoly of the three headed mega beer corporations, with a smattering of craft brewers trying to swing for the fences, isn't the best way to sell beer anywhere, I also know that most folks do not care or have it on their radar to do anything else. Beer in grocery stores is a lovely convenience, when they are able to sell 24's, no doubt that will be manna to some people. But there is no real money in beer sales for a grocery chain, there were no more labour hours given to deal with the beer section, so it is at best an afterthought in most places or worst a begrudging problem for others.

  Corner store sales will be something else entirely, dealing with a different clientele seeking sudsy sustenance, and if we think the 20% craft beer shelf space is gonna mean better distribution for anyone but the larger breweries, I think you're dreaming. It's going to mean older shelf dates, perhaps not even any fridge space at all in places where the only concern will be checking ID's and moving along to the next customer. 7-11 doesn't give a damn about freshness and rotation in beer, they wanna sell 6 packs and Doritios. I may be cynical, but I was there for the start of beer sales in grocery stores and can tell you from experience that with very few exceptions, it isn't something franchisees want to deal with, it's often more trouble than it's worth.

  But more than the problems of freshness and accessibility, the vast majority of beer drinkers have no desire to make multiple trips to different places to get their beer and return their empties. I did a couple of polls on my social media last week about what people do with their cans and bottles and about 45% of people returned them for the deposit cash back with another 35% just tossing them into the recycling bins. I should say that the people who responded are most likely drinking craft beer more than macros, not a 24 buying crowd according to another poll I ran a few weeks ago showing few people who follow along with me are getting two dozen of any single beer very often or stopping at the Beer Store for anything but returns. I know there are machines out there that take empty bottles, kind of like coin sorters for boozehounds, but if you think most beer drinkers are going to stand there and feed bottle after bottle into a damn machine instead of just dropping the case on the rollers and probably saying hi to someone who's been serving them for years, well then I believe that may be delusional. Part of the concept of The Beer Store has become focused on their high level of recovering recyclable materials and that isn't something anyone wants to really take on. It is a dirty, thankless task and let's face it, most people aren't cleaning out the bottles and cans they return, a lot of nasty stuff spills out and has to be dealt with by the folks behind the counters.

This is a man who loves the Mountains Blue...

  The diversity of selection at most Beer Stores is often cited as one major issue. The antiquated keeping of the beer in the back room that only the staff can get you or the overwhelming macro selections on the roller shelves out front is another. But if craft beer made business sense (or had the pull at the corporate level of The Beer Store) to occupy the same spaces that are taken up now by Bud, Coors Light and Canadian, they would be there. The people who are buying the majority of beer speak with their dollars and until we can get craft beer to a better place in terms of overall sales, change isn't going to come quickly. 

We have seen a lot of positive developments in my almost decade of watching and discussing beer, bottle shops have sprung up and by all accounts seem to be servicing a real need in our little community, albeit with a little sticker shock tossed in for good measure.  The profile of local breweries has certainly been raised and I know more and more people who include craft beers in their purchases, sprinkled in with their regular beers. We who are immersed would be well served to step back every once and a while to see what the bigger picture is, The Beer Store serves a larger purpose than we like to acknowledge and despite more changes coming, they aren't going anywhere anytime soon. Good union jobs, not as many as there were before, are hard to come by in beer, I don't know of many craft breweries that are unionized or even pay a fair wage. The industry will continue to go through difficult times in the next few years and despite all the optimism I see on social media, the truth is not a pretty picture on Instagram. 

  I don't know what the future looks like for The Beer Store. They will most likely reduce their footprint, selling off properties that make no sense and streamlining operations to remain viable. It will mean the loss of better paying jobs, something a lot of craft beer drinkers do not want to talk about when it comes to industry issues, and no doubt a higher amount of people who just give up returning empties because it isn't convenient.  The vast majority of beer drinkers do what they do because it is easy, they don't want to deal with anything but the simplest solution and until someone comes up with a better model, The Beer Store will continue to do what it does for the foreseeable future.

Polk

February 5th, 2024

The Beer Store - What's next?

 

 The Beer Store.

