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

Sylvan Lake family ‘humbled’ by support as son undergoes cancer treatment

Zane Baker was diagnosed with a brain tumour in 2017 and will now travel to Florida for treatment

Eckville Curling Rink vandalized

Earlier this year the Eckville Library was also vandalized with graffiti

Lacombe Minor Hockey wins Hockey Alberta Association of the Year Award

Skill development, commitment of volunteers and corporate sponsorship fuel success

Alberta RCMP shares tips for motorcycle safety month

Showing off does not pay off – but driving defensively does

Drivers reminded impairment and driving don’t mix

National Road Safety Week May 14 to 20

Trudeau touts economic record at Liberal fundraiser in Vancouver

The Prime Minister was in B.C. for much of this week

Red Deer man arrested in connection with Leduc armed robbery

Leduc RCMP asking for public assistance after armed robbery – UPDATE

Leduc RCMP seek older suspect in alleged assault

Leduc RCMP seek public assistance in identifying assault suspect

School bus crash in Edmonton sends 12 to hospital, 2 with broken bones

Alberta Health Services said there were no life-threatening injuries

Crews fight fire with fire to keep blaze from northern Alberta town

The wildfire now covers some 920 square kilometres

Supreme Court of Canada won’t hear Alberta murder appeals

Sheena Cuthill and her husband Timothy Rempel were found guilty three years ago of killing Ryan Lane

Pipeline protester chimes in on Justin Trudeau’s B.C. fundraising speech

The government purchased the Trans Mountain pipeline and expansion project for $4.5 billion

Canada stripping citizenship from Chinese man over alleged marriage fraud

The move comes amid severely strained relations between Ottawa and Beijing

Mayor says northern Alberta town still under threat from nearby wildfire

The blaze has now eaten its way through about 920 square kilometres of forest

Most Read