GOSH: LCBO to match lowest prices in Canada

TORONTO – (GOSH Wine News Services) – The Liquor Control Board of Ontario (LCBO) will announce Monday that new legislation from the Ontario Liberal government will enable the Crown Corporation to match the lowest prices on alcoholic beverages offered anywhere in Canada.

 

In doing so, the provincial government will be enabling a most-favoured nation (MFN) clause. MFN clauses require that a province be given the lowest price that is provided to another province or private payers. This means that when a producer such as a winery reduces its price to win a listing in one province it must also reduce its price in the province with MFN clauses.

 

These MFN clauses may be structured or enforced to minimize their potential anti-competitive effects.

 

Said a spokesperson for the LCBO, "We wanted to offer a Good Deal for the Good People of Ontario, A Have-Not Province. We've crunched the numbers and we believe that we can still offer value and retain market share and profits. Why should Ontarians pay the current $18.95 for Gray Monk Gewurztraminer when the B.C. customer gets it for $16.99? Starting next month, Ontario will offer it for $16.99. And why should Quebecois get Mondavi Fume Blanc for $16.50 (it's $22.95 in Ontario)? We too will offer it for $16.50. And beers too. Why shouldn't we be offered the same floor price for wines, beers, and spirits that are sold for less money in other provinces? There'll be more to come. Just watch us."

 

Top investigative wine reporter Brett Grimsby has been following this story for days now, and he files this report based on several interviews with Miffed Mole, the collective name for our sources who are familiar with the situation, and who spoke to him on condition of anonymity because they were not authorized to divulge details while they were very close to the centre of discussions and while the matter under consideration had not yet been finalized nor announced to the public. While the decisions may or may not have been finalized internally, and while an announcement on the matter may or may not be imminent, possibly within the next hour or two, that specific timeline is not really known.

 

Grimsby said, "The MFN's purpose is to ensure that the Ontario province implements the policy benefits from low prices provided to other provinces such as B.C., Quebec, or Alberta.

 

"The LCBO, as you probably know, has been mandated by McGuinty's people to come up with a soft approach for the impending 2011 election. They're going to bear the brunt of whether McGuinty gets re-elected or not. Certainly, they will be blamed if the Liberal party is not re-elected to power. The threat is an open one: either come up with a way for the LCBO (and thus McGuinty) to be popular with the people or be sold off to private hands. McGuinty will have his way with this one."

 

"Sources, though," admited Grimsby, "should not be held responsible for the speculative and/or playful treatment of their research and/or disclosures."

 

More on this interesting turn of events as it develops…

 

Chimo!  www.deantudor.com AND http://gothicepicures.blogspot.com