The team at CRAFT Beer Market Kelowna offer more than 100 drinks on tap. (Black Press Media files)

Ontario government to bring back buck a beer by Labour Day: source

Province had buck-a-bottle beer but the Liberal government quietly hiked the minimum price in 2008

Ontario will see the return of buck a beer by Labour Day weekend, The Canadian Press has learned, though some in the industry predict few brewers will embrace the new, lower minimum price.

A source with knowledge of the plan says the Progressive Conservative government is expected to announce Tuesday that it will lower the minimum price of a bottle or can of beer to $1 from $1.25 by the September holiday weekend.

Brewers would not be required to charge less, however, and the lower minimum price would not apply to draft beer, nor would it include the bottle deposit.

The government is hoping to get brewers on board by launching what it calls a “buck-a-beer challenge” with incentives for those who cut prices to $1, the source said.

The move was one of Premier Doug Ford’s promises during the spring election campaign, and Ford suggested in a video released Friday that he would be making good on it soon. He has also vowed to broaden the sale of beer and wine to corner and box stores.

The Tories have said bringing back buck a beer would allow more competition in the beer market without affecting the province’s revenues from beer and wine taxes, which brought in roughly $589 million in 2016-2017, according to government documents.

Ontario previously had buck-a-bottle beer but the Liberal government quietly hiked the minimum price in 2008, citing its “social responsibility” mandate.

In its heyday, buck a beer was a successful marketing campaign and seized a significant share of the market, said Scott Simmons, president of Ontario Craft Brewers, who was an executive at The Beer Store at the time.

READ MORE: Molson enters into joint venture to develop cannabis-infused beverages

Several brewers adopted it, including Lakeport, which “really took it to town,” said Simmons, who spent a year at the company.

But the costs of making beer have gone up, as have the provincial and federal taxes, making it less feasible for brewers to sell their product at the $1 minimum price now, he said.

“I don’t see many, if any, heading to that price simply from a profitability point of view,” he said.

“I don’t think it can be done in 2018 but some brewers may think it can be done and I’d be interested to see what’s actually in the product that they’re selling at that price,” he said. “It can’t be very good, let me put it that way.”

Few brewers sell at the current minimum price unless they’re having a sale, Simmons said, noting that an additional $6 drop for a case of 24 would likely wipe out any profits.

Still, the move will appeal to value-conscious consumers, though it probably won’t affect the craft beer market, which attracts a demographic that is willing to pay more, he said.

Paola Loriggio, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Castlegar mayoral candidate profiles

Lawrence Chernoff, Deb McIntosh and Bruno Tassone are running for the position of mayor of Castlegar

Meet your Castlegar City Council candidates

The municipal election candidates, in their own words

Playmor Junction daycare expansion faces opposition

Neighbours upset with rezoning application, citing traffic, noise and concerns about future uses

Polls open as city, region choose municipal leadership

Castlegar voters choosing mayor and council; Area J choosing director

Commercial repair shop moving to Castlegar

Bill’s Heavy Duty is expanding into a space near the West Kootenay Regional Airport.

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

B.C. tickets win big in Lotto Max draw

Jackpot carried over; B.C. tickets share Max Millions prizes

Most Read