Publicado: Vie, Agosto 10, 2018
Financiera | Por Marilu Caballero

Unveiling of Ontario buck a beer scheme expected today

Unveiling of Ontario buck a beer scheme expected today

Many brewers in the nation's capital say they can't afford to offer customers $1 beers because dialling sale prices back to 2008 levels - when the cost of everything it takes to make the beer have increased - is just bad for business.

Going into effect on August 27, the new price floor will challenge Ontario's 260 breweries to lower prices to $1.00 for any beer with an alcohol volume below 5.6% in time for Labour Day. The lower price won't apply to draft beer and won't include the bottle deposit. "You couldn't be more tone deaf on this subject".

In 2008 the previous government chose to ban Buck-a-Beer by setting a higher minimum price and today the retail price floor sits at $1.25.

He said he could not find any brewery in Ontario now selling beer at the current minimum price of $30 for a 24-pack.

The Conservatives have said a return to buck a beer would see more competition in the beer market without affecting the province's revenues from beer and wine taxes, which the provincial government has said brought in $589 million in 2016-2017. "It was hard for us to make beer anywhere less than $2 per short can in costs alone", he said in an open letter to the government.

Even a brand like Laker, which once prided itself on its $1-a-bottle price point, is retailing at $1.95 for a 473 ml can.

It is unknown if any additional Ontario craft breweries will participate. Many Ontarians took to Twitter Tuesday to voice their discontent with the "buck-a-beer" announcement, particularly in light of the government's recent cancellation of a Basic Income Pilot project. It's up to brewers to actually pass down the savings of $1 beer to consumers.

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The Premier of Ontario has announced his plan to make beer cheaper. "The provincial taxes are probably the single highest component of the cost of beer that consumers purchase in this province". The LCBO says up to 214 of its 660 outlets could host an identical end of aisle display for roughly one month or one "promotional turn" as they call it, at a cost of $36,000 to $46,000.

"I'd like to pay less for a case of beer when I go into a store".

Muskoka Brewery was one of the companies that declined to participate today.

"Ontario, the day you've been waiting for is finally here", Ford told reporters.

"I believe that we can pull this off".

He is to be joined by Finance Minister Vic Fedeli and local MPP and Government House Leader Todd Smith. "The premier is asking beer producers to lower their prices down to a dollar".

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