The Beer Store’s secret sweetheart deal with LCBO revealed

The Toronto Star reveals the secret deal between The Beer Store and the Ontario government that restricts competition and keeps the foreign-owned beer retailer with a firm grip on Ontario’s beer drinkers.

Thanks to a whistleblower, we now have the secret details of how Ontarians are being hosed by The Beer Store with the wilful involvement of elected officials.

Before stocking up for the holidays, you can read why the province remains captive of a private quasi-monopoly in beer retailing that bankrolls the richest, toughest political lobby in the province.

A still-confidential operating agreement lays bare the foundations of an inglorious cash grab that the big foreign-owned brewers who run The Beer Store don’t want you to know about. And what the government-owned LCBO is too embarrassed to show you.

The Beer Store and the LCBO have repeatedly refused my requests to disclose their mutual non-aggression pact, and it’s easy to see why. Dated June 1, 2000, the document confirms the folly of our Crown-owned LCBO acting on the orders of the Progressive Conservative government of the day (and the Liberal government of today, which is no less guilty).

The 10-page document, authenticated by an LCBO source, details an arrangement that constrains growth in the LCBO’s beer sales to protect the effective retail monopoly of the ever unpopular — but forever profitable — Beer Store.

Read the full story in The Star >>