  Iconic Ontario beer retailer that has been around for almost 100 years and it seems that time is drawing nigh for its near monopoly (80%) on beer sales in this province. While the politics behind the recent legislation in Ontario do cause me considerable pause, I wanted to talk about the actual beer problem we have here as opposed to getting weighed down by my personal loathing of our current government. Not to ignore their bread and circuses policy announcements but I am intrigued by what happens either now or in the future when the beer market finally opens up and we see what competition can deliver to Ontarians. 
  First off, a little primer for folks who don't know much about The Beer Store and it's ownership profile. Many think it is like our LCBO, owned and operated by the government with the profit returning to taxpayers fully but indeed it is a mostly (99.8%) foreign owned entity, controlled by Molson-Coors (50.9%), AB-InBev (44.9%) and Sapporo (4.2%) with a sprinkling of almost 30 other brewers from Ontario holding minor stakes. Delivery and distribution is a hallmark of The Beer Store as well as a world class recycling program for all alcohol bottles and cans sold here, saving tens of millions of dollars in tax revenue by dealing with the material instead of local municipalities. Well over 7000 people are employed at this (kind of) not-for-profit organization and while it is true many of the positions are part time, the full time union jobs are well paid and with good benefits.

  The monopoly on full case (12/24) sales outside of the actual breweries is but one way the stranglehold of most beer sales in Ontario has been established. Price breaks on larger package purchases encourages consumers to shop for their 24's here as opposed to the LCBO or grocery stores. The mandate of beer neutrality is supposed to help alleviate concerns of smaller brewers about the macro producers dominant position of ownership and from personal, albeit anecdotal, experience, I have found most Beer Store employees to be a good resource when I had questions about something new. Like any retail setting, including craft beer taprooms and the LCBO, some people are just punching a clock for a paycheque and others are passionate about what they are selling.
  The potential loss of jobs is certainly a large concern, especially for the people I have come to know as friends who work at The Beer Store. Opening up sales at convenience stores is more likely to impact grocery store 6 packs but if they are allowed to sell 12 and 24 packs or have any control over pricing for sales (now controlled through the LCBO), that could change. Whether legislation forces a minimum craft allocation at each convenience store will be interesting to watch but we can hope that some enterprising owners will seize the opportunity and perhaps some of them will see that carrying a wider assortment of craft is good for business. The more likely scenario is the heavy macro sellers (Coors Light, Bud, Canadian, et all) will continue to dominate as an easy pickup when the fridge runs low or you are on your way to party, late and in a hurry.
  The potential for Craft Beer focused stores like in Quebec or some of the other provinces that operate much differently than we do here is a big plus for many of the people I know. Access to more craft breweries from around the country and the world is considered the end game of any monopoly break up and while the Ontario Craft Brewers Association supports the legislation itself, it is difficult to see them laying out capital to build or own actual locations. Representing less than 30% of craft brewers in the province diminishes their voice a bit but that could change if they begin to offer more access and continue to lobby the government to create looser rules regarding stores, cross selling between breweries and the like. Being able to get a better selection just from around Ontario would be a huge plus, with more than 300+ brick and mortar breweries to choose from as well as even more doing the contract brewing thing.
  I'm sure the logistics of setting up such a venture would be mind-boggling and expensive and despite my best hopes, I know not everyone would satisfied. The majority of beer drinkers will continue to drink their macro lagers and purchase their 24s each week or so with no hesitation save a sale or giveaway included with purchase. I know this because only 4 years ago I was that guy who's brand loyalty was to whomever would be cheapest or had the coolest thing inside my case to offset a higher price point. I know as well that most craft beer drinkers tend to look for what's new and buy in smaller quantities outside of their own personal favourites that they like to have on hand all the time. Selection, freshness and a knowledgeable staff would be a seriously amazing thing if we can dream. And while I understand the nervous and not altogether unfounded fears of what will happen next, change is coming and we need to look at what we can do with an eye to creating good jobs, better access to great beer and the end to a system that has it's roots at the end of Prohibition. It's time we grew up and took off the chains of the protestant forefathers that ruled Ontario in the 1920s and beyond, we aren't children anymore.

  I have no desire to see anyone lose their job but at the same time, the world is a much different place than when this system was set up. The explosive growth of craft beer, spirits, wine and cider demands a new approach to the distribution and selling of alcohol in Ontario. The old ways must be examined, what worked can be integrated into the new system but in a humane and most Canadian way. Working within the framework of existing contracts with an eye to a modern approach to having greater and more convenient access to our favourite beverages is nothing to be done off the cuff, it behooves us to make sure the protections are in place to ensure minors and people who struggle with addiction are not left out of the equation. Craft beer focused stores may be the end game, how we get their will determine just how successful they can be.
Just my 2 cents, my personal habits are unlikely to change unless we see a radical shift in who sells what and where. I am cautiously optimistic but hope this conversation isn't used as cover for what has become a dangerously unprogressive government when it comes to important social issues. Do they have the mandate to break a legal contract 6 years before it expires? Is it really about beer? Those questions will have to wait for another post on another day, I'm pretty sure it's beer time now.


Cheers!
Polk