Ruminations

Blog dedicated primarily to randomly selected news items; comments reflecting personal perceptions

Tuesday, November 29, 2011

Marketing Monopolies

If you think about it, and it needn't take too much of your time to do so, it was a sound and intelligent arrangement. For a micro-brewery to enlist the assistance of Operation Come Home, an Ottawa charity whose function it is to assist homeless young people - in deliveries of the brewery's product. Of course, those who made this agreement more or less 'forgot' Ontario law which forbids clients from purchasing directly from the source.

There is a provincial monopoly on the sale of both hard liquor and wines, and beer products. The Liquor Control Board of Ontario has established by law its retail outlets through which all such products are sold. Harking back to the unlamented days of prohibition and the state solution of government control of such products, which could then be controlled, taxed and sold through government sources.

More than a trifle outdated, to say the least. But it is still the law. Under the Liquor Licence Act. Which, as a matter of provincial law, requires delivery services or individuals to purchase liquor products, whether wine, beer or spirits from the LCBO outlets or The Beer Store outlets, owned and operated by that very same Liquor Control Board.

So that when Micro brewery Beau's beer, a specialty brew, contracted with the charitable group that it would receive a good portion of the delivery price for its program, it was turned in to the Alcohol and Gaming Commission of Ontario by a competitor for unfair and illegal practises.

As it happens, Beau's specialty beer selections are not very well represented at the LCBO, and this partnership had the potential of enlarging their business as well as profiting the charitable enterprise, and helping young people, in the process gain some work experience along with dignity and modest earnings potential.

The Alcohol and Gaming Commission of Ontario took immediate steps to shut down the newly-launched delivery service. In one foul swoop, cutting off potential earnings for young homeless kids looking for employment, and charitable funds for a private group looking out for their interests, along with the brewery that came up with such an enterprising solution.

The service was to have profited Operation Come Home by $8.25 of every $15 delivery order. Operation Come Home's venture into business profitability to assist in their charitable work was put to an immediate stop. But, it seems, perhaps a little common sense may yet prevail. It would appear that word of the imbroglio has reached the ears of Premier Dalton McGuinty.

And it is just possible that he may see the practicality of altering a law that has grown hoary with monopolistic use and abuse.

"We're in the process of looking at the legislation now and the wording of it to determine how we can make some changes to make sure that this great initiative continues to move forward", said a Liberal MPP representing the riding of Glengarry-Prescott-Russell, where Beau's All Natural Brewing Co. is located.

Here's hoping...logic and practical necessity coincide to produce a workable solution.

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