While changes to the grocery setup will have a major positive impact on independent brewers, a new governance model at the Beer Store (TBS) outlets across Ontario, which involved increase visibility for craft breweries, is also considered ground-breaking and, according to Ontario Craft Brewers, brings it much closer to its roots where all brewers in Ontario benefitted equally from the system.
“We look forward to working with the independent directors on an ongoing basis and in particular during in the transition phases that will take place over the next year or so. We welcome the creation of an Ontario Craft Beer category/section in all TBS stores at the shelf level and in any permanent and ongoing consumer-facing displays, they said in a statement.
Greg Taylor knows a great deal about beer in Ontario. As co-founder of Steam Whistle Brewing, a company he co-founded at the end of the nineties, he has helped developed the brewery’s sole offering, a Pilsner, to ensure it has become a mainstay for drinkers.
“What Wynne is doing for those involved in beer is huge. It will take away some of the monopolised situation that the larger breweries that Molson coors and AB Inbev has with what The Beer Store offers. They have carried craft beers it but their approach has not been conducive to promoting it. But now, there is a 20% merchandising opportunity to craft brewers, which will give them shelf space, and also for promotion, where three or four breweries can put their beers,” he explains.
Taylor adds that the same will apply for for groceries stores, dedicating around 20% space for craft beer. There are thousands of these, so the growth potential there is massive. “While the LCBO will still manage the sale of the beer, and the flow of the beer, the POs will go through the LCBO but we, or third party can bring them, and offer them to consumers.”
But while Taylor has optimism about these changes, they are not without solid grounding, either. And he knows it.
“Larger breweries didn’t want it to happen. They have been able to sell it wholesale, and for also for retail, which is very rare. Controlling what people are drinking. They are controlling it and now, they are not happy. They tried to influence the situation, with the union of LCBO staying that these changes will allow young kids to buy beer and that only their employees could properly control the sale of beer, implying that there is a lack of responsibility,” he explains.