TORONTO, Dec. 14, 2023 /CNW/ - The Master Framework Agreement (MFA) with The Beer Store has never been about choice, convenience, or prices for customers. It has always been about serving the interests of the big brewing conglomerates. Retail Council of Canada (RCC) is pleased to see the government has taken a strong first step in the right direction with today's announcement.
"Retail Council of Canada is pleased to see the government move to end the Master Framework Agreement with The Beer Store. That agreement placed choice, convenience, and price for customers subordinate to the profits of big multinational brewing conglomerates. By ending the MFA, Premier Ford is moving Ontario forward and opening choices for consumers; more grocery stores will soon sell a wider range of alcohol options, in all formats and sizes, and will have the option to introduce private label products," said Karl Littler, Senior Vice-President Public Affairs for Retail Council of Canada.
Grocers in Ontario have a proven record of success in bringing craft beers and VQA wines to market and so the decision to open the market by removing the existing cap on the number of grocery stores with retail licenses only makes sense. This is also good news for local producers. Case in point: past analysis by the Ontario Craft Brewers reported that craft beer only makes up approximately 2% of The Beer Store's sales. By contrast, craft beer can represent 20% to 40% of category sales in grocery, depending on the grocery banner.
Ontario's retail system for alcohol has lagged other jurisdictions for far too long. Retail Council of Canada is excited to see several changes that will bring us closer in line with the greater convenience we know our customers are looking for. Grocers look forward to being able to sell larger format sizes, such as 12s, 24s and other sizes, along with a new product offering – ready-to-drink spirit beverages. Retail Council of Canada has also been pushing for a more open system that would bring about lower consumer prices. This is the case in Quebec where direct negotiations between grocers and brewers is already allowed, as it is in most jurisdictions around the world.
Retail Council of Canada is happy to hear Ontario will be allowing private label products. Restricting a retailer's ability to sell private label eliminates an important source of market pressure on branded vendors to ensure they are price-competitive, particularly where negotiation between retailers and manufacturers is prohibited. RCC looks forward to more information and conversation.
Retail is Canada's largest private-sector employer with over 2.3 million Canadians working in our industry. The sector annually generates over $91 billion in wages and employee benefits. Core retail sales (excluding vehicles and gasoline) were over $462B in 2022. Retail Council of Canada (RCC) members represent more than two-thirds of core retail sales through small, medium, and large retail businesses across the country. This includes 54,000 storefronts including department, grocery, specialty, discount, independent retailers, online merchants and quick service restaurants. Our grocery members alone represent more than 95 per cent of the market in Canada.
For more information or to schedule media interviews, contact:
- Sebastian Prins
Director, Government Relations (Ontario)
1.416.467.3759
[email protected] - Karl Littler
Senior Vice President, Public Affairs
1.416.467.3783
[email protected]
SOURCE Retail Council of Canada
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