Beer store statement on ownership voting shares

TORONTO, Jan. 9, 2015 /CNW/ - The following is a statement from Beer Store spokesperson Jeff Newton regarding the rights that attach to shares in the Beer Store being created for Ontario-based brewers:

There has been some confusion regarding the voting rights of new Beer Store owner-brewers in terms of the shares that are being created and we want to provide further clarity on this issue.

The suggestion that these shares will have no voting rights is false. These ownership shares for Ontario-based brewers will come with voting rights, including the right to vote for representation on the Board of Directors of the Beer Store.

The preferred shares will enable new owners under 5 million litres of Beer Store sales to vote to elect a representative on the Board of Directors, who in turn votes on the Board. Going forward, these small brewers will also pay 9 per cent lower fees than the current Beer Store owners based on the 2015 Beer Store operating budget.

All new representatives on the Board will vote to elect a member of the executive committee of the Beer Store's Board of Directors. All new owners will regularly get financial statements. The new Board of Directors will be comprised of 15 members, five from Labatt, 5 from Molson and 5 from other brewers, including two from Sleeman, up to two from brewers with Beer Store sales of over 5 million litres and one representing small brewers with Beer Store sales under 5 million litres.

The new ownership structure was designed to facilitate small brewers becoming owners without having to make a large upfront investment. The proposed model shields small brewers from onerous capital costs and exposure to liabilities such as pension deficit costs. 

And with regard to suggestions small brewers had never talked about wanting ownership of the Beer Store, they provided the Beer Store with a letter sent to the Government of Ontario in 2011 where they asked for ownership. In the letter (which is available at http://imgur.com/hHknp7j), the then-President and Chairman of Ontario Craft Brewers wrote to the Government of Ontario: "More specifically, we are strongly of the view that all Ontario brewers, and not just the biggest, were meant to have the opportunity to be shareholders of BRI (the Beer Store), and to participate in its operations."

About The Beer Store

The Beer Store offers customers 490 brands, provided by 105 brewers. Approximately 1-in-4 brands come from small Canadian brewers. It is a completely open system that allows any brewer in the world to sell their brands in any store they choose. The Beer Store is deeply committed to responsible sale and not selling to minors and people who are intoxicated.  More than 3.6 million customers were challenged in 2013 alone. It is also one of the greenest retailers in the world and collected more than 1.7 billion beer bottles in 2012-2013 (a 92 per cent return rate) and 300 million wine and spirit containers (a 80 per cent return rate). The Beer Store Employs 7,000 hard-working Ontarians with well-paying full and part-time jobs.

SOURCE The Beer Store

Please contact: Bill Walker, [email protected], 416-624-3936