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

Transplant caregiver starts website for financial, mental health support

Beth Campbell-Duke started Transplant Rouges after her husband’s double lung transplant

Victoria ranked as one of B.C.’s worst cities to work in

High living costs and low average incomes drop Victoria from the top 10

Saanich swimmer has ribs removed, posts them on social media

Jill Yoneda makes light of rare surgery for ‘slipping rib syndrome’

Cyclist without helmet thrown onto windshield in Victoria

Despite damage to bike, cyclist uninjured following accident

Victoria no longer interested in hosting a downtown casino

Mayor puts forward letter that retracts interest in hosting a casino

Lawyer for Chinese exec detained by Canada says it’s ‘inconceivable’ she would flee

Meng Wanzhou was detained at the request of the U.S. during a layover at the Vancouver airport

Federal government plans examination of coerced sterilization

The Liberals have been pressed for a rapid response to recent reports on the sterilizations

Huitema, Cornelius named 2018 Canadian Youth International Players of the Year

Huitema was captain of Canada’s fourth-place team at this year’s FIFA U-17 Women’s World Cup

Canada not slowing emissions from oil and gas: environmental groups

New report released at the United Nations climate talks in Poland

Liberal Party moves Trudeau fundraiser from military base

The fundraiser is scheduled for Dec. 19, with tickets costing up to $400

Pipeline protesters arrested at B.C. university

Three protesters were arrested after TRU property allegedly vandalized with red paint

Goodale to ‘examine’ transfer of Rafferty to medium-security prison

Michael Rafferty was sentenced to life in prison in 2012 in the kidnapping, sexual assault and first-degree murder of Tori Stafford

‘Abhorrent’ condition of autistic B.C. boy shows flaws in care system: report

‘Charlie’ was underweight and ‘covered in feces’ when he was removed from his mom’s care

Minister appoints former CIRB chair to resolve Canada Post labour dispute

Postal workers engaged in weeks of rotating walkouts

Most Read