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| Beer Store ‘cartel’ hits Ontario suds fans in the pocketbook, study says | |
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| Topic Started: Aug 15 2013, 11:43 AM (181 Views) | |
| Darcie | Aug 15 2013, 11:43 AM Post #1 |
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Skeptic
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OTTAWA — A University of Waterloo professor has accused The Beer Store of running a “cartel” that has resulted in the foreign-owned company raking in $700 million in “incremental profit” compared to sellers in Quebec. Anindya Sen, an associate professor of economics, carried out a 22-week study to compare the price of five brands of beer in Ontario and Quebec. The study, which was funded by Ontario Convenience Stores Association, compared the prices listed on The Beer Store’s website for 2013 to the prices listed in the flyers for Metro and IGA grocery store chains in Quebec for the same year. What Sen found was that The Beer Store makes $700 million a year more than what they could make if Ontario had the same retail system as Quebec. The way Ontario’s beer retail system is structured allows for The Beer Store to enjoy a “legislation-protected monopoly status,” Sen wrote in his study. Sen also found that the cost of beer in Ontario was on average $9.50 more per case than in Quebec during the 22-week period. A 24-bottle pack of Molson Canadian, Molson Dry, Coors Light, Budweiser and Bud Light in Quebec cost about $25.95 compared to $35.56 in Ontario. Sen said The Beer Store pays taxes to the Ontario government, but argued there is the potential for further revenue generation through other avenues such as licensing fees to shrink the monopoly. “In a time of public debt, why do we have a cartel protected by government legislation in which all the profits are being funnelled away from what the government calls the social transfer?” Sen said in a phone interview. The Beer Store, which operated nearly 450 stores in the province, is jointly owned by Anheuser-Busch InBev of Belgium, Molson Coors Brewing Company of the U.S. and Japan’s Sapporo. The convenience store association behind Sen’s study is also backing a “Free Our Beer” campaign and petition drive to get support to be allowed to sell beer and wine in Ontario convenience stores. http://www.ottawacitizen.com/news/Beer+Store+cartel+hits+Ontario+suds+fans+pocketbook+study+says/8784355/story.html This is what these great 'free enterprise' companies do, they have a monopoly and charge whatever they want. Shame. |
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| heatseeker | Aug 15 2013, 12:04 PM Post #2 |
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Veteran Member
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So glad I'm a wine drinker. |
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| Darcie | Aug 15 2013, 12:10 PM Post #3 |
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Skeptic
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Don't be too happy, you must know that wine is also less expensive in Quebec as is Rum (only one I buy for a friend when I go there). |
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| heatseeker | Aug 15 2013, 01:11 PM Post #4 |
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Veteran Member
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Actually, no, I have not found that wine is less expensive in Quebec. Usually quite a bit more. |
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| Darcie | Aug 15 2013, 02:33 PM Post #5 |
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Skeptic
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Strange, the wine I like here is over $4 more than in Quebec, don't ask the name I just know the label. |
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| 1 user reading this topic (1 Guest and 0 Anonymous) | |
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