People worry alcoholic drinks will be way more expensive at convenience stores in Ontario
Residents of Ontario haven't been sure how to feel about Doug Ford's announcement that alcoholic drinks will be hitting the shelves of convenience stores across the province as soon as August, but as more details about the program emerge, sentiments are becoming increasingly negative.
The end of the Beer Store monopoly and the ease of having far more locations to grab a quick beer on the way to the park or a friend's house have, for some, been overshadowed by the downsides of the change.
Namely, there's the hundreds of millions of dollars it's costing the government to pay out the Beer Store (and offer the necessary rebates to brewers and retailers).
And, now, there is worry that costs may increase on the consumer's end, too.
This is news, I guess, if you’ve never bought milk or pop or bread from a corner store. https://t.co/38GI7vdjiE
— Lloyd Davis (@ldaviseditor) May 30, 2024
Some experts are predicting that beer, wine, cider and ready-to-drink beverages like seltzers will be 20 to a whopping 50 per cent pricier at corner stores due to a "convenience store premium" on limited and very valuable fridge real estate.
As one consultant told the Star this week, drinks will likely be more expensive at these outlets than at the LCBO, Beer Store or even grocery stores, noting that "the smaller the store, the higher the premium's going to be."
There are also higher distribution costs to consider, as corner stores don't have things like loading docks, and may run out of product quicker and require more frequent, smaller deliveries.
So a $225 million convenience that is less likely to sell? That’s the point.
— Brian Wylie (@brianmwylie) May 30, 2024
While this prospect has riled some people up, other residents and industry insiders have faith that competition between thousands of stores will keep prices from getting as ridiculous as some are suggesting they might, as shoppers will gravitate to the cheaper option.
There is also the fact that people generally expect that the prices at these sorts of stores to be somewhat higher for all sorts of products due to, well, the convenience. And, even so, adult bevvies have remained reasonably priced at convenience stores in provinces like Quebec and Alberta where similar programs already exist.
Like everything else convenience stores sell? You have the choice to shop elsewhere.
— Maria (@Maria47B) May 30, 2024
As for the costs on the Province's end, Premier Doug Ford has now said that finds will be recouped through licensing fees that will bring in millions per year.
The plan is that after the rollout kicks off in August, every convenience, grocery, and big-box store in Ontario will be able to sell the aforementioned boozy drinks by the end of October.
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