Close the Stores
Are the LCBO stores relevant anymore? As of the July 10 publication date of this article, LCBO stores have been closed for five days, while countless alternative ways to acquire alcohol persist. Considering we are surrounded by distilleries, breweries, cideries and wineries, has anyone even noticed the closure? If you haven’t visited, what are you waiting for? Now is time to get to know the people who produce the local beverages in our own backyard. Their spaces are much more inviting than any LCBO I have been in. Plus, they are run by passionate, educated and enthusiastic craftspeople, excited to share their new vintage or product directly with you.
And just because the LCBO stores are closed, this doesn't mean that the flow of alcohol has stopped completely. The warehouse remains open. It provides wine and spirits to bars and restaurants. It also serves agencies that can deliver cases of wine straight to your door.
The beer stores are all open too. And you can purchase both beer and wine at many grocery stores. So what is the big deal? Maybe it is time for a new model.
Consider that in 2023 the operating expenses for the LCBO were $898 million: $564 million went to running retail stores, while $252 million went towards administration costs. The LCBO spent $52 million on supply chain and wholesale costs, and $30 million on merchandising and marketing. Additionally, the LCBO paid $37 million in realty and property taxes. That is a lot of money being diverted from health care and education at a time when both are particularly fragile. And they are striking for, among other things, higher wages. This would mean allocating even more money simply to provide you with mostly average wines and spirits at some of the highest price points in the world.
Of course the LCBO collects taxes collected by the government. But, does Ontario really need to expend so much to stock stores when there are private and willing businesses already in place? Taxes collected on the sale of cannabis and tobacco, for example, are returned to the Ontario government without the operation costs of stores and staffing. Why is alcohol still sold to us by our government?
Let the agencies open their own stores with the ability to create unique, inviting and relaxing places for you, the consumer to shop and engage in the world of wine while increasing the selection in the market. Imagine browsing small, regionally focused wine shops like those found elsewhere in the world.
The LCBO was created in 1927 as a response to prohibition. Perhaps this was a suitable solution to Ontario’s needs back then, but the monopoly relic has ballooned out of control at the expense of the consumer, who is left with narrowed choices, while benefiting large multinational corporations.
There are myriad of places to purchase alcohol apart from the LCBO stores in 2024 and closing them for 14 days does nothing but save some operating costs. Imagine how much could be saved if they closed for 14 weeks, 14 months or forever.